We would like to make our information technology (IT) manager an exempt employee. May we use the computer professional exemption for this purpose?
As with most wage and hour exempt classifications, the ability to classify an IT manager as exempt using the computer professional exemption will depend upon the IT manager’s actual job duties along with compensating the IT manager at least the minimum threshold required.
Computer Professional
The computer professional exemption has two tests — the job duty test and the compensation test — and often is misapplied because of its name. The exemption applies only to a very narrow slice of professionals who work with computers and frequently will not apply to those working in general information technology (IT) roles, even if they are high level.
Job Duty Test
The job duty test for a computer professional is strict and narrow and requires the following:
• Primarily engaged in work that is intellectual or creative;
• Primarily engaged in work that requires the exercise of discretion and independent judgment; and
• Primarily engaged in duties that consist of one or more of the following:
– The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software, or system functional specifications;
– 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
– The documentation, testing, creation, or modification of computer programs related to the design of software or hardware for computer operating systems.
“Primarily engaged” means that the computer professional is performing these job duties at least 51% of the time each workweek. The computer professional also must be highly skilled and proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming, and software engineering.
In other words, the employee generally is a systems analyst or software programmer in order to meet the requirements of this exemption.
Unlike the general professional exemption, the computer professional does not have any requirements for a college degree or any specific licensure or certification.
Compensation Test
In addition to meeting the job duties test, the employer also must compensate the computer professional at a level that is set annually each January 1 by the California government. For 2024, those rates are $55.58 per hour or a monthly salary of $9,646.96 and minimum annual salary of $115,763.35.
If the IT manager doesn’t meet both these prongs of the exemption test, then the employer may not make the IT manager exempt under the computer professional exemption.
‘White Collar’ Exemption
However, the employer also may evaluate the IT manager under the traditional “white collar” administrative, executive and professional exemption.
Each of these exemptions has their own job duties test and all require a salary of at least two times the applicable statewide minimum wage.
If the employee can meet any one of these tests, then the employer may classify the IT manager as exempt. If not, then even though the worker has “manager” in their title, they must be classified as a nonexempt employee entitled to overtime, rest and meal breaks and all other wage and hour protections.
Column based on questions asked by callers on the Labor Law Helpline, a service to California Chamber of Commerce preferred members and above. For expert explanations of labor laws and Cal/OSHA regulations, not legal counsel for specific situations, call (800) 348-2262 or submit your question at www.hrcalifornia.com.
