HLS 14RS-650 ORIGINAL Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2014 HOUSE BILL NO. 382 BY REPRESENTATIVE BROSSETT EMPLOYMENT/WAGES-MI NIMUM: Creates 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 penalties for violations; to provide for exceptions; and to provide for5 related 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 established pursuant to this Chapter shall be set at ten dollars and ten13 cents per hour beginning January 1, 2015. Every employer in the state shall pay to14 each employee wages at a rate of not less than ten dollars and ten cents per hour for15 hours worked in a pay period regardless of how the time at work is measured.16 B. If a tipped employee's tips combined with the employer's direct wages of17 at least two dollars and thirteen cents an hour do not equal the minimum wage18 established in Subsection A, the employer shall pay the difference.19 HLS 14RS-650 ORIGINAL HB NO. 382 Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. C.(1) Beginning January 1, 2016, the minimum wage shall increase annually1 on January 1 in an amount determined by the Consumer Price Index or its successor2 publication as determined by the Bureau of Labor Statistics.3 (2) The executive director of the Louisiana Workforce Commission shall4 calculate the new minimum wage annually. In calculating the annual percentage5 increase in the Consumer Price Index, the executive director shall compare such6 Consumer Price Index for the most recent month, quarter, or year available, as7 selected by the executive director prior to the first year for which a minimum wage8 is in effect pursuant to this Chapter, with the Consumer Price Index for the same9 month in the preceding year, the same quarter in the preceding year, or the preceding10 year, respectively, and round to the nearest five cents.11 D. If, at any time, the federal minimum hourly wage rate set by Section 6 of12 the federal Fair Labor Standards Act of 1938, or a successor federal law, is raised to13 a level higher than the state minimum wage rate, then the state minimum wage rate14 shall be increased to the level of the federal minimum wage rate and all subsequent15 increases based on increases in the Consumer Price Index pursuant to Subsection C16 of this Section shall be applied to the state minimum wage rate.17 §672. Enforcement18 The Louisiana Workforce Commission shall be responsible for the19 enforcement of this Chapter and is authorized and directed to promulgate rules and20 regulations under the provisions of the Administrative Procedures Act necessary for21 the implementation of the provisions of this Chapter.22 §673. Penalties23 A. Whoever violates the provisions of this Chapter shall be fined not less24 than five hundred dollars and not more than one thousand dollars per employee not25 receiving minimum wage. The employer shall pay the employee the difference26 between the wages actually paid to the employee and the minimum wage rate in27 effect at the time the employee was paid.28 HLS 14RS-650 ORIGINAL HB NO. 382 Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. B. Penalties may be imposed by a ruling of the executive director pursuant1 to an adjudicatory hearing held in accordance with the Administrative Procedure Act,2 R.S. 49:950 et seq.3 §674. Exceptions4 The provisions of this Chapter shall not apply to student employees of the5 state or student employees of state colleges and universities.6 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)] Brossett HB No. 382 Abstract: Establishes a state minimum wage. Proposed law establishes a state minimum wage and sets it at $10.10 per hour. Proposed law requires that the employers of tipped employees make up the difference between the $2.13 per hour paid to the employee plus tips and the state minimum wage. Proposed law provides that the state minimum wage shall be adjusted annually to allow for inflation, beginning July 1, 2016, 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 shall be 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. 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)