Late last week, California has announced that the new minimum wage for 2027 will be $17.40 per hour. This represents an increase of fifty cents per hour or approximately 3 percent (from $16.90 currently). This increase to the state minimum wage also means that the salary test for the widely used executive, administrative and professional exemptions will increase from $70,304 annually ($1,352 per week) to $72,384 annually ($1,392 per week) because that salary minimum is pegged at two times the state minimum wage. Employees who are not paid a fixed salary of at least $72,384 annually/$1,392 weekly as of January 1 will no longer be able to qualify as exempt employees under any of these three exemptions. Click here for more information about the 2027 California minimum wage increase.
Please also keep in mind that many cities and counties in California have their own minimum wage requirements that exceed the state minimum wage. California employers should always monitor the state and local minimum wage requirements and should check the salaries of their exempt workers to make sure they are being paid the minimum required fixed salary.
