Louisiana Minimum Wage 2026: $7.25 per Hour (Federal Rate)
Louisiana has no state minimum wage law, so the federal $7.25 per hour applies in 2026, with a $2.13 tipped cash wage. What that means for coverage, overtime, local ordinances (preempted), the 2026 bill that failed, and what a full-time worker earns.
Louisiana's minimum wage is $7.25 per hour in 2026 because Louisiana has no state minimum wage law and the federal Fair Labor Standards Act sets the floor. Tipped employees can be paid a cash wage of $2.13 per hour plus tips. State law bars cities and parishes from setting their own rates, and a 2026 bill to create a $12 state minimum wage died in committee.
- Louisiana is one of five states with no state minimum wage law; the federal $7.25 applies
- Tipped workers can be paid $2.13 in cash wages with up to a $5.12 tip credit under federal rules
- State law prohibits parishes and cities, including New Orleans, from setting a local minimum wage
- House Bill 353 (2026) proposed $12 in 2027 rising to $15 by 2029 and failed in committee
- Employers too small for FLSA coverage have no minimum wage obligation under state law
Current Louisiana Minimum Wage
Louisiana does not have a minimum wage statute. The US Department of Labor's state minimum wage table lists Louisiana as one of five states with no state law (with Alabama, Mississippi, South Carolina, and Tennessee), so the federal minimum wage of $7.25 per hour applies to employers and employees covered by the Fair Labor Standards Act. That covers most businesses with at least $500,000 in annual sales and any employee engaged in interstate commerce, which in practice includes nearly all contact centers, retailers, and service businesses.
The Louisiana Workforce Commission does not enforce a minimum wage; complaints about unpaid minimum wages go to the US Department of Labor's Wage and Hour Division. Attempts to create a state rate have failed repeatedly. In April 2026, House Bill 353 would have set a $12.00 state minimum wage from January 1, 2027, rising to $15.00 by 2029; the House Labor Committee rejected it 7 to 5.
Louisiana Minimum Wage vs Federal Minimum Wage
| Rate | Louisiana | Federal (FLSA) |
|---|---|---|
| Minimum wage | $7.25 per hour | $7.25 per hour |
| Tipped cash wage | $2.13 | $2.13 |
| Difference | Same as federal | Baseline |
| Last changed | See schedule below | July 24, 2009 |
When state and federal rates differ, the employer must pay the higher one for any employee covered by both laws. Because Louisiana's rate equals the federal minimum, the practical rate is $7.25 for nearly every worker, and the state law matters mainly for the employers and rules it covers that the FLSA does not. The federal rate has been $7.25 since July 24, 2009, and there is no scheduled federal increase. Our minimum wage by state guide compares every state.
Tipped Minimum Wage in Louisiana
Because there is no state law, federal tipped rules apply. An employer may pay a cash wage of $2.13 per hour and take a tip credit of up to $5.12 per hour, as long as the employee receives at least $7.25 per hour in combined cash wages and tips for the pay period. If tips fall short, the employer pays the difference.
Federal rules also require the employer to tell the employee about the tip credit in advance, let the employee keep all tips except for a valid tip pool, and limit tip-credit time on non-tipped work under the federal 80/20 and 30-minute rules. New Orleans hospitality employers in particular should document tip credit notices and tip pool arrangements.
| Item | Louisiana (2026) | Federal |
|---|---|---|
| Full minimum wage | $7.25 | $7.25 |
| Minimum cash wage for tipped employees | $2.13 | $2.13 |
| Maximum tip credit | $5.12 | $5.12 |
Louisiana Minimum Wage Increase Schedule
| Effective date | Minimum wage |
|---|---|
| 2021 | $7.25 |
| 2022 | $7.25 |
| 2023 | $7.25 |
| 2024 | $7.25 |
| 2025 | $7.25 |
| 2026 | $7.25 |
No increase is scheduled. Louisiana's rate changes only if Congress raises the federal minimum wage, which has been $7.25 since July 24, 2009, or if the Legislature enacts a state law. The 2026 attempt failed, and earlier bills met the same fate.
Local Minimum Wages in Louisiana
Louisiana Revised Statute 23:642 prohibits local governments from establishing a minimum wage that differs from the federal rate. New Orleans and other cities cannot set a higher local rate for private employers, although a city can set pay floors for its own employees and, in some cases, for city contractors. As of 2026, no parish or city has a local minimum wage above $7.25.
How Louisiana Compares to Neighboring States
Employers that hire across state lines, or compete for workers with employers over the border, should know how Louisiana compares. Rates below are the US Department of Labor's figures as of July 1, 2026.
| State | 2026 minimum wage | Tipped cash wage |
|---|---|---|
| Texas | $7.25 | $2.13 |
| Arkansas | $11.00 | $2.63 |
| Mississippi | $7.25 | $2.13 |
| Louisiana | $7.25 | $2.13 |
Texas and Mississippi pay the same rate as Louisiana, while Arkansas pays more, which is why employers near those borders often pay above the legal minimum to compete for staff. Remote employees are generally owed the minimum wage of the state where they physically work, not where the employer is based, so a Louisiana company with staff in a neighboring state must apply that state's rate to those employees.
