All payments of salary by public entities must be in compliance with Art. VII, §14 of the Louisiana Constitution, which prohibits the donation, loan, or pledging of any public funds. The courts have provided some guidance in regards to additional payments of salary by noting that in order for such payments to comply with Art. VII, §14, the payments must not be inherently gratuitous nor may they be for services previously rendered (additional payment must apply to future services rendered). McElveen v Callahan, 309 So.2d 379 (La. App. 3 Cir. 2/26/1975). Therefore, all public entities are forbidden from providing gratuitous bonuses to their employees or additional pay for past services rendered.

The Attorney General (AG) has noted in several opinions acceptable means for providing one time supplemental pay for teachers in AG Op. No. 00-0125; AG Op. No. 96-0150, AG Op. No. 04-0340, AG Op. No. 95-0165A, and AG Op. No. 93-0586 and for employees of clerk of courts in AG Op. No. 03-0330. The AG has noted that the payment may occur at various points during the year if necessitated by availability of funds or in circumstances where the supplemental payment or determination of its amount is subject to a suspensive condition. However, the provisions for the supplemental payment should be established in writing at the beginning of the fiscal year, and preferably be incorporated into the employees terms of employment as with all other earned benefits such as leave, insurance, etc.

The AG has stated that one-time salary supplements may not be made solely for the purpose of retaining public employees, with no reciprocal obligation imposed on the employee (i.e. continued employment commitment/repayment provision). AG Op. No. 10-0299.

The Ninth Judicial District Court issued a ruling granting summary judgment for the City of Alexandria, LA in a Declaratory Judgment Suit, in which the City of Alexandria asked the court to declare its Ordinance No. 236-2012, amended by Ordinance No. 30-2013, as constitutional. The ordinance provides for a one-time supplemental payment to full-time employees of the City who meet certain established goals, aims, program, and other deliverables as outlined in the Ordinances. In granting the City’s motion for summary judgment, the Court noted that no evidence was presented to show that the one-time payment was gratuitous in nature and that it was for future services to be rendered. This ruling is applicable only to the City of Alexandria’s enumerated ordinances.

Public entities who wish to provide a one-time salary supplement to their employees should discuss with their legal counsel, including possibly seeking an Attorney General Opinion, to ascertain whether such payment would be in compliance with Art. VII, §14 of the Louisiana Constitution and not otherwise prohibited by law.