New 2017 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, 2017.

For the computer software employees’ exemption:

  • The minimum hourly rate of pay exemption increased to $42.35 from its previous rate of $41.85;
  • The minimum monthly salary increased to $7,352.62 from its previous rate of $7,265.43; and
  • The minimum annual salary exemption increased to $88,231.36 from its previous rate of $87,185.14.

For the licensed physician or surgeon exemption:

  • The minimum hourly pay for licensed physicians and surgeons increased to $77.15 from $76.24.

These rates are tied to the California Consumer Price Index (CCPI) for Urban Wage Earners and Clerical Workers. The 2017 rate changes reflect the 1.2 percent increase in the CCPI.

CalChamber members can get more information from the HR Library’s computer professional exemption and the licensed physicians and surgeons exemption pages on HRCalifornia. Not a member? See how CalChamber can help you.

Note: Article updated on 11/29/2016 to reflect revisions by DIR after the U.S. Department of Labor, Bureau of Labor Statistics released a revision to the Consumer Price Index, which in turn affected the California Consumer Price Index.

, , ,