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).
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)