California Exempt Salary Threshold Checker 2026

As of January 1, 2026, the minimum salary for exempt employees in California is $70,304 per year. This is based on the $16.90/hour minimum wage and is calculated as 2 × $16.90 × 40 hours/week × 52 weeks/year. Employees earning less are generally non-exempt and must receive overtime pay.

To be exempt you must meet all three requirements: (1) earn at least $70,304/year, (2) be paid on a fixed salary basis, and (3) have job duties that qualify under executive, administrative, professional, computer professional, or outside-sales exemptions. Failing any one test makes you non-exempt.

You are generally non-exempt and entitled to: overtime at 1.5× for hours over 40/week; daily overtime at 1.5× for hours over 8/day; double time (2×) for hours over 12/day in California; 30-min meal breaks (shifts over 5 hours); and 10-min rest breaks per 4 hours worked.

The computer professional exemption (California Labor Code §515.5) has its own separate threshold published annually by the DLSE. For 2026, the annual threshold is $122,573.13 ($10,214.44/month or $58.85/hour). This is entirely separate from the 2× minimum wage formula used for white-collar exemptions.

Exempt employees are generally not required to track hours. However, California employers may ask them to for scheduling or project management purposes. Tracking hours does not convert an exempt employee to non-exempt, but it can serve as evidence if misclassification is later disputed.

The Outside Sales exemption applies to employees who primarily make sales or obtain orders away from the employer's place of business. It has no salary threshold requirement in California. The employee must spend more than half their working time engaged in outside sales activities.

If you believe you are misclassified as exempt: (1) document all hours worked, (2) review your actual job duties against the exemption tests, (3) discuss with HR, (4) consult a California employment attorney, and (5) file a wage claim with the California Labor Commissioner's Office for unpaid overtime. California has a 3-year statute of limitations on most wage claims.

California's 2026 exempt threshold of $70,304/year is nearly double the federal FLSA threshold. The DOL issued a technical amendment on May 14–15, 2026 formally restoring the 2019 federal rule after courts vacated the 2024 increase — keeping the federal threshold at $684/week ($35,568/year). This means an employee earning $45,000/year is fully exempt under federal FLSA but non-exempt in California, entitled to daily overtime (1.5× after 8 hrs/day) and California break rights. Additionally, California has no highly compensated employee (HCE) exemption, unlike federal FLSA ($107,432/year HCE threshold). Source: DOL technical amendment effective May 15, 2026; California Labor Code §515.

Under California's Private Attorneys General Act (PAGA), misclassification penalties are assessed per aggrieved employee per pay period. Under AB 2288 (effective June 19, 2024): $100/employee/pay period for initial violations, $200/employee/pay period for subsequent violations. Example: 20 misclassified employees over 2 years (52 bi-weekly pay periods): initial period $100 × 20 = $2,000, then $200 × 20 × 51 = $204,000 — total $206,000 before attorneys' fees. AB 2288 introduced cure provisions: employers who take 'all reasonable steps' before receiving a PAGA notice may reduce penalties to 15% of the assessed amount. 65% of PAGA penalties go to the State of California; 35% to aggrieved employees. Source: California Labor Code §§2698-2699.6; AB 2288 (2024).

To maintain exempt status, an employee must be paid on a 'salary basis' — a fixed, predetermined salary that does not vary based on hours worked or quality of work. Making improper deductions from an exempt employee's salary can destroy the exemption retroactively for the entire class of similarly situated employees for the period of the improper practice. Impermissible deductions include: docking pay for partial-day absences (except for FMLA/CFRA leave), deductions for slow business days, or reductions for performance. Permissible deductions include: full-week absences for personal reasons, full-week sick leave (if bona fide sick leave plan exists), and safety violation penalties. California's DLSE enforces the salary basis rule strictly. Source: California Labor Code §515; DLSE Enforcement Manual; 29 CFR §541.602 (FLSA).