Louisiana Termination Laws

Louisiana termination laws govern the rights and responsibilities of both employers and employees when an employment relationship ends. Understanding these laws is important for both parties to navigate termination properly and avoid legal disputes.

This article outlines the legal grounds for termination, the timeline for final paychecks, and protections against wrongful dismissal, ensuring that the termination process is fair and compliant with federal and state regulations.

This Guide Covers

Legal Considerations for Termination in Louisiana
At-Will Employment in Louisiana
Lawful Termination in Louisiana
Legal Protections During Termination in Louisiana
Terminated Employee Benefits in Louisiana
Layoffs in Louisiana
Resignations in Louisiana
Legal Cases Related to Wrongful Termination in Louisiana

Legal Considerations for Termination in Louisiana

When it comes to terminating employment in Louisiana, both employers and employees must know and understand a range of legal considerations to ensure that the process is handled lawfully and fairly. These legal considerations include:

  • Anti-Discrimination Laws: Employers cannot terminate an employee based on discriminatory factors. This includes the protected characteristics protected under federal law and state laws, such as race, color, religion, sex, national origin, age (40 or older), or disability.
  • Retaliation Protections: Employers are prohibited from firing an employee in retaliation for engaging in legally protected activities, such as filing a discrimination claim, participating in an investigation, or whistleblowing.
  • Notice and Final Paychecks: Louisiana law does not require employers to provide notice before terminating an employee. However, once an employee is terminated, the employer is legally required to provide the final paycheck within a certain time frame, typically by the next regular payday or within 15 days, whichever comes first.
  • Severance Pay Agreements: While not required by law, some employers may offer severance packages in exchange for the employee agreeing not to pursue legal claims against the company. These agreements must comply with legal standards, ensuring they are voluntary and not coercive.
  • Unemployment Benefits: Depending on the circumstances of their termination, terminated employees may be eligible for unemployment benefits. Employees who were terminated for misconduct may be disqualified from receiving these benefits, while those who were laid off or terminated without cause may qualify.

At-Will Employment in Louisiana

What is At-Will Employment?

At-will employment is a legal doctrine that defines the employment relationship between an employer and an employee. Under this doctrine, either the employer or the employee can terminate the employment relationship at any time, for any reason or no reason at all, without prior notice. This means an employee can leave their job whenever they choose, and an employer can terminate an employee’s position without having to provide a justification or cause, as long as the reason for termination is not illegal.

Louisiana follows the at-will employment doctrine. While this doctrine gives both parties significant flexibility, several exceptions exist where the employment relationship cannot be terminated at will.

What are the Exceptions to At-Will Employment in Louisiana?

Despite the broad flexibility of at-will employment, several key exceptions in Louisiana protect employees from unfair or unlawful termination:

  • Discriminatory Termination: Employers in Louisiana cannot terminate an employee based on discrimination against protected characteristics such as race, color, religion, sex, national origin, disability, or age.
  • Retaliation for Protected Activity: Louisiana employees are protected from retaliation for engaging in legally protected activities. This includes filing a complaint about workplace discrimination, participating in an investigation or lawsuit against the employer, or reporting safety violations. Employers who retaliate against employees for these actions may be liable for wrongful termination.

Employment Under Contract in Louisiana

In Louisiana, employment under contract is a significant exception to the state’s general rule of at-will employment. When a contract governs an employment relationship, the terms of that contract dictate the conditions under which the employment may be terminated. This means that an employer cannot terminate an employee without cause if the contract stipulates specific grounds for termination or a required notice period.

