What is the difference between a minimum wage law and a living wage law?

The difference between a minimum wage law and a living wage law is significant and relevant in the state of Louisiana. A minimum wage law sets a wage floor, or the lowest amount an employer can pay their employees. This wage is set at the federal level and is currently $7.25 per hour for non-exempt employees. Meanwhile, a living wage law sets a rate that employers should pay their employees based on regional or state-level cost of living. The living wage may be higher than the federal or state minimum wage, and it is determined through a cost of living calculation. In Louisiana, the state minimum wage is currently higher than the federal minimum wage and is set to increase to $7.75 per hour in January of 2021. Louisiana does not have a living wage law, so employers in the state are not mandated to provide a certain wage to their employees. Overall, the difference between a minimum wage law and a living wage law is that a minimum wage law sets a wage floor that employers are required to meet, whereas a living wage law sets wages that employers should strive towards based on a calculated cost of living. Although Louisiana does not have a living wage law, employers are required to meet the state minimum wage of $7.75 per hour for non-exempt employees.

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What is the difference between a minimum wage law and a living wage law?

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