Workers' compensation is vital for the security and stability of your employees and your business. Like all states, Louisiana requires that most companies carry workers' compensation insurance for all employees.
Requirements differ by state, so you need to understand what the specific requirements in Louisiana are so that you can stay compliant and avoid the consequences of not having workers' compensation.
Who Must Have Workers' Compensation Insurance in Louisiana?
All companies that have at least one employee must have workers' comp insurance. Sole proprietors and partnerships that have no employees and no unpaid volunteers including family members do not have to carry insurance. Note that this is stricter than many states, which do allow you to ask a family member to do a business task here and there without triggering the requirement for workers' comp insurance. You also have to carry insurance on subcontractors.
Companies that operate in Louisiana but are located out of state are required to abide by the rules of their own state, but must be covered to operate in Louisiana.
What Are the Consequences of Not Carrying Workers' Compensation?
In Louisiana, you can be fined up to $250 per employee for a first violation, and $500 for subsequent violations, with a cap of $10,000. You may also be charged with a crime for wilfully failing to provide insurance, saying you have it when you don't, or trying to lower your premiums by, say, giving incorrect worker classification.
You might also be shut down via injunction until you compy.
Also, if you don't have insurance and somebody is injured, they can, and likely will, sue you, which will be far more expensive than having insurance. The Office of Workers' Compensation has an anonymous reporting form that allows workers to safely report their employers.
Louisiana requires that you display a poster in your workplace with the name and contact information for your carrier. Workplace technically includes the home of people working for you.
Who is Exempt From Workers' Comp Coverage in Louisiana?
While no businesses are exempt, certain types of employees and jobs are exempt. These include:
- Employees of a private residence, that is to say domestic servants
- Employees of a private, unincorporated farm
- Musicians and performers under contract
- Employees who are covered by a different insurance system, such as the Jones Act or the Longshoremen's and Harbor Workers' Compensation Act.
- Railroad employees
- Airplane crews engage in crop dusting or spraying
- Uncompensated officers and board members of nonprofit organizations.
- Real estate brokers and salesmen
- Services related to the exploration, development, production, or transportation of minerals.
- Somebody who owns at least 10% of a business and chooses not to cover themselves, unless a contract requires it.
These people are typically covered by some other form of insurance. For example, performers may be covered by their own insurance or venue insurance, while domestics and cleaning staff are covered by homeowners' insurance.
Independent contractors don't have to be covered, but you should be very careful to avoid misclassifying employees.
When Do Injuries Have to be Reported?
All injuries that result in death or more than a week off work have to be reported to the Office of Workers' Compensation within 10 days, by the employer. There's a special form for this. You still have to report the injury even if no claim is filed (for example, if somebody takes time off, but seeks little or no medical attention).
Claims must be filed within one year.
What Doctor Can You See?
Most states require that workers' comp insurers cover treatment from any qualified provider. Louisiana, however, allows employers to require that you also see a doctor they designate.
Louisiana's workers' compensation laws are fairly standard, but note that if you operate in Louisiana, the state may require that you prove your workers' comp insurance coverage even if neither your headquarters or the employee's home is in Louisiana. Making sure you keep up with state requirements helps you avoid substantial penalties and possibly lawsuits.
If you are an employee, you have a right to adequate workers' comp coverage. At Schwartz Law we can help you if you have a dispute with your employer and make sure you get the compensation you need.