Louisiana's Republican House lawmakers blocked a bid to give municipalities the authority to set their own minimum wage rates Thursday, stalling the latest effort to raise base pay in the state above the $7.25-per-hour federal level.
New Orleans Democrat, Rep. Royce Duplessis, had sought to reverse a state law passed in 1997 that prohibited parishes and cities from setting local minimum wage rates.
His bill also would have allowed local governing authorities to establish paid leave requirements for businesses, setting a minimum number of vacation or sick leave days that companies must offer their workers.
"These pre-emption laws undermine our democracy because they tell local government that we don't trust you and we don't respect you," said Duplessis.
His proposal failed, 9 to 6 in the House labor committee, which voted to shelve Duplessis' legislation. Democrats supported the proposal, but Republicans voted in a bloc against the bill, siding with business organizations that opposed it.
Representatives of the National Federation of Independent Business and the Louisiana Association of Business and Industry said the legislation could damage the state's economy.
Dawn Starns, NFIB state director, said Louisiana's economy trails the nation in growth and employment levels. She said forced wage increases would increase job losses, creating a variety of regulations across parishes that would be a burden to small businesses.
"We do not think government interference in the market to determine wage levels is appropriate," said Jim Patterson, with the Louisiana Association of Business and Industry.
He said Louisiana's neighboring states don't allow municipalities to set minimum wage rates.
Duplessis said business organizations tend to call for state-level regulatory authority when it suits them, while they support local authority over zoning rules and economic development incentives.
"Cities can give away incentives every day, and I've never heard you argue against patchwork in that regard," he said.
His bill was intended to work around repeated legislative defeats for boosting Louisiana's statewide minimum wage above the $7.25-per-hour federal level. A statewide minimum wage hike proposal is up for debate on the Senate floor. But, in spite of support from Gov. Edwards, it's unlikely to reach final passage, with similar measures rejected by lawmakers over the last three years.
Duplessis said the cost of living varies around the state, and local elected officials should be able to decide the pay level that seems reasonable for their communities. City councils in New Orleans and Shreveport have backed the bill. But supporters of the proposal indicated a stronger preference for a minimum wage boost.
"We're the ones who have to sit up and wonder what we're going to eat," said Gaylor Spiller, president of the Jefferson Parish chapter of the NAACP. "We are living in hard times, and it's very important that this bill is passed."
Republican Rep. Jack McFarland, a Winnfield business owner, said he's laid off workers because federal regulations are driving up his costs. "We must be very careful when government starts getting involved in private business," he said.
Responded in his closing speech, Duplessis said: "If government hadn't gotten involved at some point, we'd probably still have kids working in sweatshops for $2 or less."