The entertainment industry is heading into one of the most consequential years for payroll compliance in more than a decade. While the past few years brought incremental shifts in wage laws, pay transparency, and enforcement priorities, 2026 marks a true turning point. A convergence of federal policy, aggressive state-level reforms, new notice and recordkeeping requirements, and emerging rules around artificial intelligence will reshape how payroll systems operate for film and television productions.

This shift will be especially significant in California and New York, the two largest and most influential production hubs in the United States. Both states are raising wage floors, increasing exempt salary thresholds, tightening pay transparency rules, expanding enforcement powers, and elevating the documentation standards required of employers. Other key filming jurisdictions, including Washington, Colorado, Maine, Illinois, and New Mexico, are also adjusting minimum wages and exempt salary thresholds in ways that materially impact multi-state productions.

These changes matter because entertainment payroll is uniquely complex. Productions often run multiple units across several states, hire remote staff living in different jurisdictions, and rely on a mix of union, non-union, freelance, and staff employees. A production office may be based in Los Angeles while VFX teams work from Seattle, editors work from New York, and payroll accountants operate remotely from Denver. A weekly rate or exempt salary that is fully compliant in one state may violate wage laws in another. A single misapplied threshold can jeopardize exempt classification for dozens of staff roles.

Moreover, productions frequently bring on large groups of workers at once and wrap them just as quickly. When the legal environment becomes stricter about notices, training records, wage judgments, and record access, the margin for error shrinks dramatically. Productions can no longer rely on legacy onboarding packets or outdated rate grids. The 2026 environment demands dynamic payroll infrastructures that understand jurisdiction, classification, and compliance requirements with precision.

This article offers a comprehensive overview of what changes are coming in 2026, why these changes matter to the entertainment industry, and how studios, production companies, and payroll vendors can prepare. It also outlines how FTV Consulting supports organizations in adapting to this new era of compliance.

A Convergence of Compliance Forces in 2026

To understand why 2026 is so important, it is useful to look at the types of changes taking effect. This is not a single wage increase or a narrow new ordinance. Instead, the year brings simultaneous changes across several categories:



• Minimum wage increases in California, New York, and dozens of other jurisdictions
• Sharp increases in exempt salary thresholds in the largest production hubs
• Broader requirements for personnel records, training access, and rights notifications
• New rules governing training repayment and “stay-or-pay” agreements
• Expanded definitions of pay transparency, job architecture, and pay data reporting
• Increased penalties for wage theft and unpaid wage judgments
• New obligations surrounding AI and automated hiring tools
• Federal tax deductions that require more accurate classification of wages and tips

For entertainment payroll teams, this convergence of legal shifts operates against a backdrop of rising production costs, more remote workers, and increasing expectations for compliance transparency from unions, guilds, and government agencies.

In short, the legal risk profile for entertainment payroll in 2026 is more complex than at any time in recent memory. Companies must begin adapting well before January 2026 to avoid costly missteps.

The Federal Landscape: A Stable Floor With New Reporting Pressures

While the most significant changes are occurring at the state level, federal law continues to shape the baseline framework your payroll must satisfy. Key components remain unchanged. The federal minimum wage holds at $7.25 per hour, and the federal overtime threshold remains 40 hours per week. Similarly, the federal salary threshold for white-collar exemptions remains $684 per week because federal litigation halted efforts to raise that number.

However, federal rules do not exist in isolation. The salary threshold is now irrelevant for most entertainment hubs, because state thresholds far exceed federal standards. That means payroll teams must treat the federal threshold as a minimum, but not as a workable guide.

Federal tax policy, however, is creating new pressures. The One Big Beautiful Bill Act (OBBBA) introduced a deduction for up to $25,000 in qualified tip income and a deduction for up to $12,500 in overtime premium income for individuals. This does not reduce payroll tax obligations, but it does require employers to track tips, reported gratuities, and overtime premiums with greater accuracy. Productions that operate studio restaurants, event catering, or on-lot hospitality must pay close attention to these rules. Accurate categorization affects worker tax liability, exposes payroll errors, and raises the stakes for W-2 reporting.

Federal law will remain the floor for 2026, but entertainment payroll will be shaped far more by what the states are doing. And no state is transforming the landscape more aggressively than California.

California: The Ground Zero of Entertainment Payroll Reform

No jurisdiction in the United States has a greater impact on entertainment payroll practices than California. In 2026, the state is rolling out a sweeping set of reforms that touch nearly every component of how productions staff, hire, classify, pay, train, and document employees.

