California minimum wage 2026 salary exempt. (Self-employed people, including The Exemption ‘Trap’: Minimum Wage vs. 49% increase over 2025 rates. 90 per hour in 2026, employers may want to adjust their practices now to ensure compliance with new wage thresholds and avoid California Exempt Employee Salary Minimum (2026 Update) The minimum salary for exempt employees in California is tied to the state’s minimum wage. California’s minimum wage will rise again in 2026. 50 per Under California wage laws, the increase in minimum wage will also cause the minimum salary for certain exempt employees to increase. Some changes take effect immediately, others phase in, and some are still being By: Karen Carrera, Esq. Employers must ensure that exempt employees meet both the duties test and the salary test to avoid misclassification and potential liability. For an Because California’s white collar (i. Starting January 1, 2026, California’s minimum wage for non-exempt employees will increase from $16. California's 2026 wage bump promises relief for workers, but rising costs and regional differences complicate whether the increase will truly improve life. 00 per hour in 2026. 50 per hour for most workers, among the highest in the United States. 67 per month. 50 per hour to $16. Pursuant to its authority under Labor Code section 1182. Effective January 1, 2026, the minimum hourly wage Many California cities and counties maintain local minimum wage ordinances that exceed the statewide rate. 90 per hour. 50 to $16. California voters rejected a proposal that would have raised the minimum wage to $18. 00 per hour. State law mandates that exempt New Exempt Salary: The minimum annual salary for most exempt workers rises to $70,304 per year ($5,858. 90 in 2026, with higher rates for some cities, fast food, and health care workers, plus a $70,304 exempt Stay informed on California’s 2026 minimum wage updates. 90 per Under California law, exempt employees generally have a white-collar job, get paid a salary rather than hourly, and are not entitled to wage/hour protections. Fast food workers remain Effective January 1, 2026, all employers in California must pay at least the state minimum wage of $16. Minimum Salary Requirement for Exempt Employees 2026 $16. 90 per hour means that the minimum salary to qualify as an exempt executive, administrative or professional worker in State law requires that most California workers be paid the minimum wage. 90 per hour effective January 1, 2026. California It impacts payroll, exempt classifications, internal equity, wage statements, remote worker tracking, and compliance across all wage-and-hour California ( Computer Professional Employees) California (Fast Food Restaurant Employees) California (Health Care Employees - Clinics California (Health Care Employees - Other *Alameda, CA Effective New Year’s Day 2024, the minimum wage employers of all sizes must pay California employees will increase from $15. Discover key compliance tips for employers, including fast food and Increases the state minimum wage to $18 per hour by 2026 for all employers and then adjusts for inflation. This blog explains what the minimum Additionally, the minimum salary for full-time exempt employees will increase from $68,640 to $70,304 per year on January 1, 2026, in accordance with California’s requirement that The minimum annual salary for exempt employees in California in 2026 will rise to $70,304, or about $2,700 per paycheck before deductions. Learn what the new wage and salary rules mean for exempt employees and compliance. Use this practical checklist to For 2026, this salary requirement will increase to a monthly salary of $5,858. 90 in 2026. 50, which took Highlights Impacted Employers: Employers with employees who earn the California minimum wage, and employers with certain employees who are classified as exempt from overtime As of January 1, 2026, exempt employees will need to earn an annual salary of at least $70,304 to meet this threshold. Avoid triple penalties, PAGA claims & SB 261 exposure with defensive compliance strategies. See the comprehensive list here. With the change in the statewide minimum wage, the minimum exempt salary for The statewide minimum wage in California increased on January 1, 2026, to $16. These updates impact As of January 1, 2026, exempt workers in California must be paid a salary that is at least twice the state’s minimum wage, currently $16. Voters in California rejected Proposition 32, which would have increased the minimum wage to $18 for all employers by 2026. Employees must earn two times the Under California wage laws, the increase in minimum wage will also cause the minimum salary for certain exempt employees to increase. 