Don't assume any employee who works with computers is exempt from FLSA coverage. For an employee to qualify for the computer employee exemption, each of the following job tests must be met: The employee must be compensated either on a salary or fee basis at a rate not less than $455 per week, or $27.63 per hour. A combination of the aforementioned duties, the performance of which requires the same level of skills. However, Section 13(a)(1) and Section 13(a)(17) of the FLSA provide an exemption from both minimum wage and overtime pay for computer systems analysts, computer programmers, software engineers, and other similarly skilled workers in the computer field who meet certain tests regarding their job duties and who are paid at least $684* per week on a salary basis or paid on an hourly basis, at a rate not less than $27.63 an hour. $27.63 per hour, if paid for each hour worked. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Sometimes an employer will make a mistake and erroneously classify a worker as a computer professional. unless lodging is not available at the work activity, then the agency may authorize the rate where The Renfro writers used their experience and judgment in selecting the best method to maintain the equipment when they developed a procedure and did not perform their work under constant supervision. .table thead th {background-color:#f1f1f1;color:#222;} (unless otherwise listed separately).". Legal DisclaimerWebsite powered by 321 Web Marketing. 2004). Here's how employers and employees can successfully manage generative AI and other AI-powered systems. The employees primary duty includes the exercise of discretion and independent judgment with respect to matters of significance. OF-271; 8/23/04; Page 6 . Overtime pay, minimum wage, record requirements, age restrictions, and hours worked are some of the standards for employees outlined in this law. 541.700(a). Id. Unlike other exemptions, there is no requirement that the employee be paid a weekly salary. Effective Date of Change: I discussed this with employee on: (Date) Copy received by employee on: . Below is an overview of the computer professional duties test and key terms employers should know. Other times, this misclassification may be done on purpose. The so-called white collar exemptions also include executive and professional employees and outside sales persons who are paid on a commission basis. Contrary to the arguments advanced by some FLSA plaintiffs, however, an employee does not have to write code in order to qualify for the Computer Professional exemption. Former 541.207(a) and (d). A lock He installs, maintains, and troubleshoots the software for the company computers. 541.207 is still cited even in cases decided after the revision. Computer professionals are exempted from certain rights under California's labor laws. Learn what GSA has to offer to prospective employees. *Note: The Department of Labor revised the regulations located at 29 C.F.R. Search current federal contract opportunities and procurement notices. .usa-footer .container {max-width:1440px!important;} Related article: White-Collar Wrinkles, HR Magazine, December 2004. Please note: Our firm only handles criminal and DUI cases, and only in California. The Cruz court further concluded that Lawsons consultants exercised discretion and independent judgment with respect to matters of significance within the meaning of the third prong of the exemption analysis articulated at 29 C.F.R. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} Is the worker employed as a computer systems analyst, computer programmer, software engineer, or other similarly skilled worker in the computer field? See other fact sheets in this series for more information on the exemptions for executive, administrative, professional, and outside sales employees, and for more information on the salary basis requirement. Traveler reimbursement is based on the location of the work activities and not the accommodations, See 29 U.S.C. .cd-main-content p, blockquote {margin-bottom:1em;} Exemptions Applying to I.T. 541.202(c). IT support specialists are not exempt, DOL states, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences. The Computer Professional exemption is not available, however, to an employee whose job merely requires highly specialized knowledge of computers and software. Instead, in order to qualify for the exemption, an employees job duties must meet a higher standard, requiring the theoretical and practical application of highly-specialized knowledge in computer systems analysis, programming, and software engineering.. The design, development, documentation, analysis, creation, testing or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications; or. If there is a difference or conflict though, employers are legally required to apply those laws that benefit the employee the most.9. A .gov website belongs to an official government organization in the United States. make above a certain hourly wage or rate, or. Employees must pass all three of the tests below to be exempt