Tech Workers Are Fighting Back: Why Your “Exempt” Status Might Be Costing You Thousands in Unpaid Overtime
In the fast-paced world of technology, thousands of software engineers, developers, and IT professionals are paid high salaries—yet receive no overtime pay. Many tech workers accept this as the norm, believing their job titles automatically exempt them from overtime compensation. However, misclassification lawsuits in the tech industry frequently result in six-figure settlements or awards, revealing that countless professionals may be entitled to significant back pay.
The Computer Professional Exemption: Not as Simple as It Seems
The foundation of tech overtime exemptions lies in specific federal and state laws designed for computer professionals. Computer systems analysts, computer programmers, software engineers, and other similarly skilled workers in the computer field are exempt from minimum wage and overtime pay provided they also meet the other tests for exemption like salary level.
However, many people are misclassified as exempt employees and do not know it. The reality is more complex than most employers—and employees—understand. A job title alone cannot determine FLSA status for any employee. The Department of Labor bases these exemptions on specific job duties and compensation.
Salary Requirements: Higher Than You Think
One of the most common misclassification errors involves salary thresholds. As of January 1, 2026, California employers must compensate their computer professional employees with an annual salary of $122,573.13 or more to be exempt from overtime pay. If paid hourly, computer professionals must receive at least $58.85 an hour to be exempt.
If an employee is paid even a penny less than this amount—or is paid on a commission or piece-rate basis—they do not qualify for the exemption, regardless of their job duties. This strict requirement catches many employers off guard, particularly startups and smaller tech companies that may not track these annually adjusted thresholds.
Job Duties: The Real Test
Even high-paid tech workers aren’t automatically exempt. To be exempt from overtime under California law, a computer professional must have job duties that meet several requirements. These requirements are not all black-and-white, but open to interpretation.
The exemption applies only to employees whose work involves 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.
Critically, Labor Code 515.5 specifically excludes employees working in IT and hardware maintenance fields. Employees who work on “the operation of computers or in the manufacture, repair, or maintenance of computer hardware and related equipment” are not exempt under the Computer Professional exemption.
Common Tech Jobs That Should Receive Overtime
Most IT professionals who maintain networks, troubleshoot, configure desktop systems, install and repair routers, switches and various network devices are probably entitled to overtime. This includes many roles that companies routinely classify as exempt:
- Help desk support technicians
- Network administrators who primarily maintain existing systems
- IT support staff performing installations and repairs
- Engineers, drafters, machinists, or other professional who use computers and software such as computer aided design software (i.e. CAD/CAM), must be paid overtime. Writers, technical writers, and similar positions are also entitled to overtime. Employees who create digital images and special effects for movies, television, theater or entertainment are also entitled to overtime
If, however, you are only testing to make sure a system or computer application works according to design specifications, your job is not exempt. In this type of role, you may be eligible to receive pay for overtime hours you have worked.
The Cost of Misclassification
The financial impact of misclassification extends far beyond missed overtime pay. You may be entitled to thousands in back pay and penalties—even if you agreed to the classification. Recent settlements demonstrate the significant costs employers face when they get classification wrong.
In a notable 2025 case, Google allegedly calculated overtime pay rates incorrectly for workers, thereby shorting staff of wages. In 2018, it paid $5.5 million to settle a different overtime suit. The $5.5 million settlement achieved in this case underscored the necessity for employers to compensate all hours worked by their employees accurately. It also brought attention to the exploitation faced by contract workers in tech companies.
When to Seek Legal Help
IT professionals often work long hours but are told by their employers that they do not have to be paid overtime. Because most IT tasks do not meet the necessary standards for exemptions, there’s a good chance you should be paid overtime for these excessive hours.
If you’re a tech worker who regularly works more than 40 hours per week without overtime compensation, it’s worth consulting with an unpaid overtime attorney to review your classification. The laws governing which technology employees are exempt from overtime are very complex. If you are in any doubt as to whether you are exempt, it is best to consult an experienced employment attorney.
Why Choose Experienced Employment Counsel
Employment law firms like The Howley Law Firm understand the complexities of tech industry misclassification. We focus on representing individuals in the areas of employment rights in New York and whistleblower rewards nationwide. With two experienced attorneys and a keen eye for quality, our small law firm is able to dedicate more one-on-one time to our hand-picked clients.
Our lawyers have helped clients recover millions of dollars for sexual harassment, discrimination, and unpaid wages. Our lawyers have represented clients in some of the largest and most important employment cases, including an $80 million settlement in a discrimination class action. We have won millions of dollars for healthcare professionals, employees of large corporations, live-in nannies, and restaurant workers.
The firm’s approach reflects their corporate law background. For 20 years, we’ve represented companies such as Pfizer, Texaco, Citibank, and Sony as a partner in a large corporate law firm. We worked with the smartest lawyers in the country and argued in the U.S. Supreme Court. Today he uses all that experience to give individuals the same high-quality and aggressive representation.
Taking Action
When it comes to your employment rights, however, you need to act as soon as possible, because your rights are subject to strict time limits and procedural requirements. Don’t delay—call our office today at 212-601-2728 to speak with an employment lawyer who will navigate the complex legal system on your behalf.
The tech industry’s rapid growth has created numerous opportunities for both innovation and exploitation. While many technology professionals are legitimately exempt from overtime requirements, countless others are being denied fair compensation due to misclassification. Understanding your rights and seeking proper legal counsel when in doubt can mean the difference between accepting unfair treatment and recovering the wages you’ve rightfully earned.
Don’t let a job title or employer’s assertion determine your overtime rights. If you’re a California tech worker earning a “salary” and expected to work 50+ hours per week without overtime, we want to hear from you. The same principle applies to tech workers nationwide who may be entitled to fair compensation for their extended hours.