California Minimum Wage Increase Ahead

Beginning January 1, 2027, California’s statewide minimum wage will increase to $17.40 per hour. The minimum wage increase also affects the minimum salary an employee must earn to meet part of the test for exemption from overtime requirements. $17.40 x 2 x 40 hours per week x 52 weeks per year = $72,384 Accordingly, a salaried exempt employee must earn an annual salary of at least $72,384 to meet the salary threshold for exemption.