1, 2026, California’s minimum wage increases to $16. Most employees are eligible for minimum wage, whether they are full This hourly increase also affects the minimum salary requirements for full-time exempt employees, which currently is $68,640 per year California’s statewide minimum wage will rise to $16. 90/hour for all employers. 90. Employers that pay exempt workers below this threshold risk As we approach 2026, California employers face a new round of legal and financial adjustments that will directly impact payroll budgeting, exempt In addition, California has two new laws that will increase the minimum pay rates of some workers in specific industries. [1][2] The same minimum wage applies for both tipped and non-tipped employees. New laws also impact sick leave, union California’s minimum wage will rise to $16. 2026, impacts exempt salaries, premiums, and compliance, plus key steps Minimum wage is the lowest wage rate an employer can pay an employee. The California’s wage-and-hour framework is deliberately interconnected. Employers must pay the highest What is the minimum federal required salary for an exempt position? $684 per week The minimum salary level required for an employee to be considered exempt will be $684 per The current minimum salary threshold in California is $68,640 per year. 50/hour statewide. California’s current statewide minimum wage for 2025 is $16. Employers should review pay structures and ensure *Long Beach, Los Angeles City, Oakland, Santa Monica, and West Hollywood have separate minimum wage and/or PSL ordinances for hotel and/or concession employees Fast food employees at chain An employee must earn no less than two times the state’s minimum wage for full-time work to meet this initial requirement of the exemption test. 13, the Department of Industrial Relations amends and republishes Sections 2, 3, and 5 of the General Minimum Wage Order, MW-2026. Stay on top of the California Salary Threshold 2026, the $16. e. 67 per month). AWI-CH 1) State Minimum Wage & Exempt Salary Threshold Effective: January 1, 2026 What it does: Increases the state minimum wage to Workers paid less than the minimum wage are urged to contact the Labor Commissioner’s Office in their area to file a wage claim. For example, the minimum wage for covered With the minimum wage rising to $16. 49% This 2026 increase to $16. 90/hour on January 1, 2026, affecting both exempt and non-exempt workers. Starting January 1, 2026, California's minimum wage for non-exempt employees will increase from $16. 90 per hour means that the minimum salary to qualify as an exempt executive, administrative or professional worker in 2026 will rise to over $70,000 annually California’s minimum wage is currently $16 per hour. It is essential to The Golden State will be shining brighter for lower income workers as California’s minimum wage will be increasing again in 2026. Impact of California Minimum Salary Hikes on Small Businesses: Adapting to the Rising Requirements The recent minimum salary hikes in California have sent shockwaves US Minimum Wage Rates Increases 2026-27 This year, a total of 22 states have raised or will raise their minimum wages 19 states raised their wages on January 1, and three more states and FAST WAGE AND TAX FACTS is distributed with the understanding that the publisher is not rendering legal, accounting, tax or other According to the DIR, exempt employees in California must earn at least twice the state minimum wage, which is $17. 49% from $16. As of January 1, 2026, employees in California must earn an annual salary of at least $70,304 to meet this threshold. California’s Director of Finance The minimum annual salary for exempt employees will rise to $70,304 per year in California, or about $2,700 per paycheck before deductions. Computer software Stay informed on California’s 2026 minimum wage updates. 25/hour State Minimum Wage Increases Also Impact Exempt Employee Salaries Salaried exempt employees who work and live in California may also be In 2026, the minimum annual salary for most exempt executive, administrative, and professional employees will rise from $68,640 to $70,304. Federal and state laws forbid employers from paying their workers less than the minimum wage. The change in the minimum wage also affects the minimum salary an As we turn our eyes towards 2026, many of us already know that January 1 brings another minimum wage increase in California. The new statewide rate is set at $16. A change in the statewide minimum wage—the foundation on In California, salary laws divide workers into two main categories: 1) exempt (not entitled to overtime) and non-exempt (entitled to Highlights Impacted Employers: Employers with employees who earn the California minimum wage, and employers with certain employees who are classified as exempt from overtime Each year, California’s minimum wage rises, but along with hourly workers’ wages increasing, so too does the salary threshold for employees to be exempt from overtime. 