As an employer, there are many employment laws that you must follow. If you make a mistake, it can cost you dearly. One area in which you do not want to misstep is wages. Your employees will have no trouble with confronting you about any wage issues they have. The state will also have no qualms about holding you accountable for mistakes in this area.
A suggested way to avoid problems is to understand the wage laws in Louisiana. While there is a lot to take in, learning the basics gives you a good foundation for moving forward in compliance with employment law. You can often leave the complex stuff to whoever handles your payroll.
Here are a few things that you need to know about Louisiana’s wage provisions:
According to the Louisiana Workforce Commission, when you hire an employee, you need to inform him or her how often you pay and how much he or she will make. You will also need to keep employees updated about changes to your pay policies.
Louisiana is one of only a few states that does not set its own minimum wage, according to the U.S. Department of Labor. What this means is that federal minimum wage laws apply. As of 2020, the federal minimum wage is $7.25 per hour for regular employees and $2.13 for tipped employees.
Overtime is only hours worked in excess of 40 per week. The standard rule is you must pay employees time and a half for any hours they work over 40 in one week. Overtime does not include special pay for holidays, nights or weekends unless they meet regular overtime rules. So, you do not have to pay extra if you have employees working outside standard business hours. Although, paying a shift differential or paying extra for working holidays is common in many industries.