Higher Minimum Wages and Higher Salary Thresholds

California is raising its minimum wage to $16.90 per hour on January 1, 2026. Because the state requires exempt employees to earn at least twice the minimum wage, the minimum annual salary for most exempt roles rises to approximately $70,304 per year. Weekly, this equals about $1,352.

This change affects internal production office staff, corporate production employees, tech personnel, and other non-union roles. Many of these roles have been classified as exempt under California’s duties test, but maintaining exempt status now requires increased salary levels.

Specialized roles face even higher thresholds. Under the computer professional exemption, employees must be paid $58.85 per hour, which will affect in-house development teams, digital asset managers, and certain tech-heavy post-production roles.

New Restrictions on Training Repayment Agreements

AB 692 significantly restricts employers’ ability to impose training repayment agreements or clawback provisions. Many studios have used signing bonuses or relocation bonuses tied to minimum service periods. Starting in 2026, most of those provisions become void unless the training is legally required or part of an approved apprenticeship.

This rule impacts any employment agreement that conditions continued employment on repayment. Productions and studios with standardized staff offer letter templates must review these provisions now to avoid exposure.

The New “Know Your Rights” Notice

Beginning February 1, 2026, California requires employers to distribute a new Workplace Know Your Rights notice at hire and annually. Productions must maintain proof of distribution and collect emergency contacts using procedures that match the updated requirements.

For film and TV production, which often hires hundreds of workers quickly through onboarding events or digital start packets, this rule requires updated paperwork systems that track who received which notices and when.

Expanded Personnel File and Training Access Requirements

California is expanding employees’ rights to access their personnel files and training records. This includes detailed descriptions of training modules, names of training providers, duration of training, and topics covered.

Studios and payroll companies that conduct compliance training internally must be able to produce this documentation promptly. Productions that rely on outside platforms must ensure those platforms generate accessible records. Poor recordkeeping can now create legal exposure because failure to provide access may constitute a misdemeanor.

Strengthened Pay Transparency and Pay Data Rules

California continues to broaden employer obligations around pay transparency and pay data reporting. Employers must include bonuses, equity, and other forms of compensation in posted pay scales. They must prepare for expanded pay data filings that use more granular job categories beginning in 2027.

The entertainment industry faces a unique challenge in this area. Productions typically use role titles defined in collective bargaining agreements, alongside studio-specific corporate titles. Mapping dozens or hundreds of job titles into a consistent internal architecture is essential for reporting accuracy.

Increased Penalties for Wage Judgments and Wage Theft

California is significantly strengthening enforcement when employers fail to pay wage judgments. Beginning January 1, 2026, employers who do not resolve wage-related judgments within 180 days may face penalties equal to three times the unpaid amount along with attorney fees and court costs.

Production companies that wind down after wrap must establish centralized processes that ensure judgments arising from prior productions are still paid promptly.

AI and Automated Hiring Regulations

California is introducing new rules governing the use of automated decision-making in hiring, promotions, and performance assessments. These rules require employers to notify employees when AI tools are used, test systems for disparate impact, and maintain records of how decisions were made.

Any studio or payroll company using automated onboarding workflows, candidate screening tools, or automated scheduling systems must ensure compliance with these rules.

Taken together, these changes make California one of the most demanding compliance environments in the country. Productions that do not update their systems in advance risk operational disruption, wage claims, or penalties later in 2026.

New York: Higher Wages and a Tougher Enforcement Climate

New York is making its own significant adjustments in 2026. The state’s minimum wage increases again on January 1, 2026. New York City, Long Island, and Westchester will have a 17 dollar minimum wage, while the remainder of the state will have a 16 dollar minimum wage. These increases directly affect non-union crew, staff roles, and any hybrid or remote employees performing work in New York.

New York is also raising the exempt salary threshold. Downstate regions will require exempt employees to be paid at least $1,275 per week, while upstate regions require $1,199.10 per week. These thresholds exceed federal standards and reflect New York’s ongoing focus on wage and hour compliance.

Perhaps most importantly, New York treats wage theft as a form of larceny. That classification increases civil penalties, broadens enforcement authority, and allows prosecutors to pursue cases more aggressively. For entertainment payroll teams, this means that timekeeping errors, delayed payments, and misapplied rates can carry heavier consequences.