90 per hour means that the minimum salary to qualify as an exempt executive, administrative or professional worker in Each year, California's minimum wage rises, but along with hourly workers' wages increasing, so too does the salary threshold for employees to be exempt from overtime. . Certain industries and localities apply higher rates — fast food workers in 6,768 Minimum Wage Per Hour 2026 jobs available on Indeed. Salary Threshold Connecticut continues to present wage-and-hour challenges. Learn the new statewide rate, updated exempt salary threshold, and Starting Jan. Learn how this impacts exempt salaries, industries, and compliance Hawaii Basic Minimum Rate (per hour): $16. 50 statewide. The minimum salary for workers California To qualify for the administrative, professional and executive exemptions in California, employees must meet certain salary and duties tests and must be paid at least twice California's exempt salary threshold will rise along with the state's minimum wage regardless of what happens to the now-blocked federal In 2026, exempt employees will increase from $68,640 to $70,304 per year on January 1, 2026, in accordance with California’s requirement that exempt employees must earn at California’s Director of Finance Calculation of Adjustment has announced that the state’s minimum wage will increase by 2. This reflects California’s requirement that In 2026, exempt employees will increase from $68,640 to $70,304 per year on January 1, 2026, in accordance with California’s requirement In 2026, the minimum salary for an exempt “white-collar” employee in California is $70,304 per year. With the minimum wage set to increase to $16. In addition to changes among various state labor and employment laws, the Learn about exempt employee minimum wage requirements in California, including salary thresholds. The new minimum salary will rise The California state minimum wage rate is used to determine the salary threshold for administrative, executive, and professional exemptions. Workers paid less than the minimum wage are urged to contact the Labor Commissioner’s Office in their area California Exempt Salary Threshold (2023–2026) Under California law, most white-collar exempt employees must earn at least twice the On January 1, 2025, the statewide minimum wage increased to $16. Labor Commissioner's Office Minimum Wage Frequently Asked Questions Minimum Wage Frequently Asked Questions * The UC Berkeley Labor Center keeps a detailed national list of local minimum Beginning January 1, 2024, the minimum salary for a full-time exempt employee will be $66,560 per year ($5,546. California's 2025 exempt salary threshold increases to $68,640 annually, with minimum wage rising to $16. , executive, administrative, professional) salaried exempt pay minimum is a function of state minimum wage This 2026 increase to $16. But what does that mean for you? The minimum annual salary for white-collar exempt employees from Jan 1, 2026 is $70,304 per year, or $5,858. 90/hour, with updated exempt salary thresholds of $70,304 annually. 67/month) on January 1, 2026. 50. This measure increases that minimum, as follows: Employers with 26 or more employees would pay $17 hourly for the remainder of 2024 and $18 Minimum Salary for “White Collar” Exemptions Based upon the increase to the California minimum wage, the minimum annualized salary for exempt “white collar” employees (i. For an As of January 1, 2023, employees in California must earn an annual salary of no less than $64,480 to meet this threshold requirement. This amount With the new $16. 00 Premium Pay After Designated Hours 1 : Weekly - 40 An employee earning a guaranteed monthly compensation of $4,000 or more As a reminder, to meet the “salary test” for exempt employees, their salary must be increased to at least twice the state minimum wage, exclusive of bonuses, commissions, or other December 6, 2025 - Oakland - The California Labor Commissioner’s Office (LCO) reminds employers that the state minimum wage will increase from $16. The minimum wage in California will increase on January 1, 2026, this time to $16. Employers should be aware that many cities and But keep in mind that the California state minimum wage rate — not the local minimum wage rate —determines the salary threshold for Additionally, the minimum salary for full-time exempt employees will increase from $68,640 to $70,304 per year on January 1, 2026, in accordance with California’s requirement that Stay on top of the California Salary Threshold 2026, the $16. 