Compliance Watch:

What are my rights as a salaried employee in Louisiana?

A salaried employee in Louisiana refers to any employee who receives a fixed predetermined compensation on every payday regardless of the quality of their work, number of hours worked, and the quantity of their work. Louisiana requires employers to pay salaried employees who are bound by its state laws at least twice in every calendar month.

Louisiana labor laws require employers who fail to establish official paydays to pay these employees on the 1st and 16th days of each month. However, this requirement only applies to non-exempt employees, since the state defers to the Federal Labor Standards Act (FLSA) on the pay frequency for exempt employees. Accordingly, exempt employees in the state should be paid at least once every calendar month. 

Louisiana salaried employees laws recognize two categories of salaried employees based on the FLSA’s criteria for exemption. The first category comprises exempt employees, who are not subject to state or federal minimum wage and overtime laws. The second category comprises non-exempt salaried employees, who are subject to state minimum wage and overtime laws.

Please note that this table provides a general overview of the distinction between salaried and hourly terms of employment in Louisiana. Specific employment terms and conditions can vary widely depending on employer policy, industry practices, and occupation. Therefore, employees in the state need to seek legal counsel, consult HR professionals, or consult the Louisiana Workforce Commission for more detailed information.

Employees in Louisiana have certain basic rights and protections provided by federal and state labor laws. Here are a few fundamental rights of salaried employees in the state:

• Right to a Safe Workplace: Salaried employees in Louisiana are entitled to a safe work environment free from hazards and unsafe conditions. Further, employers in the state are required to provide workers’ compensation to employees. Employees who fall ill or sustain an injury while performing their work duties are entitled to medical care, compensation for lost wages, and vocational rehabilitation. The families of employees who lose their lives to work-related illness or injuries are entitled to funeral benefits.
• Right to Fair Compensation: Louisiana does not have distinct minimum wage laws. However, the state guarantees salaried employees either the federal minimum wage rate of $7.25 per hour or the federal minimum salary threshold for exempt employees, which is currently $844 per week or $43,888 annually. In addition to the appropriate minimum of compensation based on exemption status, eligible salaried employees in Louisiana are entitled to overtime pay for time worked beyond 40 hours in a workweek. 
• Right to Equal Pay for Equal Work: Employees in Louisiana have the right to receive the same level of compensation for performing substantially similar work regardless of gender or other protected characteristics such as race, color, sex, national origin, religion, disability, age, pregnancy, childbirth, and sickle cell trait.
• Right to Family and Medical Leave: Eligible employees in the state have the right to take up to 12 weeks of job-protected unpaid leave for family and medical reasons as per the Family and Medical Leave Act (FMLA). 
• Right to Organize and Join a Union: Louisiana is a right-to-work state. Therefore, salaried employees in the state have the right to form, join, or support labor organizations and engage in collective bargaining without fear of retaliation from employers. However, they cannot be coerced to join or terminate their union membership. 
• Right to Privacy: Salaried employees in Louisiana have the right to privacy in the workplace. Employers in the state are prohibited from engaging in invasive practices, such as requests to disclose usernames, passwords, or any other authentication information that would grant them access to their employee’s online accounts.

Yes, while some categories of salaried employees are not entitled to overtime pay, compensation by salary basis does not preclude all salaried employees from qualifying for overtime pay. 

Louisiana overtime laws uphold the federal criteria for overtime eligibility. As per the criteria, non-exempt salaried employees are eligible for overtime pay for all time worked in excess of 40 hours a week at a rate of 1.5 times their regular salary. In addition to accruing overtime for exceeding 40 hours in a workweek, state employees accrue overtime for working designated holidays and for all work done on days when the office is closed officially. Further, state employees can opt for compensatory time in lieu of monetary compensation for overtime. Eligible employees accrue compensatory leave at a rate of 1.5 hours of leave for one overtime hour.

