California has one of the highest minimum wages in the country, so “how much is the minimum salary in California?” has a much bigger answer than the federal figure — and it comes with an unusually high bar for exempt, salaried employees too. This guide lays out California’s state minimum wage as an annual salary, the separate (and higher) exempt-salary threshold that decides overtime eligibility, the city minimums that go even higher, and how the whole picture compares to the federal rules.
California’s statewide minimum wage sits around $16 to $16.50 per hour, well over double the federal $7.25. Worked full-time — 40 hours a week, 52 weeks — that is roughly $33,000 to $34,000 a year before taxes. That is the general floor, but California layers on two important extras: many cities set even higher local minimums, and certain industries like fast food have their own higher rates.
There is also a distinctly Californian twist on the “minimum salary” for exempt employees. To be classified as exempt from overtime in California, a salaried worker generally must earn at least twice the state minimum wage for full-time work — roughly $68,640 a year — which is far above the federal exempt threshold. Below, we break down each of these figures and how they fit together.
Turn any California minimum wage into an annual figure with our Hourly to Salary Calculator and Annual Salary Calculator.
What this guide covers
California’s state minimum wage
California sets a statewide minimum wage that rises over time and currently sits around $16.50 per hour for most employers. It applies across the state as the baseline, and any city or industry rate that is higher takes precedence where it applies.
This is far above the federal $7.25 floor, reflecting California’s high cost of living. Because the state rate is adjusted periodically, always confirm the current figure — but the key point is that California’s minimum is more than double the federal one, which changes both the minimum salary and the exempt threshold that is pegged to it.
The minimum wage as an annual salary
To express California’s minimum wage as a minimum salary, annualize the hourly rate on a full-time schedule.
$16.50 × 40 × 52 = about $34,320 per yearSo a full-time California minimum-wage worker earns roughly $34,320 a year before taxes at a $16.50 rate — more than double the federal minimum salary of about $15,080. Part-time scales down with hours. This uses the same hourly-to-annual method as how to convert hourly wage to annual salary, and the national picture is in how much is minimum salary.
The exempt-salary threshold in California
Here is where California is especially strict. To classify a salaried employee as exempt from overtime, California generally requires them to earn at least twice the state minimum wage for full-time work — plus meet duties tests.
Exempt minimum = State minimum wage × 2 × 40 × 52
$16.50 × 2 × 40 × 52 = about $68,640So at a $16.50 state minimum, a California exempt employee must generally earn about $68,640 a year — nearly double the federal exempt threshold of roughly $35,568. Earn below that and you are typically entitled to overtime. Because this figure is tied to the state minimum wage, it rises whenever the minimum wage does. For the concept behind exempt status, see what does salary exempt mean and do salaried employees get overtime.
City minimum wages
California’s state minimum is only the floor. Many cities — especially in the Bay Area and Los Angeles region — set local minimum wages above the state rate, and employers in those cities must pay the higher amount.
Bay Area cities. Several set minimums notably above the state rate to reflect very high living costs.
Los Angeles area. The city and county, plus nearby municipalities, often exceed the state minimum.
Annual adjustments. Many local minimums rise each year with inflation.
The practical takeaway: check your specific city’s rate, because it may be higher than the statewide $16.50. Where it is, that city figure — not the state one — sets the minimum salary employers must pay there.
Industry-specific minimums
California has also set higher minimum wages for certain industries, on top of the general state rate. These special minimums apply only within their sectors.
Fast food
California established a higher minimum for fast-food workers at large chains, above the general state rate.
Healthcare
Certain healthcare facilities have their own elevated minimum-wage schedules.
Bottom line: your effective minimum depends on the highest applicable rate — state, city, or industry. Always use whichever is highest for your situation.
