Louisiana’s minimum wage currently follows the federal rate of $7.25 per hour, which has not been increased since 2009. While this baseline rate is straightforward, staying compliant means navigating specific rules for tipped employees and youth workers.
What you’ll learn
What you’ll learn
Key takeaways
- Since the state does not have a specific local law, the minimum wage of Louisiana currently defaults to the federal rate of $7.25 per hour
- Cities and parishes in Louisiana are prohibited from establishing minimum wage increases or those that differ from the statewide rate
- Your Louisiana business is responsible for tracking state minimum wage laws, as well as understanding and implementing minimum wage exemptions
- Accurate payroll supports business compliance and prevents costly errors
In this guide, we’ll walk you through the rules for tipped employees, youth and exempt workers, overtime pay, and best practices for keeping your payroll running smoothly.
Louisiana’s default minimum wage
Since it does not have a current minimum wage, Louisiana mirrors the federal minimum wage set by the US Department of Labor’s Fair Labor Standards Act (FLSA). In 2009, the FLSA established the federal minimum wage at $7.25 per hour and has not changed it since. However, many other states have differing minimum wage rules. Seventeen states still follow the federal minimum wage regulations.
2026 legislative update: Proposed minimum wage increase stalls
While Louisiana currently defaults to the federal rate, lawmakers recently considered an increase. In April 2026, House Bill 353 proposed establishing a state minimum wage of $12 per hour. This would begin January 1, 2027, with incremental increases reaching $15 per hour by 2029.
However, the bill failed to pass the House Labor Committee on a 7 to 5 vote. Opponents of the measure argued that mandating a higher wage could lead to higher consumer prices, reduced hiring, and a potentially negative impact on small businesses. For now, Louisiana employers should follow the standard federal minimum wage and overtime rules.
City and parish rules
A 1997 Louisiana law established that cities and parishes cannot set higher minimum wage rates than the statewide rate. While the cost of living is significantly higher in New Orleans, for example, the city can only impose a minimum wage of $7.25 per hour for its workers.
Local wage restrictions
In addition, localities can’t mandate specific sick leave or vacation days for private employers. While the state minimum wage is far from a living wage, there is nothing cities in Louisiana can do until the legislature opts to approve a raise.
A living wage in Louisiana is $20.37 per hour for one adult with no children and $23.79 per hour for two working adults with two children. According to the US Bureau of Labor Statistics, as of February 2026, the average wage per hour in Louisiana is $30.61.
Tipped employee wages
Louisiana also follows federal laws and guidance regarding tipped employees.
Your business must pay a minimum of $2.13 per hour as a cash wage, and tips have to bring this hourly rate up to at least the federal minimum wage rate of $7.25 per hour. If tips don’t cover this difference in pay, your business is responsible for covering the shortfall. In essence, all workers in Louisiana are due the minimum wage or more.
You are also required to inform tipped employees about this tip credit and must maintain accurate payment records for tipped employees.
Federal youth wage
The FLSA also established a federal youth minimum wage of $4.25 for employees under 20 during their first 90 calendar days (not workdays) on the job. Louisiana follows these youth wage rules, as well. Your business can pay a lower rate for 90 days for younger employees joining your company.
Overtime and exempt employees
The FLSA requires overtime pay for workers who put in more than 40 hours in a given workweek, including employees in Louisiana. Those who work overtime must be paid 1.5 times their standard rate for all hours worked beyond 40 in a workweek.
Overtime applies to nonexempt employees who are generally paid an hourly wage. Exempt team members typically include salaried employees who work in a professional capacity.
Your business is responsible for accurately calculating and paying applicable overtime as needed for Louisiana workers.
Common exemptions and special cases
In addition to salaried professionals, the FLSA includes a few other exemptions and special cases when it comes to the minimum wage. The following workers are often exempt from federal law:
- Agricultural workers: Some ag workers on smaller farms are not covered by federal minimum wage laws. This can also include seasonal workers and family members. Specifically, farms that use 500 or fewer “man-days,” which consist of one employee working at least one hour of agricultural labor in any quarter of the prior year. These farms are exempt from paying federal minimum wage to most workers.
- Domestic workers: Casual babysitters and companions for older adults or disabled persons may also be exempt from federal minimum wage and overtime rules. Live-in workers are exempt from overtime rules but not the federal minimum wage laws.
- Student learners and trainers: If your business has a training program certificate, students and instructors can often be paid less than minimum wage during their training period. They must be paid at least 75 percent of the minimum wage, or $5.44 per hour.
Volunteers at your business are also exempt from federal and state minimum wage laws.
How employers should set payroll rates
Your business is charged with correctly calculating wages and making sure that all workers are accurately paid, including overtime hours. OnPay’s Louisiana hourly paycheck calculator can help your organization easily track net pay and tax withholdings for all your team members.
To set or update your payroll rates, you can first research market data for your industry and location, then go on to define roles, create pay grades, and determine an official salary structure. You can also consider gathering employee and industry input on any updates or changes to your payroll rates.
Easy and cost-effective
“A small business like ours must keep expenses consistent with our size and growth. OnPay was easy to get started with, low cost, and the one time I wasn’t sure how to perform a function, the help desk team was fantastic. Simple to use, it handles all of my tax payments and reporting. I can print the checks out on my printer and have them in my employees’ hands the same day.”
— Steve Hatch, Mic's Pub
Tips for compliance and avoiding errors
The following helpful hints will support compliance and help your business avoid payroll errors:
- Use reliable payroll tools: Manual payroll often leads to errors. Automated payroll software, on the other hand, makes it easy to get it right and on time because calculations don’t have to happen by hand.
- Track tipped hours and other special scenarios: Make sure your business is properly paying tipped employees and other special cases. You must maintain thorough records on all payments.
- Perform record and wage audits: Regular audits can get and keep your business compliant and up to date. If you aren’t already incorporating audits, make it a priority this year.
- Stay up to date with federal guidelines: State and federal guidelines and rules can change at a moment’s notice. Make sure you pay close attention to any changes in payroll rules or legislation and updates to state minimum wages.
When you avoid errors and remain compliant, you reduce frustrations, streamline payroll processes, and support better efficiency throughout your organization.
Manage Louisiana payroll with confidence
Navigating Louisiana’s wage requirements is about more than just defaulting to the $7.25 federal minimum. It can help lead to a reliable, positive workplace. Whether you are managing the $2.13 tipped wage, applying the youth training rate, or preparing for future legislative shifts, getting payroll right is key to your reputation.
But manually tracking these details doesn’t have to slow you down. A dependable payroll platform like OnPay automates the heavy lifting. By allowing software to handle the complex calculations, tip tracking, and compliance updates, you take those time-consuming tasks off your plate. Ultimately, this gives you the freedom and confidence to focus on growing your Louisiana business, assured that your team is paid accurately and on time.
Take a tour to see how easy payroll can be.
Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.