Employment Resources
Louisiana REALTORS • March 20, 2020
Patricia B. McMurray, JD and Melissa M. Grand, JD
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
450 Laurel Street, Chase Tower North, 21st Floor
Baton Rouge, Louisiana 70801
Below are additional employment questions related to the COVID-19 (coronavirus) pandemic. Remember, the governmental response to the coronavirus is rapidly evolving. It is important to refer to the CDC’s website for up-to-date information about the coronavirus' current impact in the United States. Daily updates about the coronavirus are also available from the World Health Organization.
1. My agents are independent contractors. Are they eligible for unemployment benefits?
Short Answer: No, independent contractors are generally not eligible to receive unemployment benefits. See http://www.laworks.net/FAQs/FAQ_UI_ClaimantBenefits.asp#answer_1 and https://www.dol.gov/agencies/whd/flsa/misclassification.
Proper classification as either an independent contractor or an employee is very important. Louisiana Real Estate License Law specifically provides that a real estate salesperson or associate broker is considered an independent contractor of the broker with whom he is affiliated if all of the following conditions are met:
The real estate salesperson or associate broker is a licensee;
Substantially all of the real estate salesperson's or associate broker's remuneration for the services performed is directly related to sales or other output rather than the number of hours worked; and
There is a written agreement between the real estate salesperson or associate broker and the broker that specifies that the real estate salesperson or associate broker will not be treated as an employee. See La. R.S. 37:1446(H).
Improper classification of workers can cause businesses a number of legal problems. In addition to potential fines and penalties for violations of state and federal laws, improper classification can also expose businesses to private causes of action and costly litigation and IRS penalties. Also, the misclassified independent contractors who are later re-characterized as employees may have to be provided all of the same benefits as current employees.
The Louisiana Workforce Commission provides useful resources on this issue: http://www.laworks.net/PublicRelations/COVID_19_Information.asp.
2. Can an employer direct salaried, exempt employees to use vacation or paid time off (PTO) during office closures due to the coronavirus pandemic?
Short Answer: In general, yes. The U.S. Department of Labor offers guidance here: https://www.dol.gov/agencies/whd/flsa/pandemic.
The federal Fair Labor Standards Act (FLSA) does not require employer-provided vacation time. See https://www.dol.gov/agencies/whd/flsa/pandemic. Where an employer offers a bona fide benefits plan or vacation time to its employees, there is no prohibition on an employer requiring that such accrued leave or vacation time be taken on certain days, such as during an office closure. Id.
A U.S. Department of Labor Wage and Hour Division opinion letter regarding forced use of PTO for exempt employees during a plant shut down provides:
Since employers are not required under the FLSA to provide any vacation time to employees, there is no prohibition on an employer giving vacation time and later requiring that such vacation time be taken on a specific day(s). Therefore, a private employer may direct exempt staff to take vacation or debit their leave bank account […] whether for a full or partial day's absence, provided the employees receive in payment an amount equal to their guaranteed salary.
Therefore, a private employer may direct exempt staff to take vacation or debit their leave bank account in the case of an office closure, whether for a full or partial day, provided the employees receive in payment an amount equal to their guaranteed salary.[2] See https://www.dol.gov/agencies/whd/flsa/pandemic. In the same scenario, an exempt employee who has no accrued benefits in the leave bank account, or has limited accrued leave and the reduction would result in a negative balance in the leave bank account, still must receive the employee’s guaranteed salary for any absence(s) occasioned by the office closure in order to remain exempt. Id. For more information, see WHD Opinion Letter FLSA2005-41. See also https://www.nar.realtor/political-advocacy/coronavirus-emergency-legislation-what-realtors-need-to-know.
DISCLAIMER
Information and additional guidance and orders regarding the pandemic are being issued daily. The information is the article was last updated on March 20, 2020 at 4:00 p.m.
These materials are to be used for informational purposes and should not be construed as specific legal advice. These materials are not designed to cover every aspect of a legal situation for every factual circumstance that may arise regarding the subject matter included.
This publication is for reference purposes only and association members or other readers are responsible for contacting their own attorneys or other professional advisors for legal or contract advice. The comments provided herein solely represent the opinions of the authors and is not a guarantee of interpretation of the law or contracts by any court or by the Louisiana Real Estate Commission.
[1] Information and additional guidance and orders regarding the pandemic are being issued daily. The information is the article was last updated on March 20, 2020 at 4:00 p.m.
[2] Exempt, salaried employees generally must receive their full salary in any week in which they perform any work, subject to certain very limited exceptions. See https://www.dol.gov/agencies/whd/flsa/pandemic. Exempt salaried employees are not required to be paid their salary in weeks in which they perform no work. Id. Note that not paying exempt employees--because they are out for personal reasons or because they have no more PTO--must to be a full day. Generally, the employee’s salary cannot be docked on a partial day or daily basis. The salary can only be withheld if the employee does not perform any work for an entire workweek. See id.
