Calculating overtime pay in Louisiana is essential for ensuring fair compensation for workers. The calculation can differ based on how employees are paid, whether hourly, salaried, or through commissions or piece rates. Knowing the correct way to calculate overtime helps employers and employees comply with labor laws and ensures that everyone receives fair pay for their work.

This article provides a comprehensive guide on how to calculate overtime pay in Louisiana, covering the specific methods and calculations required for different types of employees.

**This Article Covers**

**Understanding Overtime in Louisiana**

- Which Overtime Laws Apply in Louisiana?
- How Much is Overtime Pay in Louisiana?
- Who is Eligible for Overtime Pay in Louisiana?
- Who is Exempt from Overtime Pay in Louisiana?
- What is the Regular Rate of Pay in Louisiana?

**Overtime for Hourly and Salaried Employees in Louisiana**

- How do you Calculate Overtime for Hourly Employees in Louisiana?
- How is Overtime Calculated for Salaried Employees in Louisiana?

**Overtime for Complex Pay Structures in Louisiana**

- How do you Calculate Overtime for Tipped Employees in Louisiana?
- How do you Calculate Overtime for Commission Employees in Louisiana?
- How do you Calculate Overtime for Piece Rates in Louisiana?

**Additional Considerations for Louisiana Overtime**

- What is the Statute of Limitations for Claiming Unpaid Overtime in Louisiana?
- What are the Recordkeeping Requirements for Overtime Wage Compliance in Louisiana?

**Understanding Overtime in Louisiana**

**Which Overtime Laws Apply in Louisiana?**

In Louisiana, overtime laws are governed by the Fair Labor Standards Act (FLSA). Under this law, non-exempt salaried employees are entitled to overtime compensation for any hours worked over 40 in a workweek, with the overtime rate set at 1.5 times the employee’s regular hourly wage.

Some salaried employees, like those in executive, administrative, and professional roles, may be exempt from these rules if they meet certain salary and duty requirements.

Louisiana does not have its own overtime regulations, so employers and employees rely on federal guidelines. Employees who feel their rights have been violated can file a complaint with the Wage and Hour Division of the U.S. Department of Labor, which enforces these rules.

**How Much is Overtime Pay in Louisiana?**

Overtime pay in Louisiana is determined at time and a half (1.5) the employee’s regular rate of pay for any hours worked in excess of 40 hours per workweek. This aligns with federal requirements under the FLSA.

To learn more, check out our guide on Louisiana Overtime Laws.

**Who is Eligible for Overtime Pay in Louisiana?**

Non-exempt employees in Louisiana are eligible for overtime pay under the FLSA. These employees usually include:

**Hourly workers:**The majority of hourly employees are non-exempt and are entitled to overtime pay if they work more than 40 hours each week. This includes employees in food service, retail, construction, and manufacturing businesses.**Salaried employees earning less than $844 per week:**If an employee is paid a salary but earns less than the wage threshold set by the FLSA, they are still considered non-exempt and eligible for overtime.**Certain jobs are not exempt under FLSA regulations:**Even if an employee’s job is salaried or has special requirements, it may still qualify for overtime unless it falls under specific exemptions (such as executive or administrative roles).

Check out our guide on Overtime Rights in Louisiana.

**Who is Exempt from Overtime Pay in Louisiana?**

Employees in Louisiana who are exempt from overtime compensation often meet specific criteria stated in the FLSA. Exempt employees are not eligible for overtime pay, regardless of how many hours they work over 40 in a workweek. To assess whether an employee is exempt under FLSA, three main tests are used:

**Salary Basis Test:**This test assures that the employee is paid a predetermined and fixed pay that cannot be reduced on the quantity or quality of work accomplished. Employees whose salaries are subject to reductions due to variable work hours are most likely regarded as non-exempt.**Salary Level Test:**This test establishes a minimum wage requirement for an employee to qualify for exempt status. As of July 2024, the FLSA requires exempt employees to earn at least $844 per week or $43,888 per year. For highly compensated employees, the salary threshold is significantly higher, at least $107,432 per year.**Duties Test:**The duties test examines the employee’s specific tasks and responsibilities to determine whether they fall into one of the exempt categories (executive, administrative, professional, or computer employees).

