Computer Professional Exemption from Overtime
"Computer professionals" within the meaning of the exemption from overtime pay includes computer systems analysts, computer programmers, software engineers and other similarly skilled workers are eligible for exemption as “professional” employees. The exemption applies to those:
The exemption applies only to those employees whose primary duty requires the theoretical and practical application of highly-specialized knowledge in computer systems analysis, programming and software engineering. It is not enough that the employee's job involves highly-specialized knowledge of computers and software. (see Martin v Indiana Michigan Power Co. (2004)). Exempt “systems analysis,” “software engineering” and “programming” work is limited to employees whose primary duties are in the realm of design and development, where business needs and problems are translated into systems that fit user needs and business imperatives.
Examples of Jobs that Fall Into Computer Professional Exemption
One court held that an employee whose primary duty was the development, analysis, creation, testing and/or modification of computer programs based on user specifications, was exempt as a computer professional. Another court held that an employee whose primary duty was designing programs by conducting intensive research to find out what technical steps were necessary and then designing, developing and writing code for program, was also exempt from overtime pay as a computer professional. Finally, in another case an employee whose duties included evaluating employer's network, identifying concerns with proprietary software and making related recommendations to CEO, writing specifications for wireless network topography and other systems, designing and implementing LAN infrastructure, and evaluating emerging technologies, was exempt from overtime compensation as a computer professional.
Examples of Jobs that Should Not Be Exempt from Overtime
Employee involved in IT support was not exempt where employee merely installed and upgraded hardware and software on workstations, configured desktops, checked cables, replaced parts, and troubleshot software problems. Employee performed his work to predetermined specifications in the system design created by others. Highly-specialized knowledge of computers and software by itself is not enough to exempt the employee from overtime pay. That knowledge has to actually be used in performance of the job duties in order for the computer professional exemption to apply. IT support workers are some of the most commonly misclassified employees who are generally entitled to overtime pay.
Similarly, employees who respond to customer needs, train customers on specialized computer software, change software settings and specifications to fit customer needs, and visit customers to ensure satisfaction are not exempt. On the other hand, an employee who consults with users as a means of “systems analysis,” in order to determine hardware, software, or system functional specifications, may be exempt.
Computer Testing May or May Not Be Exempt
The “testing” that is involved in creating a system, determining the desired settings for a system, or otherwise substantively affecting the system may be exempt. On the other hand, testing to ensure that a particular computer or computer application is working properly according to specifications designed by others is not exempt.
Exemption Generally Does Not Apply to Manufacture and Repair
The computer professional exemption does not apply to computer employees “engaged in the manufacture or repair of computer hardware and related equipment” even if their work is highly dependent upon, or facilitated by, the use of computers and computer software programs. (29 CFR section 541.401).
If you have any questions regarding whether you are properly classified as exempt from overtime under computer professional or administrative exemption, feel free to contact us.
- who are compensated on a salary or fee basis at a rate of at least $455 per week or at an hourly rate of at least $27.63 per every hour worked (as of the time this article is written); and
- whose primary duty consists of either:
“(1) The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional specifications;
“(2) 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;
“(3) The design, documentation, testing, creation or modification of computer programs related to machine operating systems; or
“(4) A combination of the aforementioned duties, the performance of which requires the same level of skills.” [29 CFR § 541.400(b)]
The exemption applies only to those employees whose primary duty requires the theoretical and practical application of highly-specialized knowledge in computer systems analysis, programming and software engineering. It is not enough that the employee's job involves highly-specialized knowledge of computers and software. (see Martin v Indiana Michigan Power Co. (2004)). Exempt “systems analysis,” “software engineering” and “programming” work is limited to employees whose primary duties are in the realm of design and development, where business needs and problems are translated into systems that fit user needs and business imperatives.
Examples of Jobs that Fall Into Computer Professional Exemption
One court held that an employee whose primary duty was the development, analysis, creation, testing and/or modification of computer programs based on user specifications, was exempt as a computer professional. Another court held that an employee whose primary duty was designing programs by conducting intensive research to find out what technical steps were necessary and then designing, developing and writing code for program, was also exempt from overtime pay as a computer professional. Finally, in another case an employee whose duties included evaluating employer's network, identifying concerns with proprietary software and making related recommendations to CEO, writing specifications for wireless network topography and other systems, designing and implementing LAN infrastructure, and evaluating emerging technologies, was exempt from overtime compensation as a computer professional.
Examples of Jobs that Should Not Be Exempt from Overtime
Employee involved in IT support was not exempt where employee merely installed and upgraded hardware and software on workstations, configured desktops, checked cables, replaced parts, and troubleshot software problems. Employee performed his work to predetermined specifications in the system design created by others. Highly-specialized knowledge of computers and software by itself is not enough to exempt the employee from overtime pay. That knowledge has to actually be used in performance of the job duties in order for the computer professional exemption to apply. IT support workers are some of the most commonly misclassified employees who are generally entitled to overtime pay.
Similarly, employees who respond to customer needs, train customers on specialized computer software, change software settings and specifications to fit customer needs, and visit customers to ensure satisfaction are not exempt. On the other hand, an employee who consults with users as a means of “systems analysis,” in order to determine hardware, software, or system functional specifications, may be exempt.
Computer Testing May or May Not Be Exempt
The “testing” that is involved in creating a system, determining the desired settings for a system, or otherwise substantively affecting the system may be exempt. On the other hand, testing to ensure that a particular computer or computer application is working properly according to specifications designed by others is not exempt.
Exemption Generally Does Not Apply to Manufacture and Repair
The computer professional exemption does not apply to computer employees “engaged in the manufacture or repair of computer hardware and related equipment” even if their work is highly dependent upon, or facilitated by, the use of computers and computer software programs. (29 CFR section 541.401).
If you have any questions regarding whether you are properly classified as exempt from overtime under computer professional or administrative exemption, feel free to contact us.