Computer Software Industry Prevailing Wage Effective January 1, 2008

SB 929 - Chapter 07-482

Subject: Prevailing Wage Allocations and Hourly Rate for Employees in the Computer Software Industry

Author: Cogdill

Sections Affected: Amends Section 1773.9 of the Labor Code, as it relates to prevailing wage allocations, and Section 515.5 of the Labor Code as it relates to Hourly Rate for Employees in the Computer Software Industry

Summary: As it relates to Prevailing Wage Allocations: This bill authorizes contractors and subcontractors, whenever the director's prevailing wage determination contains a predetermined change but does not specify how the change will be allocated between hourly wages and employer payments for benefits, to allocate payments equal to that change to either hourly wages or benefits for a specified time period, as provided. This bill also provides that, if the allocation of a predetermined change is subsequently altered by the parties pursuant to the collective bargaining agreement that was the basis of the prevailing wage determination, a contractor or subcontractor may allocate payments of not less than the amount of the definite and predetermined change in accordance with either the originally published allocation or the allocation as altered in the collective bargaining agreement.

As it relates to Hourly Rate for Employees in the Computer Software Industry: Existing law exempts a professional employee in the computer software field from the 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 $41, and the employee meets other requirements. This bill decreases the hourly rate of pay requirement for this exemption to not less than $36.