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For information purposes only. Employers should consider seeking the assistance of experienced employment law attorneys before implementing policy changes.

Louisiana Governor Jeff Landry signed into law H. 352, which effective August 1, 2024, has expanded the requirements for the payment of employees' final wages. H. 352 adds new subsection E to Louisiana R.S. 23:631 clarifying the rules governing the payment of commissions, incentive pay or bonuses at the time of an employee's separation.

Under new subsection E, compensation available in the form of commissions, incentive pay or bonuses must be paid at the time of separation if earned by the employee and not modified by the employer's written policy.

The following employer practices are lawful:

• Adjustments made to commission payment because of changes in the sales order that affects the amount of the commission
• A policy stipulating that an employee payment is not earned unless and until the employer has received the payment that gave rise to the commission, incentive pay or bonus
• Final bonus payments reflecting an employee or employer performance on an annual, quarterly or other periodic basis made within a reasonable period of not more than 120 calendar days following the employee's termination based on standard accounting practices used by the employer to determine whether a bonus is due

Deadline for payment of regular wages to terminated employees

The regular wages of a separated employee must be paid on or before the next regular payday or no later than 15 days following the date of separation, whichever occurs first.

Regular wages include vacation pay if (1) the employee is deemed eligible and has accrued the right to vacation pay and (2) the employee has not taken or been compensated for the accrued vacation time as of the date of separation.