Hiring Employees in Louisiana

Classifying Your Workers Correctly

Your company must distinguish properly between employees and independent contractors using the IRS common law control test and federal guidance. Louisiana generally follows federal definitions, so you should look at who controls the work, who provides tools, and whether the relationship is ongoing or project based. Misclassification can lead to back wages, unpaid overtime, tax liabilities, interest, and penalties at both federal and state levels.

You should also classify employees as exempt or nonexempt from overtime under the Fair Labor Standards Act based on salary level, salary basis, and job duties. If you are unsure, treat the worker as nonexempt and track hours to avoid underpayment. To understand the risks and how to correct issues, review Playroll’s employee misclassification guide at https://www.playroll.com/blog/employee-misclassification-guide.

Verify Employee Work Eligibility

When you hire in Louisiana, you must complete federal Form I‑9 for each employee no later than the third business day after work starts. You must examine original identity and work authorization documents, such as a U.S. passport or a combination of driver’s license and Social Security card, and record the details on the form. Keep I‑9s for at least three years after the hire date or one year after termination, whichever is later, and store them separately from personnel files.

Louisiana does not impose a universal E‑Verify mandate for private employers, but state contractors and certain public projects may require you to use E‑Verify as a condition of the contract. If you choose to use E‑Verify voluntarily, you must follow federal program rules consistently for all new hires at participating worksites. Always avoid document abuse or discrimination based on citizenship or national origin when verifying eligibility.

Create an Employee Onboarding Process

Your onboarding process in Louisiana should include a written offer letter outlining pay rate, pay schedule, at‑will status, and key benefits. You will need to collect federal Form W‑4, Louisiana state withholding Form L‑4, direct deposit authorization if applicable, and signed acknowledgments for your employee handbook and key policies. You should also provide any required safety information, wage notices, and workers’ compensation contacts relevant to the role.

Build a consistent checklist so every Louisiana hire receives the same documents, training, and access to systems from day one. If you work with Playroll, you can see the full cost of each Louisiana hire upfront, including taxes and benefits, before you extend an offer.

Pay Frequency & Methods

Louisiana law generally requires private employers to pay wages at least twice per month, with paydays set in advance and posted for employees. You must pay final wages by the next regular payday or within 15 days of separation, whichever comes first, or you risk penalties and potential attorney’s fees. Keep accurate records of hours, rates, and deductions for at least three years to support any audits or wage claims.

Payment Methods (How You Can Pay)

You can choose from several lawful wage payment methods in Louisiana, but you must ensure employees receive full wages on time and have clear access to their pay information.

• Payroll Check: You may pay by check drawn on a Louisiana bank, and you must ensure employees can cash it at full face value without fees.
• Cash: You may pay wages in cash, but you must provide a written wage statement showing hours worked, pay rate, gross pay, and all deductions.
• Direct Deposit (EFT): You may use direct deposit, but you should obtain written consent and provide an alternative for employees who do not wish to enroll.
• Paycards: You may pay via payroll cards if employees can access full wages at least once per pay period without fees and you disclose terms clearly in advance.
• Outsourced Payroll: You may outsource payroll to a third‑party provider, but your company remains responsible for compliance with Louisiana wage and tax laws.

When choosing methods, you should consider employee preferences, banking access in your area, and how easily you can provide detailed pay stubs and correct any errors quickly.

When you hire employees in Louisiana, you must withhold and remit federal payroll taxes and comply with state income tax and unemployment insurance requirements. You will need separate registrations with the Louisiana Department of Revenue and the Louisiana Workforce Commission before you run payroll.

Employer Tax Contributions

As an employer, you are responsible for paying Social Security, Medicare, federal and state unemployment taxes, and any required local taxes. You must register for a Louisiana withholding account and an unemployment insurance account number, then file returns and pay contributions on the schedules assigned to you.

Employee Payroll Tax Contributions

You must withhold employee‑side Social Security, Medicare, federal income tax, and Louisiana state income tax from each paycheck. Your company must remit these withholdings on time and provide employees with Form W‑2 after year‑end summarizing their Louisiana wages and taxes.

Minimum Wage in Louisiana

Louisiana has no separate state minimum wage, so your company must follow the federal minimum wage of $7.25 per hour under the Fair Labor Standards Act. Certain tipped employees may be paid a lower direct cash wage if their tips bring them up to at least $7.25 per hour, and you must track tips carefully. Local governments in Louisiana generally cannot set their own minimum wage for private employers.

