When you’re parting ways with an employee, it’s important to understand your employer obligations during the Louisiana employee separation process. Employee termination laws can vary significantly from state to state.
This helpful employee separation checklist and guide offers a general overview of the final paycheck requirements, separation notices, severance agreements, reporting employee termination, and withdrawing registration to do business in the state.
Louisiana Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in Louisiana
Louisiana state law requires that all terminated employees must receive their final paycheck by the next scheduled payday or within 15 days, whichever comes first. This payment should cover all amounts due under the terms of their employment.
Additionally, unless specified in a contract or policy that vacation time is a gratuity rather than earned wages, any unused vacation must be paid out. The final paycheck must be delivered in the customary manner or by mail. Employers who fail to comply with these requirements may face penalties, including paying the owed wages, plus up to 90 days’ wages at the employee’s normal rate if a court determines the delay was in bad faith.
2. Firing Employees in Louisiana
Louisiana is an at-will employment state, which means the employer or employee can end the relationship for any reason, so long as it isn’t illegal. The process is fairly simple, compared to other states. Separating from or firing employees only requires that Louisiana employers file a Form 77 separation notice online, within three days of the employee’s separation.
3. Severance Agreements in Louisiana
When finalizing claims releases, employers need to clearly identify the federal and state law claims that employees are releasing. In Louisiana, this means claims under the Louisiana Employment Discrimination Law and the state’s leave laws. Employers should take care to ensure that the release covers only claims that arose prior to the agreement’s effective date.
Furthermore, it’s important to keep relevant federal regulations in mind when drafting severance agreements. The NLRB’s 2023 McLaren decision and subsequent guidance from its General Counsel, for example, restrict the use of non-disparagement and confidentiality provisions in severance agreements.
4. Reporting Employee Termination in Louisiana
For employees with an Income Withholding for Support Order (“IWO”), employers should report the employee’s termination as soon as possible to the child support agency, court, or attorney that issued the IWO. You may register for online reporting with the Federal Office of Child Support Enforcement here.
Otherwise, you may report an employee’s termination by completing the Notification of Employment Termination or Income Status section of the IWO. Fax or mail it to the child support agency that issued it. Prepare the following information:
- Employee Name
- Employee Case Identifier
- Last Known Home Address
- New Employer Address (if known)
- Date of Employee Separation
5. Withdraw Registration to do Business in Louisiana
If you wish to end your business presence in Louisiana, you may formally withdraw your business registration with the state. This commonly occurs once an organization separates from its last in-state employee. For-Profit Corporations, Non-Profit Corporations, and Limited Liability Companies (LLCs) must file an Application to Withdraw with the Louisiana Secretary of State to complete the process.
Stay Compliant with Louisiana Employee Separation Requirements
Employers can ensure compliance by staying current with Louisiana Employee Separation Agreement requirements. Keeping up with federal, state, and local laws is the best way to protect employee rights and minimize your organization’s legal risk.
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Looking for employee separation laws for a different state? Our interactive map makes it easy to find all employee termination requirements by state.