Louisiana laws establish a few categories of permissible deductions. Employers in the state are allowed to make the following deductions from the salaries of their employees:

1. Payroll Deductions Authorized by Law: Deductions that are authorized by state or federal laws and courts of law are permissible. In Louisiana, these deductions include court-ordered wage garnishments, federal and state taxes, state-participating plans such as contributions to health and savings plans, and liens on an employee’s salary.
2. Labor Union Dues: Louisiana is a right-to-work state. Therefore, employers are allowed to deduct union dues from their employees’ salaries.
3. Voluntary Deductions: Employers can deduct employees’ contributions to savings plans, healthcare, and retirement plans that are not part of state-participating contributions. 
4. Charitable Donations: Employees can authorize deductions for contributions to charities. However, the law restricts this deduction to qualified nonprofit community health and human services charities and explicitly prohibits deductions for contributions to charities organized for cultural, educational, religious, or political purposes.

There are no laws requiring employers in Louisiana to offer rest or meal breaks to adult employees in the state. However, employers are not prohibited from offering breaks during the workday.

While adult employees are not entitled to breaks, employees under the age of 18 are entitled to rest breaks. Employers are required to offer minor employees breaks of at least thirty minutes for every five hours of work. 

Similarly, the state does not require private employers to extend paid or unpaid leave to employees. Rather, leave policies are left to the employers’ discretion. However, salaried state employees are entitled to annual and sick leave, which is accrued at different rates for every hour of work based on an employee’s years of service. Similarly, exempt employees are entitled to unpaid family and sick leave as per the FMLA.

Louisiana state laws do not address flexible work arrangements. However, individual employees and employers are at liberty to enter private agreements establishing alternative work arrangements that deviate from the traditional 9-5, 40-hour workweek. Popular flexible work arrangements in the state include telecommuting and remote work.

Louisiana adopts the FLSA’s definition of exempt employees. An exempt employee in the state refers to any salaried employee who meets the following criteria:

• Earns a minimum of $844 per week or $43,888 annually.
• Is exempted from federal and state overtime and minimum wage laws.
• Falls under the exempt employee categories, which include administrative, executive, professional, computer, and certain outside sales employees.

Exempt status in Louisiana is typically reserved for salaried employees who meet specific criteria outlined by the FLSA. The status has the following implications for employees.

1. Basis of Compensation: Exempt employees in the state are typically paid a fixed salary of not less than $844 per week or $43,888 annually, regardless of the number of hours worked. This guarantees a stable income regardless of time worked, quality, or quantity of work.
2. Eligibility for Overtime: Exempt employees are not entitled to overtime pay for exceeding 40 hours in a workweek. This can deny them additional income for working longer hours.
3. Autonomy: Exempt employees typically hold positions that allow them to exercise autonomy in their duties and decisions.
4. Eligibility for Benefits: Exempt employees automatically qualify for certain employment benefits such as unpaid sick leave of up to 26 weeks as per the FMLA. 

Comparatively, exempt status has the following implications for employers:

1. Administrative Duties: Exempt employees earn a fixed salary and are not eligible for pay differentials regardless of number of hours worked. This can make payroll management easier. 
2. Employee Classification: Salaried employees must meet certain criteria to qualify as exempt. Therefore, employers must classify employees as exempt or non-exempt accurately to ensure compliance with labor laws since misclassifying employees can lead to penalties or lengthy court battles. 
3. Compensation Obligations: Employers must pay exempt employees a fixed salary, which is typically higher than the minimum wage. This can increase labor costs for the employer.

