Santa Monica, California
Exempt salary threshold.

California · Exempt salary threshold

Rule name changed from not previously published to California exempt salary threshold. Summary changed from not previously published to From January 1, 2026, executive, administrative and professional employees must earn at least $70,304 a year to be exempt from California overtime. The DIR sets the floor at two times the state minimum wage for a 40-hour week ($16.90 in 2026).. Requirement changed from not previously published to $70,304 per year. Numeric amount changed from not previously published to 70304. Minimum employer size changed from not previously published to 0 employees. Effective date changed from not previously published to Jan 1, 2026. Publication status changed from not previously published to active. Local guidance changed from not previously published to California's minimum wage rose to $16.90 on January 1, 2026, which automatically lifted the exempt salary floor to $70,304 a year because the threshold is set at twice the minimum wage. California is unusual in having daily overtime (1.5x after 8 hours in a day, 2x after 12) and it allows no tip credit at all. Paid family leave benefits rose on January 1, 2025 to 90% of wages for workers earning under $63,000 a year. Many California cities set local minimum wages above the state rate.. Industry coverage changed from not previously published to not published.