Employers in Louisiana are required to maintain workers’ compensation insurance even if they only have one employee. This includes part-time, full-time, temporary, or seasonal employees.
Businesses may obtain insurance by:
There are certain employees exempt from coverage under the law. Some include:
If you’re not sure, contact the Office of Workers’ compensation at (800) 201-3362 or by email at WCFraud@lwc.la.gov.
Workers’ compensation premiums are determined by several factors including your total annual payroll, the type of work your employees are engaged in, and your business’s past accident history.
Under Louisiana law, there are situations where you may not have to carry workers’ compensation insurance if you have no employees. Some situations include:
Please note that there are times when you may have to obtain workers’ compensation insurance on yourself due to contractual obligations.
Louisiana issues no such exemption forms.
Business owners and certain officers of a corporation may choose to exempt themselves from a workers’ compensation insurance policy only if they own at least 10% of the company. This exemption must be done in writing to the insurance company.
Louisiana has very specific laws regarding misclassification of employees as independent contractors. Anyone meeting the true definition of an employee must be treated as such and provided with workers’ compensation insurance. If you’re not sure if an independent contractor should be treated as an employee, take the test by clicking here.
You may be. If you hire any uninsured contractors or subcontractors to perform any work which is a part of your trade or business, you may be responsible for paying any workers’ compensation benefits if they are injured and you can be charged a premium by your insurance carrier for the cost of the contract.
Click here to perform a workers’ compensation coverage verification search.
No. Louisiana law makes is very clear that employers cannot withhold premium payments from their employees to pay for workers’ compensation insurance. This includes employees misclassified as independent contractors. Employers found in violation may face serious civil and criminal fines as well as possible incarceration.
Yes. Employers who fail to carry workers’ compensation insurance can be fined up to $250 per employee for a first violation and $500 per employee for subsequent violations up to $10,000. Additionally, an employer can be charged with criminal violations for his/her willful failure to provide workers’ compensation insurance, for providing false information in regard to having a workers’ compensation insurance policy, or for providing false information in order to reduce his/her workers’ compensation insurance premium. Employers in violation of the laws regarding workers’ compensation insurance may be served an injunction against doing further business until a policy is obtained and proof is provided to the Office of Workers’ Compensation.
If an out-of-state employer operates in Louisiana with employees of its own state, the owner must provide coverage in accordance with the laws of his state as long as the coverage extends to operate within the borders of Louisiana.
If employees are hired in Louisiana, the employer must provide a policy from an insurance company authorized to conduct business in Louisiana.