New 2012 Exempt Classification Rates

California’s Department of Industrial Relations (DIR) announced rate changes for the computer software employee exemption and the licensed physician or surgeon exemption. The new rates take effect January 1, 2012.

For the computer software employees exemption:

· The minimum hourly rate of pay exemption increased to $38.89 from its previous rate of $37.94.

· The minimum monthly salary increased to $6,752.19 from its previous rate of $6,587.50.

· The minimum annual salary exemption increased to $81,026.25 from its previous rate of $79,050.00.

For the licensed physician or surgeon exemption:

· The minimum hourly pay for licensed physicians and surgeons increased to $70.86 from $69.13.

These rates are tied to the California Consumer Price Index (CCPI) for Urban Wage Earners and Clerical Workers. The rates had not changed since 2008 because there was no net percentage increase in the CCPI. The 2012 rate changes reflect the 2.5 percent increase in the CCPI.