Lawful Termination in Louisiana

Legal Grounds for Termination in Louisiana

Termination of employment in Louisiana must be done within the bounds of federal and state laws to ensure it is lawful. Key legal grounds for termination include:

  • Performance Issues: Employers in Louisiana can legally terminate an employee for job performance if the employee fails to meet the expectations or standards required for their role. This includes consistent underperformance, failure to complete tasks, or not achieving set goals. Employers should document performance issues and provide feedback before proceeding with termination to avoid potential disputes.
  • Misconduct: In Louisiana, termination for misconduct is lawful when an employee violates company policies, engages in unethical behavior, or engages in actions that are harmful to the company or its employees. This can include theft, harassment, insubordination, or violating safety protocols. Employers should have clear policies in place and thoroughly investigate any incidents before deciding to terminate based on misconduct.
  • Business Necessity: Employers in Louisiana may terminate employees due to business necessity, such as economic downturns, restructuring, or other operational needs that require workforce reductions. This type of termination, often referred to as a layoff, is not related to the employee’s performance but rather the employer’s need to cut costs or reorganize. Employers should follow any applicable notice requirements and consider offering severance agreements to mitigate the impact on affected employees.
  • Job Abandonment: Job abandonment occurs when an employee fails to report to work for an extended period without notifying their employer or providing a valid reason. In Louisiana, this is considered voluntary resignation, and the employer may legally terminate the employee’s employment. Employers need to establish clear policies on attendance and communication to handle such situations appropriately.
  • Employment Contract Expiration: When an employment contract in Louisiana expires, and there is no renewal or extension, the employer can legally terminate the employee based on the contract’s terms. This type of termination is straightforward, as the employment relationship ends according to the agreement’s specified duration. Employers should ensure that both parties understand the contract terms and any conditions related to its expiration.

Read our comprehensive guide to firing employees in Louisiana for further information.

How Do I File a Wrongful Termination Claim in Louisiana?

To file a wrongful termination claim in Louisiana, employees are advised to determine first whether their termination violated any state or federal laws. If an employee believes their termination was unlawful, they can file a complaint with the Equal Employment Opportunity Commission (EEOC) if the issue involves discrimination.

The EEOC investigates the employee’s claim and may offer mediation, or they could issue a “Right to Sue” letter, allowing you to file a lawsuit in federal court. If an employee’s claim involves a breach of contract or other issues not covered by the EEOC, employees are advised to consult an employment attorney to explore options for filing a lawsuit in state court.

Legal Protections During Termination in Louisiana

Both state and federal laws provide various legal protections to employees during the termination process. Key laws that protect Louisiana employees include:

  • Title VII of the Civil Rights Act of 1964: Title VII of the Civil Rights Act of 1964 is a federal law that prohibits employers from terminating employees based on race, color, religion, sex, or national origin. In Louisiana, employees who believe they have been wrongfully terminated under these grounds can file a complaint with the Equal Employment Opportunity Commission (EEOC).
  • Americans with Disabilities Act (ADA): The ADA protects employees with disabilities from discriminatory termination based on their disability, provided they can perform essential job functions with or without reasonable accommodation. Employees who face termination due to disability can seek legal recourse through the EEOC or the courts.
  • Age Discrimination in Employment Act (ADEA): The ADEA protects employees aged 40 and older from termination based on age. In Louisiana, this federal law ensures that older employees are not unfairly dismissed in favor of younger workers.
  • Family and Medical Leave Act (FMLA): The FMLA entitles eligible employees to take unpaid leave for specific family and medical reasons without fear of termination. Louisiana employers must restore employees to their previous position or an equivalent one upon return from FMLA leave.
  • Occupational Safety and Health Act (OSHA): The OSH Act of 1970 protects employees from termination for reporting unsafe working conditions or refusing to work in environments that pose a serious risk to health and safety. Louisiana employees can report violations without fear of retaliation under OSHA.
  • Uniformed Services Employment and Reemployment Rights Act (USERRA): The USERRA safeguards the employment rights of individuals who serve in the military, preventing termination due to military obligations. Louisiana employers must reinstate employees to their job or a similar position upon their return from service.
  • Louisiana Employment Discrimination Law: The Louisiana Employment Discrimination Law mirrors many federal protections prohibiting termination based on race, color, religion, sex, disability, age, and other protected characteristics. Louisiana employees who face discriminatory termination can file a complaint with the Louisiana Commission on Human Rights.
  • Louisiana Whistleblower Protection Act: The Louisiana Whistleblower Protection Act protects employees from termination for reporting illegal activities or violations of state law by their employer. This law encourages employees to report wrongdoing without fear of retaliation.
  • Louisiana Employment Security Law: The Louisiana Employment Security Law governs unemployment benefits, providing financial support to employees who lose their jobs through no fault of their own. Terminated employees in Louisiana may be eligible for unemployment compensation if they meet the law’s requirements.

