Louisiana Amends Final Pay Law

As a Louisiana employer, you are no doubt aware of the state's draconian termination pay law. Whether it's vacation, bonuses, commissions, or monies owed by the employee that are withheld from the final paycheck, employers that do not pay terminated employees all earned wages and benefits within 15 days of termination or the next regular payday (whichever is earlier) risk penalties of up to 90 days' wages, attorneys' fees, and costs.

On August 1, an amendment to Louisiana's termination pay law (LSA-RS 23:631(E)) will take effect. It reads as follows:

1. For purposes of this Section and R.S. 23:634, compensation available in the form of commission, incentive pay, or bonus shall be considered an amount then due only if, at the time of separation, the compensation has been earned and not modified in accordance with a written policy addressing the commission, incentive pay, or bonus.