In California, a salary and an impressive title do not automatically make an employee “exempt.”
In 2026, employees generally must earn at least $70,304 annually—twice the state’s $16.90 minimum wage for full-time work—to satisfy the salary “threshold” for executive, administrative, or professional exemptions.
But salary is only the starting point.
Employees must also be paid on a salary basis, perform qualifying duties, spend more than half their time on exempt work, and exercise the required authority or independent judgment.
Calling someone a “manager” or paying above the threshold does not, by itself, eliminate overtime eligibility.
The takeaway: review actual responsibilities, not just pay, job descriptions, and titles. Misclassification can create liability for unpaid overtime, missed breaks, penalties, and interest.
Salary opens the door to exempt status—but duties determine whether an employee can walk through it.