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Start with the actual worksite and industry
The MW-2026 order sets California’s general minimum at $16.90 per hour from January 1, 2026, subject to its application provisions. Fast-food and healthcare requirements are separate, and local rates may be higher. A headquarters address does not determine every customer-site rate.
A manager title does not establish the executive exemption
The Labor Commissioner’s guidance combines management of the enterprise or recognized unit; regular direction of two or more employees; hiring/firing authority or recommendations given particular weight; discretion and independent judgment; primarily exempt duties; and the required salary.
A launch manager spending substantial time cleaning, delivering services or following prescribed instructions still needs assessment against those actual duties. Raising pay alone does not settle the test.
Separate guaranteed salary from employer cost
The executive entry describes monthly salary of at least twice the state minimum for full-time employment, using a 40-hour week. At the general 2026 rate, the annualized illustration is $16.90 × 40 × 52 × 2 = $70,304.
In the fictional $120,000 budget, only $65,000 is promised as base salary; the rest covers employer costs and launch support. The total exceeds $70,304, but the base salary does not meet that illustrated component. Taxes, benefits, insurance, recruitment and equipment are not automatically guaranteed salary.
Even a sufficient guaranteed salary leaves the duties, actual wage order and any overtime questions. This illustration is not the test for every industry or another exemption.
Scope
- This is a 2026 general-rate and executive-exemption illustration, not an actual classification or a 2027 rate. Other exemptions and industry wage orders require their own tests.
Next step
Price the job using its actual worksite, duties and guaranteed pay, then calculate total employer cost separately.
Sources & review notes
California Department of Industrial Relations
Passage, dates and research notes
primary · Sections 1–2 and 5
Effective January 1, 2026, Minimum Wage: $16.90 per hour
Full official wage order read, including applicability and fast-food/healthcare exceptions. This is the general state floor, not an address-specific wage determination.
California Department of Industrial Relations, Labor Commissioner
Passage, dates and research notes
official-guidance · Current rate and overlapping state/local/industry requirements
Effective January 1, 2026, the minimum wage is $16.90 per hour for all employers,
Actual FAQ body read for current state floor, higher local/industry standards, and overlapping requirements. No 2027 rate or local ordinance is inferred.
California Department of Industrial Relations, Labor Commissioner
Passage, dates and research notes
official-guidance · Executive exemption and exempt status
An executive employee must also earn a monthly salary equivalent to no less than two times the state minimum wage
Actual executive-exemption entry read, including duties, supervision, independent judgment, primarily engaged requirement and 40-hour full-time basis. Unrelated historical computer-exemption figures are not used.
Detailed rule records (2)
MW-2026 sets the general state minimum at $16.90 per hour from January 1, 2026, subject to its applicability provisions. Higher applicable industry or local requirements must be checked for each actual worksite; do not use this figure as an all-in labor cost.
California Minimum Wage: MW-2026 Minimum Wage Frequently Asked QuestionsDLSE describes cumulative executive-exemption conditions: management of the enterprise or a recognized unit, regular direction of two or more employees, hiring/firing authority or weighted recommendations, discretion and independent judgment, primarily exempt duties, and a salary of at least twice the state minimum wage for full-time employment. A manager title or total employment budget does not establish this exemption.
DLSE Glossary: Executive Exemption California Minimum Wage: MW-2026Keep this reading in your learning library.
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