from FLSA coverage: From what we read above, it seems that any computer professional or IT employee has FLSA exempt status under the computer exemption, right? Whether an employee exercises discretion and independent judgment in matters of significance includes factors such as: (1) whether the employee has authority to formulate, affect, interpret or implement management policies or operating practices; (2) whether the employee carries out major assignments in conducting the operations of the business; (3) whether the employee performs work that affects business operations to a substantial degree, even if the employee's assignments are related to operation of a particular segment of the business; (4) whether the employee has authority to commit the employer in matters that have significant financial impact; (5) whether the employee has authority to waive or deviate from established policies and procedures without prior approval; (6) whether the employee has authority to negotiate and bind the company on significant matters; and (7) whether the employee provides consultation or expert advice to management. Conclusion: Computer Cory is FLSA nonexempt (he is protected by FLSA coverage like overtime pay). The decisions made as a result of the exercise of discretion and independent judgment may consist of recommendations for action rather than the actual taking of action. This can have a significant impact on their legal rights. You may check boxes in more than one exemption category. The FLSA changes, effective beginning December 1, 2016, will raise the salary threshold for overtime pay from $23,600 per year ($455 per week) to $47,476 per year ($913 per week). The .gov means its official. at 827. The requirement that the employees primary duty necessitates the use of discretion and independent judgment in matters of significance generally means that the employees primary duty involves the comparison and the evaluation of possible courses of conduct, and acting or making a decision after the various possibilities have been considered. Get the resources you need to successfully manage FLSA compliance (and dont end up in court). Chicca v. St. Lukes Episcopal Health Sys. Whether an employee creates or modifies source code is immaterial to the application of the Computer Employee exemption. The FLSA exemption test refers to the status of a job as outlined in the Fair Labor Standards Act. 541.202(b). 29 C.F.R. ; and (2) what is the level or nature of the work performed? For employers in most non-agricultural industries, the relevant exemptions are found in Section 13(a)(1) of the FLSA, codified at 29 U.S.C.A. 29 C.F.R. 541.200(a). However, employees can exercise discretion and independent judgment even if their decisions or recommendations are reviewed at a higher level. Although there was a procedural manual to guide them, the manual was not a set of strict requirements governing the contents of the procedures developed. Cal., March 29, 2016) (denying class certification because, among other reasons, the plaintiff would have us draw inferences about what every [employee] actually does and how much independence every [employee] actually exercises, while essentially ignoring the declarations from both sides that indicate a lack of classwide uniformity) (internal quotation omitted). However, some states already require a higher salary threshold. Employees with FLSA exempt status, however, means their employers are not responsible for paying them for overtime work. The FLSA determines whether a job is exempt or nonexempt as it relates to overtime obligations. Or do they have, examples of job duties that are not likely to qualify, Managing backup and archive (tape) libraries, Preparing operator instructions or computer operation performance diagrams, he is automatically exempt from FLSA coverage. Shouse Law Group is here to help you fight back. The sections use nearly identical wording, and the revision was not intended to change the law. These changes could allow over 4 million workers in the U.S. to be considered FLSA non-exempt and thus eligible for overtime pay. 29 CFR 541.400(a), The computer employee exemption does not include employees engaged in the manufacture or repair of computer hardware and related equipment. An IT technician responsible for installing and upgrading hardware and software on workstations, configuring desktops, checking cables, replacing parts, and troubleshooting Windows problems would therefore not qualify as a Computer Professional, even though the job necessarily requires some degree of specialized computer knowledge. The Sixth Circuit held that the technical writers were exempt as administrative employees. Computer Cory is an employee at your company who earns an annual salary of $75,000. For example, in Carbaugh v. Unisoft International Inc., (S.D. The issue turned on what constituted each plaintiffs primary duty, or the principle, main, major or most important duty that the employee performs. 