LAFAYETTE, La. — For the latest session in a years-long debate, the Louisiana House Labor Committee has voted to kill a bill that would have established a $12 state minimum wage, with scheduled increases to $15 by 2029. The move keeps Louisiana among just five states nationwide without a minimum wage law, leaving the federal rate of $7.25 per hour — set in 2009 — in place.
“That’s poverty level. I can’t imagine anyone being able to pay rent and groceries with that,” said Elizabeth Payne, co-owner of Carpe Diem in Lafayette.
A full-time minimum-wage worker in Louisiana earns just over $15,000 a year before taxes, around $800 above the federal poverty line. Payne says she starts her employees at $10 an hour, valuing their well-being and work ethic. “It's worth it to me to hold quality employees. I want to know that they're taken care of,” she said.
Maintaining that pay while running a gluten-free, from-scratch cafe comes with its own challenges, Payne said, citing the high costs of operations. “People have no idea what the cost of goods are, equipment, rent, insurance, maintenance — all of that — it’s expensive to run a business,” she said.
While Payne wishes she could pay her staff even more, she says a state-mandated increase on top of rising costs could threaten her business. “I don't know if that was mandatory if I'd be able to keep my cafe open. Restaurants and especially cafes have very thin margins,” she said.
House Bill 353 would have boosted the state minimum wage to $12 an hour in 2027 and $15 an hour by 2029. Payne, a service industry veteran of 33 years, believes mandated wage hikes could put small businesses — especially in food service — at risk. “I've seen it from all angles. I want to treat them right, but I also want to have a viable business,” she added.
Louisiana lawmakers have regularly debated but failed to establish a state minimum wage, continuing to rely on the federal standard for nearly 15 years.
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