Four new and notable laws affecting Louisiana employers are taking effect in summer 2024, including an expanded statute of limitations for employment torts, meal breaks for minors, a ban on predispute arbitration agreements for sexual harassment, and a ban on nondisclosure agreements regarding sexual harassment or hostile workplace environment claims.

Quick Hits

• Louisiana’s statute of limitations for employment-related tort actions has been doubled to two years from the day an injury or damage is sustained. The law took effect on July 1, 2024, and is prospective only.
• Employers must provide breaks to workers under sixteen years of age whose shifts last five hours or more.
• Employers are prohibited from requiring predispute arbitration pacts for sexual harassment.

New Two-Year Statute of Limitations for Employment Torts

Governor Jeff Landry recently signed into law Act No. 423, which extends the prescriptive period (Louisiana’s term for the statute of limitations) for tort actions to two years from the day the injury or damage is sustained. The new law doubles the previous one-year prescriptive period. Act No. 423 took effect on July 1, 2024, and is prospective only. Therefore, this extension of the prescriptive period applies to torts occurring on or after July 1, 2024.

This additional year to file suit is significant because it enlarges the time for filing common employment tort claims such as invasion of privacy, assault, intentional infliction of emotional distress, defamation, and so forth.

Three additional laws will take effect on August 1, 2024. The governor signed two of these laws (Act No. 603 and Act No. 541). The other (Act No. 781) will become law without the governor’s signature.

Meal Breaks Now Required Only for Workers Under Sixteen Years Old

Act No. 603 amends the requirement that employers provide all minor employees (under eighteen years of age) a thirty-minute recreation or meal break if their work shifts last five hours or more. Under the new law, employers are no longer required to provide these breaks to sixteen- and seventeen-year-old employees, but they must still provide breaks to workers under sixteen years of age if their shifts last five hours or more.

Predispute Arbitration Pacts Banned for Sexual Harassment

Act No. 541 prohibits employers from requiring, as a condition of employment or continued employment, prospective or actual employees from entering into a predispute arbitration agreement containing a provision requiring arbitration for any claim or accusation of workplace sexual harassment. Notably, this law provides an exception allowing employers and employees the option of consenting to arbitrate a sexual harassment claim “after the claim arises.”

Predispute Nondisclosure Agreements Banned for Harassment Claims

Finally, Act No. 781 renders employer nondisclosure agreements involving sexual harassment or hostile workplace environment disputes not “judicially enforceable,” with one exception. Under this law, employees still may enter into a confidential settlement agreement relating to a hostile work environment or sexual harassment “provided that the agreement is entered into after a report of hostility or harassment is filed or a hostile work environment dispute or sexual harassment dispute has occurred.” For purposes of this law, a nondisclosure agreement is “an agreement between an employee and employer that prevents, or has the effect of preventing, an employee from disclosing or discussing a hostile work environment, allegations of a hostile work environment, sexual harassment, or allegations of sexual harassment.” The new law defines “sexual harassment” as “unwelcome sexual advances, requests for sexual favors and other verbal, physical, or inappropriate conduct of a sexual nature when the conduct explicitly or implicitly affects an individual’s employment, unreasonably interferes with an individual’s performance, or creates an intimidating or offensive work environment.”

“Hostile work environment” is defined as “conditions where harassment rises to the level that the harassment alters the ability of an employee to perform the employee’s duties.” Because the definition of “sexual harassment” covers the hostile environment form of harassment, it appears the law’s use of the phrase “hostile work environment” may be intended to cover harassment based on characteristics other than sex, such as race and religion. The law could certainly be clearer on this point, but it appears litigation will provide the clarity that the Louisiana Legislature did not.

Act No. 781 parallels a similar federal law signed by President Joe Biden in December 2022. That law, the Speak Out Act, bars the enforcement of nondisclosure agreements and nondisparagement clauses related to sexual assault or harassment “before the dispute arises.”

These new laws are in addition to amendments to the Louisiana Wage Payment Act and to Louisiana’s noncompete law applicable to primary care doctors.