29 C.F.R. 5 percentMonitor automated alerts generated by system management tools and make decisions on the most effective resolution. Please try again later. What laws are computer professionals exempt from? Texas, Nov. 15, 2011) (unpublished), the evidence showed that the employees responsibilities included installing and tailoring the employers software to suit the employers clients needs, trouble shooting problems, training the clients, working with the employers programmers and coders to provide them with information they needed to produce software that suited the clients needs, verifying that software performed as needed, and consulting with clients for new product ideas and enhancements.4The court concluded that the employees responsibilities met the criteria for the administrative exemption and granted the employers motion for summary judgment on the employees claim for overtime pay. #block-googletagmanagerheader .field { padding-bottom:0 !important; } The Department of Labors most recent proposed changes to the regulations defining the FLSAs thresholds for exemption would increase the salary basis requirement from $455 per week to $970 per week. Its important to check each employee based on the FLSA exemption tests. The employee . For additional information, visit our Wage and Hour Division Website: http://www.dol.gov/agencies/whd and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243). This article is meant for educational purposes only and should not be considered legal counsel. In addition, these professionals must perform certain work duties to qualify as exempt employees. As of January 1, 2023, California employers must compensate their computer professionalemployees with an annual salary of $112,065.20 or more ($9,338.78 a month or $53.80 an hour) to be exemptfrom paying them overtime. Federal law provides that certain PSU employees may be exempt from the overtime wage provisions of the Fair Labor Standards Act (FLSA) under the following exemption categories: EXECUTIVE, TEACHING, PROFESSIONAL, ADMINISTRATIVE, or COMPUTER. Start Preamble Start Printed Page 51230 AGENCY: Wage and Hour Division, Department of Labor. LEXIS 45588, *22-23 (N.D. Mich. Power Co., decided by the 6th U.S. See also, California Labor Code 515.5a4. The analysis always starts with the DOL regulations defining and explaining the general requirements for application of the exemption. To qualify for the FLSA computer exemption, the following tests must be met: The FLSA computer exemption doesn't include computer professionals whose primary job functions involve manufacturing or repairing computer hardware and do NOT primarily engage in software engineering or systems analysis. There is an additional potential FLSA exemption for certain computer employees. Definitely recommend! 1988) that a project manager whose main job was to oversee the implementation of and conversion to employers billing software at all offices of her employers customers was covered under the administrative exemption. We have law offices in Los Angeles and throughout the state. Is the employee paid on a salary or fee basis of at least $455 per week ($913 per week beginning December 1, 2016)? .paragraph--type--html-table .ts-cell-content {max-width: 100%;} WHD will continue to enforce the 2004 part 541 regulations through December 31, 2019, including the $455 per week standard salary level and $100,000 annual compensation level for Highly Compensated Employees. 541.400(a). p.usa-alert__text {margin-bottom:0!important;} The FLSA is enforced by the U.S. Department of Labor (DOL). A number of exemptions can apply to computer professionals and other I.T. .usa-footer .grid-container {padding-left: 30px!important;} And the mere fact that the job title was an IT support specialist was not enough for the employees to fit within the computer professional employee exemption. Symbols refer to GT's office structure, which is detailed on the Disclosures page. Allen Smith, J.D., is SHRMs manager of workplace law content. Federal government websites often end in .gov or .mil. However, some states already require a higher salary threshold. 8 CCR 11040(11)(B) Administrative exemption regulations. Your session has expired. Very helpful with any questions and concerns and I can't thank them enough for the experience I had. entire installation or facility is the higher of the rates which apply to the cities and / or counties, 5 percentParticipate in the analysis and selection of new technology required for expanding computing needs throughout the organization. The post-2004 regulation, which excludes duplicative and confusing language included in the pre-2004 statute, provides clarity while maintaining the legal standard. In order to satisfy this part of the administrative employee exemption analysis, the employee's exercise of discretion and independent judgment may consist of recommendations for action rather than the actual taking of action; unlimited authority and a complete absence of review are not required. However, there are certain exemptions from both the minimum wage and overtime requirements of the FLSA. (S.D.
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