HLS 14RS-1133 ORIGINAL
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Regular Session, 2014
HOUSE BILL NO. 969
BY REPRESENTATIVE HUNTER
EMPLOYMENT/WAGES-MI NIMUM: Provides with respect to minimum wage for federal
contractors and subcontractors
AN ACT1
To enact Chapter 6-A of Title 23 of the Louisiana Revised Statutes of 1950, to be comprised2
of R.S. 23:671 through 676, relative to minimum wage; to provide with respect to3
the presidential executive order to raise the minimum wage for federal contractors4
and subcontractors; to provide for procedures for the determination of an annual5
increase; to provide with respect to tipped employees; to provide for enforcement;6
to provide for exceptions; to provide for procedures; and to provide for related7
matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. Chapter 6-A of Title 23 of the Louisiana Revised Statutes of 1950,10
comprised of R.S. 23:671 through 676, is hereby enacted to read as follows:11
CHAPTER 6-A. MINIMUM WAGE FOR FEDERAL CONTRACTORS12
AND SUBCONTRACTORS13
§671. Minimum wage for federal contractors and subcontractors; establishment14
A. On February 12, 2014, the president of the United States released an15
executive order which provided that in order to promote economy and efficiency in16
procurement by contracting with sources who adequately compensate their workers,17
parties who contract with the federal government shall compensate employees at a18
rate of ten dollars and ten cents per hour.19 HLS 14RS-1133 ORIGINAL
HB NO. 969
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B. Raising the pay of low-wage workers increases morale, productivity, and1
the quality of work. Raising pay lowers turnover and its accompanying costs, and2
reduces supervisory costs. These savings and quality improvements will lead to3
improved economy and efficiency in government procurement.4
C. To establish a minimum wage for federal contractors and subcontractors.5
executive departments and agencies shall, to the extent permitted by law, ensure that6
new contracts, contract-like instruments, and solicitations include a clause, which the7
contractor and any subcontractors shall incorporate into lower-tier subcontracts8
specifying, as a condition of payment, that the minimum wage to be paid to workers,9
including workers whose wages are calculated pursuant to special certificates issued10
under 29 U.S.C. 214(c), in the performance of the contract or any subcontract11
thereunder, shall be at least:12
(1) Ten dollars and ten cents per hour beginning January 1, 2015.13
(2)(a) Beginning January 1, 2016, and annually thereafter, the minimum14
wage amount shall be determined by the United States Secretary of Labor. The15
amount shall be published by the secretary at least ninety days before such new16
minimum wage is to take effect and shall be not less than the amount in effect on the17
date of such determination and increased from such amount by the annual percentage18
increase in the Consumer Price Index or its successor publication, as determined by19
the Bureau of Labor Statistics and rounded to the nearest multiple of five cents.20
(b) In calculating the annual percentage increase in the Consumer Price21
Index, the secretary shall compare such Consumer Price Index for the most recent22
month, quarter, or year available with the Consumer Price Index for the same month23
in the preceding year, the same quarter in the preceding year, or the preceding year,24
respectively.25
(c) Nothing shall excuse noncompliance with any applicable federal or state26
prevailing wage law, or any applicable law or municipal ordinance establishing a27
minimum wage higher than the minimum wage established pursuant to the order.28 HLS 14RS-1133 ORIGINAL
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§672. Tipped employees1
A.(1) For workers who are tipped employees pursuant to 29 U.S.C. 203(t),2
the hourly cash wage that shall be paid by an employer to such workers shall be at3
least four dollars and ninety cents per hour, beginning on January 1, 2015.4
(2) For each succeeding one-year period until the hourly cash wage under5
this Section equals seventy percent of the wage in effect pursuant to R.S. 23:671, an6
hourly cash wage equal to the amount determined for the preceding year, increased7
by the lesser of ninety-five cents or the amount necessary for the hourly cash wage8
to equal seventy percent of the wage pursuant to R.S. 23:671.9
(3) For each subsequent year, seventy percent of the wage in effect pursuant10
to R.S. 23:671 rounded to the nearest multiple of five cents.11
B. When a worker does not receive a sufficient additional amount on account12
of tips when combined with the hourly cash wage paid by the employer such that13
their wages are equal to the minimum wage pursuant to R.S. 23:671, the cash wage14
paid by the employer shall be increased such that the wages of the tipped employee15
equal the minimum wage.16
C. If the wage required to be paid under the Service Contract Act, 41 U.S.C.17
6701 et seq., or any other applicable law or regulation is higher than the wage18
required by this Chapter, the employer shall pay additional cash wages sufficient to19
meet the highest wage required to be paid.20
§673. Regulations and Implementation21
A. The secretary of the United States Department of Labor shall issue22
regulations by October 1, 2014, to the extent permitted by law and consistent with23
the requirements of the Federal Property and Administrative Services Act, to24
implement the requirements of the executive order,25
B. The Federal Acquisition Regulatory Council shall issue regulations in the26
Federal Acquisition Regulation to provide for inclusion of the contract clause in27
federal procurement solicitations and contracts subject to the executive order.28 HLS 14RS-1133 ORIGINAL
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C. Within sixty days of the secretary of the United States Department of1
Labor issuing regulations, agencies shall take steps, to the extent permitted by law,2
to exercise any applicable authority to ensure that contracts as described in R.S.3
23:671, entered into after January 1, 2015, consistent with the effective date of such4
agency action, comply with the requirements set forth in the executive order.5
D. Any regulations issued pursuant to this Section should, to the extent6
practicable and consistent with the presidential order, incorporate existing7
definitions, procedures, remedies, and enforcement processes under the Fair Labor8
Standards Act, 29 U.S.C. 201 et seq.,the Service Contract Act, 41 U.S.C. 6701 et9
seq., and the Davis-Bacon Act, 40 U.S.C. 3141 et seq.10
§674. Enforcement11
