Median Pay Gap Tops $85,000; State Ranks 11th Nationwide
Managers in California earn nearly two and a half times as much as the state’s average worker, according to a new analysis of federal wage data.
The analysis, based on the U.S. Bureau of Labor Statistics’ Occupational Employment and Wage Statistics for May 2025, found that California managers receive significantly higher pay than rank-and-file employees, although the state’s wage gap is close to the national average.
California managers earned a median annual wage of $143,200, about 13% higher than the national median of $126,500, ranking the state eighth in the nation.
New Jersey reported the nation’s highest median pay for managers at $166,700, followed by New York ($165,300) and Washington ($160,000).
California’s median annual wage for all workers was $58,200, also above the national median of $51,000, placing the state ninth nationwide.
Based on those figures, California managers earn $85,000 more per year than the state’s median worker, representing a 146% wage premium. In other words, managers earn about 2.46 times as much as the typical California employee. That pay gap ranks as the 11th largest among the 50 states.
New Jersey recorded the widest gap between managers and average workers, with managers earning 185% more than the median employee. Delaware (184%) and New York (177%) followed closely behind.
At the other end of the spectrum, Vermont (91%), Arkansas (94%), and North Dakota (97%) posted the smallest wage gaps. Texas matched California at 146%, while Florida recorded a 126% premium. The national average wage gap was 148%.
California is home to the nation’s largest management workforce. The state employs approximately 1.3 million managers, ranging from chief executive officers and senior executives to department managers and production supervisors. Texas ranked second with about 1.2 million managers, followed by Florida with approximately 740,000.
Despite having the largest number of managers, California’s share of management positions is only slightly above the national average. Managers account for 7.3% of the state’s 18.2 million workers, compared with the U.S. average of 7.2%, ranking California 16th nationwide.
Maryland had the highest concentration of managers at 9.4% of its workforce, followed by Massachusetts (9.0%) and Connecticut (8.8%).
Economists said California’s concentration of high-paying industries—including technology, entertainment, finance, and professional services—helps boost management salaries. At the same time, the state’s high cost of living and strong wage levels for non-management workers have kept the manager-to-worker pay gap close to the national average.