Terminated Employee Benefits in Louisiana

In Louisiana, terminated employees may be eligible for several benefits depending on the circumstances of their termination:

  • Final Paycheck: Employers are required by law to issue the final paycheck promptly. In Louisiana, the final payment must be made on the next regular payday or within 15 days of termination, whichever occurs first. This final paycheck should include all earned wages up to the date of termination.
  • Unemployment Benefits: Terminated employees in Louisiana may be eligible for unemployment benefits through the Louisiana Workforce Commission. To be eligible, employees must meet certain criteria, such as having earned sufficient wages during a base period and actively seeking new employment.
  • Health Insurance Continuation: Upon termination, employees may have the right to continue their health insurance coverage under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA). This federal law applies to employers with 20 or more employees. It allows employees to maintain their group health insurance for 18 months and must pay the full premium plus a 2% administrative fee. Louisiana Mini-COBRA applies to smaller employers of two to 19 employees. Under Mini-COBRA, eligible employees can continue their health coverage for up to 12 months and must pay the full premium fee.
  • Severance Pay Agreement: Louisiana state law does not mandate severance pay, and it is at the employer’s discretion. However, if an employment contract, collective bargaining agreement, or company policy specifies severance pay, the employer is legally obligated to provide it.

Layoffs in Louisiana

In Louisiana, layoffs are generally governed by both state and federal laws, particularly when they involve mass layoffs or plant closures. Under the federal Worker Adjustment and Retraining Notification (WARN) Act, employers with 100 or more employees must provide 60 days notice in advance of mass layoffs or plant closures that affect a significant number of employees.

Louisiana does not have a state-specific WARN Act, so the federal law applies. Employees may apply for unemployment benefits through the Louisiana Workforce Commission. To qualify, employees must meet certain requirements, such as earning a minimum amount of wages during a base period.

Resignations in Louisiana

Resignations in Louisiana can occur under various circumstances, depending on whether the decision to leave is made by the employee (voluntary) or influenced by the employer (involuntary).

Voluntary Resignations

A voluntary resignation occurs when an employee decides to leave their job on their own accord. This typically involves the employee providing notice to their employer. However, the specific period of notice is not mandated by state law unless specified in an employment contract or company policy.

Employees are generally expected to give a standard two weeks’ notice, but this can vary depending on the employer’s requirements or the employee’s circumstances. Voluntary resignations are considered a separation initiated by the employee without any pressure from the employer.

Involuntary Resignations

Involuntary resignation, or constructive discharge, occurs when an employee is compelled to resign due to circumstances created by the employer. This could include situations where the employee feels forced to resign due to intolerable working conditions or undue pressure from the employer. In these cases, the resignation is not truly voluntary, as the employee may feel they have no other choice but to leave their position. Involuntary resignations can sometimes lead to claims of wrongful termination if the employee believes their resignation was coerced or that they were forced out unfairly.

Legal Cases Related to Wrongful Termination in Louisiana

1. Adult Care Facility Pays $30,000 in Disability Discrimination and Retaliatory Termination Case

In EEOC v. Baker Wellness Center Inc., Baker Wellness Center, an adult day care facility in the Baton Rouge area, was accused of violating federal law by firing an employee because of her diabetes disability. The employee, a direct service worker, was also retaliated against for refusing to provide medical information on a job application, which the company illegally requested.

The Americans with Disabilities Act (ADA) prohibits employers from asking for medical information before a job offer, and from firing or discriminating against employees due to a disability or for requesting reasonable accommodations. The EEOC filed the lawsuit after attempts to settle the matter outside of court failed.

