CALIFORNIA EXEMPT SALARY THRESHOLD 2026:
How to Reclassify Without Losing Your Best People
Visionova HR | Bernadette Jones
You’re sitting at your desk. Coffee is cold. You’re staring at a list of names.
A number of your best people are on the cliff, earning less than $70,304. Starting January 1st, they can’t stay salaried. California says so. And you have to be the one to tell them.
WHY THIS CONVERSATION MATTERS
They nod. They say “okay.” But what they’re really thinking is: Am I being demoted? Does this mean I’m not trusted anymore?
BEFORE YOU SAY ANYTHING: PREPARE
✓ Understand the law
✓ Identify talking points
✓ Anticipate reactions
✓ Consult legal/HR
✓ Calculate their hourly rate (annual salary ÷ 2,080 hours)
✓ Know whether overtime is actually expected in this role.
✓ Decide: Are you raising anyone else? Be consistent.
✓ Have the conversation in writing ready to go (documentation matters).
✓ Block 30 minutes. Don’t rush it.
IN THIS GUIDE
1. 5-step word for word conversation script
2. Answers a tough question they’ll ask
3. Language that protects trust