Key Takeaways
- Louisiana requires workers' compensation insurance for employers with 1 or more employees
- Coverage is required even for part-time, temporary, and seasonal employees
- Workers' compensation is administered by the Office of Workers' Compensation in the Department of Workforce Development
- Benefits include medical expenses, disability payments, and death benefits
- Penalties for non-compliance include fines up to $10,000 and potential criminal charges
Louisiana Workers' Compensation Insurance
Louisiana has mandatory workers' compensation insurance requirements for virtually all employers. The system is administered by the Office of Workers' Compensation Administration (OWCA) within the Louisiana Workforce Commission.
Coverage Requirements
When Coverage is Required
Louisiana requires workers' compensation insurance when you have:
| Threshold | Requirement |
|---|---|
| 1+ employees | Coverage required immediately |
| $3,000+ annual payroll | Alternative threshold |
| Any employees | Part-time, full-time, temporary, seasonal |
Who is Covered
| Covered | Not Typically Covered |
|---|---|
| Full-time employees | Sole proprietors (may elect coverage) |
| Part-time employees | Partners (may elect coverage) |
| Temporary workers | LLC members (may elect coverage) |
| Seasonal workers | Independent contractors |
| Leased employees | Some agricultural workers |
| Minors | Domestic servants (limited exemption) |
Corporate Officers
| Officer Status | Coverage Requirement |
|---|---|
| General rule | Considered employees, must be covered |
| Opt-out allowed | Officers owning 10%+ of company may opt out |
| Written election | Must be done in writing to insurer |
| Limited to | Corporate officers only, not regular employees |
How to Obtain Coverage
Options for Louisiana Employers
-
Private Insurance Company
- Most common method
- Licensed to write workers' comp in Louisiana
- Competitive market
-
Louisiana Workers' Compensation Corporation (LWCC)
- Nonprofit mutual insurance company
- State's largest workers' comp insurer
- Serves employers who may have difficulty finding coverage
-
Self-Insurance
- Requires approval from Office of Workers' Compensation
- Must demonstrate financial capability
- Typically for large employers
Group Self-Insurance
Louisiana allows group self-insurance programs:
- Multiple employers pool resources
- Must be approved by OWCA
- Common in specific industries
Exam Tip: Louisiana requires workers' compensation for employers with just ONE employee. This is different from states like Wisconsin that require coverage only with 3+ employees.
How many employees must a Louisiana employer have before workers' compensation is required?
Workers' Compensation Benefits
Louisiana workers' compensation provides comprehensive benefits for workplace injuries and occupational diseases.
Medical Benefits
| Feature | Description |
|---|---|
| Coverage | All reasonable and necessary medical treatment |
| Employee cost | No deductible or copay |
| Duration | As long as medically necessary |
| Choice of physician | Employee can choose from approved providers |
| Travel expenses | Mileage reimbursement for medical appointments |
Disability Benefits
Temporary Total Disability (TTD)
- For employees who cannot work during recovery
- Benefit: 66.67% of average weekly wage
- Subject to state maximum (updated annually)
- Waiting period: 7 days (waived if disability exceeds 14 days)
- Duration: Until maximum medical improvement
Temporary Partial Disability (TPD)
- For employees who can work but at reduced capacity
- Benefit: 66.67% of wage difference
- Encourages return to work
Permanent Partial Disability (PPD)
- For lasting impairment after recovery
- Schedule of benefits by body part
- Based on percentage of impairment
- May be paid after TTD ends
Permanent Total Disability (PTD)
- For employees who cannot return to any work
- Benefit: 66.67% of average weekly wage
- Paid for life
- Subject to state maximum
Supplemental Earnings Benefits (SEB)
Louisiana provides SEB for employees who:
- Return to work at reduced wages
- Benefit: 66.67% of wage difference
- Can continue for up to 520 weeks
Death Benefits
| Benefit | Amount |
|---|---|
| Burial expenses | Up to $8,500 (2026) |
| Spouse benefits | 32.5% of AWW (no dependent children) |
| Spouse + 1 child | 46.25% of AWW |
| Spouse + 2+ children | 66.67% of AWW |
| Duration | Various based on circumstances |
Exam Tip: Louisiana workers' compensation pays 66.67% (two-thirds) of average weekly wages for disability benefits. Know this percentage and the 7-day waiting period.
What is the waiting period before Louisiana workers' compensation disability benefits begin?
Penalties for Non-Compliance
Employer Penalties
| Violation | Penalty |
|---|---|
| First violation | Up to $250 per employee |
| Subsequent violation | Up to $500 per employee (max $10,000) |
| Willful violation | Criminal charges possible |
| Operating without coverage | May be ordered to cease operations |
Consequences of Non-Compliance
- Financial penalties: Significant fines per employee
- Personal liability: Employer liable for all injury costs
- Loss of exclusive remedy: Employee can sue in civil court
- Criminal prosecution: For willful violations
- Business shutdown: Court order to cease operations
Exclusive Remedy Doctrine
How It Works
- Workers' compensation is the sole remedy for workplace injuries
- Employees cannot sue employer in civil court
- Employer immune from negligence lawsuits
- Trade-off for guaranteed benefits
Exceptions
- Intentional acts by employer
- Certain third-party claims
- Dual capacity situations
Reporting and Claims Process
Employer Responsibilities
| Duty | Timeframe |
|---|---|
| Report injury to insurer | Within 10 days of knowledge |
| Post required notices | At all times in workplace |
| Maintain records | Injury logs and payroll records |
| Cooperate with claims | Provide information as requested |
Employee Responsibilities
| Duty | Timeframe |
|---|---|
| Report injury to employer | Within 30 days |
| File claim | Within 1 year (or 3 years for occupational disease) |
| Cooperate with treatment | Follow medical recommendations |
Louisiana Workers' Compensation Corporation (LWCC)
LWCC is Louisiana's largest workers' compensation insurer:
Key Features
- Nonprofit mutual insurance company
- Serves employers of all sizes
- Focus on Louisiana businesses
- Safety and loss prevention programs
- Dividend program for policyholders
When to Use LWCC
- Cannot find coverage in voluntary market
- Want a Louisiana-focused insurer
- Need safety and prevention resources
- Prefer potential dividend returns
Exam Tip: Penalties for failing to maintain workers' compensation in Louisiana include fines up to $250 per employee for first violation and up to $500 per employee (maximum $10,000 total) for subsequent violations.
What is the maximum total penalty for a subsequent violation of workers' compensation requirements in Louisiana?
Which Louisiana organization is the state's largest workers' compensation insurer?