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California’s Department of Industrial Relations (DIR) announced a 3.3% rate increase for 2026, from $56.97 to $58.85, stemming from the California Consumer Price Index for Urban Wage Earners and Clerical Workers. Alternatively, an otherwise qualified salaried employee is eligible on minimum annual compensation of $122,573.13, up from $118,657.43, payable at least once monthly at no less than $10,214.44.
An exempt computer professional must also meet each of the Labor Code section 515.5 high-level skills and duties criteria. Among these, the employee must be “primarily engaged” (more than 50% of the time) in intellectual or creative work requiring the exercise of discretion and independent judgment such as ● applying systems analysis to determine “functional specifications” of hardware, software or systems; ● designing computer systems or programs; and/or ● documenting, testing, creating or modifying computer programs related to computer systems software or hardware design.
This exemption does not apply to trainees, entry-level employees, writers in the computer field, or others who use computers extensively but are not doing systems analysis, programming, and the like.
Although computer software professionals need not be paid overtime premium under California law, employers should further ensure they meet the comparable federal law exemption, which includes a less restrictive definition of “primary” duty, a lower hourly/salaried threshold, and similar skills and duties tests.
Such computer professionals may also qualify for the administrative, executive or “learned profession” exemptions from overtime, each of which has its own distinct qualifications.
For more information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
Helena Kobrin
February 20, 2026
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