Minimum Wage Requirements in Louisiana 2024

Overview of Louisiana's Minimum Wage Requirements

As of 2024, Louisiana does not have a state-specific minimum wage law. Instead, it adheres to the Federal Minimum Wage rate, which is currently set at $7.25 per hour. This means that most employees in Louisiana are eligible for this minimum wage. However, it's critical to note that there are certain exceptions to this rule. For instance, tipped employees, some student workers, and other exempt occupations may not be eligible for the minimum wage.

Interestingly, there is a provision for new employees under 20 years of age. They can be paid a training wage of $4.25 per hour for the first 90 days under federal law. This provision is designed to encourage employers to hire younger workers and provide them with valuable work experience.

Understanding Local Minimum Wage Variations

In Orleans Parish, Louisiana, the minimum wage requirements are governed by the city's Living Wage Ordinance. As of January 1, 2022, the minimum wage for city employees was raised to $15.00 per hour, a decision made by the New Orleans City Council.

However, Louisiana does not have a state minimum wage law, so it defaults to the federal minimum wage of $7.25 per hour. Covered employers under the Living Wage Ordinance are required to pay a living wage of $15.00 per hour to their covered employees, who are also permitted to take at least seven days per year of compensated leave.

Minimum Wage Eligibility and Exemptions

In Louisiana, most employees are eligible for the federal minimum wage of $7.25 per hour. However, there are certain exemptions. These include tipped employees, some student workers, and other exempt occupations. Additionally, new employees under 20 years of age can be paid a lower training wage for their first 90 days of employment.

Employers in Louisiana are generally not allowed to pay you less than $7.25 per hour unless you or your occupation are specifically exempt from the minimum wage under state or federal law. This rule ensures that most workers in Louisiana are guaranteed a certain level of income for their labor.

Minimum Wage Considerations and Compliance Tips

As a food business employer in Louisiana, it's essential to understand the current minimum wage laws and potential future changes. For tipped employees, such as those in the food service industry, the basic combined cash and tip minimum wage rate is also $7.25. However, employers can claim a maximum tip credit of $5.12 against the minimum wage, meaning the minimum cash wage that employers are required to pay tipped employees is $2.13 per hour.

Looking ahead, there is a proposal to raise the federal minimum wage to $17.00 an hour by July 2029. This could impact more than 18 million people nationwide, but also potentially result in job losses. The Congressional Budget Office (CBO) estimates that about 700,000 workers could lose their jobs, with younger, less educated people accounting for a disproportionate share of those reductions in employment.

FAQs

• What is the current minimum wage in Louisiana? The current minimum wage in Louisiana is $7.25 per hour, which is the same as the federal minimum wage.
• Are there any exceptions to the minimum wage in Louisiana? Yes, there are exceptions for tipped employees, some student workers, and other exempt occupations.
• What is the minimum wage for tipped employees in Louisiana? The minimum cash wage that employers are required to pay tipped employees is $2.13 per hour.

Information Source Links

• Department of Labor's website
• Louisiana Minimum Wage
• Federal Minimum Wage
• Minimum Wage Exemptions
• 2024 state minimum wage charts

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