--- title: "October 2026 Payroll Update: What California Employers Should Know Before Year-End" description: Prepare for California's 2027 wage increase and important payroll deadlines. Learn key steps for compliance and effective payroll management this October. image: https://www.onyxhr.com/hubfs/MonthlyUpdate.png --- [Skip to content](https://www.onyxhr.com/onyx-hr-insights/october-2026-payroll-update-what-california-employers-should-know-before-year-end#main-content) [![ONYX HR LOGO](https://www.onyxhr.com/hs-fs/hubfs/ONYX%20LOGO.png?width=6720&height=2000&name=ONYX%20LOGO.png) ![ONYX LOGO](https://www.onyxhr.com/hs-fs/hubfs/ONYX%20LOGO.png?width=2550&height=759&name=ONYX%20LOGO.png)](https://www.onyxhr.com) [Get Started](https://www.onyxhr.com/contact) - [Home](https://www.onyxhr.com) - [About](https://www.onyxhr.com/about) - [Services](https://www.onyxhr.com/services) - [Insights & News](https://www.onyxhr.com/onyx-hr-insights) - [Contact](https://www.onyxhr.com/contact) ###### 4 min read # October 2026 Payroll Update: What California Employers Should Know Before Year-End By: [OnyxHR](https://www.onyxhr.com/onyx-hr-insights/author/page-1) on Oct 5, 2026, 12:42:43 PM [Payroll](https://www.onyxhr.com/onyx-hr-insights/tag/payroll) [Compliance](https://www.onyxhr.com/onyx-hr-insights/tag/compliance) [News](https://www.onyxhr.com/onyx-hr-insights/tag/news) ![Featured Image](https://www.onyxhr.com/hubfs/MonthlyUpdate.png) *The Monthly Payroll Brief from OnyxHR* *Updated October 5, 2026* October marks the start of the final quarter—and a good opportunity to get payroll ready for the months ahead. For California employers, this month’s priorities include quarterly reporting, preparing for January wage changes, and paying attention to a major worker-classification enforcement announcement. Here’s what deserves a place on your payroll checklist. **California’s 2027 wage increase belongs in your budget now** California’s statewide minimum wage will increase to **$17.40 per hour on January 1, 2027**. Although the increase was announced earlier this year, October is a practical time to prepare payroll settings and next year’s labor budget. The change also raises the minimum annual salary for California’s standard executive, administrative, and professional overtime exemptions to **$72,384**. Meeting the salary threshold alone does not establish exempt status; employees must also meet the applicable duties and other requirements. Local minimum wages and industry-specific requirements may call for higher pay. Employers should verify the rate applicable to each work location and covered role, and prepare required workplace posting updates. [California Department of Industrial Relations](https://www.dir.ca.gov/DIRNews/2026/2026-66.html) **Your October action:** Build a list of affected employees, identify the adjustments needed, and assign someone to verify the changes before the first payroll covering January work. Give yourself time to consider the broader budget, too. Changes at the bottom of a pay range can prompt questions about how other positions are paid. Reviewing those relationships now gives managers time to plan and communicate thoughtfully. **Third-quarter reporting: keep November 2 on your calendar** California’s third-quarter **DE 9 and DE 9C** reports cover July, August, and September. EDD lists **October 1, 2026, as the due date** and **November 2, 2026, as the last day to file before the reports become delinquent**. Payroll tax deposits follow their own requirements. The quarterly reporting deadline should not be treated as an extension for every tax payment. [California EDD employer resources](https://edd.ca.gov/employerresources) **Your October action:** Reconcile quarter-end payroll totals, investigate discrepancies, confirm who will submit the reports, and retain the filing confirmations. If you use an outside payroll provider, confirm what the provider handles and what your internal team must supply. A clear handoff makes it easier to catch missing information while there is still time to resolve it. ![payrolldatestowatch](https://www.onyxhr.com/hs-fs/hubfs/payrolldatestowatch.png?width=785&height=524&name=payrolldatestowatch.png) **New this month: a major classification