Common exemptions include:

- Executive employees
- Administrative employees
- Professional employees
- Outside sales employees
- Computer-related employees
- Drivers, driver’s helpers, loaders and mechanics
- Farmworkers in small farms
- Salesmen, partsmen, and mechanics employed by automobile dealerships
- Employees in seasonal and recreational establishments

**What is the Regular Rate of Pay in Louisiana?**

The regular rate of pay in Louisiana is calculated according to the FLSA regulations. An employee’s regular rate of pay is the basis for calculating overtime and represents the average hourly rate employees earn for all hours worked in a workweek. It includes most forms of compensation, such as:

**Hourly Employees:**Hourly employees are paid at a regular rate based on their hourly wage. For example, if the employee gets $15 per hour, their regular rate of pay is $15.**Salaried Non-Exempt Employees:**To calculate the regular rate for salaried employees, divide the weekly salary by the number of hours the salary is intended to cover, which is 40 hours as the standard for full-time employees. So, if an employee earns $750 per week and works 40 hours, their regular rate of pay is $18.75.**Employees Paid by Commission or Piece Rates:**The regular rate is calculated by dividing the total earnings for the week by the total number of hours worked. For example, if an employee earns $810, including commissions for 40 hours of work, then their regular rate of pay would be $20.25.

**Overtime for Hourly and Salaried Employees in Louisiana**

**How do you Calculate Overtime for Hourly Employees in Louisiana?**

Employees who work more than 40 hours per week are entitled to 1.5 times their regular hourly wage. To calculate overtime for hourly employees in Louisiana:

**Determine the employee’s regular hourly rate:**This is the amount employees are paid per hour. For example, if an employee earns $12 per hour, their regular hourly rate is $12.**Calculate the overtime rate:**Multiply the regular hourly rate by 1.5. If the employee earns $12 per hour, then the employee’s overtime rate would be $18 per additional hour ($12 x 1.5).**Determine the overtime hours worked:**Worked hours beyond 40 in a workweek are considered overtime hours. If the employee worked 50 hours in one week, the employee is entitled to ten overtime hours (50 – 40).**Calculate the total overtime pay:**Multiply the overtime hours by the overtime rate to get the employee’s overtime pay. In the example above, the employee is entitled to receive an overtime pay of $180 for the ten overtime hours they worked (10 x $18).

Read our guide on Your Rights as an Hourly Employee in Louisiana to learn more.

**How is Overtime Calculated for Salaried Employees in Louisiana?**

Salaried employees are only eligible for overtime if they are not exempt under the FLSA. The computation differs from that of hourly employees, but it follows the same idea of paying 1.5 times the regular rate for hours worked in excess of 40 hours per week.

To calculate overtime pay for salaried employees in Louisiana:

**Determine the employee’s regular rate of pay:**For a salaried employee, the regular hourly rate is calculated by dividing the weekly salary by the number of hours they are expected to work in a week (usually 40 hours). For example, if the employee’s weekly salary is $800, the regular hourly rate would be $20 per hour ($800 / 40).**Calculate the overtime rate:**Non-exempt salaried employees are entitled to 1.5 times their regular hourly rate. So, if the employee’s hourly rate is $20, their overtime rate would be $30 ($20 x 1.5).**Determine the overtime hours:**Any hours worked beyond 40 in a workweek are considered overtime. If an employee works 50 hours, their overtime is ten (50 – 40).**Calculate overtime pay:**To calculate overtime pay, multiply the employee’s overtime hours by their overtime rate. In this example, the employee is entitled to $300 for the ten overtime hours ($30 x 10).

Employers must note that not all salaried employees are entitled to overtime. Those classified as exempt under the FLSA may not be eligible.

Check out our guide on Your Rights as a Salaried Employee in Louisiana.

