BILL NUMBER: AB 10	CHAPTERED
	BILL TEXT

	CHAPTER  753
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2008
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2008
	PASSED THE SENATE  SEPTEMBER 16, 2008
	PASSED THE ASSEMBLY  SEPTEMBER 16, 2008
	AMENDED IN SENATE  SEPTEMBER 15, 2008
	AMENDED IN SENATE  AUGUST 22, 2008
	AMENDED IN SENATE  AUGUST 6, 2008
	AMENDED IN SENATE  JUNE 23, 2008
	AMENDED IN ASSEMBLY  JUNE 5, 2007
	AMENDED IN ASSEMBLY  JUNE 1, 2007
	AMENDED IN ASSEMBLY  APRIL 10, 2007

INTRODUCED BY   Committee on Budget

                        DECEMBER 4, 2006

   An act to amend Section 515.5 of the Labor Code, relating to
employment, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 10, Committee on Budget. Employment: overtime compensation.
   Existing law provides that 8 hours of labor constitutes a day's
work. Under existing law, any work in excess of 8 hours in one
workday and any work in excess of 40 hours in any one workweek and
the first 8 hours worked on the 7th day of work in any one workweek
is required to be compensated at the rate of no less than 11/2 times
the regular rate of pay for an employee. Existing law exempts a
professional employee in the computer software field from this
overtime compensation requirement if the employee is primarily
engaged in work that is intellectual or creative, the employee's
hourly rate of pay is not less than $36, and the employee meets other
requirements.
   This bill would provide that this exemption applies to an employee
who is paid on an hourly basis at an hourly rate of not less than
$36 and, if an employee is paid on a salaried basis, the employee
earns an annual salary of not less than $75,000 for full-time
employment, which is paid at least once a month and in a monthly
amount of not less than $6,250. The bill would make related,
conforming changes to this provision.
   This bill would declare that it is to take effect immediately as
an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 515.5 of the Labor Code is amended to read:
   515.5.  (a) Except as provided in subdivision (b), an employee in
the computer software field shall be exempt from the requirement that
an overtime rate of compensation be paid pursuant to Section 510 if
all of the following apply:
   (1) The employee is primarily engaged in work that is intellectual
or creative and that requires the exercise of discretion and
independent judgment.
   (2) The employee is primarily engaged in duties that consist of
one or more of the following:
   (A) The application of systems analysis techniques and procedures,
including consulting with users, to determine hardware, software, or
system functional specifications.
   (B) 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.
   (C) The documentation, testing, creation, or modification of
computer programs related to the design of software or hardware for
computer operating systems.
   (3) The employee is highly skilled and is proficient in the
theoretical and practical application of highly specialized
information to computer systems analysis, programming, or software
engineering. A job title shall not be determinative of the
applicability of this exemption.
   (4) The employee's hourly rate of pay is not less than thirty-six
dollars ($36.00) or, if the employee is paid on a salaried basis, the
employee earns an annual salary of not less than seventy-five
thousand dollars ($75,000) for full-time employment, which is paid at
least once a month and in a monthly amount of not less than six
thousand two hundred fifty dollars ($6,250). The Division of Labor
Statistics and Research shall adjust both the hourly pay rate and the
salary level described in this paragraph on October 1 of each year
to be effective on January 1 of the following year by an amount equal
to the percentage increase in the California Consumer Price Index
for Urban Wage Earners and Clerical Workers.
   (b) The exemption provided in subdivision (a) does not apply to an
employee if any of the following apply:
   (1) The employee is a trainee or employee in an entry-level
position who is learning to become proficient in the theoretical and
practical application of highly specialized information to computer
systems analysis, programming, and software engineering.
   (2) The employee is in a computer-related occupation but has not
attained the level of skill and expertise necessary to work
independently and without close supervision.
   (3) The employee is engaged in the operation of computers or in
the manufacture, repair, or maintenance of computer hardware and
related equipment.
   (4) The employee is an engineer, drafter, machinist, or other
professional whose work is highly dependent upon or facilitated by
the use of computers and computer software programs and who is
skilled in computer-aided design software, including CAD/CAM, but who
is not engaged in computer systems analysis, programming, or any
other similarly skilled computer-related occupation.
   (5) The employee is a writer engaged in writing material,
including box labels, product descriptions, documentation,
promotional material, setup and installation instructions, and other
similar written information, either for print or for onscreen media
or who writes or provides content material intended to be read by
customers, subscribers, or visitors to computer-related media such as
the World Wide Web or CD-ROMs.
   (6) The employee is engaged in any of the activities set forth in
subdivision (a) for the purpose of creating imagery for effects used
in the motion picture, television, or theatrical industry.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to meet the October 1, 2008, deadline for review and
adjustment of salaries and pay rates by the Division of Labor
Statistics and Research for employees in the computer industry
exempted from overtime compensation, it is necessary that this act
take immediate effect.