Computer Professional Employee | Practical Law

Computer Professional Employee | Practical Law

Computer Professional Employee

Computer Professional Employee

Practical Law Glossary Item 4-517-5375 (Approx. 4 pages)

Glossary

Computer Professional Employee

An employee classification under the Fair Labor Standards Act (FLSA) (and some state and local equivalents) that is exempt from minimum wage and overtime pay requirements (29 C.F.R. §§ 541.400 to 541.402).
To qualify for the computer professional exemption under the FLSA, each employee must satisfy the following:
  • The employee must be compensated:
    • on a salary or fee basis at a rate at least equal to the standard salary level of $844 a week, effective July 1, 2024 ($1,128 a week, effective January 1, 2025, with subsequent updates at three-year intervals starting July 1, 2027) ($684 a week before July 1, 2024) (special salary levels apply to US territories) (29 C.F.R. §§ 541.600 and 541.607); or
    • on an hourly basis at a rate of at least $27.63 an hour.
  • The employee must be employed as a computer systems analyst, computer programmer, software engineer, or other similarly skilled worker in the computer field.
  • The employee's primary duty must consist of:
    • 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;
    • the design, documentation, testing, creation, or modification of computer programs related to machine operating systems; or
    • a combination of these duties, the performance of which requires the same level of skills.
On April 23, 2024, the DOL announced a final rule to increase the standard salary level for the executive, administrative, and professional (EAP) exemptions and the total annual compensation threshold for the highly compensated employee (HCE) exemption (89 Fed. Reg. 32842). The first of two incremental increases took effect July 1, 2024. The second is scheduled to take effect January 1, 2025, with subsequent updates at three-year intervals starting July 1, 2027. (29 C.F.R. §§ 541.600 and 541.607.) For more on the DOL's 2024 final rule, including prior rulemaking and pending legal challenges, see Minimum Salary for the Executive, Administrative, and Professional Exemptions Under the FLSA: DOL Rulemaking Tracker.
For more information on the exemption requirements for computer professionals under the FLSA, see FLSA White Collar Exemptions Checklist: Computer Professional Exemption.
State or local law may provide for the same or a similar exemption or may prohibit the exemption of computer professional employees. For more information on state wage and hour laws, see Wage and Hour Claims Toolkit: State-Specific Materials and Wage and Hour Laws: State Q&A Tool.