Is Louisiana Workers’ Compensation insurance required?
Workers’ compensation insurance is required for all Louisiana employers with one or more employees, according to the Louisiana Workforce Commission. This includes full-time, part-time and seasonal workers as well as employees who are minors.
Subcontractors and independent contractors may also be considered employees if they’re performing substantial manual labor or involved in the pursuit of the employer’s business. Employers should inquire with their insurance carrier if they’re not sure whether these types of workers must be covered.
In Louisiana, workers’ compensation insurance entitles workers to certain benefits if they’re injured on the job, including:
- Medical care
- Lost wages
- Vocational rehabilitation
- Death benefits
How does Workers’ Comp work in Louisiana?
In Louisiana, workers’ comp covers physical injuries as well as occupational diseases. Certain mental injuries which result from a physical injury or from sudden, extreme stress related to their employment are also covered.
The following types of benefits may be paid directly to the employee:
- Medical expenses
- Lost wages
- Temporary and permanent disability benefits
- Survivor benefits
Workers’ compensation income benefits in Louisiana include:
Temporary total disability: The employee suffers an injury that causes them to be unable to work until they reach a certain level of recovery.
Permanent total disability: The employee’s injury limits their ability to perform any type of work on a permanent basis.
Supplemental earnings benefits: The employee is able to return to work, but is unable to earn at least 90% of their pre-injury wage.
When an employee dies within two years of the last treatment as the result of any job-related accident, their surviving spouse and/or dependents may be entitled to death benefits. A one-time benefit may be paid to each surviving parent if the employee has no surviving dependents. Additionally, workers’ comp will cover reasonable burial expenses up to $8,500.
In addition to getting the required insurance, Louisiana employers must report any injury or death to their insurer within 10 days.
Business owners must also post a notice in a convenient and conspicuous location in their workplace which includes:
- Reporting instructions for occupational injury or disease.
- How to file a formal claim.
- Contact information for the Office of Workers’ Compensation Administration.
- Contact information for the employer, employer representative and insurance company.
Any employees hired in Louisiana must be covered by a policy from an insurance company authorized to conduct business in Louisiana. If out-of-state employees work within Louisiana, their out-of-state employer can cover them with a policy from their home state — as long as that coverage extends to operations in Louisiana.
Learn more about workers’ compensation coverage.
How much is Louisiana Workers’ Comp?
Workers’ compensation costs vary across industries. Factors that influence price include:
- The number of employees and the type of work they do
- Your total payroll
- Your insurance claims history
- The locations where you do business
The best way to determine the insurance rate for your business is to get a free instant quote from NEXT.
What if you don’t have Workers’ Compensation in Louisiana?
Employers can be fined up to $250 per employee for first violations and $500 per employee for subsequent violations for failure to carry workers’ comp insurance. Louisiana businesses may also be charged with criminal violations for certain offenses, like willful failure to provide workers’ comp or providing false information to reduce insurance premiums.
If an employer is found to be in violation of laws for workers’ comp in Louisiana, they may be served an injunction which prevents them from doing further business until the matter is resolved.
Who is exempt from Louisiana Workers’ Compensation insurance?
There are a limited number of exceptions to the requirements for workers’ compensation. Louisiana laws do not require coverage for the following employees:
- Domestic employees
- Public officials
- Most volunteer workers
- Most real estate salespeople
- Unpaid officers and directors of certain non-profit organizations
Business owners in Louisiana may not be required to carry workers’ compensation insurance for themselves if they fall into one of the following categories:
- The business is owned by a single individual with no employees or subcontractors and it’s not a corporation.
- The business is a partnership according to Louisiana law and has no employees or subcontractors.
- The business is a corporation owned by one or two people, and those individuals own all of the stock, hold all the offices of the corporation and have no employees or subcontractors.
Even if you don’t need to have workers’ comp coverage based on these exemptions, some clients require a business to have it to meet the obligations of a contract.
Employers can apply to the Louisiana Office of Workers’ Compensation Administration if they wish to self-insure, which means that they agree to pay workers’ comp benefits directly to their employees themselves. A self-insurance application has a checklist of items including:
- Evidence that the business is currently in compliance with workers’ compensation laws.
- Three years of audited financial statements.
- Three years of workers’ comp loss runs.
- $100 application fee.
If the application is approved, the employer will be required to post security in an amount determined by the Office of Workers’ Compensation Administration.
How NEXT helps Louisiana small business owners
NEXT offers an easy way to get a free workers’ compensation insurance quote, purchase coverage and instantly share a certificate of insurance in about 10 minutes.
NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.
Start a free instant quote with NEXT.