House Bill No. [insert number] enacts a new provision under R.S. 23:631(E) concerning the payment of compensation to employees after termination of employment. The bill specifies that compensation in the form of commission, incentive pay, or bonuses will only be considered due if it has been earned at the time of separation and has not been altered according to a written policy. Additionally, it outlines that employers may have policies that adjust commission amounts based on changes to the order generating the commission or stipulate that payments are not earned until the employer has received the corresponding payment.

Furthermore, the bill establishes that for bonuses determined by financial performance on a periodic basis, employers are allowed a maximum of 120 calendar days from the end of that period to assess whether a bonus is owed and to calculate its amount based on standard accounting practices. This legislation aims to clarify the conditions under which various forms of compensation are considered earned and due to employees upon termination, thereby providing a structured approach to compensation policies.