Beginning January 1, 2027, minimum wage in California will increase from $16.90 to $17.40 per hour.

As a result, for exempt employees (meaning exempt from meal breaks, rest breaks and overtime law requirements) the minimum threshold for their annual salary must increase from the current requirement of $70,304 to $72,384.

If employers fail to ensure that employees treated as exempt meet this salary basis test, employers will face exposure to a multitude of wage and hour violations and penalties.

Employers should also review the actual duties of the positions held by these employees to confirm they meet the applicable exempt status requirements.

Note that local cities and counties will have their own minimum wage which could be greater. We will keep you informed of all other increases in minimum wage between now and the end of the year.

If you have any questions regarding the increase in minimum wage effective January 1, 2027, or ensuring proper classification of exempt employees, contact our employment attorney Scott Liner at [email protected].

Don’t wait until January to prepare!
Contact Chase Law Group to review your wage requirements and exempt employee classifications before the 2027 changes take effect.

WWW.CHASELAWMB.COM

_{Please note that this article is for informational purposes only and should not be considered legal advice and does constitute an attorney-client relationship. It is recommended to consult with an attorney and your insurance carrier directly for specific guidance pertaining to your business and its practices.}