Pursuant to Louisiana Revised Statute (L.R.S.) 23:1225 (A) or (C) of the Louisiana Workers' Compensation Act, an employer and/or its insurer may have the right to reduce an employee's workers' compensation wage benefits because the employee is receiving additional benefits from another source, such as the Social Security Administration. The employer and/or its insurer has requested that our office provide information regarding the employee's receipt of Social Security benefits.
L.R.S. 23:1225 provides in pertinent part:
The benefits provided for in [the Workers' Compensation Act] for injuries producing permanent total disability shall be reduced when the person [is] receiving [Social Security Disability benefits]…provided that this reduction shall be made only to the extent that the amount of the combined federal and workers' compensation benefits would otherwise cause or result in a reduction of the benefits payable under the [Social Security act].
If an employee receives remuneration from:
Benefits under the Louisiana Workers' Compensation Law.
Benefits under disability benefits plans in proportion funded by an employer.
Then compensation benefits under this Chapter shall be reduced, unless there is an agreement to the contrary between the employee and the employer liable for payment of the workers' compensation benefit, so that the aggregate remuneration form Subparagraphs (a) through (d) of this Paragraph shall not exceed sixty-six and two-thirds percent of his average weekly wage.
You may also refer to Garrett v. Seventh Ward General Hosp., 660 so.2d 841 (La. 1995), whereby the Louisiana Supreme Court explains both provisions and allowed reduction of workers' compensation benefits when the employee was receiving workers' compensation benefits and social security disability benefits at the same time.
The parties will be contacted by the local Office of Workers' Compensation regarding future conferences, hearings, etc.
NOTE: Any Reduction In Your Workers' Compensation Benefits Will NOT Affect The Employer's / Insurer's Obligation Under The Statute To Furnish And Pay For Medical Care In Connection With Your Employment-Related Injury.
If you have any questions concerning this matter, contact the local OWCA District Office nearest you.
Download Form 1004 (PDF) (LWC-WC-1004 Rev. January, 1998)
(This form is semi-interactive and may be filled out online.)