**Overtime for Complex Pay Structures in Louisiana**

**How do you Calculate Overtime for Tipped Employees in Louisiana?**

Calculating overtime for tipped employees in Louisiana requires some considerations since employees often earn less than the standard minimum wage due to tip credits. To calculate overtime:

**Determine the regular hourly rate:**Tipped employees must be paid at least the federal minimum wage of $7.25 per hour, but employers can pay a reduced cash wage of $2.13 per hour, provided tips make up the difference. The $5.12 difference is called the tip credit.**Calculate overtime rate:**The overtime rate for tipped employees is based on the full federal minimum wage, not the reduced tipped wage. If the overtime rate is 1.5 times the minimum wage rate, then the employee is entitled to $10.88 for every additional hour ($7.25 x 1.5).**Determine the overtime hours:**Any hours worked beyond 40 in a workweek are counted as overtime hours. If a tipped employee worked 50 in a single workweek, the employee is entitled to overtime compensation for the ten hours worked.**Calculate the overtime pay:**Multiply the overtime hours by the overtime rate. If a tipped employee works 50 hours a week, the employee is entitled to $108.80 for the ten overtime hours rendered (10 x $10.88).

### How do you Calculate Overtime for Commission Employees in Louisiana?

Commission-based employees earn a percentage of the sales they generate, which makes their total earnings fluctuate based on sales volume. To calculate overtime pay for commission employees:

**Determine the total earnings:**Start by calculating the employee’s total weekly earnings. This includes both the commissions earned and any base pay or hourly wages.**Calculate the regular hourly rate:**To determine the employee’s regular hourly rate, divide the total weekly earnings by the number of hours worked in that week. For example, if an employee earns $750 in commissions and works 50 hours in a week, the regular hourly rate would be $15 per hour ($750 / 50).**Calculate overtime rate:**The overtime rate is 1.5 times the regular hourly rate for any hours worked over 40 in a workweek. If the employee’s regular hourly rate is $15, the employee’s overtime rate would be $22.5 ($15 x 1.5).**Determine overtime pay:**Multiply the overtime rate by the number of overtime hours (hours worked beyond 40). In this example, if the employee worked 50 hours, then the employee is entitled to $225 for the ten overtime hours (10 x $22.5).

### How do you Calculate Overtime for Piece Rates in Louisiana?

Piece rate workers are compensated based on the number of tasks or items the complete, which means their weekly earnings vary significantly from week to week. When calculating overtime for piece rate workers, it is important to:

**Determine the total weekly earnings:**Start by calculating the employee’s total earnings for the week based on the number of pieces completed and their rate per piece. For example, if an employee is paid $5 per item and completes 120 items in a week, their total earnings would be $600 (120 x 5).**Calculate the regular hourly rate:**The regular hourly rate is calculated by dividing the total weekly earnings by the total hours worked in that week. For example, if the employee worked 50 hours, then the employee’s hourly rate is $16 ($800 / 50).**Calculate overtime rate:**Overtime is paid at 1.5 times the regular hourly rate for hours worked over 40 in a workweek. If the employee earns $16 per hour, then their overtime rate would be $24 ($16 x 1.5).**Calculate overtime pay:**Multiply the overtime rate by the number of overtime hours worked. For instance, if the employee worked 50 hours in a week, the employee must be compensated $240 for the ten overtime hours ($24 x 10).

**Additional Considerations for Louisiana Overtime**

**What is the Statute of Limitations for Claiming Unpaid Overtime in Louisiana?**

If you believe you are owed unpaid overtime in Louisiana, you have up to three years to file a claim under state law. However, if you are filing under the federal FLSA, the window is usually two years unless the employer knowingly violated the law, which extends to three years.

**What are the Recordkeeping Requirements for Overtime Wage Compliance in Louisiana?**

In Louisiana, employers must follow the FLSA for recordkeeping regarding overtime compliance. Employers need to keep on file for each employee:

**Personal information:**Full name, Social Security number, and address.**Hours worked:**Exact daily and weekly hours worked.**Wage details:**The employee’s regular hourly pay rate and total straight-time weekly earnings.**Overtime pay:**Total overtime earned each workweek and any deductions or additions to wages.**Workweek breakdown:**Start and end times of the workweek, including when pay periods begin.**Payment records:**Dates and amounts of all wage payments made.

Employers are required to keep these records for at least three years.

In addition to recordkeeping of overtime wage compliance, using time and attendance tracking systems can be beneficial in meeting these requirements. These tools help ensure accurate tracking records of hours worked, minimize errors in payroll calculations, and have easily accessible data for audit.

**Learn more about Louisiana Labor Laws through our detailed guide.**

**Important Cautionary Note**

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.