State Minimum Wage in Louisiana
Issue Overview: Louisiana has no state minimum wage and is governed by the federal statute (currently $5.15 per hour). Labor interests have been unsuccessful in passing a state minimum wage law in recent years. Bills to implement a state minimum wage are expected to be introduced this year.
NFIB Position: NFIB opposes a state minimum wage law.
Issue Status: Bills to enact a state minimum wage law are likely to be introduced in the regular session of the Legislature this year. Federal legislation to hike the federal minimum wage substantially is under consideration. Recent state bills proposed to set a state minimum wage at about $1 in excess of that required under federal law.
What to Do: Let your legislators know you oppose a state minimum wage law. Your most effective contact would be by personal conversation, but if you don't know your legislators personally, contact them by phone, letter, fax or e-mail on this issue. Inform other business owners in your area to communicate their concerns to legislators, as well.
What to Say:
- A Louisiana minimum wage higher than the federal minimum wage will make Louisiana labor costs less competitive with businesses in our neighboring states. Some businesses might leave the state, causing job losses.
- Philosophically, the government should not be in the business of setting wages.
- Higher minimum wages will make it harder for inexperienced and lower skilled workers to find jobs.
- Some employers will have to look at savings in benefits offered to employees (such as health insurance) in order to be able to afford the higher minimum wages.
- Minimum wage hikes put upward pressure on wages paid to other workers.
- High wage rates in the hurricane-ravaged area of the state are making it much more difficult for many small-business owners to repair and restart their businesses. Some are still waiting for this high-wage bubble to burst before restarting their businesses. Increasing the minimum wage would simply prolong the problems they face and spread the problem to other parts of the state.
