Constitutional amendment to provide, with certain exemptions, for a state minimum wage effective August 1, 2019. (2/3 - CA13sl(A)) (EG INCREASE GF EX See Note)
If enacted, SB252 would significantly alter the wage structure within Louisiana, providing a legal framework for minimum wage that aligns with societal and economic changes. It aims to support workers by ensuring they receive a wage that reflects cost-of-living increases. This law would primarily impact larger businesses, as it specifically applies to employers with 50 or more employees, potentially decreasing wage disparities for low-income workers in the state. The addition of the inflation adjustment mechanism is particularly noteworthy, as it attempts to future-proof the minimum wage against rising living costs.
SB252 is a proposed constitutional amendment aimed at establishing a state minimum wage in Louisiana. Effective August 1, 2019, the bill mandates that employers with 50 or more full-time employees pay each employee aged 18 and older a minimum wage beginning at $8.00 per hour. This minimum wage will increase to $8.50 per hour on August 1, 2020, and will be subject to annual adjustments for inflation or set at the federal minimum wage, whichever is higher. The legislation also allows for certain exemptions, particularly for bona fide student employees and provides an option for employers to take a tip credit against their minimum wage obligations for tipped employees.
The sentiment surrounding SB252 appears to be mixed. Proponents, including advocacy groups championing workers' rights, view this legislation as a necessary step towards ensuring fair compensation for low-wage workers. They argue that providing a higher minimum wage will improve living standards for many employees and stimulate economic growth. On the contrary, opponents, including some business owners and policymakers, express concerns about potential adverse effects on small businesses, claiming that increased labor costs could lead to layoffs or reduced hiring.
Key points of contention regarding SB252 include the balance between supporting workers and maintaining a sustainable business environment. Critics fear that the bill could burden employers with costs they cannot absorb, especially in areas with already tight profit margins. Additionally, the details surrounding the exemptions for student workers and the application of tip credits have been scrutinized. The requirement for employers to adjust wages yearly based on inflation further complicates the legislative landscape, as it raises questions about compliance and enforcement.