The California Department of Industrial Relations (DIR) issued a memo on October 18, 2021, increasing the compensation threshold for exempt computer professionals by 5.3%, compared to the 2021 rates.
Effective January 1, 2022, computer professional employees must be paid a salary of at least $104,149.81 annually ($8,679.16 monthly) or an hourly wage of $50.00 per hour. In addition to the increased pay requirement, California employers must ensure that their computer professionals satisfy the duties test set forth under California Labor Code Section 515.5.
Next Steps for Employers
California employers must ensure that compensation rates for computer professionals meet updated salary thresholds, as of January 1, 2022. Updates might result in increasing an employee’s hourly wage or salary or reclassifying exempt employees to non-exempt if they will no longer meet the exemption salary requirement.
To comply with California’s Wage Theft Prevention Act, updated pay notices should be provided to employees who are being reclassified as non-exempt.