Working Hours in Louisiana

Louisiana does not set a daily maximum for adult employees, so federal rules on hours and overtime apply. You should schedule reasonable shifts, provide meal and rest breaks consistent with safety and industry norms, and track all hours worked, including training and certain travel time. Special rules may apply to minors, so you must check Louisiana child labor laws before scheduling workers under 18.

Overtime in Louisiana

Louisiana relies on federal overtime law, which requires you to pay nonexempt employees at least 1.5 times their regular rate for all hours worked over 40 in a workweek. You must include most bonuses and differentials in the regular rate calculation, not just the base hourly wage. Exempt employees must meet specific salary and duties tests, and misclassifying them can create significant back‑pay liability.

In Louisiana, you decide which benefits to offer beyond what federal law requires, but competitive packages often include health insurance, retirement plans, and paid time off. If you average 50 or more full‑time employees across the U.S., the Affordable Care Act requires you to offer affordable, minimum‑value health coverage or face potential penalties. Strong benefits can help your company attract and retain talent in a market where many employers compete regionally along the Gulf Coast.

Mandatory Leave Policies in Louisiana

Paid Time Off in Louisiana

Louisiana does not require private employers to provide paid vacation or general PTO, so you can design your own policy. If you choose to offer PTO, you should put clear rules in writing about accrual, carryover, and payout at separation. State courts often look to your written policy to determine whether unused vacation must be paid out when employment ends.

Maternity & Paternity Leave in Louisiana

For eligible employees of covered employers, federal FMLA provides up to 12 weeks of unpaid, job‑protected leave for birth, adoption, or foster placement. Louisiana’s pregnancy discrimination law requires reasonable leave and accommodations related to pregnancy and childbirth for employees of covered employers, which may include time off for recovery. You can choose to offer paid parental leave or to allow employees to use accrued PTO to replace income during these periods.

Sick Leave in Louisiana

Louisiana does not mandate paid sick leave for private employers, but you may adopt a sick leave or PTO policy to support attendance and retention. If you offer sick leave, you should define eligibility, accrual, documentation requirements, and whether unused time carries over or is paid out. Be sure your policy is applied consistently and does not discourage employees from staying home when ill, especially in safety‑sensitive roles.

Military Leave in Louisiana

Your company must comply with federal USERRA, which protects employees who serve in the uniformed services, and Louisiana law provides additional protections for members of the state National Guard. You must allow unpaid leave for qualifying service, maintain benefits as required, and reinstate employees to their jobs or equivalent positions when they return. You may choose to supplement military pay or continue benefits beyond what the law requires to support service members.

Jury Duty in Louisiana

Louisiana employers must allow employees time off to serve on a jury and may not discharge or discipline them for responding to a jury summons. State law does not require you to pay employees for this time, but many employers choose to provide some paid jury leave. You can request proof of service, such as the jury summons or attendance slip, and should document your policy in your handbook.

Voting Leave in Louisiana

Louisiana does not impose a broad paid voting leave requirement for private employers, but you may not obstruct or retaliate against employees for exercising their right to vote. Because polls are open for extended hours, you should schedule shifts so employees have a reasonable opportunity to vote before or after work. Offering flexible scheduling or unpaid time off on election days can help your workforce participate in state and local elections.

Bereavement Leave in Louisiana

Louisiana law does not require employers to provide bereavement leave, so any time off for a death in the family will depend on your internal policy. Many employers offer a few days of paid or unpaid leave for immediate family members to support employees during difficult times. Whatever you decide, apply the policy consistently and consider reasonable flexibility as part of your overall culture and retention strategy.

Termination Process

Louisiana is an at‑will employment state, so you may terminate employment for any lawful reason that is not discriminatory or retaliatory. You should document performance issues, policy violations, and prior warnings to reduce risk in the event of a dispute. At termination, provide a final wage statement, collect company property, and communicate benefit continuation options such as COBRA where applicable.

Notice Period

Louisiana law does not require employers or employees to give advance notice before ending an at‑will employment relationship, unless a contract or collective bargaining agreement says otherwise. However, giving some notice or pay in lieu of notice can ease transitions and reduce operational disruption. Remember that once employment ends, you must pay all earned wages by the earlier of the next regular payday or within 15 days.

Severance

Severance pay is not required under Louisiana law, but you may offer it voluntarily, often in exchange for a signed release of claims that complies with federal and state rules. If you adopt a severance plan or policy, apply it consistently to avoid discrimination concerns. Clearly outline eligibility, calculation methods, and payment timing in your written agreements or policies.