Number of the week · checked 19 October 2026
California's exempt salary floor rises to $72,384 on 1 January 2027.
An exempt executive, administrative or professional employee in California must earn at least twice the state minimum wage for full-time work. The minimum wage goes to $17.40 an hour in 2027.
The short version
In California, exempt managers, admins and professionals must earn at least twice the state minimum wage, for a full-time week, as salary.
The minimum wage goes to $17.40 on 1 January 2027. Twice that, times 2,080 hours, is $72,384. In 2026 the floor is $70,304.
Check every salaried role below $72,384 before January. Raise the salary, or make the role non-exempt.
In numbers
| Year | State minimum wage | Exempt salary floor |
|---|---|---|
| 2026 | $16.90 an hour | $70,304 a year |
| 2027 | $17.40 an hour | $72,384 a year |
Sources
Checked on 19 October 2026.
"Beginning January 1, 2027, an employee must earn an annual salary of at least $72,384"
Department of Industrial Relations, news release 2026-66. Published 13 August 2026. "As of January 1, 2026, employees in California must earn an annual salary of at least $70,304 to meet this threshold."
Department of Industrial Relations, news release 2025-118. Published 5 December 2025. "earns a monthly salary equivalent to no less than two times the state minimum wage for full-time employment"
California Labor Code section 515. Subdivision (a). Subdivision (c) sets full time at 40 hours a week.
The test uses the state minimum wage, even where a city's minimum wage is higher.
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