All employees in Los Angeles must be paid according to California minimum wage laws. The city of Los Angeles cannot govern wages paid by all businesses, but it does mandate a minimum living wage that must be paid by companies that have contracts with the city.
As of July 2014, the California minimum wage is $9 an hour. It was set to rise to $10 an hour beginning in January 2016. Tipped employees must be paid this minimum wage as well, regardless of how much they earn in tips. When working overtime -- which includes time over eight hours per day, more than 40 hours in a week, or working a seventh consecutive day -- non-exempt employees must be paid time-and-a -half. However, certain employees are exempt from overtime pay in California. This varies by industry and is laid out in section one of the wage order governing the industry. For example, executive employees are exempt in the manufacturing industry.
Los Angeles Living Wage
The city of Los Angeles also mandates a living wage rate for employees working for companies who have contracts with the city. As of July 2014, this minimum wage will be $11.03 per hour with health benefits amounting to $1.25 per hour, or $12.28 per hour without health benefits. Airport employees are entitled to the same wage but get a minimum health benefit of $4.81 per hour, or $15.84 per hour without health benefits. Tips do not count toward these minimums and state overtime laws still apply.