HLS 14RS-329 ORIGINAL Page 1 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2014 HOUSE BILL NO. 356 BY REPRESENTATIVES DIXON, JAMES, AND HUNTER EMPLOYMENT/WAGES-MI NIMUM: Establishes a state minimum wage AN ACT1 To enact Chapter 6-B of Title 23 of the Louisiana Revised Statutes of 1950, to be comprised2 of R.S. 23:671 through 674, relative to minimum wage; to establish a state minimum3 wage; to provide for procedures for the determination of an annual increase; to4 provide for enforcement; to provide for exceptions; and to provide for related5 matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. Chapter 6-B of Title 23 of the Louisiana Revised Statutes of 1950,8 comprised of R.S. 23:671 through 674, is hereby enacted to read as follows:9 CHAPTER 6-B. MINIMUM WAGE10 §671. Minimum wage; establishment11 A. Notwithstanding any other provision of law to the contrary, the state12 minimum wage is established and set as follows:13 (1) Beginning July 1, 2015, the minimum wage shall be set at eight dollars14 and twenty-five cents per hour. Every employer in the state shall pay to each15 employee wages at a rate of not less than eight dollars and twenty-five cents per hour16 for hours worked in a pay period regardless of how the time at work is measured.17 (2) Beginning July 1, 2016, the minimum wage shall be set at nine dollars18 per hour. Every employer in the state shall pay to each employee wages at a rate of19 HLS 14RS-329 ORIGINAL HB NO. 356 Page 2 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. not less than nine dollars per hour for hours worked in a pay period regardless of1 how the time at work is measured.2 (3)(a) Beginning July 1, 2017, the minimum wage shall increase annually on3 July 1 in an amount determined by the Consumer Price Index or its successor4 publication, as determined by the Bureau of Labor Statistics.5 (b) The executive director of the Louisiana Workforce Commission shall6 calculate the new minimum wage annually. In calculating the annual percentage7 increase in the Consumer Price Index, the executive director shall compare such8 Consumer Price Index for the most recent month, quarter, or year available, as9 selected by the executive director prior to the first year for which a minimum wage10 is in effect pursuant to this Chapter, with the Consumer Price Index for the same11 month in the preceding year, the same quarter in the preceding year, or the preceding12 year, respectively, and round to the nearest five cents.13 B. If, at any time, the federal minimum hourly wage rate set by Section 6 of14 the federal Fair Labor Standards Act of 1938, or a successor federal law, is raised to15 a level higher than the state minimum wage rate, then the state minimum wage rate16 shall be increased to the level of the federal minimum wage rate and all subsequent17 increases based on increases in the Consumer Price Index pursuant to Paragraph18 (A)(3) of this Section shall be applied to the state minimum wage rate.19 §672. Enforcement20 The Louisiana Workforce Commission shall be responsible for the21 enforcement of the Chapter and is authorized and directed to promulgate rules and22 regulations pursuant to the provisions of the Administrative Procedures Act23 necessary for the implementation of the provisions of this Chapter.24 §673. Penalties25 A. Whoever violates the provisions of this Chapter shall be fined not less26 than five hundred dollars and not more than one thousand dollars per employee not27 receiving minimum wage. The employer shall pay the employee the difference28 HLS 14RS-329 ORIGINAL HB NO. 356 Page 3 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. between the wages actually paid to the employee and the minimum wage rate in1 effect at the time the employee was paid.2 B. Penalties may be imposed by a ruling of the executive director pursuant3 to an adjudicatory hearing held in accordance with the Administrative Procedure Act,4 R.S. 49:950 et seq.5 §674. Exceptions6 The provisions of this Chapter shall not apply to student employees of the7 state or student employees of state colleges and universities.8 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Dixon HB No. 356 Abstract: Establishes a state minimum wage. Proposed law establishes a state minimum wage and sets it at $8.25 per hour beginning July 1, 2015. Proposed law provides that the state minimum wage shall be $9.00 per hour beginning July 1, 2016. Proposed law provides that the state minimum wage shall be adjusted annually to allow for inflation, beginning July 1, 2017, and the increase shall be determined by the Consumer Price Index. Proposed law provides that the executive director of the Louisiana Workforce Commission (LWC) determine the annual increase amount and provides the method by which the determination is made. Proposed law requires that if the federal minimum wage is raised, the state minimum wage shall also be raised and the annual increase based on the Consumer Price Index shall continue based on the increased amount. Proposed law provides a fine of not less than $500 and not more than $1,000 per employee for failure to pay minimum wage. Proposed law further requires that an employer who fails to pay his employee minimum wage shall pay the employee the difference between what the employee was paid, and minimum wage. Proposed law provides that LWC shall be in charge of enforcement of the minimum wage laws and authorizes the agency to promulgate rules and regulations necessary in its implementation. Proposed law provides the procedure for the executive director of LWC to impose penalties. HLS 14RS-329 ORIGINAL HB NO. 356 Page 4 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Proposed law excludes student workers employed with the state and with state colleges and universities from the minimum wage requirement. (Adds R.S. 23:671-674)