Since 2009, the federal minimum wage has held steady at $7.25 per hour. However, many states and municipalities enforce higher minimum wages for non-exempt employees. For 2026, in addition to D.C., thirty states have higher minimum wages than federal law. With the new year on the horizon, several locations have scheduled increases in minimum wage due to factors like inflation, new legislation, and voter-approved initiatives.
Click below for details on the upcoming January 1, 2026, minimum wage adjustments:
Employers should also be mindful of varying state requirements for exempt employee minimum salaries. At the federal level, employees may be exempt from earning overtime, with some exceptions, if they:
- Earn at least $684 per week; and
- Are paid on a salary basis; and
- Perform exempt job duties.
If a state’s minimum salary threshold exceeds the federal requirement, employers must comply with the higher state standard. See below for a summary of upcoming minimum-salary changes effective January 1, 2026.
California
- State law ties the exempt salary threshold to twice the state minimum wage for a 40-hour workweek.
- On January 1, 2026, the state minimum wage will increase to $16.90 per hour and accordingly the salary threshold for most executive/administrative/professional exemptions will rise to $1,352 per week ($70,304 per year).
- Effective January 1, 2026, the minimum pay for overtime exempt computer professionals as well as physicians and surgeons will increase per an annual inflation adjustment required by state statute (click on the links to view more).
Colorado
- Employees qualified for the executive, administrative, and professional exemptions must be paid at least $1,111.23 per week beginning on January 1, 2026.
Maine
- Maine’s exempt salary threshold is scheduled to increase to $871.16 per week ($45,300 per year) effective January 1, 2026.
New York
- For NYC and Nassau, Suffolk, Westchester counties: weekly threshold increases to $1,275 per week ($66,300 per year) on January 1, 2026.
- For the remainder of the state: weekly threshold increases to $1,199.10 per week ($62,353.20 per year) on January 1, 2026.
Washington
- Effective January 1, 2026 the weekly salary minimum for exempt employees will increase to $1,541.70 per week ($80,168.40 per year) per state rule (2.25 × the new minimum wage).
- Note: This threshold applies regardless of employer size (although earlier versions differentiated by size) and must be met for exempt classification under state law.
Summary
- As noted, the federal salary-level test for exemption under the FLSA remains at $684 per week for standard EAP exemptions in 2026.
- Because many states set higher thresholds, employers must check both federal and state regulations and apply whichever is more protective of the employee.
- Employers in multistate operations should consider aligning with the highest applicable threshold to simplify compliance.