Kentucky Restaurant Ass'n v. Louisville/Jefferson County Metro Government

501 S.W.3d 425, 26 Wage & Hour Cas.2d (BNA) 1833, 2016 Ky. LEXIS 506, 2016 WL 6125883
CourtKentucky Supreme Court
DecidedOctober 20, 2016
Docket2015-SC-000371-TG
StatusPublished
Cited by5 cases

This text of 501 S.W.3d 425 (Kentucky Restaurant Ass'n v. Louisville/Jefferson County Metro Government) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kentucky Restaurant Ass'n v. Louisville/Jefferson County Metro Government, 501 S.W.3d 425, 26 Wage & Hour Cas.2d (BNA) 1833, 2016 Ky. LEXIS 506, 2016 WL 6125883 (Ky. 2016).

Opinions

OPINION OF THE COURT BY

JUSTICE CUNNINGHAM

Perhaps no state in the Union holds a stronger affection for local government than does the Commonwealth of Kentucky. While we rank 26th in population in.the United States, we have the third highest number of counties. Throughout our long history, any sentiment to reduce the number of counties has been met with immediate and resounding rejection. Writer Robert M. Ireland has summed it up best. “Although not alone in their refusal to tamper with their counties, Kentuckians arguably attach more significance to these constitutional creatures than . any other Americans. In Kentucky, for better or worse, counties are truly little kingdoms.”1

It is with great deference to this historical notion that we address the challenging issue in this case.

The case before us provides a historic clash between the competing authority of the Louisville-Jefferson County government and the Kentucky General Assembly. The specific issue is whether Louisville has the authority to enact an ordinance requiring a higher wage than the statutory minimum.

Minimum Wage Laws

Australia and New Zealand were the first of the developed countries to impose minimum pay for employees back in 1894. [427]*427It wasn’t long from that time when the voice of organized labor began to be heard and such laws spread to other countries. The United Kingdom passed its own minimum wage laws in 1909.

The United States was a relatively, latecomer to the threshold wage requirement. Only after the Great Depression and the passing of the Federal Fair Labor Standards Act in 1938 did wage control come upon the American scene. That law included youth employment standards, overtime pay, recordkeeping and other prescriptions for government employees at the local and state levels. It is nostalgia of a different time to learn that the first Federal minimum wage set was 25 cents an hour.

Kentucky’s first minimum wage laws were enacted in 1938 and only applied to women and children. The act also established - an administrative compensation board which reviewed wages of certain industries and required minimum pay for that business. In 1966, the statutes were updated to include all employees of any particular industry. It wasn’t until 1974 that Kentucky created a minimum wage for all workers that was. set by statute at $ 1.30. The current minimum wage is $7.25.

Factual and Procedural Background

In early 2015, The Louisville/Jefferson County Metro Government (“Louisville Metro”) enacted its own minimum wage ordinance for all employers within the Louisville Metro boundary, tó be effective July 1, of that year.'Louisville Metro Ordinance No. 216, Series 2014 (the “Ordinance”). The wage schedule provided for incremental increases for subsequent years, adjusted in part -to reflect the consumer price index. The minimum wage set by the ordinances were higher than the $7.25 minimum wage presented , in KRS 337.275.

Appellants in this case are the Kentucky Restaurant Association, Inc. (“KRA”), Kentucky Retail Federation, Inc., (“KRF”), and Packaging Unlimited, LLC (“Packaging Unlimited”). On February 13, 2015, the Appellants filed an action in the Jefferson Circuit Court against Louisville Metro, attempting to void the ordinance as being outside the authority of Louisville Metro to enact. An injunction barring the enforcement of the Ordinance was also sought. A judgment on the pleadings was requested by both sides.

On June 29, 2015, the Jefferson Circuit Court entered a ruling in Louisville Metro’s behalf and denied the relief sought. The Court of Appeals denied a request for Emergency Relief pursuant to CR 76.33 and CR 65.08(7). This Court: accepted transfer of this case in September of 2015. For the reasons stated herein, we reverse the Circuit Court and remand.

Analysis

Section 156b is the enabling constitutional permission for the General Assembly to afford cities the power to pass laws which are “in furtherance of a public purpose.” The restrictive language in that provision, however, proscribes any local ordinances being passed which are “in conflict with a constitutional provision or statute.”

Of course this case turns upon the last sentence. Therefore, , we must turn to what statutes are controlling.

Local governments in Kentucky are vested with broad authority. See KRS 82.082; and KRS Chapter 83. This is commonly known as “Home Rule.” In addition, Louisville Metro is categorized by statute as a first class city and, in the year 2000, was afforded by statute a special privilege of consolidating its government with that of the county to form one body for governing the entire county. KRS 67C. 101. The [428]*428General Assembly determined that Louisville Metro is “sufficiently ■ different from those found in other cities to necessitate this grant of authority and complete home rule.” KRS 83.410(4) (emphasis added). Therefore, Louisville Metro possesses enhanced authority that is distinct from other municipalities. Yet, the sovereignty of the state still rules supreme.

Conflict

The law on this issue is clear. A local government’s “power or function is in conflict with a statute if it is expressly prohibited by a statute or there is a comprehensive scheme of legislation on the same general subject embodied in the Kentucky Revised Statutes .... KRS 82.082(2) (emphasis added). In that same vein, “[a]n ordinance ... cannot forbid what a statute expressly permits. ...” City of Harlan v. Scott, 290 Ky. 585, 162 S.W.2d 8, 9 (1942). Neither Home Rule nor Louisville Metro’s first class distinction alter this rudimentary principle.

The Ordinance at issue, here requires businesses to pay workers a higher wage than the statutory minimum. KRS 337.275(1). In other words, what the statute makes legal, the Ordinance makes illegal and, thus, prohibits what the statute expressly permits. This is precisely the type of “conflict” that is forbidden under Section 156b of our Constitution and KRS 82.082(2). Accord Wholesale Laundry Bd. of Trade, Inc. v. City of New York, 17 A.D.2d 327, 234 N.Y.S.2d 862 (N.Y. App. Div. 1962) (invalidating a local ordinance that “forbids a hiring at a wage which the state law permits and so prohibits what the state law allows. Semantic exercises in .this connection cannot change the concept.”), aff'd without opinion, 12 N.Y.2d 998, 239 N.Y.S.2d 128, 189 N.E.2d 623 (1963).

Therefore, the Ordinance is invalid unless additional statutory authority permits municipalities to raise the minimum wage.

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501 S.W.3d 425, 26 Wage & Hour Cas.2d (BNA) 1833, 2016 Ky. LEXIS 506, 2016 WL 6125883, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentucky-restaurant-assn-v-louisvillejefferson-county-metro-government-ky-2016.