New Orleans v. Dukes
Facts
New Orleans amended its code in 1972 to restrict many business permits to areas outside the Vieux Carre and to ban pushcart food vendors there except during Mardi Gras. The amendment included a grandfather clause allowing vendors who had continuously operated the same business within the Vieux Carre for eight or more years before January 1, 1972, to obtain a valid permit to continue operating there. Appellee operated pushcarts throughout New Orleans but had worked in the Vieux Carre for only two years, so the amendment barred her from continuing there. Two pushcart food vendors who had operated in the Vieux Carre for over 20 years qualified under the grandfather clause and were allowed to remain.
Issue
Whether the New Orleans ordinance's grandfather clause, which exempted vendors who had continuously operated the same business in the Vieux Carre for eight or more years before January 1, 1972, denied appellee equal protection of the laws. More specifically, the question was whether this classification in a purely economic regulation was rationally related to a legitimate governmental interest.
Rule
When local economic regulation is challenged solely under the Equal Protection Clause, and the classification neither burdens fundamental rights nor rests on suspect distinctions such as race, religion, or alienage, the classification is presumed constitutional and need only be rationally related to a legitimate state interest. In this sphere, legislatures have wide latitude, may proceed step by step, and need not eliminate all aspects of a perceived problem at once; only invidious discrimination or wholly arbitrary action violates equal protection.
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