CORONAVIRUS: EMPLOYMENT RESOURCES
FOR LOUISIANA REALTORS®
UPDATE AS OF MARCH 18, 2020
By:
Patricia B. McMurray, JD and Melissa M. Grand, JD
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
450 Laurel Street, Chase Tower North, 21st Floor
Baton Rouge, Louisiana 70801
This article provides information on the novel coronavirus outbreak, COVID-19, and employment resources related to coronavirus's impact on the real estate industry. Since the coronavirus outbreak began in early December 2019, it has spread around the globe and has had an increasing effect on many aspects of the real estate business. The situation is rapidly evolving. Louisiana REALTORS® continues to monitor the outbreak. Refer to the Centers for Disease Control and Prevention’s (CDC) website, https://www.cdc.gov/coronavirus/2019-ncov/index.html, for up-to-date information on the coronavirus and its impact on the United States.
RESOURCES FOR EMPLOYERS
Numerous employment-related issues are arising due to the coronavirus. The Equal Employment Opportunity Commission (“EEOC”), the agency that enforces the Americans with Disabilities Act (“ADA”), has released a “What You Should Know” statement to assist employers on employment-related issues due to the coronavirus. Importantly, the EEOC states that the ADA rules continue to apply, but they do not interfere with or prevent employers from following the guidelines and suggestions made by the CDC or state/local public health authorities about steps employers should take regarding COVID-19. The EEOC statement may be found here: https://www.eeoc.gov/eeoc/newsroom/wysk/wysk_ada_rehabilitaion_act_coronavirus.cfm
The EEOC statement directs employers to review the EEOC’s 2009 guidance, Pandemic Preparedness in the Workplace and The Americans with Disabilities Act, found here: https://www.eeoc.gov/facts/pandemic_flu.html#2. The EEOC guidance addresses questions which frequently arise in situations like the coronavirus pandemic, such as, does the ADA allow employers to require employees to stay home if they have symptoms of the pandemic coronavirus?
Also, the National Association of REALTORS® has compiled helpful resources, which may be found here: https://www.nar.realtor/coronavirus-a-guide-for-realtors
and https://www.nar.realtor/coronavirus-resources-and-guidance-for-employers.
DISPARATE TREATMENT ISSUES
The EEOC clearly stated: “DO NOT show prejudice to people of Asian descent, because of fear of this new virus. Do not assume that someone of Asian descent is more likely to have 2019-nCoV.” See https://www.cdc.gov/coronavirus/2019-ncov/downloads/what-you-should-do.pdf. Employers should establish consistently applied and clearly communicated practices regarding self-quarantining of employees. An employer may not base a decision to bar an employee from the workplace on the employee’s race or national origin. However, if an employee, regardless of their race or national origin, was recently in China and has symptoms of the COVID-19 coronavirus, you may have a legitimate reason to bar that employee from the workplace.
EMPLOYEE PAY ISSUES
The U.S. Department of Labor (“DOL”), Wage and Hour Division, provides information on common issues employers and employees face when responding to influenza, pandemics, or other public health emergencies, and their effects on wages and hours worked under the Fair Labor Standards Act (“FLSA”) and job-protected leave under the Family and Medical Leave Act (“FMLA”). See https://www.dol.gov/agencies/whd/pandemic.
On March 14, 2020, the House passed H.R. 6201 known as the Families First Coronavirus Response Act (the “Act”). On March 18, 2020, the Senate approved the legislation and sent it to President Trump for signature. The legislation provides paid leave, establishes free testing for the coronavirus, protects public health workers, and provides benefits to children and families. Employers should watch the Act closely because the provisions contained therein, including three key provisions relating to the workplace, would take effect immediately upon enactment. For further information and updated analysis of the legislation, see https://www.bakerdonelson.com/house-passes-coronavirus-bill-with-immediate-impact-on-employers?utm_source=vuture&utm_medium=email&utm_campaign=20200316%20-%20alert%20-%20l%26e
and https://www.bakerdonelson.com/coronavirus.
DISCLAIMER
This article was updated as of March 18, 2020 at 5 p.m. CST. The coronavirus situation is rapidly evolving, and the above resources should be checked frequently for updates.
These materials are to be used for informational purposes and should not be construed as specific legal advice. These materials are not designed to cover every aspect of a legal situation for every factual circumstance that may arise regarding the subject matter included.
This publication is for reference purposes only and association members or other readers are responsible for contacting their own attorneys or other professional advisors for legal or contract advice. The comments provided herein solely represent the opinions of the authors and is not a guarantee of interpretation of the law or contracts by any court or by the Louisiana Real Estate Commission.
