Romero Law, APC Highlights $17.40 Minimum Wage Effective January 2027

PASADENA, CA – October 29, 2026 – PRESSADVANTAGE –

Romero Law, APC, an employment law firm in Pasadena, California, is highlighting the increase in the statewide minimum wage to $17.40 per hour on January 1, 2027, and the related rise in the general salary threshold for executive, administrative, and professional overtime exemptions to $72,384 a year. The California Department of Industrial Relations detailed the figures in a news release dated August 13, 2026, in which its Labor Commissioner’s Office reminded workers and employers to prepare for the increase.

The department said the Department of Finance certified the minimum wage increase for 2027 on July 31, 2026. According to the Department of Finance’s certification letter, the average U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers for July 1, 2025 through June 30, 2026 increased 2.99 percent compared with the preceding 12-month period. Under Labor Code section 1182.12, the result is rounded to the nearest ten cents, and the certification sets the rate at $17.40 per hour for all employers.

The department explained that the increase also raises the minimum salary an employee must earn to meet part of the test for exemption from overtime requirements. For exemptions subject to this general salary test, an employee must earn at least $72,384 annually beginning January 1, 2027. Employees must also satisfy the duties and other requirements that apply to the specific exemption, the department said.

Under Labor Code section 515, the salary test for the executive, administrative, and professional exemptions is twice the state minimum wage for full-time employment. For covered fast food employees, however, the exempt salary threshold is tied to the fast food minimum wage, according to HR California. Local minimum wage rates do not change the exempt salary threshold, which is based on the state rate, HR California reported.

State law requires that most California workers be paid at least the minimum wage, including those paid on a piece-rate basis, according to the department. Workers who are paid less than the minimum wage may contact a Labor Commissioner’s Office location in their area to file a wage claim.

Employers must post the statewide minimum wage order and the industry-specific wage order that applies to their workplace, the department said. Some California cities and counties have higher local minimum wage rates, which employers must follow when they apply. Certain workers are covered by higher industry-specific minimum wages, including those in covered fast food and health care employment, according to Ogletree Deakins.

The department also stated that employers who do not comply with minimum wage laws may be liable for back wages, penalties, and liquidated damages. It further noted that workers are not required to disclose their immigration status when filing wage claims or retaliation complaints under California labor laws.

Romero Law, APC represents employees, whistleblowers, and victims of workplace discrimination, harassment, and retaliation, according to the firm. Alan Romero is the firm’s principal attorney, and Sara Simms is an attorney with the firm.

The information in this release is based on the California Department of Industrial Relations’ August 13, 2026 news release, the Department of Finance’s July 31, 2026 certification letter, and Labor Code sections 515 and 1182.12. It is presented for general public awareness and is not legal advice. Whether a particular worker is exempt or is owed wages depends on the facts and the applicable law.

Romero Law, APC represents employees in wage and hour cases in Pasadena and throughout California.

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For more information about Romero Law, APC, contact the company here:

Romero Law, APC
Alan Romero
(626) 396-9900
ajr@romerolaw.com
251 S. Lake Avenue, Suite 930, Pasadena, CA 91101-4873