Know Your Worth: Changes to California Pay Law in 2026

If you work in California, pay close attention to new wage requirements take that effect on January 1, 2026.

💰 Non-Exempt Employees (Hourly Workers)

• New State Minimum Wage: $16.90 per hour (up from $16.50).
• Know Your Local Rate: Many cities and counties have higher local minimum wages.  Your employer must always pay the highest applicable rate (state, local, or industry-specific).
• Your Right: You are entitled to at least this rate, plus overtime pay for hours worked beyond 8 per day or 40 per week.

💼 Exempt Employees (Salaried Workers)

If you're paid a salary and classified as “exempt” (meaning you don't get overtime), this change directly impacts your minimum legal salary.

• New Salary Threshold: To be legally exempt, you must now be paid an annual salary of at least $70,304 (up from $68,640).
• Your Right: If your salary is below the new threshold for your job, you may be misclassified and entitled to unpaid wages and penalties, including unpaid overtime wages.

✅ Action Plan to Protect Your Pay

1. Verify Your Rate: Check that your pay meets or exceeds the new state minimum ($16.90) or your higher local/industry rate on January 1, 2026.
2. Check Your Salary: If you are salaried/exempt, confirm your pay is at least $70,304 (or the higher rate for computer professionals).
3. Know the Misclassification Risk: Don't let a job title fool you. If you are classified as “exempt” but you are not paid a salary above the salary threshold, then you may be misclassified and owed unpaid pay.

If you believe you are misclassified or owed unpaid wages, contact Sani Law today.