🚀 go-pugleaf

"Bhoot Nath" <deja_bhoot2000@yahoo.com> wrote
> From http://www.caltax.com/News/NewsDetail.cfm?DocID=340
>
>    "On January 1, 2003, the new hourly minimum rates that employers
>     must pay to certain computer professionals if they are to be
>     exempt from overtime will increase 2.2 percent, from $42.64 to $43.58.
>     The rate is adjusted annually by the California Department of
>     Industrial Relations (DIR) to reflect changes in the California
>     Consumer Price Index."
>
> Almost all computer jobs in Silicon Valley are classified as "exempt"
> (i.e., no overtime). Does this mean that the minimum yearly salary should
> be $43.58/hour * 40 hours/week * 52 weeks/year = 90K? Many, many exempt
> computer people are paid less than $90K.


You can always flip burgers for $5.15 (or whatever minimum wage is these
days).  Not only do you get over time, but a free lunch to boot.

As an aside, you can be considered 'exempt' from overtime if you are in a
managerial position (over several other workers).  Generally the salary paid
must be greater than minimum wage even after factoring in the anticipated
overtime hours to be worked for that position.  So, the employer can't
expect the worker to work 50 hour weeks and pay a salary of $12K per year
because after factoring for the overtime hours, the worker would be making
less than minimum wage.


--
Paul A. Thomas, CPA, PC
Athens, Georgia
taxman@negia.net