Given the volume of episodic television, commercial work, and streaming productions based in New York, these shifts demand accurate onboarding packets, updated wage notices, and robust internal controls for timecard processing and rate calculation.

Other Filming Hubs: Quiet Changes With Real Impact

Outside California and New York, several additional states are enacting changes that affect multi-state payroll operations.

Washington’s exempt salary threshold rises above $1,541 per week, one of the highest in the nation. Colorado’s threshold increases to more than $1,111 per week. Maine is raising its exempt salary minimum above $871 per week due to minimum wage indexing.

Illinois maintains a statewide minimum wage of $15 per hour, while Chicago continues indexing its local wage above that amount. New Mexico maintains a $12 minimum wage, but several localities impose higher CPI-indexed floors. Georgia and Louisiana maintain the federal minimum wage, but local ordinances and industry standards often result in higher effective pay rates.

Productions that employ staff across these states must build wage grids, exempt salary tests, and onboarding materials that reflect each jurisdiction’s requirements. The days of using a single national exempt salary table are over.

Why These Changes Matter for Entertainment Payroll

Taken individually, each of these laws may seem manageable. But when applied across an industry that relies on rapid hiring, multi-state staffing, and complex classification rules, the combined effect reshapes payroll operations.

Productions now need more precise wage grids and exempt salary tables. They need onboarding packets tailored to each jurisdiction. They need cleaner timekeeping data, especially when calculating overtime or applying local ordinances. They need job architecture systems that align job titles with reporting categories. They need to track training records thoroughly. They need to map remote and out-of-state employees more accurately. They need to plan for higher labor costs tied directly to statutory increases.

Perhaps most importantly, productions and studios must transition away from relying on legacy processes. Systems that once worked simply because the penalties were low or the rules were loosely enforced will no longer be sustainable in 2026.

How FTV Consulting Helps Productions Prepare for 2026

The 2026 compliance environment introduces operational demands that many productions and payroll teams are not resourced to handle alone. FTV Consulting provides a structured framework to help studios, production companies, and payroll vendors modernize their systems and adapt to new requirements.

FTV Consulting supports clients by:

• Redesigning payroll workflows so 2026 wage and hour rules are applied correctly across all relevant states, including California, New York, Washington, Colorado, and other common filming hubs.
• Building compliant onboarding packets, including California’s 2026 “Know Your Rights” notice, updated wage theft and sick leave materials, harassment and safety notices, and jurisdiction-specific information relevant to multi-state productions.
• Auditing exempt classifications for staff roles and aligning compensation structures with 2026 salary thresholds, ensuring that roles classified as exempt meet both the duties and salary tests in each jurisdiction.
• Standardizing job titles and pay ranges into internal job families that can be mapped to expanded pay transparency and pay data reporting categories, particularly in California and New York.
• Designing and implementing training record systems that are audit-ready and responsive to California’s expanded personnel file and training access requirements. These systems document who was trained, when, on what topics, and by which provider.
• Providing fractional labor executive support to oversee payroll compliance strategy for a full slate of productions, connecting legal requirements to budgeting decisions, staffing plans, and day-to-day payroll operations.
• Delivering structured training through the FTV Graduate Program, including entertainment payroll fundamentals, multi-state wage and hour rules, and contract-specific compliance for high-budget SVOD and theatrical work. Training is designed for payroll accountants, production accountants, and payroll company staff to develop long-term operational compliance.

FTV Consulting’s approach treats payroll as a system rather than a series of isolated tasks. This ensures that productions have the infrastructure they need not only to comply in 2026, but to operate more efficiently in the years that follow.

Preparing for 2026: A Strategic Opportunity

While the upcoming compliance changes may appear daunting, they also present a strategic opportunity. Organizations that modernize their payroll structures now will be better positioned to navigate wage shifts, expansion into new production hubs, and increased regulatory scrutiny. Productions that rely on outdated, decentralized, or improvisational compliance practices will face rising operational risk and potentially costly penalties.

2026 is the year that will define whether entertainment payroll teams are prepared for a more transparent, data-driven regulatory environment. Teams that establish strong systems now will achieve smoother operations, fewer payroll errors, and better relationships with crew, unions, and enforcement agencies.

For studios, production companies, and payroll vendors ready to strengthen their compliance infrastructure, the time to act is before these rules take effect. FTV Consulting supports these efforts with training, strategic guidance, and operational solutions tailored to the entertainment industry’s unique demands.