At HRDelivered, we help our clients stay informed about California’s changing minimum wage increases and hour laws. With the new 2026 minimum wage updates now set, it’s important for employers to understand how these changes impact both hourly and salaried employees. These updates clarify the minimum salary requirement for exempt workers under overtime laws, ensuring businesses remain compliant while supporting a fair and competitive workplace.
What is California’s New Minimum Wage?
Effective January 1, 2026, the statewide minimum wage in the state of California will increase to $16.90 per hour. This change affects all employers, no matter the size of the business.
The new minimum wage is based on calculations from the California Department of Finance. They used the Consumer Price Index for Urban Wage Earners and Clerical Workers. Employers can review the official notice here.
What is the Minimum Salary for Exempt Employees?
The new minimum annual salary for a full-time employee to be exempt from overtime will be $70,304 per year, or $5,858.67 per month. Employers should check the salaries of exempt employees to see if they are in compliance with California labor law.
What do California Employers need to do?
Employers should check employee classifications and payroll. This will help ensure all employees meet the new minimum wage and salary rules. It is important to know local laws.
Some cities and counties may have higher minimum wage rates.
For guidance or support in implementing these California minimum wage law updates, please reach out to your dedicated HR consultant or contact hr@hrdelivered.com.