New legislation enacted in Louisiana addresses final pay rules related to employee compensation that includes incentive pay, bonuses, or commission.
Effective August 1, 2024, this law requires that any of the aforementioned types of compensation must be considered as an amount due by the deadline if the compensation has been earned and not modified based on a written policy.
Employers may create policies:
- Allowing for adjustments to amounts based on order changes that generate a commission and impact the amount
- Stating that a payment to an employee or laborer isn’t earned until and unless the employer has received the payment that generates the bonus, commission, or incentive pay.
A bonus should be paid in a reasonable amount of time (not to exceed 120 days) if the amount is determined by information that reflects the employee or employer performance on a periodic basis.
Additional information: House Bill 352
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.
