Environmental regulations slow state business growth
The Pacific Research Institute released a study ranking states on how burdened they are by state regulations. Louisiana ranks No. 22.
The 50-State Small Business Regulation Index ranks the nation based on the impact from each state’s regulatory environment on small biz. The Index’s purpose is to compare environments that are associated with slower business growth versus more robust small business growth, the report says.
Although it maintains some baseline qualities and levels of regulation that create a supportive small biz environment Louisiana business faces some big challenges. Its workers’ compensation rates are some of the highest in the country, at $2.23 per $100 of payroll, it’s the second-lowest in tort liability, it faces telecommunication deregulations and has family leave regulations stricter than those mandated by the Family and Medical Leave Act (FMLA) guidelines.
However, its employment levels grew while the nation’s shrunk overall between 2002 to 2011, which says something about the resilience of small biz in Louisiana. It also sticks to the $7.25 per hour federal minimum wage, it is a right-to-work state, and is not an alcohol control state and does not require short-term disability insurance.
