California Minimum Salary for Exempt Employees 2027
California's 2027 exempt salary is $72,384 a year ($1,392 a week), and computer software professionals need $127,108.34. What changes on January 1, how the numbers are set, and what to do with salaries below the line.
Short answer
From January 1, 2027, a California employee must earn at least $72,384 a year ($6,032 a month, $1,392 a week) to be exempt from overtime, up from $70,304 in 2026. Computer software professionals need at least $61.03 an hour, $10,592.37 a month or $127,108.34 a year. Both are salary tests only: the duties test must also be met.
The 2027 numbers
| Test | 2026 | 2027 (from January 1) |
|---|---|---|
| Exempt salary (executive, administrative, professional) | $70,304/yr · $5,858.67/mo · $1,352/wk | $72,384/yr · $6,032/mo · $1,392/wk |
| Computer software professional | $58.85/hr · $10,214.44/mo · $122,573.13/yr | $61.03/hr · $10,592.37/mo · $127,108.34/yr |
| State minimum wage (basis of the salary test) | $16.90/hr | $17.40/hr |
The federal salary test is far lower ($684 a week, $35,568 a year), but California employers must meet the higher state figure.
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How the California Exempt Salary Is Set
California ties the salary test to its minimum wage: 2 × the state minimum wage × 2,080 hours (40 hours × 52 weeks). The DIR announced the $17.40 minimum wage for 2027 on August 13, 2026, which fixes the salary test at $17.40 × 2 × 2,080 = $72,384. Because the formula follows the minimum wage, the threshold has risen every year the minimum wage has.
Computer Software Professionals
The computer software exemption has its own pay floor, adjusted each year by the DIR. For 2027 it is $61.03 per hour, $10,592.37 per month or $127,108.34 per year, announced in October 2026.
Pay alone does not create the exemption. The employee must also:
- be primarily engaged in intellectual or creative work that requires discretion and independent judgment;
- be primarily engaged in duties such as systems analysis, or designing, developing, testing or modifying computer systems or programs; and
- be highly skilled in applying specialized information to systems analysis, programming or software engineering.
Employees who manufacture, repair or maintain computer hardware are excluded. Software staff paid below the 2027 rate who do not fit another exemption are non-exempt from January 1.
Salary Below $72,384? Your Options Before January 1
Example: an office manager paid $70,000 a year is already below the 2026 test ($70,304), and in 2027 the gap widens to $2,384. Two options:
- Raise the salary to at least $72,384 (or $6,032 a month) effective January 1, 2027.
- Reclassify the role as non-exempt: track hours, pay daily overtime after 8 hours and weekly overtime after 40, and provide meal and rest breaks. Use the California Overtime Calculator to estimate the cost.
Comparing the two costs is usually the quickest way to decide. If the job also fails the duties test, the salary does not matter: it is non-exempt either way — check it with the exempt vs. non-exempt wizard.
Other States
California is one of several states with a salary test above the federal level. See all of them, including Washington, New York and Colorado, in exempt salary threshold by state 2027.
Sources
- California DIR — Minimum wage and exempt salary for 2027 (release 2026-66, August 13, 2026)
- California DIR — Overtime exemption for computer software employees
- Morgan Lewis — California computer professional exemption rates for 2027 (October 19, 2026)
- 29 CFR §541.600 — federal salary level
Frequently asked questions
What is the California exempt salary for 2027?
$72,384 per year, which is $6,032 per month or $1,392 per week, from January 1, 2027. It equals twice the $17.40 state minimum wage for 2,080 hours.
What is the 2027 salary for California computer professionals?
$61.03 per hour, $10,592.37 per month or $127,108.34 per year, effective January 1, 2027, a 3.7% increase from 2026 ($58.85, $10,214.44 and $122,573.13).
Does a salary above $72,384 make a job exempt in California?
No. The salary is only one test. The employee must also be primarily engaged in exempt executive, administrative or professional duties, meaning more than half of their working time.
What happens if an exempt employee earns less than $72,384 in 2027?
From January 1, 2027 the employee is non-exempt under California law and is owed daily and weekly overtime, meal and rest breaks and itemized hours. The employer can raise the salary or reclassify the role.
Try our free calculators
Verify the numbers for your specific situation — built on the same DOL sources cited above.
Related reading
- Washington State Exempt Salary Threshold 2027Washington's exempt salary rises 15% in 2027: $1,773 a week for employers with 51 or more employees and $1,595.70 for 1 to 50. How the two tiers work, why part-time salaries are not prorated, and what to check before January 1.
- Exempt Salary Threshold by State 2027 (and 2026)The federal exempt salary stays at $684/week in 2027, but California, Washington and other states set much higher floors. Table of 2026 and 2027 thresholds with sources, and a quick salary check.
- Minimum Wage by State 2027: Every Increase on January 1Fifteen states raise their minimum wage on January 1, 2027, New York freezes, and more increases follow mid-year. Full table with the source for each rate.
Not legal advice. This article is for informational purposes only. Compliance obligations depend on employer-specific facts, collective bargaining agreements, and applicable jurisdictions. Consult qualified counsel before acting on any information here.