California IT Professionals: Making No Money for Working Overtime

San Diego, CAIf you are one of the computer professionals who made around $76,000 last year, you could be in for a rude surprise. California Bill AB 10 went into effect in 2008, and that means that a lot more computer professionals, workers who were previously eligible for overtime pay, are now exempt from overtime pay.

Bill AB 10 sets the limit for exemption at $75,000—meaning anyone who makes more than $75,000 a year in their full-time computer-related position is now not eligible for overtime pay. People who last year made an additional $20,000 or more because of the extra hours they put in for their company will now see no additional money for their hard work.

Figuring out who is exempt from overtime pay and who is not is more than just a question of numbers. The determination also depends on the type of job that worker does, and how much time is spent at a variety of tasks. That makes figuring out your exemption status that much more difficult. For example, if you spend 51 percent of your time designing software and 49 percent writing code, you might be exempt from overtime pay. However, if the reverse is true—if you spend 51 percent of your time writing code and 49 percent designing software, you might be eligible for overtime pay. But that requires figuring out how much of your time is spent in various activities.

Another issue is whether or not you exercise "discretion and independent judgment" in your job. This means that you get to make important decisions in the job, recommend actions to take and make those recommendations on your own, without immediate supervision. These decisions must also be vital to the business—selecting where to purchase lunch for your team does not constitute "discretion and independent judgment."

It is important that you not just rely on your employer's word when determining whether or not you are eligible for overtime pay. Employers, even those with the best of intentions, can be mistaken on this issue because it is so complicated.

What is not complicated is that now, if you make more than $75,000 a year in a job that is classified as exempt, and meeting all the exemption requirements, you will not be paid overtime, no matter how many hours a week you work. Whether you work 40 hours a week or 80 hours a week, you will still be paid the same. That might leave you wondering whether or not it is worth it to consider a career in another field. After all, a loss of that much money is a huge hit.

Bill AB 10 also changes the duties test so that now an exempt professional need only be skilled and proficient at either computer systems analysis, programming or software engineering. The professional does not have to be proficient in all 3 areas to be exempt from overtime pay.

If you feel that you have been misclassified as exempt, it is important to investigate the matter thoroughly and in a timely manner. There could be a statute of limitations that prevents suits from being brought after a certain date, so it is vital that you look into the matter—or have a lawyer look into the matter—as soon as possible.