📅 2026 Update: Changes in Employment Law and Salaries

Since the original article was written, there have been significant updates in U.S. employment law. Key changes include adjustments to salary thresholds for minimum wage and exempt employees, as well as developments regarding non-compete agreements. The following sections highlight these important updates relevant to lawyer salaries, employment rights, and wage laws.

The earlier article continues further down the page for more foundational information.

💼 Overtime Salary Threshold Reverts to 2019 Levels

In November 2024, a federal court ruled against the Department of Labor's attempt to raise the overtime salary threshold. The threshold reverted to $684 per week, which translates to $35,568 annually. This change directly impacts employees who may have been expecting higher overtime pay.

⚖️ FTC’s Non-Compete Ban Blocked

The Federal Trade Commission's 2024 rule to ban most non-compete agreements was blocked by a federal court. This ruling prevents any changes to non-compete agreements from taking effect. As of February 12, 2026, this rule was formally removed from the Code of Federal Regulations.

🌟 California Minimum Wage Increase

Starting January 1, 2026, California's minimum wage increased to $16.90 per hour. This is up from $16.50 in 2025, reflecting the state's ongoing adjustments for inflation. Employers in California must now ensure compliance with this new wage rate.

📈 California Exempt Employee Salary Threshold

Effective January 1, 2026, the salary threshold for exempt executive, administrative, and professional employees in California has increased to $70,304 annually. This means that employees classified as exempt must earn at least $5,858.67 per month to qualify under this exemption.

📌 Key Points Summary

  • Overtime threshold reverts to $684 per week.
  • FTC's non-compete ban blocked and removed.
  • California minimum wage increased to $16.90 per hour.
  • Exempt employee salary threshold in California raised to $70,304 annually.
  • Employers must post updated minimum wage notices by January 1, 2026.

💡 Tips for Understanding Employment Law Changes

Review the details of your own situation with an attorney.

📝 Stay Informed on Wage Changes

Keep track of local wage laws, especially if you work in California. The minimum wage can change annually based on inflation, affecting your earnings.

📊 Check Exempt Status

If you are classified as an exempt employee, ensure your salary meets the new threshold of $70,304 annually. This is essential to maintain your exempt status under California law.

📅 Update Workplace Notices

Employers in California must update workplace postings to reflect the new minimum wage by January 1, 2026. Ensure your workplace is compliant to avoid penalties.

🔄 Monitor Non-Compete Agreements

If you have a non-compete agreement, understand that the FTC's 2024 rule is no longer in effect. Review your contract and consider how this may affect your employment options.

📞 Utilize Government Resources

The U.S. Department of Labor and the California Department of Industrial Relations provide resources about wage and hour laws. These can help clarify your rights and the latest legal changes.

❓ Frequently Asked Questions

❓ What is the current minimum wage in California?

As of January 1, 2026, the minimum wage in California is $16.90 per hour.

❓ How does the salary threshold affect exempt employees?

To be classified as exempt in California, employees must earn at least $70,304 annually or $5,858.67 monthly as of January 1, 2026.

❓ Are non-compete agreements still enforceable in California?

As of February 12, 2026, the FTC's attempt to ban non-compete agreements was blocked, meaning these agreements remain enforceable unless otherwise specified in state law.

❓ What should employers do regarding the new minimum wage?

Employers in California are required to post the updated minimum wage notice by January 1, 2026, to comply with the law.

❓ Where can I find more information on wage laws?

The U.S. Department of Labor and the California Department of Industrial Relations offer resources and guidance on wage laws and employee rights.

❓ How often does California adjust its minimum wage?

California's minimum wage is adjusted annually based on inflation, which may include increases of up to 3.5% for any inflation over 7%, as measured by the national Consumer Price Index.

⚖️ Recent Employment Cases

Recent court rulings have influenced employment law, particularly regarding wage thresholds and non-compete agreements. These changes can significantly affect both employees and employers.

For more recent rulings, check out more rulings on the news page.

End of October 2026 Update






Lawyer’s Salary: How Much do Lawyers Make?


If you're considering a career in law, you may be wondering about the earning potential for lawyers. After all, a legal education is a significant investment of both time and money. In this article, we'll explore the salary ranges for lawyers, factors that determine a lawyer's salary, and potential career paths for those interested in pursuing law.


Salary Ranges for Lawyers

Lawyer’s Salary

According to the Bureau of Labor Statistics, the median annual wage for lawyers was $126,930 in May 2020, with the lowest 10 percent earning less than $61,490 and the highest 10 percent earning more than $208,000. However, these figures can vary greatly depending on a lawyer's experience, location, and specific area of law.


Experience


As with many professions, a lawyer's salary typically increases with experience. According to a survey conducted by the National Association for Law Placement, the median starting salary for new law graduates in 2020 was $72,500, while the median salary for lawyers with 20 or more years of experience was $189,500.


