The required compensation levels for employees exempt from overtime rate of pay requirements under the California computer software professional exemption will increase by 2.2 percent from current levels beginning January 1, 2015, the California Department of Industrial Relations (DIR) has announced.

This means that the minimum hourly rate of pay necessary to qualify for the exemption will increase from $40.38 to $41.27; the minimum monthly salary will increase from $7,010.88 to $7,165.12; and the minimum annual salary will increase from $84,130.53 to $85,981.40.  Employers are reminded that in addition to the salary requirement, California employees also must meet a stringent duties test to qualify for the exemption.