Automatic Enrollment Implementation
Is automatic enrollment permissible under law?
Partially
Are automatic enrollment and automatic escalation permissible under law?
Employees eligible to participate in the Louisiana Public Employees Deferred Compensation Plan can be automatically enrolled. However, state law prohibits political subdivisions from deferring employee wages without written consent, preventing automatic enrollment in voluntary retirement plans.
Relevant State Laws – La. Stat. Ann. 42:456, 32 La. Admin. Code Pt VII, § 301
Public employers are prohibited from withholding wages unless the withholding is required by law or specifically and voluntarily authorized by the employee in writing. La. Stat. Ann. 42:456
Louisiana’s regulations discussing enrollment in the Louisiana Public Employees Deferred Compensation Plan say, “[t]o the extent permitted by applicable law, the administrator may establish procedures whereby each employee becomes a participant in the plan (automatic enrollment) and, as a term or condition of employment, elects to participate in the plan and consents to the deferral by the employer of a specified amount for any payroll period for which a participation agreement is not in effect. In the event such procedures are in place, a participant may elect to defer a different amount of compensation per payroll period, including zero, by entering into a participation agreement.” 32 La. Admin. Code Pt VII, § 301.