Location


Location can play a significant role in a lawyer's salary. In general, major metropolitan areas with high costs of living tend to offer higher salaries, while smaller towns and rural areas may offer lower salaries. For example, the median annual wage for lawyers in New York City was $166,130 in May 2020, while the median annual wage for lawyers in nonmetropolitan areas of Texas was $115,070.


Area of Law


The area of law that a lawyer practices in can also impact their earning potential. Specialized fields, such as intellectual property law or corporate law, tend to offer higher salaries than general practice law. According to the same survey by the National Association for Law Placement, the median salary for lawyers practicing in the private sector was $135,000, while the median salary for public sector lawyers was $58,000.


Factors That Determine a Lawyer's Salary


In addition to experience, location, and area of law, there are several other factors that can impact a lawyer's salary.


Firm Size


The size of the law firm that a lawyer works for can affect their salary. According to the National Association for Law Placement, the median salary for lawyers in firms with 2-25 attorneys was $75,000, while the median salary for lawyers in firms with 501 or more attorneys was $190,000.


Clientele


The type of clients that a lawyer works with can also impact their salary. Lawyers who work with high-profile clients or large corporations may be able to command higher fees than those who represent individuals or small businesses.


Education


A lawyer's level of education can also play a role in their earning potential. According to the Bureau of Labor Statistics, lawyers with a Juris Doctor (JD) degree typically earn more than those with a Bachelor of Laws (LLB) degree. Additionally, lawyers with advanced degrees, such as a Master of Laws (LLM) or a Doctor of Juridical Science (SJD), may have higher earning potential.


Potential Career Paths


There are several career paths available to those with a law degree, each with different earning potential.


Private Practice


Many lawyers work in private practice, either as solo practitioners or as part of a law firm. Private practice lawyers can work in a variety of areas, including criminal defense, corporate law, and family law. According to the National Association for Law Placement, private practice lawyers in the private sector had a median salary of $180,000 in 2020.


In-House Counsel


Another option for lawyers is to work as in-house counsel for a corporation or other organization. In-house lawyers provide legal advice and support to the company they work for, rather than working with outside clients. According to the National Association for Law Placement, in-house lawyers had a median salary of $168,000 in 2020.


Government


Lawyers can also work in the public sector, in roles such as prosecutors, public defenders, or government agency lawyers. While government salaries may be lower than private sector salaries, these positions often come with other benefits, such as job security and a good work-life balance. According to the Bureau of Labor Statistics, lawyers working for the federal government had a median annual wage of $144,420 in May 2020.


Nonprofit/Pro Bono Work


Finally, some lawyers may choose to work in the nonprofit sector or do pro bono work. While these positions may not offer high salaries, they can be personally fulfilling and may offer other benefits, such as a flexible schedule or the opportunity to work on meaningful projects.


Conclusion


A law degree can open up many career paths, each with its own earning potential. While lawyer salaries can vary depending on a number of factors, including experience, location, and area of law, the median annual wage for lawyers is over $120,000. Ultimately, the best career path for you will depend on your interests, goals, and priorities.


 



 
 
Looking at a Lawyer’s Salary
 
 
Lawyers work as advocates and advisers, helping a party in either a civil or criminal trial by arguing in court and presenting evidence that supports their client. Depending on the field the lawyer specializes in, they can work in different positions, such as working as an in-house attorney for an interest group or advising an insurance company. A lawyer’s salary depends on who the employee or the clients he or she represents.
 
Many lawyers work in private practices where they concentrate on either criminal or civil law. Others can work at different levels of the government, for example working for the State attorneys general or as a prosecutor. Others can also work for legal aid societies.
 
Because the positions vary so widely, a lawyer’s salary varies well. Factors that affect a lawyer salary include:
 




  • Size of the employing firm: Larger firms tend to pay a higher salary, but getting into a larger firm often requires coming out of a law school with a very good reputation along with a good academic record.
     


  • Level of education: Most lawyers who have seniority will be paid a higher salary in comparison to a junior lawyer
     


  • Employer location: The geological location or city greatly affects a lawyer salary.
     


  • Specialization and field: Salary can very significantly depending on the field being practiced. This is often because of the financial statuses of the clients represented.
     


  • Work experience: A lawyer salary will be higher due to more work experience, as is typical in any field of work.
     


  • Type of client of employer: Certain employers tend to have certain pay scales. For example, private practices often pay more than government positions while government positions can pay more than non-profit organizations.
     
    Here are some statistics about a lawyer salary, according to the Bureau of labor statistics from 2008:
     


  • Median annual wage of all lawyers receiving wages or salaries: $110,590
     
    o Middle half range: $74,980-$163,320
     


  • Median annual ranges based on industry
     
    o Local government: $82,590
     
    o State government: $78,540
     
    o Federal Executive Branch: $126,080
     
    o Legal services: 116,550
     
    o Management of companies and enterprises: $145,770
     


  • Median Lawyer salary nine months after law school graduation in 2007
     
    o Business: $69,100
     
    o Government: $50,000
     
    o Private practice: $108,500
     
    o Academic/judicial clerkships: $48,000
     
    o All graduates: $68,500