Times change fast -- and whether you're an employee or the employer, you know that employees today have more leverage than ever. Workers are choosing jobs they actually want, working for causes and people they want to, and leaving workplaces that no longer fit their vibe.

They also are asking smarter questions about pay and benefits along the way.

But when a resignation, or a termination, comes -- you may be left wondering what they are actually entitled to be paid. 

Let’s break it down. 

First, lets talk about wages. The non-negotiable. 

Under the Louisiana Wage Payment Act, employees are entitled to receive all wages they’ve earned, or the “amount then due under the terms of

employment,” on or before the next regular payday or no later than fifteen days after resignation or termination—whichever comes first. If an employee is leaving a job and believes they have not been paid everything they earned, and more than fifteen days have passed, employees should send their employer(s) a written demand for payment. An email is enough. If the employer fails to respond or refuses to pay wages that are not actually in dispute, employees may be entitled to recover up to ninety days of penalty wages, along with attorney’s fees for having to collect wages employees were legally owed.

Next up: What about vacation pay when employees resign or are terminated? This is a great question, and the answer almost always starts in the same place: the company policy. If an employee has earned or accrued vacation time, and the policy does not clearly say otherwise, employees may be entitled to be paid for that unused vacation when their employment ends. For a company to lawfully withhold vacation pay that an employee already earned or accrued, its policy must expressly and clearly state that unused vacation will not be paid out at separation. If employees are entitled to vacation pay at the time of separation, the employee should make sure to send a written demand. Just like wages, employees might be entitled to penalty wages and attorney fees if employees have to hire an attorney to collect these fees. 

Now let’s talk bonuses. Whether employees get paid when you leave comes down to one key question: was the bonus earned? Start with the company’s bonus policy, but don’t stop there. If employees’ bonus is tied to work already performed, such as sales closed, goals met, milestones achieved… it’s generally considered wages, and the company must pay it. Discretionary bonuses or bonuses conditioned on continued employment are a different story and may not be owed once an employee separate. Still, if employees believe they earned the bonus, an employee should make a written demand. Asking costs nothing, and it can make all the difference.

Have questions about your business or leaving your job? Contact cbc@snw.law.