I work for a software company where everyone in Quality assurance is salaried 'exempt'. However, the programmers are not. If I am reading California Labor Code §515.5 correctly in order for an individual to 'qualify' as exempt ALL of the following must apply...(1) The employee is primarily engaged in work that is intellectual or creative and that requires the exercise of discretion and independent judgment, and the employee is primarily engaged in duties that consist of one or more of the following:
(A) The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software, or system functional specifications.
(B) 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.
(C) The documentation, testing, creation, or modification of computer programs related to the design of software or hardware for computer operating systems.
(2) The employee is highly skilled and is proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming, and software engineering. A job title shall not be determinative of the applicability of this exemption.
(3) The employee's hourly rate of pay is not less than forty-nine and seventy seven dollars (2007).

Of the above 1(B) & (C) is applicable. #2 is not applicable and #3 is definitely NOT occurring. Am I being classified as 'exempt' when I shouldn't? I know that there are numerous types of exemptions in California, I am just trying to get as much info as I can.

If #3 is not occuring then it doesn't matter that any of the rest of them are.

The specific law being quoted is directed at paying computer professionals on a Hourly basis. The federal equivelant of this rule has a $27.61/hour limit, but CA has a higher limit. Many/most employers choose to pay their affected employees on a Salaried basis instead, and often choose to instead follow the Admin, Exec or Prof rules for Exempt.

http://www.dir.ca.gov/dlse/Glossary.asp?Button1=E#employee%20in%20the%20compu ter%20software%20field