February 28, 2023
State Spotlight: Pelican Institute Helps Reform Job Licensing in Louisiana
Making the leap, planting a flag, hanging one’s shingle; entrepreneurship has many idioms. But at its core, entrepreneurship is taking a risk for the possibility of a better life.
Any entrepreneur can tell you about the myriad challenges and headaches they dealt with while building their business. And chances are, expensive and burdensome regulations top the list. Too many occupations require costly, confusing, and restrictive government licenses. And many government-required licenses—like those for cosmetology, hair styling, and even florists—have nothing to do with consumer safety but everything to do with reducing competition for those already in the profession.
Occupational licensing laws in Louisiana are among the most onerous in the nation.
As Daniel Erspamer, CEO of the Pelican Institute for Public Policy, explains, “Over the last 30 years, Louisiana added more licensure requirements to work in low-and moderate-income professions than any other state.”
Licensure laws like these limit job opportunities and locked people in perennial cycles of poverty. Things had to change, so the Pelican Institute got to work.
Occupational licenses are practically unavoidable in Louisiana. Erspamer explains, “Roughly one in four professions in Louisiana require a government permission slip to work. Louisiana has some of the most onerous and burdensome licensing laws in the country. These regulations don’t just make it inconvenient for job seekers to find work, they actively limit economic mobility for low- to moderate- income Louisianans. From alarm installers to florists, the state’s licensing laws place an inconceivable burden on those trying to find work under the guise of consumer protection.”
One of the Pelican Institute’s first steps in their campaign was producing trustworthy data on the issue. “When the Entrepreneurs go marching out”was Pelican’s in-depth research report showing the problems licensure laws create and the policy solutions to fix them.
Then, armed with trustworthy data, Pelican began telling the stories of Louisiana entrepreneurs having their lives—and livelihoods—turned upside down by licensure laws. One of those entrepreneurs is Daltonio Elaire. In an op-ed in The Advocate, Erspamer writes, “Daltonio Elaire is a Lafayette native who had a dream of opening a mobile barbershop to bring his years of expertise in the profession direct to the consumer. During the pandemic, he poured hours of work and his life savings into creating his mobile barbershop. Yet after months of operation and compliance with all the permitting he thought necessary, state licensing board officials shut him down and told him mobile shops are not, and will never be, allowed in Louisiana. Current licensing rules give little to no recourse for Daltonio—and many folks like him—to challenge these rulings.”
By making individual Louisianans the face of the issue, Pelican took the moral high ground against an onslaught of lobbying and cajoling from the licensure boards and simplified an issue that can quickly become lost in the weeds. Pelican’s campaign centered around passing four licensing reform bills: Right to Earn a Living, Universal Recognition, Licensure Transparency, and Fair Chance.
Pelican’s strategy focused on creating an echo chamber where occupational licensing was synonymous with crushed dreams. The Pelican team aimed to empower lawmakers to reform these laws and restore the American dream for their constituents. Pelican’s government affairs effort was strongly augmented by educating, engaging, and activating members of their nearly 70,000-member strong earned audience network.
The campaign worked.
Multiple bills passed in the Louisiana legislature reforming the state’s occupational licensing laws. Erspamer explains, “The Right to Earn a Living Act will open doors for Louisiana entrepreneurs. It will give our citizens the ability to challenge unfair and uncompetitive licensing requirements through the licensing board while also establishing a new legal standard that these boards must abide by. The legislature also passed a bill that will give clarity around the licenses they can pursue to those involved in the justice system. This will allow them the opportunity to get back on their feet more quickly and earn an honest living for themselves and their families. Ultimately, our aim is to unleash the talent and drive of the people throughout Louisiana.” He continues, “Real change is possible. No one in Louisiana talked about occupational licensing when we began our efforts. But we consistently put our message out there, met with lawmakers, and told the stories of Louisianans who couldn’t do what they loved because of silly licensing restrictions. Seeing our efforts finally pay off in a big way for Louisianans is the most rewarding thing.”
These reforms—made possible by Pelican’s work—are important steps for Louisianans trying to build a better future for themselves and their families. Now, thanks to Pelican, there are less barriers to making the leap, hanging a shingle, or planting a flag in Louisiana.
