Compensation - Louisiana

Summary of differences between federal and state regulations

The federal Fair Labor Standards Act contains certain provisions in regard to compensation in terms of minimum wage, overtime, child labor and recordkeeping requirements. Corresponding state provisions will be found under those topic areas. States are free to adopt additional provisions that are not regulated by the federal government such as frequency of payday and wage deductions. These provisions are discussed in this section.

Louisiana law contains the following provisions:

Cost of medical exams/drug tests

An employer may not require an employee or applicant to pay for any medical exam or drug test required by the employer or the cost of any medical records, or to withhold the cost employees’ wages. Exception:  An employer may require a job applicant or employee to sign a contract providing that the costs of the individual’s pre-employment medical exam or drug test may be withheld from his wages if he resigns within 90 working days. 23:897 and 23:634

For a sample contract regarding deductions within the 90-day period, see www.laworks.net/Downloads/ORS/MedicalExamsAndDrugTestWageContract.pdf

Frequency of payday

Payment is to be semimonthly or biweekly and shall include all amounts due for labor or services performed during any such payroll period, payable no later than the payday at the conclusion of the next payroll period. An employer that does not designate paydays must pay on the first and sixteenth days of the month. 23:633

Notification

The employer, at the time of hire, must notify employees of their wage rate, the frequency and method of payment, and of any changes. Employers must also post a notice stating this. 23:633

Forfeiture of wages

An employer may not require his employees to sign contracts by which the employees forfeit their wages if they resign or are discharged before the contract is completed. Employees are entitled to the wages actually earned up to the time of their discharge or resignation. 23:634

Effective august 1, 2024: Where compensation is available to an employee in the form of commission, incentive pay, or bonus, such amounts will be due to the employee if:

• Earned in accordance with the employer’s policy that addresses the commission, incentive pay, or bonus; and
• The policy is in writing.

Therefore, employers may have policies that:

• Provide for adjustments to a commission when there is a change order or other event that affects the amount of the commission; and
• Provide that the employee does not earn a commission, incentive payment, or bonus until the employer receives payment from the customer on the sale or other event that generates the commission, incentive payment, or bonus.

Employers must determine an employee’s eligibility for a bonus determined by financial information reflecting the employee’s or company’s performance on an annual, quarterly, or other periodic basis, and the amount thereof, and pay departing employees the bonus that may be due within 120 calendar days from the end of the calculation period used by the employer to determine the bonus. 23:631

Assessment of fines

An employer may not assess any fines against his employees or deduct any sum as fines from their wages.  This does not apply where the employees willfully or negligently damage goods or works, or break the property of the employer, or in cases where the employee is convicted or has pled guilty to the crime of theft of employer funds. The fines shall not exceed the actual damage done. 23:635

Fringe benefits

Fringe benefits that are payable under a collective bargaining agreement are to be considered wages and subject to the same rights, protections and penalties as apply to the payment of ordinary wages by employers. 23:640

State

Contact

Louisiana Workforce Commission

Regulations

Cost of medical exams/drug tests

Louisiana Revised Statutes Title 23, 23:897
http://legis.la.gov/Legis/Law.aspx?d=84006

Louisiana Revised Statutes Title 23, 23:634
www.legis.state.la.us/lss/lss.asp?doc=83948

Frequency of payday

Notification

Louisiana Revised Statutes Title 23, 23:633
www.legis.state.la.us/lss/lss.asp?doc=83947

Forfeiture of wages

Louisiana Revised Statutes Title 23, 23:634
www.legis.state.la.us/lss/lss.asp?doc=83948

Assessment of fines

Louisiana Revised Statutes Title 23, 23:635
www.legis.state.la.us/lss/lss.asp?doc=83949

Fringe benefits

Louisiana Revised Statutes Title 23, 23:640
www.legis.state.la.us/lss/lss.asp?doc=83956

Federal

Contacts

None.

Regulations

None.