Louisiana Contractors License Practice Exam

What circumstance allows an employer to withhold wages under Louisiana law?

1. When an employee misses work

2. When an employee damages property belonging to the employer

3. When an employee exceeds their leave balance

4. When an employee resigns

The correct answer is: When an employee damages property belonging to the employer

In Louisiana, an employer is permitted to withhold wages when an employee damages property belonging to the employer. This is based on the principle that an employer has the right to seek restitution for damages caused by an employee during the course of their work. This situation is distinct from withholding wages for other reasons, such as attendance issues or taking too much leave, which do not typically provide a legal basis for wage deductions. Withholding wages in response to damage caused by an employee aligns with the idea of compensating the employer for losses incurred and is a recognized practice under Louisiana's wage and hour laws. However, it’s important for employers to ensure that any deductions made from wages adhere to the legal standards and limits set by law to avoid potential disputes over unfair practices. In scenarios where an employee misses work or exceeds their leave balance, wage withholding is generally not justified unless there are specific provisions in employment contracts or company policy that explicitly allow for such deductions. Similarly, when an employee resigns, their wages cannot be withheld simply by virtue of their departure.