The Golden State will be shining brighter for lower income workers as California’s minimum wage will be increasing again in 2026. Effective January 1, 2026, the minimum hourly wage will be $16.90. As the minimum salary required for an employee to qualify as exempt is based on two times the state minimum wage, annual salaries for exempt employees must be at least $70,304.
For those responsible for annual budgeting, that’s an increase of $1,664 to meet the annual salary and $832 per year for full-time non-exempt employees. Computer professionals are exempt from the minimum salary increase for 2026, because, well, they’re already raking it in (or so we assume).
All jokes aside, this increase is something employers will want to start planning for now. Now, if you’ll excuse us, we have to go check our own pay-rates to see if we can afford that avocado toast.
SDEA is HeRe with you. Call us to discuss compensation plans, exemption duties requirements, or cost-effective brunch ideas. 858-505-0024.
