Effective January 1, 2027, California’s minimum wage will increase to $17.40 per hour for all employers. The increase will also raise the minimum annual salary for many full-time exempt employees to $72,384. Employers must also consider local minimum-wage ordinances and separate requirements applicable to certain healthcare and fast-food employees.
Now is an ideal time for employers to review their employee handbooks, compensation practices, and payroll procedures. Although handbooks generally should not state a fixed wage rate that may quickly become outdated, wage-and-hour policies should accurately address timekeeping, overtime, meal and rest periods, off-the-clock work, payroll practices, and employees’ rights to report wage concerns without retaliation. Employers should also review offer-letter templates, exempt-employee salaries, workplace postings, and wage rates based on each employee’s work location.
Eileen K. Harris, Esq., Chief Human Resources Officer and HR Consultant at Windes, can assist employers with updating employee handbooks and policies, conducting personnel and compliance audits, and identifying practices that may create wage-and-hour risk. Windes Human Capital Consulting provides practical, customized HR support to help organizations remain compliant while maintaining policies that are clear and workable for employees and management.
Employers should begin their review well before January 1 to allow sufficient time for payroll adjustments, employee communications, and handbook updates. To learn more, visit Windes Human Capital Consulting or view Eileen Harris’s professional profile.
