House Bill No. by Representative Tarver enacts a new provision, R.S. 23:631(E), which addresses the payment of compensation to employees after termination of employment. This new section clarifies 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. The bill outlines that employers may have policies that allow for adjustments to commissions based on changes to the orders generating them, and that payments are not considered earned until the employer has received the corresponding payment.

Additionally, the bill stipulates 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 due and to calculate its amount based on standard accounting practices. This legislation aims to provide clarity and structure regarding the payment of various forms of compensation upon an employee's termination, ensuring that both employers and employees understand their rights and obligations in these situations.