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California Computer Professional Salary Threshold 2026: $122,573.13 Rule

California increased the compensation thresholds for the computer software employee overtime exemption effective January 1, 2026. Compensation is only one element; the employee must also perform qualifying high-level computer duties.

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California Computer Professional Salary Threshold 2026: 2,573.13 Rule

Quick answer: A qualifying California computer professional must receive at least $58.85 per hour, $10,214.44 per month, or $122,573.13 per year in 2026.

The 2026 compensation amounts

The California Department of Industrial Relations adjusted the thresholds by 3.3% based on the California CPI-W.

Who may qualify?

The exemption is designed for highly skilled employees primarily engaged in intellectual or creative computer work. Qualifying duties can include systems analysis, software design, development, testing, documentation, creation, or modification of computer programs and systems.

A title such as software engineer, developer, programmer, or IT analyst does not decide the issue.

Employees who may not qualify

Hourly versus salaried payment

California permits the exemption for qualifying employees paid at least the indexed hourly rate or the indexed monthly and annual salary amounts.

Employers must verify compensation every pay period and ensure deductions do not cause the requirement to fail.

Federal and state rules differ

The federal computer exemption can use an hourly threshold of $27.63 or the federal salary basis. California’s rates are substantially higher.

An employee can be federally exempt but nonexempt under California law.

Example

A software developer earns $115,000 annually and performs advanced programming work. The salary is below $122,573.13, so the California computer exemption generally fails on compensation.

Another exemption applies only if every separate requirement is satisfied.

Employer checklist

  1. Confirm the 2026 compensation amount.
  2. Review actual tasks and decision-making.
  3. Identify trainees, installers, technicians, and help-desk staff.
  4. Compare state and federal law.
  5. Track work time for nonexempt employees.
  6. Review salary deductions.

Frequently Asked Questions

What is the 2026 hourly rate?

$58.85 per hour.

What is the annual threshold?

$122,573.13.

What is the monthly threshold?

$10,214.44.

Are all software engineers exempt?

No. Actual duties and compensation must qualify.

Does the federal $27.63 rate control?

California’s higher applicable requirements generally control.

Official Sources

This article is for general educational purposes and is not legal, tax, accounting, payroll, or employment advice. Rules can change and may differ by location, occupation, employer size, and employee duties.

Reviewed for accuracy by the OvertimePayUSA editorial team using official labor sources such as the U.S. Department of Labor and state agencies.
Official Sources

This calculator is for educational purposes only. Consult your employer or a labor attorney for advice specific to your situation.

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Frequently Asked Questions

Can my employer require me to work overtime?
Yes. Employers can require overtime work. However, they must pay the required overtime premium (1.5x or higher per state law) for hours over the threshold. Refusing to work overtime may result in termination, but employers cannot refuse to pay overtime premiums that are legally owed.
What should I do if I think I'm owed unpaid overtime?
Document everything: save pay stubs, time records, emails, and any communications about hours worked. Calculate what you believe is owed. Contact your employer in writing first. If they don't respond satisfactorily, file a complaint with your state Department of Labor or the U.S. Department of Labor Wage and Hour Division. Consider consulting an employment attorney for large amounts.
Is my salaried position automatically exempt from overtime?
No. Many salaried positions still qualify for overtime pay. Exemption requires: (1) earning above the minimum threshold (~$35,500 federally, varies by state), and (2) spending more than 50% of time in exempt duties (executive, professional, administrative). If unsure, file a wage claim or consult an employment attorney.
Can I get overtime pay if I work multiple jobs?
Federal overtime laws (FLSA) typically count only hours for a single employer. However, some states have more generous rules. Hours worked for different employers at the same time usually don't combine for overtime purposes unless you're an independent contractor. Check your state's Department of Labor for specific rules.
What's the statute of limitations for claiming unpaid overtime?
Federally, you have 2-3 years to file a lawsuit for unpaid wages (3 years for willful violations). State laws vary: California allows 3-4 years, New York allows 6 years. For administrative complaints, the timeframe is often shorter (1-2 years). Act quickly if you believe you're owed wages.
Do I have to be paid for meal breaks?
If you work during a meal break or cannot take a true break away from your workstation, that time must be paid. If you take an actual, uninterrupted break (usually 20+ minutes), it can be unpaid. Rules vary by state—check your state's Department of Labor for specifics.
Are all software engineers exempt?
No. Actual duties and compensation must qualify.
Does the federal $27.63 rate control?
California’s higher applicable requirements generally control.
⚖️ Statutory Legal Authority: Overtime pay calculations strictly follow the Fair Labor Standards Act (FLSA), 29 U.S.C. § 207 and U.S. Department of Labor (WHD) Regulations 29 C.F.R. Part 778. State daily overtime rules comply with California Labor Code § 510, Colorado COMPS Order #38, and Alaska Stat. § 23.10.060.