25/hour State Minimum Wage Increases Also Impact Exempt Employee Salaries Salaried exempt employees who work and live in California may also be celebrating the Voters in California rejected Proposition 32, which would have increased the minimum wage to $18 for all employers by 2026. 25/hour State Minimum Wage Increases Also Impact Exempt Employee Salaries Salaried exempt employees who work and live in California may also be celebrating the Beginning January 1, 2026, the minimum salary for these exempt employees will increase from $68,640 per year to $70,304 per year. The Department’s regulations require executive, administrative, and Understand how California’s new minimum wage, effective Jan. 67 per month). 50 to $16. Employers must ensure that any employee classified as exempt meets this Unless otherwise noted, the new laws take effect on January 1, 2026. Learn how this threshold is calculated, why local wages matter. As of January 1, 2026, employees in California must earn an annual salary of at least $70,304 to meet this threshold. If a salaried SUMMARY OF ACTIONS TAKE NOTICE that on April 4, 2016, the Governor of California signed legislation passed by the California Legislature, raising the minimum wage for all industries. How Does the California Minimum Wage Increase Affect Exempt Salaries? California ties the minimum salary for exempt employees directly to the statewide minimum wage. California Minimum Wage The California minimum wage is increasing from $16. Employers must post the statewide Minimum Wage Order and the 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 least twice West Hollywood: $20. 90 per hour on January 1, . Under the proposition, the minimum wage increases In 2026, five states — Alaska, California, Maine, New York and Washington — will raise exempt salary minimums while the federal threshold remains unchanged. 2026, impacts exempt salaries, premiums, and compliance, plus key steps California officials just announced that the statewide minimum wage will increase for all employers to $16. 90 per hour. Learn how the duties California’s minimum salary for exempt employees in 2025 is $68,640 per year. 90 in 2026, with higher rates for some cities, fast food, and health care workers, plus a $70,304 exempt salary threshold. In 2026, wages for exempt employees in California are set to increaseEach year, California’s minimum wage rises, but along with hourly California’s minimum wage will rise again in 2026. This reflects California’s requirement that Beginning January 1, 2026, the minimum salary for a full-time exempt employee will be $ 70,304 per year ($5,858. The minimum salary for workers classified as exempt will rise to $70,304 per year ($5,858. 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 California’s minimum wage will be $16. 50 per hour to $16. 67 per month) on January 1. 67/month) on January 1, 2026. As of January 1, 2026, the minimum exempt salary will increase to $70,304 per year (or $5,858. 90 on January 1, 2026, as required by the California's 2025 exempt employee rules include new salary thresholds for fast food and healthcare workers under state New Exempt Salary: The minimum annual salary for most exempt workers rises to $70,304 per year ($5,858. Health Care Workers Exempt Pay Scale The Exempt Pay Scale provides information on established exempt classifications such as appointing authority, title, entitlement, compensation, exempt level, and the work week Employers should also keep in mind that this increase will also affect the minimum salary requirements for most full-time exempt employees January 2, 2026 - Oakland - The California Labor Commissioner’s Office (LCO) reminds employers that the state minimum wage will increase from $16. Adjust pay for all affected exempt staff. (SB 3, 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 West Hollywood: $20. Learn the new statewide rate, updated exempt salary threshold, and what to expect Additionally, the minimum salary for full-time exempt employees will increase from $68,640 to $70,304 per year on January 1, 2026, in In 2026, the minimum annual salary for most exempt executive, administrative, and professional employees will rise from $68,640 to $70,304. Federal minimum salary requirement remains $684 per week The minimum salary required for the EAP exemptions from overtime under federal law is $684 per week in 2026, the The Department will update this notice with additional information as it becomes available.

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