California’s wage-and-hour framework is deliberately interconnected. A change in the statewide minimum wage—the foundation on which many other wage rules rest—triggers a cascade of downstream adjustments across classifications, premiums, postings, notices, and payroll operations. With the statewide minimum wage increasing to $16.90 per hour in 2026, California employers may want to align their practices to the new floor to minimize risk and ensure compliance.

• With California’s minimum wage increasing to $16.90 per hour in 2026, employers may want to adjust their practices now to ensure compliance with new wage thresholds and avoid potential risks.
• The increase in minimum wage will raise the salary threshold for white-collar exemptions to $70,304 annually, prompting employers to verify that exempt employees meet both duties and salary requirements.
• Employers may want to confirm that they have updated pay rate tables, timekeeping systems, and payroll calculations, and ensure all required postings and notices reflect the new minimum wage to maintain compliance.

Salaried Exempt Thresholds

A minimum wage increase immediately raises the salary threshold for most white-collar exemptions under the Industrial Welfare Commission (IWC) wage orders. To qualify for many exemptions, an employee must be paid on a salary basis at a monthly salary equivalent to no less than two times the state minimum wage for full-time employment, defined as forty hours per week.

Applying the $16.90...

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