Today the Kentucky Supreme Court issued a much awaited opinion in the minimum wage battle between Louisville and business groups, siding with the business groups and invalidating the ordinance. In Kentucky Restaurant Association et. al v. Louisville/Jefferson County Metro Gov’t, 2015 –SC-000371-TG (October 20, 2016), the Kentucky Supreme Court invalidated Louisville’s minimum wage ordinance that raised the minimum wage above the state minimum. Louisville’s ordinance raised the minimum wage gradually to $9.00 over the next several years. Lexington passed a similar ordinance in November of 2015 that raised the minimum wage gradually to $10.10 over the next three years. At the time of the decision, Lexington’s minimum wage had increased to $8.20 and Louisville’s was $8.25.
In February of 2015, the Kentucky Restaurant Association, Kentucky Retail Federation and Packaging Unlimited, LLC filed a lawsuit in Jefferson Circuit Court arguing that local governments do not have the authority to raise the minimum wage. While several states have raised the minimum wage, Kentucky’s is the same as the federal minimum of $7.25 per hour.
The Jefferson Circuit disagreed with the business groups and held that local governments had the authority to pass a minimum wage ordinance. The business groups Continue reading