California’s Director of Finance has certified that the Golden State’s minimum wage will increase to $16.90 per hour effective January 1, 2026, in accordance with applicable Labor Code requirements.
This increase to California’s minimum wage will result in a higher base salary requirement for employees deemed exempt under California’s professional, administrative, and executive exemptions. In order to be considered exempt, among other requirements, employees must be paid a fixed salary equivalent to no less than two times the state minimum wage for full-time employment, which cannot be pro-rated for part-time work. For 2026, this salary requirement will increase to a monthly salary of $5,858.67 (or an annualized salary of $70,304).
California’s current statewide minimum wage for 2025 is $16.50. However, numerous cities and counties have enacted local minimum wage requirements that exceed the state minimum. In addition, certain fast food and healthcare facility employers must pay a higher minimum wage rate. Employers must be sure to pay their non-exempt employees at the highest applicable minimum wage rate. Additional information about the various state and local minimum wage requirements within California can be found on the DLSE’s Minimum Wage webpage.
Employers with questions regarding the state or local minimum wage laws may contact the author of this post or their usual employment law counsel at AALRR.
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