Overview

Capital
Baton Rouge
Currency
United States Dollar (USD)
Date Format
mm/dd/yyyy

Taxes

Employer
6.20% - Social
1.45% - Medicare Rate
Up To 3.3% - State Taxes
Employee

Minimum Wage

General

Minimum wage is $7.25 per hour.

Payroll Contributions

Social Security

Employer: 6.2%

Pension Fund

Employer:contributes 37.9% of the total payroll per month for the employees pension funds.
Employee:contributes 7.5% of the monthly salary to pension fund.

Health Insurance

Both the employer and employee contribute 1.45% to Medicare. 

Leave

Public Holidays

There are 11 official holidays, however private employers are not required to provide either time off or overtime pay on these days.

Termination

Termination Process

Louisiana follows “employment at will” doctrine which means both the employee and employer are allowed to terminate the employment at any given time without a reason. Therefore at the time of termination, the employer must pay all the necessary wages up to the day of termination.

Notice Period

There is no official notice period, but general practice is 2 weeks.

Severance Pay

Louisiana law does not either require or prohibit severance payments. It depends on the employer’s agreement with the employee.

VAT

General

The state sales tax is 5%. However, in some local municipalities, total tax rate can be up to 12%