Louisiana Minimum Wage in 2026: What Small Business Owners Need to Know

Louisiana is one of just five states with no minimum wage law of its own. If you run a small business here, the Louisiana minimum wage defaults to the federal minimum wage of $7.25 an hour — and it hasn't changed since 2009.

But that doesn't mean the landscape is frozen. In April 2026, lawmakers rejected another push to raise the state minimum wage. And a separate bill that could send the question directly to voters is still working through the legislature. Whether wages go up or stay put, you need to know what the rules are right now — and what could change.

What's the minimum wage in Louisiana right now?

The minimum wage in Louisiana is $7.25 per hour — the federal rate. If you're wondering how much is the minimum wage in Louisiana and what's changed, here's a quick breakdown:

• Louisiana has no state minimum wage law. The federal rate applies to all covered employers.
• Tipped employees can be paid a cash wage of $2.13/hr, as long as tips bring their total hourly earnings to at least $7.25/hr.
• The Louisiana minimum wage in 2026 remains $7.25/hr — HB 353, which would have set a $12/hr starting rate rising to $15/hr by 2029, was rejected 7-5 by the House Labor Committee on April 9, 2026.
• SB 230, a constitutional amendment that would set a $10.25/hr minimum wage, is still pending in the legislature.
• Overtime: nonexempt employees are entitled to 1.5x their regular rate for hours over 40 in a workweek under the FLSA.

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Does Louisiana have its own minimum wage?

No, Louisiana does not have a minimum wage law of its own — it's one of only five states, alongside Alabama, Mississippi, South Carolina, and Tennessee, without one. Because there's no Louisiana minimum wage law, most employers default to the federal minimum wage of $7.25/hr under the FLSA.

A couple of things are worth knowing before you assume the federal floor automatically applies to you.

FLSA coverage isn't universal. Most businesses are covered, but not all. If your business has annual gross sales under $500,000 and doesn't engage in interstate commerce, you may not be subject to the FLSA at all.

That said, most small businesses in retail, food service, and hospitality do meet the threshold. When in doubt, consult the Department of Labor or a qualified employment attorney.

There's a youth minimum wage. You can pay workers under 20 years old $4.25 per hour during their first 90 days on the job. After that — or once they turn 20 — the standard $7.25/hr applies.

The federal minimum wage in Louisiana has been $7.25/hr since July 2009 — 17 years unchanged. In that time, groceries, rent, and gas have all gone up. It's one of the reasons wage increase proposals keep coming back, even when they keep getting voted down.

How does Louisiana's minimum wage compare to other states?

Louisiana sits at $7.25/hr — the same federal floor as Mississippi, Texas, Alabama, Georgia, and South Carolina. Thirty states plus Washington, D.C. have moved above it.

Arkansas is the one neighbor that stands out — it has its own minimum wage, currently $11/hr, passed by voters. If you're near the Louisiana-Arkansas border or competing for workers who can cross it, that $3/hr gap is something you feel at hiring time.

What about the minimum wage in New Orleans, Baton Rouge, and Lafayette?

The minimum wage in New Orleans, Louisiana is $7.25/hr — the same as the minimum wage in Baton Rouge, Louisiana and every other city in the state. Louisiana law explicitly prohibits parishes and municipalities from setting a higher local minimum wage.

That's why there's no higher rate anywhere in the state — not because those cities haven't tried, but because state law blocks them. New Orleans passed a local minimum wage ordinance that was struck down on this basis. Until the state law changes, no Louisiana city can require employers to pay above the federal floor.

The minimum wage by state guide is a good reference if you want to see how neighboring states are trending — and the FLSA compliance page can help you sort out whether and how the federal rules apply to your business.

Keeping up with wage rules is one thing. Keeping up with your actual labor costs is another. When your time tracking and payroll are disconnected, mistakes happen — and they cost you. Homebase puts hours, wages, and payroll in one place so nothing falls through the cracks. Get started for free.

Is Louisiana raising the minimum wage in 2026?

Not yet — but the debate is more active than it's been in years.

