California has a slate of new 2026 laws affecting workplaces throughout the state, and financial services employers will be especially impacted by new requirements. This Insight will not only recap four key legislative changes that you need to take into account but provide a practical summary of the specific ways that you should respond to come into compliance.

State Minimum Wage Increase

The state minimum wage went up to $16.90 effective January 1. But that’s not all.

• The minimum salary for exempt employees rose from $68,640 to $70,304.
• The minimum hourly rate for inside sales exemption went from $24.75 per hour to $25.35

You can read all about it here.

How Will Financial Services Employers Be Impacted?

For financial services employers, this increase will most acutely affect classification decisions and compensation structures for junior analysts, associate relationship managers, compliance staff, and commissioned sales roles.

• Firms that rely on broad exempt classifications should reassess whether salaried employees still clear the new $70,304 exempt salary threshold and meet the duties tests. This is particularly true for roles that blend analytical, administrative, and client-facing work.
• Commission-based positions, including inside sales, business development, and certain product distribution roles, require special attention to ensure pay structures still satisfy the $25.35 hourly minimum and commission-dominant compensation requirement needed to preserve the...

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