California Exempt Employee Wage Increases for 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. For an employee to be exempt from overtime under California law, their job must fall into a specific exempt category and meet a designated wage rate. The most common exemptions are for executive, administrative, and professional roles. Employees in these capacities generally qualify if their work meets detailed requirements and they earn at least twice the state minimum wage for full-time employment. 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 the state minimum wage for full-time work (40 hours per week, 52 weeks per year). For certain exempt categories, however, the Department of Industrial Relations sets increases based on changes to the California Consumer Pri...