Payroll and Benefits Guide - United States - Louisiana

United States - Louisiana
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Currency

United States Dollar
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Capital

Baton Rouge
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Employer Taxes

9.49% – 22.71%
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Date Format

mm/dd/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Louisiana is known as the “Pelican State” because of its abundant population of brown pelicans.

Louisiana is the only state in the United States that does not have counties. Instead, it is divided into parishes, which are equivalent to counties.

Louisiana is famous for its delicious cuisine, including dishes such as gumbo, jambalaya, crawfish étouffée, and beignets.

Louisiana is home to the longest continuous bridge over water in the world.

Louisiana has a strong French influence.

The state is home to the largest swamp in the United States.

United-States-Louisiana

Contributions

Employee Payroll Tax

Contribution TypeRate
FICA Social Security6.20%
FICA Medicare1.45%
Additional tax0.90%

Employer Payroll Tax

Contribution TypeRate
Unemployment Insurance0.09%- 6.20%
Unemployment- New Employer1.15% – 2.86%
FICA Social Security6.20%
FICA Medicare1.45%
The FUTA0.60% – 6.00%

Payroll

Payroll Cycle

In Louisiana, it is common for employees to receive their pay on a monthly or semi-monthly basis.

13th Salary

There are no laws requiring 13th salary.

Work Hours and Week

The average workweek consists of 40 hours, or 8 hours per day from Mondays to Fridays.

Overtime

In Louisiana, employers have the authority to require employees to work overtime, with certain exceptions for minors. The state follows the guidelines outlined in the Fair Labor Standards Act (FLSA). Overtime is defined as work exceeding 40 hours per week and is compensated at a rate of 150% of the regular pay. If employees have regular schedules that include weekends or rest days, no additional payment is necessary.

However, if employers request employees to work on weekends or rest days under exceptional circumstances, overtime pay at 150% of the regular rate is applicable.

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Leave

Paid Time Off

Louisiana does not have specific state laws that dictate the quantity and compensation of vacation time. Instead, employers typically have the discretion to determine whether to provide paid or unpaid vacation leave. However, these policies must adhere to employment laws and be clearly outlined in any relevant Collective Bargaining Agreements.

Public Holidays

In Louisiana, there are no state statutes that regulate the amount and remuneration of vacation time. Instead, it is customary for employers to have the flexibility to decide whether to offer paid or unpaid vacation leave. However, these policies must still comply with employment laws and be clearly stated in any applicable Collective Bargaining Agreements.

Sick Days

Employers in Louisiana often adhere to the guidelines set forth by the Family and Medical Leave Act (FMLA). This federal law grants eligible employees up to 12 weeks of unpaid and job-protected leave per year for specific family and medical reasons. Such reasons may include maternity leave, dealing with serious illnesses, or the need to care for a spouse or child.

To qualify for FMLA benefits, employees must meet specific criteria, including having worked for their employer for a minimum of one year, completing at least 1,250 hours of work over the past year, and being employed at a company location with 50 or more employees within a 75-mile radius.

Maternity & Paternity Leave

Louisiana lacks specific state statutes that dictate the duration and remuneration of maternity and paternity leave. Instead, these matters are addressed and covered by federal laws such as the Family and Medical Leave Act (FMLA) and the Pregnancy Discrimination Act, as discussed in the earlier section on sick leave.

Furthermore, Louisiana has additional regulations pertaining to maternity and paternity leave. Employers with over 25 employees are mandated to offer maternity leave for a period of up to 6 weeks to employees without pregnancy-related complications or disabilities. In cases where employees experience disabilities linked to pregnancy, childbirth, or related conditions, employers must provide maternity leave for up to 4 months. These requirements are established by Louisiana state laws, in addition to the federal regulations.

Other Leave

In Louisiana, all employers are obligated by law to grant job-protected and paid leave to their full-time employees who are serving on jury duty or are required to appear as a witness, respond to a subpoena, or participate as a plaintiff or defendant in court proceedings. To avail this leave, employees must provide their employers with a copy of the jury summons or any other documentation that substantiates their requirement to fulfill these legal obligations.

Termination

Termination Process

In the United States, unless there are mass dismissals or specific provisions in an employment contract or collective bargaining agreement, there is no legal requirement for a formal notice period when terminating an individual employment relationship. The concept of “at-will” employment prevails.

“At-will” employment means that either the employer or the employee can end the employment relationship without providing notice or stating a reason, as long as it does not violate laws, such as engaging in illegal activities or discriminating against protected categories defined by law. Exceptions to this include complying with the Federal Worker Adjustment and Retraining Notification Act (WARN) in cases of significant workforce reductions.

Notice Period

In Louisiana, the majority of employees have “at-will” employment, meaning that either the employer or the employee can terminate the employment relationship without notice. State law does not mandate employers to provide compensation for unused vacation time. However, it is common for employers to pay employees for their unused vacation days if the employee provided some advance notice before resigning.

In cases of mass dismissals, employers must comply with the Worker Adjustment and Retraining Notification Act (WARN Act) and provide 60 days’ notice to affected employees.

Severance Pay

Unless specified in an employment contract or collective bargaining agreement, employers in Louisiana are not obligated to provide severance payments to terminated employees. However, employers who opt to offer severance packages typically do so based on provisions outlined in the employee’s contract, mutually agreed upon by both parties. Many employers choose to structure severance payments based on the employee’s length of service with the company.

Probation Period

Probation Period

Louisiana does not have any specific laws regulating formal “trial/probation periods” for employees. However, it is a customary practice for employers to conduct a performance evaluation after an initially specified period of employment, typically around 90 days. This allows employers to assess the employee’s performance and suitability for the position.

Immigration

Foreign nationals who do not possess permanent resident status or a work visa are not permitted to work in the United States. To hire a foreign national, an employer can submit a petition to the United States Department of Homeland Security/United States Citizenship and Immigration Services (USCIS) to obtain an employment visa on behalf of the prospective employee.

Once the petition is approved, the prospective employee must obtain a “visa stamp” from a U.S. embassy or consulate, except for Canadian citizens who are exempt from this requirement. In order to secure a temporary U.S. work visa, the employer must file a petition with USCIS, and an approved petition is a necessary component of the visa application process.

VAT

In Louisiana, the average combined state and local tax rate is 9.45%. This is comprised of a state tax rate of 4.45% and an average local tax rate of 5.00%.