settlement** On October 1, California’s Labor Commissioner announced a **$272.5 million settlement with Lyft** resolving allegations that California drivers had been misclassified as independent contractors. The settlement concerns alleged violations from **April 6, 2016, through December 15, 2020**. It does not require Lyft to reclassify drivers going forward; the state’s announcement distinguishes the historical claims from the separate Proposition 22 framework that followed. [California DIR settlement announcement](https://www.dir.ca.gov/DIRNews/2026/2026-78.html) For other employers, this news provides a timely reason to revisit how worker classifications are documented. **Your October action:** Identify contractor relationships that have changed over time and flag uncertain arrangements for a qualified classification review. When responsibilities or working arrangements evolve, the original paperwork may no longer tell the whole story. **Western states spotlight: Washington announces its 2027 rate** For businesses with employees in Washington, there is another January change to prepare for. On September 30, Washington’s Department of Labor & Industries announced that the state minimum wage will rise to **$17.73 per hour on January 1, 2027**. Washington also adjusts certain overtime-exempt salary thresholds using the state minimum wage. Employers with Washington staff should review those requirements alongside applicable local wage rates. [Washington Department of Labor & Industries](https://www.lni.wa.gov/news-events/article/26-17) **Your October action:** Maintain a wage-update checklist by employee work location. A regional workforce needs a location-specific review before payroll changes are entered. **Make October your payroll preparation month** A few focused steps can make the final quarter easier to manage: - Confirm responsibility for third-quarter filings and save submission records. - Map January wage changes to affected employees and locations. - Review exempt salaries and flag classification questions. - Set internal dates for payroll updates, verification, and employee communication. The goal is to turn each development into a clear assignment, with an owner and a completion date. **[![Your next payroll move starts here](https://www.onyxhr.com/hs-fs/hubfs/banneryournextpayroll.png?width=2172&height=724&name=banneryournextpayroll.png)](https://onyxhr.com/meetings/jason-thomasy)** **Need help organizing your next payroll steps?** Talk with OnyxHR about your payroll and employer-support needs. Call **(661) 535-2557** or email [**marketing@onyxhr.com**](mailto:marketing@onyxhr.com). ##### Navigation Navigation - [About](https://www.onyxhr.com/about) - [Services](https://www.onyxhr.com/services) - [Blog](https://www.onyxhr.com/onyx-hr-insights) - [Contact](https://www.onyxhr.com/contact) ##### Recent Blog Posts Recent Blog Posts ###### [October 2026 Payroll Update: What California Employers Should Know Before Year-End](https://www.onyxhr.com/onyx-hr-insights/october-2026-payroll-update-what-california-employers-should-know-before-year-end) *The Monthly Payroll Brief from OnyxHRUpdated October 5, 2026* October marks the start of the final... ##### Get in Touch Get in Touch 1508 18th St, Suite 302 Bakersfield, CA 93301 Phone: (661) 535-2557 Email: info@onyxhr.com   [![ONYX LOGO-1](https://www.onyxhr.com/hubfs/ONYX%20LOGO-1.png)](https://www.onyxhr.com) - [Terms](https://www.onyxhr.com/terms) - [Privacy Policy](https://www.onyxhr.com/privacy-policy) - [Cookie Policy](https://www.onyxhr.com/onyx-hr-cookie-policy) © 2026 OnyxHR Employer Solutions ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "OnyxHR", "url" : "https://www.onyxhr.com/onyx-hr-insights/author/page-1" }, "dateModified" : "2026-10-05T19:42:43.371Z", "datePublished" : "2026-10-05T19:42:43.000Z", "headline" : "October 2026 Payroll Update: What California Employers Should Know Before Year-End", "image" : [ "https://www.onyxhr.com/hubfs/MonthlyUpdate.png" ], "mainEntityOfPage" : { "@id" : "https://www.onyxhr.com/onyx-hr-insights/october-2026-payroll-update-what-california-employers-should-know-before-year-end", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.onyxhr.com/hubfs/ONYX%20LOGO.png" } } } ```