Constitutional amendment to establish a state livable wage. (2/3-CA13s1(A)) (1/1/27) (OR INCREASE GF EX See Note)

SB 230 is a proposed constitutional amendment that would add Article XII, Section 18 to the Louisiana Constitution to establish a state livable wage. The amendment sets a minimum hourly wage rate of ten dollars and twenty-five cents per hour that every employer must pay employees, effective January 1, 2027. The wage rate will automatically increase each year on January 1st based on the rate of inflation during the preceding twelve-month period as measured by the Consumer Price Index, rounded to the nearest five cents. The amendment authorizes the legislature to create implementing law and provides specific statutory exemptions and exceptions that operate within the constitutional framework.

The amendment affects virtually all Louisiana employers and their employees. Employees under age sixteen and workers at businesses with annual gross receipts of three hundred thousand dollars or less or fewer are exempt and instead must receive only the federal minimum wage under the Fair Labor Standards Act. Employers in the food service and hospitality industries may pay tipped employees less than the livable wage, but not less than half the rate, provided that the employee's tips combined with wages equal or exceed the livable wage. Family members working in a solely family-owned and operated business are exempt from the requirement. The state may issue licenses permitting employers to pay below the livable wage to individuals with mental or physical disabilities that would otherwise adversely affect their employment opportunity. The gross receipts threshold for the small employer exemption increases annually beginning January 1, 2028, adjusted by the Consumer Price Index and rounded to the nearest one thousand dollars.

The amendment operates within Louisiana's constitutional wage and labor framework and would supersede conflicting state law regarding minimum wages by placing the requirement in the state constitution itself. The proposal requires submission to Louisiana voters at the November 3, 2026 statewide election and necessitates approval by the electorate before taking effect. Once adopted, the constitutional provision would establish a floor below which no Louisiana employer could pay employees, subject only to the enumerated exceptions. This creates potential interaction with federal wage and hour law, including the federal Fair Labor Standards Act and regulations governing tipped employee compensation, though the Louisiana livable wage could operate above federal minimums as a matter of state constitutional law.