Who Is Covered and Who Is Exempt
With no state law, coverage is a federal question. The FLSA covers employees of enterprises with at least $500,000 in annual gross sales, plus hospitals, schools, and public agencies of any size, and any individual employee who regularly handles interstate commerce (phone calls, shipments, card payments, and email all count). Common federal exemptions include:
- Bona fide executive, administrative, and professional employees paid a salary of at least $684 per week
- Outside sales employees
- Certain computer professionals
- Employees of small seasonal amusement or recreational businesses
- Some agricultural workers
A small Louisiana business that falls outside FLSA coverage has no statutory minimum wage obligation at all, which is unusual among states. Our exempt vs non-exempt guide explains the salary and duties tests.
Overtime and the Minimum Wage
Louisiana has no state overtime law either. The federal rule applies: time and a half for hours over 40 in a workweek for non-exempt employees. There is no daily overtime and no seventh-day rule.
Here is what a 45-hour week costs at the Louisiana minimum wage under the 40-hour rule:
| Line | Hours | Rate | Pay |
|---|---|---|---|
| Regular hours | 40 | $7.25 | $290.00 |
| Overtime hours | 5 | $10.88 (1.5x) | $54.38 |
| Gross pay for the week | 45 | $344.38 |
Overtime must be calculated on the employee's regular rate, which includes shift differentials and non-discretionary bonuses, not just the base wage. See our guide to overtime pay laws in the US and use the overtime calculator to check a specific week.
What a Minimum Wage Worker Earns in Louisiana
| Basis | Hourly | Weekly (40 hours) | Monthly (173.33 hours) | Annual (2,080 hours) |
|---|---|---|---|---|
| Full minimum wage | $7.25 | $290.00 | $1,256.64 | $15,080.00 |
| Tipped cash wage only | $2.13 | $85.20 | $369.19 | $4,430.40 |
These are gross figures before taxes and deductions, and they assume a full 40-hour week with no unpaid time off. A tipped employee's total pay must reach at least the full minimum wage row once tips are added. To convert a different hourly rate, use the salary to hourly calculator, and see our explainer on gross pay for what is included before deductions.
Employer Compliance Checklist
- Pay at least $7.25 per hour for every hour worked, including training, meetings, and time spent waiting or on call at the workplace
- If you take a tip credit, give written notice, track tips by pay period, and make up any shortfall to $7.25
- Display the required state and federal minimum wage posters where employees can see them
- Pay overtime at 1.5 times the regular rate after 40 hours in a workweek, and never average hours across weeks
- Keep accurate time records for at least three years; a time card calculator helps verify weekly totals before payroll runs
- Review exempt classifications against the salary and duties tests; a job title alone does not make an employee exempt
- Check the labor law compliance hub for related state rules on breaks, leave, and final pay
Frequently Asked Questions
What is the minimum wage in Louisiana in 2026?
$7.25 per hour. Louisiana has no state minimum wage law, so the federal rate applies to employers and employees covered by the FLSA.
Is Louisiana raising its minimum wage?
Not as of September 2026. House Bill 353, which would have set a $12 state rate in 2027 rising to $15 by 2029, failed in the House Labor Committee in April 2026.
What is the tipped minimum wage in Louisiana?
$2.13 per hour in cash wages under federal law, with tips required to bring the employee to at least $7.25 per hour.
Can New Orleans set its own minimum wage?
No. Louisiana law (R.S. 23:642) prohibits local governments from setting a minimum wage that differs from the federal rate for private employers.
Does the $7.25 minimum wage apply to every Louisiana employer?
No. It applies to employers and employees covered by the federal FLSA. Very small businesses with under $500,000 in annual sales and no interstate commerce may fall outside coverage, though that is rare in practice.
Is there a youth or training wage in Louisiana?
Under federal law, employees under 20 may be paid $4.25 per hour during their first 90 consecutive calendar days with an employer.
How much does a full-time minimum wage worker earn in Louisiana?
$290 a week and $15,080 a year before taxes at $7.25 per hour, based on 2,080 hours.
Sources
- US DOL, State Minimum Wage Laws (July 1, 2026)
- US DOL, Minimum Wages for Tipped Employees
- Louisiana Workforce Commission
- US Department of Labor, Minimum Wages for Tipped Employees
Reviewed September 2026
Rates and rules on this page were checked against the US Department of Labor's state minimum wage tables (effective July 1, 2026) and the Louisiana sources listed above. Minimum wage laws change through legislation, ballot measures, indexing, and court decisions. Confirm the current rate with the state labor agency before setting pay, and see our labor law compliance guides for related rules.
Track Every Hour at the Right Rate
HiveDesk records clock-in and clock-out times, breaks, and overtime automatically so timesheets match the minimum wage and overtime rules that apply to each employee. $5/user/month, all features included, 14-day free trial.