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Employment relationship

State-specific laws What state-specific laws govern the employment relationship? Articles 2746, 2747, and 2024 of the Louisiana Civil Code; Title 23 of the Louisiana Revised Statutes; and Titles 40, 48, and 67 of the Louisiana Administrative Code govern the employment relationship.

Who do these cover, including categories of workers? These laws cover employees, independent contractors, volunteers, and interns.

Misclassification Are there state-specific rules regarding employee/contractor misclassification? No single test or state-specific rule governs whether a worker is an employee or independent contractor. However, a number of laws provide guidance on the correct classification of workers. These include the Fair Labor Standards Act, the Employee Retirement Income Security Act, the Internal Revenue Code and its regulations, and state unemployment and workers’ compensation laws.

Contracts Must an employment contract be in writing? No—the Louisiana Civil Code permits oral contracts.

Are any terms implied into employment contracts? There is an implied covenant of good faith and fair dealing in all contracts in order to facilitate the performance and enforcement of contracts that are consistent with, and in furtherance of, agreed terms. Louisiana courts will not add provisions to an employment contract unless it is necessary to effect the intent of the parties.

Are mandatory arbitration agreements enforceable? Yes—as long as the contract containing the mandatory arbitration agreement is not a contract of adhesion. A contract of adhesion is a standard contract, usually in printed form, prepared by a party with superior bargaining power for adherence or rejection by the weaker party. Contracts of adhesion raise a question as to whether the weaker party actually consented to the contract terms. Louisiana Revised Statute 9:4201 provides that any written contract to settle, via arbitration, a controversy arising out of the contract is valid, irrevocable, and enforceable. However, mandatory arbitration clauses do not apply to contracts for employment of “labor” (i.e., non-exempt, blue-collar jobs). 

How can employers make changes to existing employment agreements? Normal contract rules apply.