Louisiana REALTORS® closed out Week 12 of the 2026 Regular Session in the final push toward sine die, with several priority bills either crossing the finish line, landing on the Governor’s desk, or moving through the last major stage of session. The headline for the association is a major win on HB 468 by Rep. Troy Hebert, the residential wholesaling bill, which cleared conference committee with the fixes Louisiana REALTORS® was seeking and was scheduled for final House action on May 29. With the constitutional deadline for third reading and final passage falling on Friday, May 29, and sine die adjournment set for Monday, June 1, the last hours of session became decisive for the remaining bills still in motion. The lead priority remained HB 468 , which is the flagship Louisiana REALTORS® package bill on residential wholesaling. After the House rejected Senate amendments 91-0 on May 20, the bill moved into conference committee rather than dying. House conferees were named as Rep. Troy Hebert, Rep. Phillip Deshotel, and Rep. Jacob Landry, while Senate conferees were named as Sen. Miller, Sen. Allain, and Sen. Connick. The conference committee report was received by both chambers on May 27, and the bill was then scheduled for final House action on May 29. This remains one of the most important bills of the session for the real estate industry because it creates a clearer regulatory framework for residential wholesaling, strengthens consumer protections, and gives the Louisiana Real Estate Commission enforcement authority over the practice. The session also produced a strong slate of enacted real estate, housing, and property-management wins. HB 1027 , the appraiser liability bill, was signed by the Governor as Act No. 187 on May 15 and becomes effective August 1, 2026. HB 292 , dealing with security deposits, was signed as Act No. 63 on May 11 and also becomes effective August 1, 2026. HB 297, expanding lease termination protections for stalking and cyberstalking victims, was signed as Act No. 64 on May 11. HB 300 , dealing with appraisal thresholds for bank-owned property, was signed as Act No. 149 on May 15. Taken together, these measures represent meaningful wins for appraisal certainty, leasing, property management, and transaction stability. Several additional REALTOR®-relevant measures cleared the Legislature and moved to the Governor’s desk by the close of Week 12. HB 1166 by Rep. Kim Carver, the vacant residential property disclosure bill, passed the Senate 38-0 on May 25 and was sent to the Governor on May 27. This is one of the most important real estate bills of the session because it closes an existing gap in Louisiana law for vacant residential properties and should help reduce late-stage surprises involving condition issues, access, utility status, and other material facts that can derail transactions. HB 1187 , dealing with Louisiana Citizens emergency assessments, was sent to the Governor on May 26 and remains an important insurance-affordability measure for homeowners across the state. HB 217 , the optional blight rehabilitation tax exemption bill, was sent to the Governor on May 21 and, together with HB 214 , strengthens the redevelopment toolkit for returning derelict property to commerce. On the constitutional amendment side, Louisiana REALTORS® also saw meaningful progress on broader property-tax and redevelopment issues. HB 214 , authorizing a property tax exemption for rehabilitated blighted or derelict properties, became Act No. 272 and was sent to the Secretary of State for placement on the ballot. SB 180, allowing the surviving spouse of a deceased veteran with a service-connected disability to transfer an expanded property tax exemption, became Act No. 39 and was likewise sent to the Secretary of State for ballot placement. These measures remain relevant to neighborhood revitalization, property-tax fairness, and broader housing stability across Louisiana. Insurance and mitigation policy continued to matter through the final days of session. HB 759 , relating to fortified roof endorsement offers, remained alive on the Senate floor subject to call and needed final Senate passage by the May 29 deadline to survive. That bill remained important because fortified roof policy sits directly at the intersection of mitigation, homeowner resilience, and insurance affordability. At the same time, slower-moving insurance measures such as HB 408 on non-renewal protections for homeowners who timely mitigate and HB 1210 on pre-suit claim review for residential property insurance did not advance this session, but both remain relevant to the longer-term insurance affordability discussion. Week 12 also highlighted the value of Louisiana REALTORS®’s defensive work. HB 617, the hidden-fees bill, stalled in Senate Commerce and effectively ran out of time. That was a meaningful defensive win, as the concern throughout was that broad fee-disclosure language could have unfairly placed liability on real estate professionals for charges they do not control, including fees set by lenders, title companies, insurers, government entities, and other third parties. HB 472 , the rent stabilization bill, remained dead after being involuntarily deferred, which is another meaningful win from a property-rights and housing-supply standpoint, though similar language always remains worth watching late in session. HB 750, dealing with automatic renewal contracts, remained alive on the Senate floor subject to call and continued to require defensive monitoring so that broad subscription language would not bleed into leases, property management agreements, association dues, or nonprofit and association activity. The broader civil justice and cost environment also remained part of the policy picture, even where bills stalled. HB 437 , dealing with expert witness fees, and HB 1089 , dealing with CARE Accounts, both passed the House but stalled in Senate Judiciary A. While they did not advance this session, they remain part of the larger conversation around litigation costs, insurance affordability, and the long-term cost structure affecting property owners, housing providers, and small businesses. The bottom line for the 2026 session is that it was a strong one for Louisiana REALTORS®. The association’s flagship wholesaling bill, HB 468 , cleared conference committee with the fixes we wanted and moved to final House action. Four major REALTOR®-relevant bills were already enacted into law: HB 1027, HB 292, HB 297, and HB 300 . Two property-tax constitutional amendments, HB 214 and SB 180 , are headed to the ballot. Three additional bills, HB 1166, HB 1187, and HB 217 , reached the Governor’s desk. On defense, rent stabilization was stopped, the hidden-fees bill stalled, and problematic consumer language in other measures was monitored closely through the final days of session. Louisiana REALTORS® remained engaged through the end on every issue affecting real estate transactions, mortgages and lending, insurance affordability, property management, private property rights, blight and redevelopment, property taxes, and housing supply across Louisiana.
