The Kentucky Supreme Court Thursday voted to invalidate Louisville’s higher minimum wage ordinance, which means a similar measure adopted by the Lexington Fayette Urban County Government last November was also struck down.
Lexington’s measure would have raised the minimum wage to $10.10 per hour over three years. The first increase, which took effect in July, increased hourly wages to $8.20, compared to the current federal minimum of $7.25.
“This morning, the Kentucky Supreme Court struck down Louisville’s minimum wage ordinance,” said Susan Straub, a spokeswoman for Lexington Mayor Jim Gray. “This opinion effectively prevents cities, including Lexington, from increasing the minimum wage. Lexington’s local minimum wage ordinance has been invalidated.”
In late 2014, Louisville became the first Kentucky city to raise its minimum wage. But the Supreme Court, in a 6-1 ruling, said Louisville lacked the legal authority to establish wage floors. When the law was originally challenged, it was upheld in Jefferson Circuit Court.
That decision was ultimately challenged by a number of state business and retail associations.
Lexington councilmember Jennifer Mossotti said she was “deeply disappointed with the Kentucky Supreme Court ruling striking down Louisville’s minimum wage law.”
“But I certainly accept the decision,” she added. “The unfortunate final consequence is that many full-time workers will continue to live in poverty. This decision, in essence, means that many of those less fortunate workers in Louisville and in Lexington will continue to struggle to pay for basic needs such as housing, transportation, child care, food and other essentials.”
Mossotti also said the ruling has the potential to undo the initial financial gains that low-wage employees in both cities had “enjoyed in recent months.”
“I am hopeful that employers in Louisville and Lexington who had adjusted the hourly wage for those affected individuals will ultimately choose to not reverse the move. I remain convinced that increasing the minimum wage is the right thing to do in an effort to decrease income inequality and I believe the dialogue will certainly continue at both the state and federal levels which will lead to an increase in the minimum wage that benefits millions of Americans. It is past the time for the Kentucky General Assembly to act to increase the minimum wage.”
Some 31,000 people in Fayette County make less than $10.10 per hour, according to U.S. Census data.
NKyTribune staff report