HLS 20RS-824 ORIGINAL
2020 Regular Session
HOUSE BILL NO. 797
BY REPRESENTATIVES DUPLESSIS AND STAGNI
LOCAL GOVERNMENT: Authorizes parishes and municipalities to provide relative to
employee leave benefits
1 AN ACT
2To amend and reenact R.S. 23:642(A)(2) and (3) and (B) and to enact R.S. 33:1376, relative
3 to parishes and municipalities; to repeal the prohibition against a minimum number
4 of vacation or sick leave days; to authorize parishes and municipalities to establish
5 a minimum number of leave days within their respective jurisdictions; to provide
6 limitations; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 23:642(A)(2) and (3) and (B) are hereby amended and reenacted to
9read as follows:
10 §642. Setting minimum wage or employee benefits; prohibited
11 A.
12 * * *
13 (2) The legislature further finds that wages and employee benefits comprise
14 the most significant expense account for a significant amount of operating a
15 business. It also recognizes that neither potential employees nor business patrons are
16 likely to restrict themselves to employment opportunities or goods and services
17 providers in any particular parish or municipality. Consequently, local variation in
18 legally required minimum wage rates or mandatory, minimum number of vacation
19 or sick leave days would threaten many businesses with a loss of employees to areas
20 which require a higher minimum wage rate and many other businesses with the loss
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HB NO. 797
1 of patrons to areas which allow for a lower wage rate and more or less vacation or
2 sick leave days. The net effect of this situation would be detrimental to the business
3 environment of the state and to the citizens, businesses, and governments of the
4 various local jurisdictions as well as the local labor market.
5 (3) The legislature concludes from these findings that, in order for a business
6 to remain competitive and yet to attract and retain the highest possible caliber of
7 employees, and thereby to remain sound, an enterprise must work in a uniform
8 environment with respect to minimum wage rates and mandatory, minimum number
9 of vacation or sick leave days. The net impact of local variation in mandated wages
10 and mandatory, minimum number of vacation or sick leave days would be economic
11 instability and decline and a decrease in the standard of living for the citizens of the
12 state. Consequently, decisions regarding minimum wage and employee benefit
13 policy must be made by the state so that consistency in the wage market is preserved.
14 B. Therefore, pursuant to the police powers ultimately reserved to the state
15 by Article VI, Section 9 of the Constitution of Louisiana, no local governmental
16 subdivision shall establish a mandatory, minimum number of vacation or sick leave
17 days, whether paid or unpaid, or a minimum wage rate which a private employer
18 would be required to pay or grant employees.
19 Section 2. R.S. 33:1376 is hereby enacted to read as follows:
20 §1376. Parishes and municipalities; employment
21 A. The governing authority of any parish or municipality may establish a
22 mandatory minimum number of vacation or sick leave days, whether paid or unpaid,
23 that a private employer would be required to pay or grant employees.
24 B. A minimum number of days established by a parish governing authority
25 shall be applicable within and throughout the boundaries of the parish, including
26 those areas located inside the corporate limits of any municipality, except in a
27 municipality where the municipal governing authority establishes a number of days
28 within its respective jurisdiction.
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HB NO. 797
1 C. A parish or municipal governing authority shall take such actions and
2 perform such functions as it deems necessary to implement the provisions of this
3 Section.
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)]
HB 797 Original 2020 Regular Session Duplessis
Abstract: Removes the prohibition against parishes and municipalities from setting a local
minimum number of leave days in their respective jurisdictions.
Present law provides that a 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. Present law
further provides that businesses would lose patrons to areas which allow a lower wage rate
and more or less vacation or sick leave days.
Proposed law provides that a local variation in legally required minimum wage rates would
threaten many businesses with a loss of employees to areas which require a higher minimum
wage rate. Proposed law further provides that other businesses would lose patrons to areas
which allow a lower wage rate.
Present law provides that in order for a business to remain competitive and to attract and
retain employees, an enterprise must work in a uniform environment with respect to
minimum wage and a mandatory, minimum number of vacation or sick leave days.
Proposed law provides that in order for a business to remain competitive and to attract and
retain employees, an enterprise must work in a uniform environment with respect to
minimum wage.
Present law provides that a net impact of local variation in mandated wages and mandatory,
minimum number of vacation or sick leave days would result in economic instability and a
decline in the standard of living.
Proposed law provides that a net impact of local variation in mandated wages would result
in economic instability and a decline in the standard of living.
Present law provides that pursuant to the police powers reserved to the state by the Louisiana
Constitution, 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 provides that pursuant to the police powers reserved to the state by the
Louisiana Constitution, no local governmental subdivision shall establish a minimum wage
rate which a private employer would be required to pay or grant employees.
Proposed law provides that a minimum number of leave days established by a parish
governing authority shall be applicable throughout the parish, including those areas inside
the corporate limits of any municipality.
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HB NO. 797
Proposed law provides that if, however, a municipality establishes a minimum number of
leave days in its respective jurisdiction then proposed law would not be applicable.
Proposed law provides that a parish or municipality shall take such actions and perform such
functions as it deems necessary to implement proposed law.
(Amends R.S. 23:642(A)(2) and (3) and (B); Adds R.S. 33:1376)
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