SLS 16RS-564 ENGROSSED
2016 Regular Session
SENATE BILL NO. 347
BY SENATORS CARTER, BARROW, BISHOP AND MORRELL
EMPLOYMENT. Repeals restrictions which bar local governmental subdivisions from
enacting local labor ordinances which establish a minimum wage and a minimum number
of vacation and sick leave days. (8/1/16)
1 AN ACT
2 To repeal R.S. 23:642, relative to the setting of local wages and benefits; to repeal the
3 prohibition that bars local governmental subdivisions from establishing a local
4 minimum wage rate which a private employer would be required to pay or grant
5 employees; to repeal the prohibition that bars local governmental subdivisions from
6 establishing local mandatory, minimum number of vacation or sick leave days,
7 whether paid or unpaid; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 23:642 is hereby repealed in its entirety.
10 Section 2. The legislature, by repealing R.S. 23:642, does not intend nor shall it be
11 construed to authorize any local governmental subdivision to adopt a minimum wage rate
12 which is lower than and in violation of the minimum wage rate set forth in the applicable
13 federal or state law.
Page 1 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 347
SLS 16RS-564 ENGROSSED
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Carla S. Roberts.
DIGEST
SB 347 Engrossed 2016 Regular Session Carter
Present law provides that the Legislature of Louisiana finds all of the following:
(1)That economic stability and growth are among the most important factors affecting
the general welfare of the people of this state and are, therefore, among its own most
important responsibilities.
(2)That economic stability and growth contribute to the standard of living enjoyed by
citizens as employment and income are both dependent on the ability and willingness
of businesses to operate in the state.
(3)That wages and employee benefits comprise the most significant expense of
operating a business.
(4)Neither potential employees nor business patrons are likely to restrict themselves to
employment opportunities or goods and services providers in any particular parish
or municipality. Consequently, local variation in legally required minimum wage
rates or mandatory minimum number of vacation or sick leave days would threaten
many businesses with a loss of employees to areas which require a higher minimum
wage rate and many other businesses with the loss of patrons to areas which allow
for a lower wage rate and more or less vacation or sick leave days. The net effect of
this situation would be detrimental to the business environment of the state and to
the citizens, businesses, and governments of the various local jurisdictions as well
as the local labor market.
Present law provides that the legislature concludes from legislative findings that, in order
for a business to remain competitive and yet to attract and retain the highest possible caliber
of employees, and thereby to remain sound, an enterprise must work in a uniform
environment with respect to minimum wage rates and mandatory minimum number of
vacation or sick leave days. Present law further provides that the net impact of local variation
in mandated wages and mandatory, minimum number of vacation or sick leave days would
be economic instability and decline and a decrease in the standard of living for the citizens
of the state. Consequently, decisions regarding minimum wage and employee benefit policy
must be made by the state so that consistency in the wage market is preserved.
Present law provides that, pursuant to the police powers ultimately reserved to the state by
Article VI, Sec. 9 of the La. Const. no local governmental subdivision shall establish a
mandatory, minimum number of vacation or sick leave days, whether paid or unpaid, or a
minimum wage rate which a private employer would be required to pay or grant employees.
Proposed law repeals present law and allows local governmental subdivisions to set rates of
minimum wage and minimum vacation and sick leave days which must be provided by
employers which are located within the boundaries of the local governmental subdivision.
Present law clarifies that the legislature, by repealing present law, does not intend nor shall
it be construed to authorize any local governmental subdivision to adopt a minimum wage
rate which is lower than and in violation of the minimum wage rate set forth in the
applicable federal or state law.
Effective August 1, 2016.
(Repeals R.S. 23:642)
Page 2 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 347
SLS 16RS-564 ENGROSSED
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Labor and Industrial
Relations to the original bill
1. Clarifies that by repealing present law, the legislature does not intend
authorize local governments to enact a lower minimum wage than the
applicable federal or state law.
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.