From the Louisiana Department of Insurance: During a press conference today with Governor Jeff Landry, Insurance Commissioner Tim Temple announced that registration for the next round of the Louisiana Fortify Homes Program (LFHP) will open at 8 a.m. on Monday, June 1, and will include 3,000 grants. The registration period for this lottery will be open for three weeks, closing at 5 p.m. on Friday, June 19. During the press conference, Gov. Landry signed HB 1187 by Rep. Paul Sawyer, which will allow Louisiana Citizens Property Insurance Corporation to transfer $50 million in additional Katrina bond assessment funds to the LFHP. Combined with the $30 million in funding the program will receive through taxes and fees on insurance entities, the LFHP will receive a total of $80 million this year. “By lowering overall losses, we can reduce insurance and reinsurance costs, draw more insurers into the market, motivate existing companies to write additional policies and lower insurance premiums,” said Commissioner Temple. “That is exactly what the Louisiana Fortify Homes Program is designed to do.” The list of coastal parishes that are eligible to participate is expanding to include Acadia, Jefferson Davis and Lafayette parishes. Additionally, homeowners who live in the portions of Ascension, Calcasieu, Iberia, Livingston, St. Martin, St. Tammany, Tangipahoa and Vermilion parishes that were previously not included in the program will now be eligible to participate. A map showing the full list of eligible parishes is available on FortifyHomes.La.Gov . “Louisiana is the fastest growing state in the country for Fortified roofs, and that growth is not by accident—it is the result of strong support from Governor Landry and legislators like Chairman Talbot, Chairman Firment and Representative Sawyer, targeted program design, and a clear recognition that strengthening homes is one of the most effective ways to reduce insurance losses,” said Commissioner Temple. “At the end of the day, this program is about more than just roofs. It is about protecting families, it is about strengthening communities, and it is about putting Louisiana in a stronger position—both physically and economically—to face the challenges ahead.” To participate in the lottery, homeowners must register during the June registration period. Homeowners who registered for a previous round but were not selected must register again to participate. People who register on the last day of the registration period have the same chance of being selected as those who register on the first day, so there is no need to rush to register as soon as the period opens. When registering, homeowners will need to upload their homestead exemption, insurance policy declarations page that includes wind coverage, and flood insurance declarations page if the residence is in a flood zone. Homeowners who need assistance obtaining a copy of their homestead exemption should contact their parish tax assessor. Homeowners can contact their homeowners and flood insurance companies or agents for a copy of their policy declarations page. Homeowners are required to create a profile in the LFHP system before registering for the lottery and may do so by visiting the LFHP website and clicking the Login button. Homeowners who previously created a profile may use the same one for this and future rounds. Once the lottery registration period closes, the LFHP will randomly select 3,000 participants and send email notifications to registrants about whether they were selected to participate. These selection notices will be sent via email beginning on Monday, June 22. There are several program requirements that homeowners should be aware of before registering. Those interested in the program are encouraged to review eligibility information and frequently asked questions at FortifyHomes.La.Gov to determine whether their home meets the requirements for the program. If selected to participate in the grant program, homeowners will be financially responsible for having the home evaluated by a FORTIFIED-certified Evaluator as well as costs for the roof upgrade including permits, inspections and construction costs beyond the amount of the grant The LFHP provides grants of up to $10,000 for homeowners to upgrade their roofs to standards set by the Insurance Institute for Business & Home Safety. The program helps Louisiana homeowners strengthen their roofs to better withstand hurricane-force winds.
Learn how to lower your debt-to-income ratio before buying a home in Louisiana and why working with an experienced real estate agent can help.