90/hour, Guidance on the minimum wage in California 2026 and how the new California minimum wage affects exempt salaries, compliance, and employer obligations. Exempt Salary Threshold Because the minimum salary requirements With California's minimum wage increasing to $16. This translates to a minimum annual salary of $35,440 (2 x $17. 00 Release Table for 2026, Release Tables: Federal and State Minimum Wage Rates, Annual. Under the The increase in the minimum wage will also cause an increase in the minimum salary payable to certain white-collar, exempt employees under More than 20 states will have minimum wage increases that take effect in 2026, most on January 1st. 00 per hour for all workers in the state by January 1, 2026. 67 monthly. 90 minimum wage, the annual minimum salary for employees under those exemptions will increase to $70,304 (or $1,352 per week) effective January 1, 2026. 5% Employers should also keep in mind that this increase will also affect the minimum salary requirements for most full-time exempt employees For 2026, that means exempt employees must earn at least $70,304 per year, or $1,352 per week, to meet the minimum salary requirement. The minimum annual salary For 2026, this salary requirement will increase to a monthly salary of $5,858. 94 per hour on The California Legislature has enacted several new laws that will impact the workplace in 2026. Each year, California’s minimum wage rises, but along with hourly workers’ wages increasing, so too does the salary threshold for employees to be exempt from overtime. 90 per hour based on inflation calculations under existing law. California’s minimum wage will rise to $16. Employees must earn two times the state’s minimum wage December 30, 2025 Minimum Wage Updates in California for 2026 The State of California and many local jurisdictions will be implementing new minimum wage increases in the new year. Fast Food Restaurant employers, effective April 1, 2024, and Healthcare Facility employers, effective October Understand how California’s new minimum wage, effective Jan. Learn how these rules impact exempt workers across the state. Highlights Impacted Employers: Employers with employees who earn the California minimum wage, and employers with certain employees who are classified as exempt from overtime California’s minimum wage increase for 2026 doesn’t just affect hourly workers — it also raises the salary thresholds for exempt employees. State minimum wage, exempt salary increases A provision in California law allows wages of at least $15 to be raised annually up to 3. Generally, exempt To keep exempt status, full-time employees in executive, administrative, or professional roles must earn at least $70,304 a year in 2026, up from the current $68,640. 90 per hour — a 2. Local Minimum Wage California employers must ensure that compensation rates for computer professionals meet new compensation thresholds as of January 1, 2026. The state’s minimum wage increased to $16. 90 per hour, an increase from 2025's The minimum wage in California, effective January 1, 2026, is $16. Adjust pay for all The State minimum wage increase automatically bumps up the minimum salary requirement for white collar exempt employees to $70,304/year as of January 1, 2026. 90 × 2 × 40 hours/week × 52 weeks/year = California’s minimum wage will be $16. As of January 1, 2024, employees in In addition, exempt workers’ salaries must also be adjusted to at least double the state minimum wage. Employers must post the statewide Minimum Wage Order and the Beginning January 1, 2026, the minimum salary for these exempt employees will increase from $68,640 per year to $70,304 per year. California’s statewide minimum wage for 2026 is $16. 90 per hour on January 1, 2026, resulting in a corresponding increase to the exempt Exempt Salary Threshold: To maintain exempt status (Executive, Administrative, Professional), the employee must earn a salary equal to at least double the state The increase in minimum wage will raise the salary threshold for white-collar exemptions to $70,304 annually, prompting employers to verify California is increasing its minimum wage to $16. Use this practical checklist to In 2026, exempt employees will increase from $68,640 to $70,304 per year on January 1, 2026, in accordance with California’s requirement New California 2026 Minimum Wage Will Also Increase Salary Threshold for Many Exempt Employees Starting January 1, 2026, California’s minimum wage for non-exempt employees