California vs federal
Putting California next to the federal rules shows just how different a high-minimum state is. Both the pay floor and the exempt threshold are far higher in California.
| Measure | Federal | California |
|---|---|---|
| Minimum wage | $7.25/hour | ≈$16.50/hour |
| Minimum salary (full-time) | ≈$15,080/year | ≈$34,320/year |
| Exempt threshold | ≈$35,568/year | ≈$68,640/year |
This mirrors how other states set their own rules; our Illinois salary guides work through a different state’s numbers, and the national baseline is in how much is minimum salary.
What it means after tax
California’s minimum salary figures are gross, before-tax amounts — and California has a state income tax, so take-home pay is affected by both federal and state deductions. That said, at minimum-wage income levels, California’s progressive state tax and standard deductions mean low earners often pay relatively little state income tax.
Still, FICA applies, and higher earners near the exempt threshold feel state tax more. To translate any California gross figure into take-home, our guides on estimating salary after taxes and calculating take-home salary show the method, and what a good salary is puts California’s high cost of living in context.
Convert the wage yourself
Compare the state, your city, and your industry minimum — use the highest.
Rate × 40 gives full-time weekly pay.
Weekly pay × 52 gives the gross annual minimum salary.
Exempt employees generally need twice the state minimum — about $68,640 full-time.
Mistakes to avoid
Using the federal figure
California’s minimum is more than double federal. Use the state rate or higher.
Ignoring city minimums
Many California cities exceed the state rate. Check your locality.
Forgetting industry rules
Fast food and some healthcare have higher minimums.
Confusing the two thresholds
The pay floor (~$34,320) differs from the exempt threshold (~$68,640).
Assuming it is take-home
These are gross figures; state and federal taxes apply.
Using outdated rates
California’s minimum rises over time. Check current figures.
Read how much is minimum salary, what salary exempt means, and the Illinois salary guides; use the Hourly to Salary Calculator; browse the salary blog; explore all finance calculators; or visit the Waldev homepage.
Frequently asked questions
How much is the minimum salary in California?
California’s state minimum wage is around $16 to $16.50 per hour, which is roughly $33,000 to $34,000 a year for full-time work. Some cities and industries in California require even higher minimums, so the effective figure can be higher depending on where you work.
What is the minimum salary for exempt employees in California?
In California, an exempt employee generally must earn at least twice the state minimum wage for full-time work. With a state minimum around $16.50, that is roughly $68,640 a year, which is higher than the federal exempt threshold.
Is California’s minimum wage higher than federal?
Yes, significantly. California’s minimum wage of around $16 to $16.50 an hour is more than double the federal minimum of $7.25. When a state minimum is higher, employers must pay the higher state rate.
Do California cities have their own minimum wage?
Yes. Several California cities, such as those in the Bay Area and Los Angeles, set local minimum wages above the state rate. Where a city minimum is higher, employers in that city must pay it.
How much is California minimum wage per year?
At around $16.50 an hour, full-time work of 40 hours a week for 52 weeks is roughly $34,320 a year before taxes. City minimums can push this higher.
Are there special minimum wages in California?
Yes. California has set higher minimum wages for certain industries, such as fast food and some healthcare settings, above the general state minimum. Always check the rules for your specific industry and city.
The quick version
California’s state minimum wage is around $16.50 an hour — roughly $34,320 a year full-time, more than double the federal figure. Many California cities and certain industries (like fast food) set even higher minimums, so use whichever applicable rate is highest. Separately, to classify a salaried worker as exempt from overtime, California generally requires at least twice the state minimum wage — about $68,640 a year — far above the federal exempt threshold. All these are gross, before-tax figures, and California’s state income tax applies on top of federal. Always confirm current rates, since California’s minimum rises over time.
Disclaimer: This article is for general educational purposes and is not legal advice. California’s minimum wage, exempt threshold, and city and industry rates change over time. Confirm current figures with the California Department of Industrial Relations and your local government.
The California Department of Industrial Relations publishes the current state minimum wage and exempt-salary threshold.
Many California cities set their own minimum wages above the state rate, adjusted annually.