A. The secretary of the United States Department of Labor has the authority12
for investigating potential violations of and obtaining compliance with the executive13
order.14
B. The executive order creates no rights under the Contract Disputes Act,15
and disputes regarding whether a contractor has paid the wages prescribed by the16
order, to the extent permitted by law, shall be disposed of only as provided by the17
secretary in regulations issued pursuant to the order.18
§675. Severability19
If any provision of the executive order, or applying such provision to any20
person or circumstance, is held to be invalid, the remainder of the order and the21
application of the provisions of such to any person or circumstance shall not be22
affected thereby.23
§676. General Provisions24
A. Nothing in the executive order shall be construed to impair or otherwise25
affect the authority granted by law to an agency or the head thereof or the functions26
of the director of the Office of Management and Budget relating to budgetary,27
administrative, or legislative proposals.28 HLS 14RS-1133 ORIGINAL
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B. The executive order shall be implemented consistent with applicable law1
and subject to the availability of appropriations.2
C. The order is not intended to, and does not create any right or benefit,3
substantive or procedural, enforceable at law or in equity by any party against the4
United States, its departments, agencies, or entities, its officers, employees, or5
agents, or any other person.6
D. The order shall apply only to a new contract or contract-like instrument,7
as defined by the secretary of the United States Department of Labor in the8
regulations issued pursuant to the order if any of the following apply:9
(1) It is a procurement contract for services or construction.10
(2) It is a contract or contract-like instrument for services covered by the11
Service Contract Act.12
(3) It is a contract or contract-like instrument for concessions, including any13
concessions contract excluded by Department of Labor regulations at 29 C.F.R.14
4.133(b).15
(4) It is a contract or contract-like instrument entered into with the federal16
government in connection with federal property or lands and related to offering17
services for federal employees, their dependents, or the general public and the wages18
of workers under such contract or contract-like instrument are governed by the Fair19
Labor Standards Act, the Service Contract Act, or the Davis-Bacon Act.20
E. For contracts or contract-like instruments covered by the Service Contract21
Act or the Davis-Bacon Act, the order shall apply only to contracts or contract-like22
instruments at the thresholds specified in those statutes. For procurement contracts23
where workers' wages are governed by the Fair Labor Standards Act, this order shall24
apply only to contracts or contract-like instruments that exceed the micro-purchase25
threshold, as defined in 41 U.S.C. 1902(a), unless expressly made subject to the26
order pursuant to regulations or actions taken pursuant to the order.27
F. The order shall not apply to grants, contracts, and agreements with and28
grants to Indian Tribes under the Indian Self-Determination and Education29 HLS 14RS-1133 ORIGINAL
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Assistance Act, Public Law 93-638, as amended, or any contracts or contract-like1
instruments expressly excluded by the regulations issued pursuant the order.2
G. Independent agencies are strongly encouraged to comply with the3
requirements of the order.4
§676. Effective Date5
A. The provisions of this Chapter shall apply to covered contracts where the6
solicitation for such contract has been issued on or after January 1, 2015, consistent7
with the effective date for the action taken by the Federal Acquisition Regulatory8
Council pursuant to the order or for contracts where an agency action is taken9
pursuant to the order, January 1, 2015, consistent with the effective date for such10
action.11
B. The order shall not apply to contracts or contract-like instruments entered12
into pursuant to solicitations issued on or before the effective date for the relevant13
action taken pursuant to the order.14
C. For all new contracts and contract-like instruments negotiated between15
the date of the order and the effective dates set forth in this Chapter, agencies are16
strongly encouraged to take all steps that are reasonable and legally permissible to17
ensure that individuals working pursuant to those contracts and contract-like18
instruments are paid an hourly wage of at least ten dollars and ten cents per hour. 19
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)]
Hunter HB No. 969
Abstract: Provides for a minimum wage of $10.10 per hour for federal contractors and
subcontractors.
Proposed law mirrors the presidential executive order issued by President Obama on
February 12, 2014, which requires that employers who are contractors or subcontractors with
the federal government shall pay their employees a wage of $10.10 per hour beginning Jan.
1, 2015.
Proposed law provides that beginning Jan. 1, 2016, and annually thereafter, the minimum
wage will be raised annually by an amount determined by the secretary of the USDOL by
using the Consumer Price Index (CPI). HLS 14RS-1133 ORIGINAL
HB NO. 969
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Proposed law provides the procedure that the secretary is to use to calculate the annual raise
of the minimum wage.
Proposed law requires that tipped employees shall earn $4.90 per hour beginning Jan. 1,
2015.
Proposed law provides that the minimum wage rate for tipped employees shall rise annually
by 70% or $0.95, whichever is lesser, until it reaches an amount equal to 70% of the annual
federal minimum wage required for federal contractors and subcontractors.
Proposed law provides that when tipped workers do not earn the required amount between
the base pay and tips, the employer shall pay the difference.
Proposed law requires the secretary of the USDOL to issue regulations necessary for the
implementation of the executive order.
Proposed law provides that proposed law does not create a right of action against the United
States.
Proposed law provides that the wages of workers under the contracts or contract-like
instruments are governed by the FLSA, the Service Contract Act, or the Davis-Bacon Act.
Proposed law provides that proposed law does not apply to grants, contracts and agreements
with and grants to Indian Tribes.
Proposed law encourages independent agencies to comply with the provisions of the order.
(Adds R.S. 23:671-676)