CA Min Wage $16.90
California’s minimum wage increases to $16.90 per hour on January 1, 2026. That’s the headline. Here’s what California employers actually need to know.
The increase affects more than just your hourly workers’ paychecks. It also raises the minimum annual salary for exempt employees to $70,304 ($5,858.67 per month). If your exempt employees currently earn less than $70,304 annually, their classification is illegal on January 1.
⚠️And don’t forget: multiple California cities have their own minimum wage ordinances that exceed the state rate. Los Angeles, San Diego, Pasadena, Santa Monica, Long Beach, and dozens of other cities require higher wages. If you operate in multiple jurisdictions, you need to comply with the highest applicable rate in each location.
The salary increase also impacts your calculation of the regular rate of pay for overtime, paid sick leave accrual, and meal and rest break premiums. If you’re still using outdated salary thresholds in your payroll systems, you’re creating wage and hour exposure on Day 1 of 2026.
Are your exempt employee salaries compliant as of January 1, or are you about to reclassify employees mid-year when someone notices?
If you haven’t audited your exempt classifications and local wage ordinance compliance, consult with an employment attorney before January 1.
#CaliforniaMinimumWage #EmploymentLaw #WageAndHour #ExemptEmployees
Please note that this article is for informational purposes only and should not be considered and is not legal advice, and does not constitute an attorney-client relationship. It is recommended to consult with an attorney directly for specific guidance pertaining to your business or individual situation.
This post shares general information based on common patterns I see in California workplaces. It is not legal advice, does not create an attorney-client relationship, and outcomes depend on specific facts — no lawyer can guarantee a result. Past results do not guarantee or predict future outcomes. AI may have been used to create this post. All content reviewed by a CA attorney before publication. This post may be attorney advertising.
Michael Trust Law, APC, 703 Pier Avenue, Ste. B367, Hermosa Beach, CA 90254: michaeltrustlaw.com