Session Information

2008 Session Highlights

Labor/Employment

According to officials at the Louisiana Department of Labor, Louisiana currently has approximately 100,000 jobs that are unfilled, while nearly 75,000 Louisianians who could, with training, enter the workforce remain chronically unemployed. This disconnect is the focus of the Jindal administration's efforts to redesign the Department of Labor. The Department is to be renamed the Louisiana Workforce Investment Council in an effort to focus the mission of the department on the development and training of a large and well-trained workforce to fill the jobs of today and tomorrow. During the 2008 Regular Session, the legislature passed significant legislation designed to accomplish the goal of a large and well-trained workforce in Louisiana.

House bill 1104 by Representative Tucker (Act 743) - (duplicate of SB 612 by Senator Chaisson) provides for the change of the name of the Department of Labor to the Louisiana Workforce Investment Council, provides that the secretary shall have the title of "executive director", and changes the name of the current workforce commission to the Louisiana Workforce Investment Council. The legislation is a comprehensive redesign of the department and an attempt to re-focus the efforts at the state level on serving the needs of employers, employees, and potential

employees in Louisiana. The goal is to develop integrated programs, including programs in other state departments and federally-funded programs, into a seamless system designed to serve business and industry, as well as employees and those seeking to enter the workforce. The more than eighty page bill has five main areas of focus, as follows:

(1) To align the Louisiana Community and Technical College System (LCTCS) funding with the priority workforce needs. These needs will be determined by regional and state workforce demands and anticipated economic opportunities.

(2) To enhance capacity to rapidly address major workforce-related opportunities and challenges. The Workforce Investment Council will establish the "Louisiana Fast-Start Program" which will provide turn-key workforce training solutions designed for an individual business or industry. This effort will be in collaboration with both the Louisiana Department of Economic Development and the LCTCS to provide training solutions for business expansion and recruitment

3) To enhance business and industry engagement to establish demand-driven priorities and measure impact at the regional level. The Workforce Council will work through the regional Workforce Investment Boards (WIB's) to develop a de-centralized system which will more efficiently serve the employment needs in each region. The commission will integrate all key workforce development programs and support services from various state and federal agencies into local "One Stop" centers.

(4) To work toward the realignment of junior high, high school, and post-secondary education systems to address market demands. The council is charged to work with state and local educational institutions to promote dual-enrollment initiatives and other alternatives to address career options that do not require four-year degrees, but do require some post-secondary training.

(5) To dramatically increase workforce participation. The council will work with the Louisiana Department of Economic Development to recruit job-ready workers in high-demand areas from other states. The commission will also implement an aggressive marketing campaign to recruit targeted populations into "entry level" workforce development programs to increase the general workforce.

Senate bill 168 by Senator Murray (Act 510) deals with nonprofit and government entities who pay their unemployment compensation benefits on a reimbursement basis. Employers pay for unemployment benefits owed to employees in two ways: (1) most employers pay a monthly premium, much like an insurance premium and (2) nonprofit organizations and government entities reimburse the state dollar-for-dollar for benefits that have been paid to their employees. After hurricanes Katrina and Rita, several executive orders suspended the criteria required of an employee in order to receive unemployment compensation benefits. After the hurricanes, the federal government gave monies to Louisiana to cover the costs of unemployment benefits paid. In an earlier session, the legislature forgave any premiums owed for benefits paid as a result of these executive orders. At that time, the nonprofits and governments received only a postponement. This bill forgives the payments for those who pay by reimbursement, putting all employers on an even basis. The bill will produce savings for state and local governments, school boards, and many nonprofit organizations.

House bill 1165 by Representative Honey (Act 169) provides for an increase in the maximum unemployment benefit allowed by Louisiana law.

Drug-testing of the workforce. House bill 514 by Representative Ponti (Act 150) provides that those engaged in construction, maintenance, or manufacturing at any refining or chemical manufacturing facility may be subject to a reduced cut-off level of marijuana in one's bloodstream.

Modification of employment for minors. House bill 738 by Representative Baldone (Act 364) provides that minors who are 12 or 13 years of age may be employed in a business in which the minor's parents are owners or partners. The legislation further provides that the minor is to work only under the supervision of the parent and that all protections afforded to minors aged 14 and 15 shall be afforded to those who are employed as a result of this legislation. These minors shall obtain an employment certificate prior to beginning work.

Non-compete agreements between franchisers and the employees of its franchisees. Current law contains no provision allowing non-compete agreements between those who sell franchises and the employees working for the franchises sold. Non-compete agreements are specifically prohibited by Louisiana law, unless specifically provided for. House bill 968 by Representative Edwards (Act 711) provides for such non-compete agreements to be entered into by franchisers and the employees of their franchisees.

Despite considerable efforts on the part of Senator Cassidy, the Department of Labor, and many others, the disparate parties who have an interest in whether or not preferred provider organization agreements are allowed in the workers' compensation arena were unable to reach a compromise acceptable to most parties. Without reform, the costs at issue in litigation regarding these types of agreements in Louisiana increase by millions of dollars per year. Because of this extraordinary cost, the parties will continue to work toward a compromise bill for introduction in the 2009 Regular Session.