To determine your status, you need to apply the following tests:

1. Salary Basis Test: An exempt employee must be paid on a salary basis. They receive a predetermined fixed salary that remains constant regardless of hours worked and variations in quality or quantity of work.
2. Salary Level Test: In 2024, the FLSA set the new minimum salary for an exempt employee as $844 per week. Plans to review the rate upwards are underway, but until then, all exempt employees in Louisiana should earn a minimum salary of $844 per week or $43,888 annually. 
3. Duties Test: The duties and roles that qualify salaried employees as exempt fall under the following exemption categories: 
   • Executive Exemption: Executive employees qualify as exempt if their primary duty involves managing an enterprise or one of its recognized departments, customarily and regularly directing the work of more than one employee, and contributing to personnel decisions such as hiring, promotion, and firing.
   • Administrative Exemption: Salaried employees gain the administrative exemption if they routinely perform office or non-manual work related to business operations or management and exercise discretion and independent judgment on important matters in the business. 
   • Professional Exemption: Professionals are considered exempt if they perform intellectual work that requires advanced knowledge in a field of science or learning and involves the consistent exercise of judgment and discretion.
   • Computer Professional Exemption: Certain computer professionals, such as computer systems analysts, computer programmers, and software engineers, qualify for exempt status if they meet the salary basis and level criteria.
   • Outside Sales Employees: Sales employees who meet the salary basis and level criteria qualify as exempt if they are routinely engaged in making sales or generating orders away from their employer’s premises.

Non-exempt salaried employees in Louisiana are entitled to a minimum compensation of the federal minimum wage rate of $7.25 per hour. Exempt employees, on the other hand, are entitled to a minimum compensation of the federal minimum salary threshold of $844 per week or $43,888 annually.

Louisiana defers to federal laws on overtime eligibility. As per the FLSA, non-exempt salaried employees are eligible for overtime pay for all time worked in excess of 40 hours a week. Overtime is compensated at a rate of 1.5 times their regular salary. 

On top of overtime pay earned for exceeding 40 hours in a workweek, state employees accrue overtime for working designated holidays and for all work done on days when the office is closed officially. Further, they can opt for compensatory time in lieu of monetary compensation for overtime. Eligible employees accrue compensatory leave at a rate of 1.5 hours of leave for one overtime hour.

Employers in Louisiana are allowed to make the following deductions from their employees’ salaries:

• Payroll Deductions Authorized by Law: All deductions that are authorized by state or federal laws and courts of law are permissible. These include court-ordered wage garnishments such as child support and alimony, federal and state taxes, state participating plans such as contributions to health and savings plans, and court-ordered liens on an employee’s salary.
• Union Dues: As a right-to-work state, Louisiana laws allow employers to deduct union dues from their employees’ salaries.
• Voluntary Deductions: Employees can authorize deductions such as contributions to savings plans, healthcare, and retirement plans that are not part of state-participating contributions. 
• Charitable Donations: Employees can authorize deductions for contributions to charities. However, the law restricts this deduction to qualified nonprofit community health and human services charities and explicitly prohibits deductions for contributions to charities organized for cultural, educational, religious, or political purposes.

Louisiana provides various benefits and protections to employees. These include:

• Minimum Wage Laws: The state upholds the federal minimum wage, which ensures that non-exempt salaried employees are paid at least $7.25 per hour while exempt employees are paid at least $844 per week.
• Overtime Pay: Eligible employees in Louisiana are generally entitled to overtime pay at a rate of 1.5 times their regular hourly rate for time worked above 40 hours in a workweek.
• Protection from Discrimination: Employees in Louisiana are protected from all types of intentional discrimination in the workplace based on race, color, religion, sex, national origin, or natural, protective, or cultural hairstyle. 
• Equal Pay: All employees in the state are entitled to the same rate of compensation for work that is performed under similar conditions and requires the same level of skill, effort, and responsibility.
• Family and Medical Leave: Eligible employees in the state are protected from termination from employment for taking up to 12 weeks of leave as per the FMLA. 
• Workers’ Compensation: Any employee in Louisiana who sustains work-related injuries or suffers job-related illnesses is entitled to workers’ compensation benefits, which include temporary and permanent disability benefits, medical expenses, and a guaranteed return to work after recovery.

Labor violations in Louisiana can take many forms including unpaid overtime, withheld wages, employee misclassification, discriminatory hiring and promotion practices, unlawful deductions, and harassment in the workplace. 

If you believe that your labor laws have been violated, you can place a complaint with the Louisiana Workforce Commission by calling 1-800-201-3362 to speak with a representative.