Overtime Exemption for Licensed Physicians and Surgeons

Effective January 1, 2021

 

California Labor Code Section 515.6 provides that certain licensed physicians and surgeons are exempt from the overtime requirements stipulated in Labor Code Section 510, if certain criteria are met. One of the criteria is that the employee's hourly rate of pay is not less than fifty-five dollars ($55.00), effective January 1, 2002. The Department of Industrial Relations is responsible for adjusting this pay rate on October 1st of each year to be effective on January 1st 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. Last year, the department adjusted the rate to $84.79, effective January 1, 2020. Data used to adjust this figure is summarized in the table below:

Urban Wage Earners and Clerical Workers (all items 1982-84 = 100)

Index August 2019 Index Value August 2020 Index Value % Change from 2019

CCPI

271.221

276.751

2.0%

In accordance with Labor Code Section 515.6(a), the department has adjusted the licensed physicians and surgeons' minimum hourly rate of pay exemption from $84.79 to $86.49 effective January 1, 2021, reflecting the 2.0% increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers.

 

October 2020