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How to Hire Employees In Louisiana

Hiring in Louisiana for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in Louisiana:

Establishing a local entity: Creating a legal entity in Louisiana allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with Louisiana’s labor laws, helping you hire in Louisiana without navigating the complex legal landscape yourself.
Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet Louisiana’s labor regulations while offering competitive employee benefits.
Hiring independent contractors: Hiring independent contractors can be more cost-effective, but Louisiana has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in Louisiana.

Complying with Louisiana specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in Louisiana, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good To Know

As of recent estimates, Louisiana has a population of approximately 4.6 million people.

The state's economy is diverse, with key industries including energy (particularly oil and gas), agriculture, and tourism.

Healthcare, technology, and advanced manufacturing are among the sectors experiencing growth and increased demand for skilled workers.

Louisiana adheres to federal labor laws, including the Fair Labor Standards Act (FLSA), and has specific state regulations regarding employment practices.

Key Things to Know About Hiring in Louisiana

Labor Laws in Louisiana

Working Hours in Louisiana

Louisiana has specific employment and labor laws governing working hours, designed to protect employees’ rights and ensure fair compensation. Whether you’re hiring local employees or working with an Employer of Record (EOR), it's essential to understand the state's regulations around working hours to ensure compliance.

1. Standard Workweek and Overtime

Standard Work Hours: A typical full-time workweek in Louisiana consists of 40 hours.
Overtime Regulations: Employees are entitled to overtime pay at 1.5 times their regular pay for hours worked over 40 in a workweek.

2. Meal and Rest Breaks

Meal Breaks for Minors: Employees under 18 must receive a 30-minute unpaid meal break if they work five consecutive hours.
Meal and Rest Breaks for Adults: Louisiana does not require employers to provide meal or rest breaks for employees aged 18 or older. However, if breaks are provided, federal law mandates that short breaks (less than 20 minutes) must be paid.

Minimum Wage in Louisiana

As of 2024, the minimum wage in Louisiana is $7.25 per hour, aligning with the federal minimum wage.

Louisiana does not permit local jurisdictions to set their own minimum wage rates; therefore, the federal minimum wage applies uniformly across the state.

Overtime in Louisiana

In Louisiana, non-exempt employees are entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek. The state follows federal overtime regulations as outlined in the Fair Labor Standards Act (FLSA).

Exemptions include employees in executive, administrative, and professional roles, as well as outside sales employees who meet specific criteria.

Onboarding New Hires in Louisiana

We can help you get your new employee started in Louisiana fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Taxes For Louisiana

Payroll taxes in Louisiana are deductions employers must take from employees’ wages and remit to the state. These taxes fund various state programs and services, including unemployment benefits and disability insurance. Examples of payroll taxes include:

Social Security Tax: 6.2% of wages.
Medicare Tax: 1.45% of wages.
State Unemployment Insurance (SUI): Rates vary based on the employer’s experience rating.

Payroll Cycle in Louisiana

Louisiana law does not specify a required payroll frequency for private employers. However, employers must adhere to any pay schedules established in employment agreements and ensure timely payment for all hours worked. Common payroll cycles include weekly, biweekly, semimonthly, or monthly schedules.

Looking to grow your team in Louisiana?

Stay Compliant: Navigate Louisiana’s complex labor laws with ease.

Affordable Solution: Reduce costs with a budget-friendly EOR option.

Top-Tier Benefits: Access competitive Louisiana and federal employee benefits for a stronger team.

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Louisiana Employment Taxes

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Louisiana. Understanding the tax obligations for both employers and employees is crucial when operating in Louisiana’s business landscape.

Employer Tax Contributions

Employers in Louisiana are responsible for several employment taxes, including federal taxes (Social Security and Medicare), state unemployment insurance, and federal unemployment taxes.

Employer payroll contributions are generally estimated at an additional 7.65% on top of the employee salary in Louisiana.

Employment Tax Type	Tax Rate
Social Security Tax	6.2%
Medicare Tax	1.45%
State Unemployment Insurance (SUI)	Varies based on experience rating

Employee Tax Contributions

Employee tax contributions are generally estimated at 7.65% of employee salary in Louisiana.

Employee Payroll Tax Contribution	Tax Rate
Social Security	6.2%
Medicare	1.45%

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Louisiana tailored to your needs.

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Benefit Requirements for Employers in Louisiana

Louisiana does not mandate that employers provide benefits such as health insurance, paid vacation, or retirement plans. However, offering competitive employee benefits can help attract and retain talent.

Employee Benefits for Louisiana

Competitive benefits are essential for attracting and retaining top talent in Louisiana. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Louisiana packages include:

Pension or 401(K)
Vision Insurance
Life Insurance
Medical Insurance
Dental Insurance
Health Savings Plan (HSA)
Flexible Spending Account (FSA)

Paid and Unpaid Leave Policies in Louisiana

Jury Duty Leave

Employers are required to provide unpaid leave for employees summoned for jury duty. Employees cannot be terminated for attending jury duty.

Military Leave

Employees are entitled to unpaid leave for military service, with reinstatement rights upon return, as per federal law.

Sick Leave

Louisiana does not mandate sick leave, but employers may offer it voluntarily and must follow their policies consistently.

Vacation Leave

Vacation leave is not required, but if provided, employers must honor their established policies. "Use-it-or-lose-it" policies are permitted.

Bereavement Leave

No state requirement exists for bereavement leave; it is at the discretion of the employer.

It’s Easy To Manage Benefits For Employees In Louisiana With Playroll

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Employment Termination Protocols in Louisiana

Hiring Employees in Louisiana with an employer of record

Discuss how an EOR handles onboarding, including setting up compliant employment contracts, registering for taxes, and managing benefits like Louisiana's superannuation system (if applicable).

The employer of record is responsible for:

Employment Compliance: Ensure all employment contracts comply with Louisiana's labor laws and regulations, including proper classification of employees.
Payroll Management: Calculate, process, and distribute employee salaries in accordance with Louisiana's payroll laws, including deductions for taxes and social security contributions.
Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Louisiana's legal requirements.
Benefits Administration: Provide mandatory employee benefits as required by Louisiana's labor laws, such as health insurance, pension contributions, and statutory leave.

Employer of Record for Louisiana

Guide to Hiring Employees in Louisiana