California exempt salary threshold 2027.

The 2027 figure and how it is built

California ties the minimum salary for most exemptions to the state minimum wage. The Labor Commissioner's Office lays the math out in its release on the 2027 increase: $17.40 × 2 × 40 hours per week × 52 weeks per year = $72,384. The same release says the statewide minimum wage rises to $17.40 per hour on January 1, 2027, after the Department of Finance certified the inflation adjustment on July 31, 2026. California adjusts the minimum wage annually for inflation, so the threshold moves with it every January.

The release adds that employees "must also satisfy the duties and other requirements applicable to the specific exemption." The salary is a floor, not the whole test.

Threshold by pay period

Only the annual figure comes from the Labor Commissioner. The other rows divide it by the pay period (we divided $72,384 by 12, 24, 26 and 52), so confirm with your payroll provider if your pay periods are irregular.

How it compares

California 2026: the state minimum wage is $16.90, so the same formula gives $16.90 × 2 × 40 × 52 = $70,304, a rise of $2,080 for 2027. Federal: 29 CFR 541.600 sets the federal salary level at $684 per week, which is $35,568 a year, about half the California figure. An employer in California who pays a salary between the two numbers meets the federal salary level but not the California one.

For the federal side and the other states, see the exempt salary threshold by state page.

Worked example

An employer plans to pay a coordinator $68,000 in 2027. The salary per week is $68,000 ÷ 52 = $1,307.69. The California weekly minimum is $1,392, so the salary is short by about $84.31 a week, or $4,384 a year. The employer would need to raise pay to at least $72,384, or treat the job as non-exempt and track hours and overtime. At $75,000 the salary clears the floor by $2,616 a year, but the job still has to pass the duties test.

What to remember

• The state minimum wage in the formula is the statewide rate. Cities and counties with higher local minimums are not part of the Labor Commissioner's calculation.
• The threshold applies from January 1, 2027, so payroll changes should be in place for the first 2027 pay period.
• The salary test is separate from the duties test and from pay-basis rules. Meeting the dollar figure does not by itself make a job exempt.
• The Labor Commissioner also reminds employers to post the statewide minimum wage order and to list wage rates on pay stubs.

Sources

Primary sources opened on November 1, 2026. The plain-English parts of this page are our summary, not official guidance.

• California Labor Commissioner (DIR), release 2026-66: California minimum wage rises to $17.40 on January 1, 2027 (read 2026-11-01): $17.40 minimum wage for 2027, the $72,384 figure, the July 31, 2026 certification and the duties reminder
• California DIR, Minimum Wage Frequently Asked Questions (read 2026-11-01): $16.90 minimum wage in 2026
• eCFR, 29 CFR 541.600 Amount of salary required (amended May 15, 2026) (read 2026-11-01): federal $684 per week