Louisiana Overtime Laws: Pay Rules for Employers | Keka HR

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When it comes to Louisiana’s overtime laws, it does not have any state-specific rules, and it is primarily governed by the federal Fair Labor Standards Act (FLSA). The only and most recent update affecting Louisiana’s employees is the new federal salary threshold for overtime exemption, which came into effect on January 1, 2025. The state has also proposed a bill in the state legislature to exempt overtime pay from state income tax, though the bill has not yet been passed and brought into effect.

Overview of Louisiana Overtime Laws 2026

Since the state of Louisiana mirrors the federal FLSA, all non-exempt employees are entitled to receive overtime pay of 1.5X their regular wage rate for all hours worked beyond 40 per week. All employers must adhere to the law to steer clear of both state and federal penalties. 

Moreover, the state does not impose any additional protections, such as daily overtime pay or premium pay for working on holidays or the weekend. All overtime calculations must be based solely on the 40-hour weekly threshold set by the federal law. 

Key highlights: 

  • Overtime rate: 1.5X the regular hourly wage.
  • Weekly overtime: Applies after 40 hours in a workweek.
  • Daily overtime: No state-specific daily overtime requirement.
  • Exemptions: FLSA exemptions apply for certain administrative, executive, and professional roles.
  • Recordkeeping: Employers must adhere to federal documentation requirements.

The table below shows key updates impacting overtime in Louisiana for 2026:

Update Area 2026 Changes & Details
Minimum Wage Louisiana defaults to the federal minimum wage of $7.25/hour. The state has no separate minimum wage law.
Overtime Salary Exemption Effective January 1, 2025, the federal salary threshold for most exempt employees increased to $1,128/week (equivalent to $58,656/year).
State Legislation A proposed bill (House Bill 471) would authorize an income tax deduction for overtime compensation, but it has not been passed into law as of early 2025.
State Law Compliance Overtime rules are governed by the federal Fair Labor Standards Act (FLSA), with no daily overtime or other state-specific requirements.

Eligibility for Overtime in Louisiana

Louisiana categorizes its employees into two buckets, namely exempt and non-exempt, to determine overtime eligibility. 

  • Non-exempt employees are usually those who work on an hourly basis or draw a fixed salary that does not meet the state/federal salary threshold and duties test. Such workers are eligible and legally entitled to receive overtime pay for all hours worked beyond 40 per week.  
  • Exempt employees, on the other hand, are those who typically fit into the definition of “white-collar” workers. They meet the salary threshold and duties test and earn at least $58,656 per year. The category includes executives, administrators, professionals, and workers belonging to certain industries as defined under the federal FLSA

Federal vs. Louisiana Overtime Rules

Louisiana is governed by federal regulations, and hence, all individuals are paid overtime basis the federal FLSA. For instance, Antony works 45 hours a week at $20/hour. According to both federal and state law, he will earn a regular pay for 40 hours ($800) and an overtime pay for the additional 5 hours worked at 1.5 times his rate ($150), making his weekly total $950.

The table below shows the similarity between federal and state overtime rules.

Aspect Federal (FLSA) Louisiana Law (2025)
Weekly Overtime 1.5x after 40 hours/week  Same as federal 
Daily Overtime No No 
Salary Exemption $1,128/week ($58,656/year) as of Jan 2025  Mirrors federal
Minimum Wage $7.25/hour $7.25/hour 
Exemptions Executive, administrative, professional, sales, etc.  Same as federal

Exemptions in Louisiana

Louisiana follows the FLSA’s definitions for classifying employees as exempt. The list is as follows.  

  • Executive Employees: Mostly those who manage a business, one or more departments, handle a team of two or more employees, and have the authority to hire/fire workers.
  • Administrative Employees: Perform duties such as office-based work that directly relate to management or general business operations, and exercise discretion and independent judgment.
  • Professional Employees: Individuals whose work requires advanced knowledge, such as in the field of science, learning, innovation, or creative workers, etc.
  • Outside Salespersons: Individuals who make sales or obtain orders outside the premises of their employer.
  • IT Professionals: Certain skilled IT professionals, such as systems analysts, software engineers, software developers, etc., who earn at least $27.63 per hour or meet the minimum salary requirement.

Employer Obligations and Employee Rights

In Louisiana, all employers must follow the federal labor laws to ensure that all employees are correctly compensated and their rights are protected at all times.  

  • Timely Payment: Make timely wage payments on pre-defined due dates. 
  • Recordkeeping: Maintain proper and accurate time and payroll records for all non-exempt employees.
  • Workplace Protections: Comply with all health and safety regulations (OSHA) and anti-discrimination laws.
  • Penalties: Employers who fail to comply and make wage payments are subject to legal action, back wages, liquidated damages, and attorney fees.

Frequently Asked Questions

Does Louisiana have its own overtime rules or follow federal law?

No. The state of Louisiana does not have its own overtime laws. It strictly follows the federal Fair Labor Standards Act (FLSA), which mandates employers to pay overtime to all non-exempt employees for all hours worked beyond 40 per week.

Which employees are exempt from overtime in Louisiana?

In Louisiana, all employees who meet the state/federal salary threshold and duties test are exempt from receiving overtime pay. Besides these, certain outside salespersons, IT professionals, highly compensated employees, and people working in the agricultural industry, and seasonal places of employment are also exempt.

Does Louisiana have daily overtime limits?

No. The state does not have any daily overtime limits. It only requires employers to compensate employees with overtime wages who work more than 40 hours in a week.

How is overtime calculated for piece-rate employees in Louisiana?

The calculation is simple. For workers who are paid by the piece, overtime can be calculated in two ways. Pay 1.5X the regular piece rate for each unit produced during the overtime hours Calculate a regular hourly rate by dividing total weekly earnings by the total hours worked, and multiplying the result by 0.5 for each overtime hour.

Does Louisiana require overtime for holiday work?

No. The state has no provisions for employers to pay overtime for work done on weekends, unless the work results in exceeding 40 hours for the workweek. Meanwhile, holiday pay is not counted as “hours worked” for overtime purposes.

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