The Louisiana Legislature amended two important employment laws: the wage payment statute and the noncompete statute. The amendments to the wage payment statute become effective on August 1, 2024, and the amendments to the noncompete statute become effective on January 1, 2025.
Louisiana has traditionally had a very strong wage payment statute. Employers must pay out final wages within fifteen days or face penalty wages of up to 90 days. Final wages typically include bonus and/or incentive payments. Courts have held that any bonus had to be paid out regardless of whether the bonus was contingent on the employer being paid by the customer or whether the bonus was even due when the plan provided that the employee must be “employed” at the time the bonus is paid.
Under the amendments, employers will not be considered to have required a forfeiture of wages as long as it has a written policy providing for adjustments to a commission when there is a change order or other event that affects the amount of the commission and the policy provides 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. If a bonus is to be determined by financial information reflecting the employee’s or employer’s performance on an annual, quarterly, or other periodic basis, employers may have up to 120 calendar days to make...
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