Key Updates For Louisiana Employers: Military Status Discrimination And Final Pay Exemption

The Louisiana legislature recently enacted two new laws that affect Louisiana employers by providing anti-discrimination protections for military status and an exemption from final pay requirements for certain equity-based compensation. Below is a practical breakdown of the new laws and key takeaways for employers.

Expanded Protections: "Military Status" Now Covered Under LEDL

On August 1, 2025, Louisiana's Employment Discrimination Law ("LEDL") expanded anti-discrimination protections to military personnel and their dependents. Under Act No. 100, employers may not discriminate against employees with respect to the hiring, discharge, compensation, promotion, or other terms, conditions, or privileges of employment because of the employee's military status. "Military status" is defined to include individuals who are: (1) a member of the uniformed forces of the United States or a reserve component thereof, and (2) a dependent of such service member who has been supported by them for at least 180 days.

The Uniformed Services Employment and Reemployment Rights Act ("USERRA") is a federal statute that prohibits discrimination against service members. Act No. 100 provides parallel enforcement under state law and effectively doubles the litigation exposure of employers handling the termination, demotion, and/or discipline of service members.

Note: Act No. 100 also prohibits discrimination based on military status in housing, education, and public accommodations.

Practical Considerations & Recommendations:

• Policy and Handbook Updates. Employers should update EEO and anti-discrimination policies to include "military status" as a protected characteristic. In addition, to the extent that job postings and applications list protected categories, those should be updated as well.
• Supervisor and HR Training. Employers should train managers and supervisors how to recognize comments or decisions that could be interpreted as discrimination based on military status and how to handle leave requests related to deployment.

https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1424922

Partnership Profits Excluded from Wages Due Upon Termination

Louisiana's Wage Payment Act (La. R.S. 23:631) requires that when an employee is discharged or resigns, the employer must pay "the amount then due under the terms of employment" no later than the next regular payday or within 15 days from the date of discharge, whichever occurs first. Employers face strict penalties for failing to meet that deadline, including penalty wages of up to 90 days wages at the employee's daily rate of pay and payment of attorneys' fees.

As of August 1, 2025, "profits interest" in entities taxed as partnerships are no longer treated as wages due upon termination. Specifically, under Act No. 113, Louisiana's final pay requirements do not apply to "profits interest granted or issued by an entity taxed as a partnership for federal income tax purposes." This means that when an employee separates, profits interest or partnership distributions are not considered wages due that must be paid by the next regular payday or within 15 days of the date of discharge.

This new carve-out provides relief for companies that compensate employees through profits interest arrangements.

Practical Considerations & Recommendations:

• Audit Equity Structures. Identify employees with profits interest pay agreements. Determine whether the agreements align with the statutory exemption.
• Confirm Tax Classification. Ensure the entity is taxed as a partnership for federal tax purposes.
• Monitor Litigation Trends. Expect challenges to whether certain equity-based payments were properly excluded from wages due upon termination.

https://www.legis.la.gov/legis/ViewDocument.aspx?d=1424986

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.