HB 353 was rejected on April 9, 2026. The House Labor Committee voted 7-5 along party lines to kill the bill, sponsored by Rep. Tammy Phelps (D-Shreveport). HB 353 was the latest Louisiana minimum wage increase attempt — it would have established a state minimum wage starting at $12 per hour on January 1, 2027, rising to $15 per hour by 2029, with cost-of-living adjustments beginning in 2031. (WWL-TV)

It was a straight party-line vote — all Republicans against, all Democrats in favor. That split has shown up in nearly every Louisiana minimum wage vote going back years.

SB 230 is still in play. Senate Bill 230, sponsored by Senate President Pro Tempore Regina Barrow (D-Baton Rouge), proposes a constitutional amendment that would establish a $10.25/hr "livable wage" effective January 1, 2027. The wage would be adjusted annually each September for inflation using the Consumer Price Index.

Because it's a constitutional amendment, SB 230 requires two-thirds approval in both chambers before going to voters. If the legislature clears that threshold, the question appears on the November 3, 2026 ballot — and a simple majority yes vote puts $10.25/hr into effect in January 2027. As of May 2026, SB 230 has not passed committee or either chamber.

Here's what this means for you: the Louisiana minimum wage 2026 rate is still $7.25/hr, but this conversation isn't going away. A $10.25/hr floor as soon as January 2027 is a real possibility. Run your numbers now — not after a ballot result comes in. For context on how a federal increase would affect Louisiana workers, see the Economic Policy Institute's Raise the Wage Act analysis.

What is the tipped minimum wage in Louisiana?

The Louisiana tipped minimum wage follows the federal tipped minimum wage of $2.13 per hour — unchanged since 1991.

Here's how it works. A "tipped employee" is any worker who regularly receives more than $30/month in tips. Employers can pay a cash wage of $2.13/hr as long as total earnings — cash wages plus tips — equal at least $7.25/hr. That $5.12/hr gap is called the tip credit.

If tips don't bring an employee to $7.25/hr in a given workweek, you're on the hook for the difference. It's one of the most common FLSA mistakes small business owners make — and one of the most avoidable.

Here's a concrete example. A server works 20 hours and earns $2.13/hr in cash wages plus $60 in tips — $102.60 total, or $5.13/hr. Since that's below $7.25/hr, the employer owes an additional $42.40 for the week. Missing this calculation is an FLSA violation, and repeat offenders face penalties up to $1,000 per violation.

A few more things to keep in mind if you have tipped employees:

• Tip pooling arrangements are permitted under federal law, but must follow specific rules about which employees can participate. See the tip pooling guidelines for a full breakdown.
• Tipped employees are entitled to overtime at 1.5x their regular rate for hours over 40 in a workweek. The regular rate is calculated on the full minimum wage ($7.25/hr), not the cash wage ($2.13/hr).
• Accurate recordkeeping of tips received is essential. The FLSA requires employers to maintain records of hours worked and wages paid for all employees, including tip credit calculations. For a full tipped minimum wage by state breakdown, that resource covers every jurisdiction.

Tip credit miscalculations are one of the most common FLSA violations for small businesses — and they're also one of the most preventable. Homebase Tip Manager tracks hours and tip credits automatically so your tipped employees always get paid correctly.

Louisiana minimum wage compliance: what small business owners need to do right now

The good news: the Louisiana minimum wage law is simpler than most states — no state law means fewer moving parts. But when it comes to the Louisiana minimum wage for small business owners, "simpler" doesn't mean zero risk. Here's your compliance checklist for 2026.

1. Confirm whether the FLSA applies to your business. Most small businesses in Louisiana are FLSA-covered, but if your annual revenue is under $500,000 and you don't engage in interstate commerce, you may not be. It's worth knowing before you assume the federal floor applies to you.

2. Audit your current pay rates. Make sure every employee earns at least $7.25/hr. For tipped employees, verify that the combination of cash wages and tips meets the floor every workweek — not just on average. A week with low tips can push a tipped employee below minimum wage even if they normally earn well above it.

