California Physician Overtime Exemption Rate 2026: 7.17 Per Hour
Quick answer: A qualifying licensed physician or surgeon must receive at least $107.17 per hour for the California exemption in 2026.
The new 2026 rate
The California Department of Industrial Relations increased the minimum hourly rate from $103.75 in 2025 to $107.17 in 2026. The 3.3% adjustment reflects the change in the California CPI-W.
The indexed amount became effective January 1, 2026.
Who the exemption covers
The exemption applies to certain licensed physicians and surgeons primarily engaged in duties requiring professional licensure.
Employers must verify active licensing, actual medical work, and payment at or above the required hourly amount.
Residents and trainees
Medical residents, interns, fellows, and other trainees may not satisfy the same exemption requirements. Their compensation and status require separate analysis.
An advanced medical degree or hospital job title does not automatically establish the exemption.
Mixed clinical and administrative duties
An employee performing clinical, administrative, teaching, research, or management functions can require a detailed review.
Separate executive, administrative, or professional exemptions have different salary and duties standards.
How the hourly threshold works
The employee’s compensation must meet or exceed the indexed hourly amount. Employers should review all hours worked, shift payments, unpaid time, and pay-period calculations.
A fixed daily or shift payment must be converted and tested against the hourly requirement.
Example
A licensed physician receives $105 per hour in 2026 and works 50 hours. Although the duties may qualify, the hourly rate is below $107.17.
The physician exemption generally fails on compensation unless another exemption applies.
Compliance checklist
- Verify current California licensure.
- Confirm qualifying professional duties.
- Pay at least $107.17 per hour.
- Review residents and fellows separately.
- Track hours when status is uncertain.
- Check meal, rest, and overtime rules.
Frequently Asked Questions
What is the 2026 physician rate?
$107.17 per hour.
When did it take effect?
January 1, 2026.
Are all doctors exempt?
No. Licensing, duties, and compensation requirements must all be met.
Do residents automatically qualify?
No.
Can physicians be paid by the shift?
A shift payment must still satisfy the hourly threshold and other requirements.
Official Sources
- California DIR — Physician and Surgeon Exemption
- California Labor Commissioner — Overtime FAQ
- California Wage Order 4
This article is for general educational purposes and is not legal, tax, accounting, payroll, or employment advice. Rules can change and may differ by location, occupation, employer size, and employee duties.
This calculator is for educational purposes only. Consult your employer or a labor attorney for advice specific to your situation.