How a Minimum Wage Hike Would Hurt Louisiana Small Business Owners

Date: April 04, 2018

Once again, Louisiana lawmakers are considering a proposal to raise the minimum wage. This isn’t surprising, considering this was one of the main issues that Gov. John Bel Edwards campaigned on in 2015. However, the bill will face an uphill battle to passage, WAFB reports. In the past two years, similar proposals have been considered by the Legislature, but have not proceeded to the governor’s desk for signature.

In mid-March, a panel of Senators—four Democrats and three Republicans—voted 4-3 to approve a handful of wage proposals and sent them to the Senate floor. Included among them is Senate Bill 162, sponsored by Sen. Troy Carter, which would increase the state’s base wage to $8 per hour in 2019 and again to $8.50 per hour in 2020. Currently, Louisiana uses the federal minimum wage of $7.25 per hour. Another proposal from Sen. Carter, Senate Bill 252, would allow voters to decide whether to establish a constitutional amendment that would provide for a state minimum wage, effective August 1, 2019 with certain exemptions. This bill is currently with the Senate Committee on Finance.

In his address to the committee, WWL Radio reported, Gov. Edwards noted that a minimum wage increase would help Louisiana families who are frustrated that ‘an honest day’s work isn’t enough to pay their bills.’ However, Louisiana employers contend that mandating a wage increase hurts these people, despite the good intentions to help.

“Small businesses have only so much money in their budgets,” NFIB/LA State Director Dawn Starns said in a statement. “If the state mandates n increase in the cost of labor, then employers are going to have to raise prices or try to get by with fewer workers. Raising the minimum wage to $8.50 per hour would make it even harder for low-skilled or first-time workers to get jobs.”

Additionally, Starns told WAFB that many NFIB/LA members already pay above the minimum wage. However, they oppose the government inserting itself into the process of deciding on what employees are paid, which they believe should be left to employers and employees.

NFIB/LA urges lawmakers to vote no on the minimum wage bills.

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