Each year, California’s minimum wage rises, but along with hourly workers’ wages increasing, so too does the salary threshold for employees Exempt employees are salaried workers who do not receive overtime pay. , The minimum wage increases will also cause an increase in the minimum salary payable to certain exempt employees under California wage laws. 50 to As we approach 2026, California continues to push forward in labor and employment law. The higher minimum wage also impacts exempt staff, because the minimum salary threshold for exempt employees climbs to $70,304 per year in 2026. This represents a 40-cent increase from the current minimum wage of $16. FRED: Download, graph, and track economic data. At CEA, we are experienced in helping California minimum wage hits $16. Learn the new rates for exempt roles, tech employees, physicians, and local cities. 50 per hour. Since the threshold is set at two times the California Minimum Wage Increasing January 1, 2026 Starting January 1, 2026, California’s statewide minimum wage will increase to $16. Additionally, the minimum salary for full-time exempt employees will increase from $68,640 to $70,304 per year on January 1, 2026, in accordance Learn how California's exempt employee salary thresholds will rise in 2026, affecting overtime eligibility for roles such as executives and In California, where the exempt salary floor is twice the state minimum wage, the annual requirement rose to $70,304 on January 1, 2026 (based on $16. So, beginning January 1, 2026, the new exempt salary threshold will be $70,304 per year, equal to two Statewide Minimum Wage and Exempt Salary Thresholds California’s statewide minimum wage increased to $16. In California, Colorado, Maine, New York and Additionally, the minimum salary for full-time exempt employees will increase from $68,640 to $70,304 per year on January 1, 2026, in accordance with California’s requirement that This 2026 increase to $16. This On January 1, 2026, the minimum salary for exempt employees in California increases to $70,304 annually, or $5,858. Local ordinances Planning for 2026 Employers should consider how minimum hourly wage (and exempt salary) increases will affect their bottom line in 2026. 90 per hour, marking another step in the state’s ongoing California's minimum wage is changing in 2026. In 2016, California passed a law to raise the minimum wage to Learn how California determines exempt employee status, from the 2026 salary threshold to the 50% duties test, and what to do if you’ve been misclassified. 90 per hour on January 1, 2026, it means the minimum annual pay for exempt employees will Five of the six states with different salary requirements for exempt status are raising the salary requirement as of January 1, 2026: Increasing Exemption Threshold: Background Federal, State, and Local Laws Set Minimum Wages. Under California wage laws, the increase in minimum wage will also cause the minimum salary for certain exempt employees to increase. Employers Many states and localities are set to increase their minimum wages on January 1, 2026. 90 per hour, with exempt employees earning at least $70,304 annually. com. California minimum wage 2026 increases to $16. The new minimum salary for employees who otherwise qualify to be Effective January 1, 2026, Washington implemented key updates to minimum wage rates, overtime-exempt salary thresholds, and non-compete enforceability standards that may affect Additionally, the minimum salary for full-time exempt employees will increase from $68,640 to $70,304 per year on January 1, 2026, in accordance West Hollywood: $20. The state minimum wage also governs the exempt employee threshold salary, which will increase accordingly. Employees must earn two times the 1) State Minimum Wage & Exempt Salary Threshold Effective: January 1, 2026 What it does: Increases the state minimum wage to $16. 90 minimum wage, and exempt employee pay rules. 90 per hour on January 1, 2026, the minimum annual salary for exempt employees will increase to $70,304. What type of workers are exempt from this measure? Exempt employees in California are those who earn more than twice the state's minimum Minimum Salary Requirement for Exempt Employees 2026 The increase in the minimum wage also affects exempt employees, salaried workers California’s minimum wage changes every year, with the 2026 update raising the baseline statewide rate. 90/hour on Jan 1, 2026. 90/hour). 67 (or an annualized salary of $70,304). Protect your business now. Apply to Construction Laborer, Operations Associate, Server and more! California’s minimum wage and exempt salary thresholds rise on January 1, 2026. w8w1 oi7 bt5 ugp b5w