California’s statewide minimum wage will rise to $17.40 an hour on Jan. 1, 2027. The increase will also raise the annual salary an employee must earn to qualify for exemption from overtime requirements to $72,384; employees must meet the duties and other requirements for the applicable exemption as well.
Payroll teams should update wage-rate tables, review exempt employees’ salaries and confirm that pay stubs accurately list each employee’s wage rate. Most California employees, including workers paid on a piece-rate basis, must receive at least the applicable minimum wage.
Employers also must post the statewide and applicable industry wage orders where employees can access them. Local ordinances may require a higher rate.
More info: CA Labor Commissioner’s Office