The case was resolved with Baker Wellness agreeing to a $30,000 settlement. In addition to the monetary compensation, Baker Wellness must implement several non-monetary measures, including revising its employment application process to comply with the ADA, posting an anti-discrimination notice, providing anti-discrimination training for managers and supervisors, and reporting its compliance to the EEOC.

Key Lessons Learned from the Case:
  • Employers must adhere to the ADA by not asking disability-related questions during the pre-offer stage of employment.
  • Employers with disabilities are protected under the ADA, and employers must provide reasonable accommodations and avoid retaliation.
  • Companies should ensure that their application processes and workplace policies comply with federal law to avoid legal and financial consequences.

2. Specialized Services Company Pays $110,000 in Sexual Harassment and Retaliatory Termination Case

In EEOC v. Brand Energy and Infrastructure Services, a Georgia-based company operating in multiple states, including Louisiana, was accused of violating federal law by firing an employee who refused sexual advances from her supervisor.

Jauronice Hayes, a laborer and later an administrative assistant at the Belle Chasse facility, was subjected to sexual harassment by her supervisor, Charles Julian. The harassment included inappropriate comments, demands for sexual favors, and physical advances. Despite rejecting these advances and filing anonymous complaints through the company’s hotline, Hayes was terminated in February 2009.

After her firing, Julian allegedly continued to harass Hayes, offering to reinstate her job in exchange for sexual favors. The EEOC filed a lawsuit, which resulted in a settlement where Brand Energy agreed to pay $110,000 ($100,000 to Hayes and $10,000 to another former employee who also faced harassment by the same supervisor).

As part of the settlement, Brand Energy committed to preventing future incidents by requiring all current management and human resources employees to undergo training on sexual harassment and unlawful retaliation. The company also agreed to notify the EEOC if Julian, who had since left the company, ever returned, and to ensure, in this instance, he receives proper training on preventing sexual harassment.

Key Lessons Learned from the Case:
  • Employers must maintain a zero-tolerance policy towards sexual harassment in the workplace and ensure that all complaints are taken seriously and investigated promptly.
  • Retaliation against employees who report harassment is illegal, and employers can face significant legal consequences for failing to protect their workers.
  • Training on sexual harassment and retaliation is essential to create a safe and respectful work environment.

3. Finance Company Pays $53,000 in Damages After Discriminatory Termination

In the case of Tristan Broussard v. Tower Loan, Tristan Broussard, a transgender man, was fired from his manager trainee position at Tower Loan, a Mississippi-based finance company, for refusing to dress and be treated as a woman.

Broussard was hired in February 2014 at the company’s Lake Charles, Louisiana branch. Shortly after starting, company officials discovered Broussard was transgender and demanded that he sign a document stating his male presentation did not comply with Tower Loan’s personnel policies. Broussard refused to sign the document and was subsequently terminated.

The Southern Poverty Law Center, alongside other legal allies, filed a federal discrimination lawsuit on Broussard’s behalf, alleging that Tower Loan’s actions violated Title VII of the 1964 Civil Rights Act, which prohibits employment discrimination based on sex, including gender identity.

In November 2016, the judge ruled in Broussard’s favor, concluding that Tower Loan had unlawfully discriminated against him. The judge found that Broussard was forced to resign to avoid an intolerable and illegal employment condition imposed by the company. Tower Loan was ordered to pay Broussard damages equaling more than a year’s salary, as well as additional compensation for emotional distress.

Key Lessons Learned from the Case:
  • Employers must respect their employees’ gender identities. They cannot impose dress codes or conduct policies that force individuals to conform to a gender they do not identify with.
  • The judge’s ruling reinforces the protections offered under Title VII of the Civil Rights Act, ensuring that transgender employees are safeguarded from discrimination in the workplace.
  • Even in cases where the primary focus is not on the termination itself, employers can be held accountable for discriminatory practices that create a hostile or intolerable work environment.

Learn more about Louisiana Labor Laws through our detailed guide.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.