3. Track hours accurately and keep records. The FLSA requires accurate time records for all nonexempt employees. Digital time tracking creates an audit trail that protects you if a wage claim is ever filed — paper timesheets don't. Time tracking for small business doesn't have to be complicated.

4. Calculate overtime correctly. Nonexempt employees must receive 1.5x their regular rate for any hours over 40 in a workweek. Louisiana has no state overtime law beyond the federal standard — see overtime laws by state for a full breakdown.

5. Run the numbers on potential wage increases now. If SB 230 passes and voters approve it in November, a $3/hr increase per employee takes effect January 2027. For a full-time employee at 40 hours per week, that's roughly $520 more per month — knowing that number now gives you time to adjust scheduling, pricing, or staffing before it hits.

Kim Redeker, owner of Sweet Granada, puts it plainly: "As a small business, we don't have financial resources for an HR department. We used to spend so much time on just the day-to-day little issues of running even a small staff."

Sound familiar? Small business payroll that automatically handles wage calculations, overtime, and tip credits means you don't need an HR department to get it right.

How a Louisiana minimum wage increase would affect your bottom line

You can't control what lawmakers decide. You can control how prepared you are when they do.

According to NFIB survey data, nearly three in four small business owners say a $15/hr minimum wage would negatively affect their business. The concern isn't just the direct cost — it's wage compression. When the floor rises, employees earning just above it typically expect proportional raises too.

The businesses that handle wage increases best are the ones that see them coming. That means smarter employee scheduling, knowing how to manage labor costs before the pressure hits, and hiring and onboarding practices that let you build lean from the start.

"We save time, and we save labor costs," says Calvin Su, co-owner of Butter Baker. "I'd say we saved about 20% of our labor budget because of how much more efficient [Homebase] made things."

What this means for your business

Whether wages stay or rise, the businesses that come out ahead are the ones that aren't caught flat-footed. That means accurate time tracking, compliant payroll, and labor cost visibility built into how you run the business every week — not scrambled together the night before a ballot result comes in.

Wage compliance is one of the highest-risk areas for small employers — especially for businesses with tipped employees, multiple wage rates, or part-time staff. 

Homebase payroll syncs directly with your time clock so every hour, tip credit, and overtime calculation is handled automatically. Join 100,000+ small businesses that trust Homebase to keep their teams paid right. 

Try Homebase for free.

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Louisiana minimum wage: Frequently asked questions

What is the minimum wage in Louisiana in 2026?

The minimum wage in Louisiana in 2026 is $7.25 per hour — the federal rate under the Fair Labor Standards Act. Louisiana has no state minimum wage law, so the federal standard applies to all covered employers, and this rate has been unchanged since July 2009.

Did the minimum wage go up in Louisiana?

The minimum wage did not go up in Louisiana in 2026 — the House Labor Committee rejected HB 353 in April, which would have set a $12/hr starting rate rising to $15/hr by 2029. A separate constitutional amendment, SB 230, proposing $10.25/hr, is still pending in the legislature as of May 2026.

What is the tipped minimum wage in Louisiana?

The tipped minimum wage in Louisiana is $2.13 per hour — the federal rate, unchanged since 1991. Employers can apply a tip credit as long as total pay (cash wages plus tips) reaches at least $7.25/hr every workweek; if it doesn't, you're required to make up the difference.

Does Louisiana require overtime pay?

Louisiana doesn't have its own overtime law, but most employers are required to follow federal FLSA rules, which mandate 1.5 times the regular rate of pay for all hours worked beyond 40 in a single workweek. Certain salaried employees may be exempt depending on their duties and pay level.

How does Louisiana's minimum wage compare to neighboring states?

Louisiana's minimum wage of $7.25/hr matches the federal floor shared by Mississippi and Texas, but falls $3.75 below Arkansas, the only neighboring state with its own minimum wage at $11/hr. Thirty states plus Washington, D.C. have set minimums above the federal rate, leaving Louisiana among a shrinking group at the floor.