Proposed Ordinance Exceeds Council Authority
LEXINGTON MINIMUM WAGE ORDINANCE IS BAD POLICY
The organizations listed below believe the proposed ordinance to create a local minimum wage runs afoul
of the state statute that restricts the power of local governments regarding subjects already covered by
state law through a “comprehensive scheme of legislation.” There are clear reasons we do not believe that
the Council is authorized to enact the proposed ordinance and those arguments have been put forward in a
lawsuit initiated by the Kentucky Retail Federation and the Kentucky Restaurant Association following
adoption of a minimum wage ordinance in Louisville.
The statutory limits on “home rule” authority are designed to avoid the very situation that the proposed
ordinance would create—a confusing patchwork of requirements for businesses based on the community
in which they operate when the state has already set standards on the “same general subject matter.”
Additionally, the proposed ordinance has implications that extend far beyond the boundaries of Fayette
County and are much broader than the minimum wage itself.
Many of the organizations listed have members in Lexington and also in communities throughout the
Commonwealth. The enactment of varying local ordinances regarding wage and hour issues is disturbing
to businesses operating from Pikeville to Paducah because of the potential it creates for an administrative
and regulatory disaster and a challenging business
environment.
Beyond that, one of the key reasons we have opposed bills introduced in the General Assembly to raise
the state minimum wage is because it would put Kentucky employers at a disadvantage in competing with
businesses in surrounding states. If the state minimum wage is set at a rate higher than the federal
minimum wage, it is likely to not only result in higher costs for businesses and higher prices for
consumers but also result in fewer jobs. Establishing a local minimum wage that would only impact
Fayette County would put local businesses at a distinct disadvantage with businesses located in the
Kentucky communities surrounding Lexington and in the home communities of customers who come to
Lexington to shop.
.
We believe that the proposed ordinance will lead to lost jobs, missed opportunities for business attraction
and place a long-term threat on our region’s and state’s competitiveness.
Please Join Us in Opposing Lexington’s Minimum Wage Ordinance
AgriBusiness Association of Kentucky
Kentucky Grocers Association
Associated Builders and Contractors
Kentucky Hotel & Lodging Association
Bluegrass Chapter, Kentucky Restaurant Association
Kentucky Petroleum Marketers Association
Bluegrass Hospitality Association
Kentucky Propane Gas Association
Commerce Lexington
Kentucky Restaurant Association
Greater Louisville, Inc.
Kentucky Retail Federation
Kentucky Association of Convenience Stores
Kentucky Small Business Caucus
Kentucky Association of Manufacturers
Kentucky Thoroughbred Association
Kentucky Chamber of Commerce
Kentucky Thoroughbred Owners & Breeders
National Federation of Independent Business