Louisiana

Buying workers’ compensation for:

Louisiana

State Fund: Yes, Competitive

Insurance Coverage Requirements: Workers’ Compensation is compulsory in Louisiana, some waivers are permitted.

Who is Required to Purchase Workers’ Compensation Coverage?

All public and private employers in Louisiana, with limited exceptions, are required to provide workers’ compensation insurance coverage for their employees. Any person hired to perform services for remuneration, whether full or part-time, is considered an employee.

The following is a list of exempt employees.

1. Any employee of a private residential householder or any employee of a private unincorporated farm
2. Musicians and performers who are rendering services pursuant to a performance contract
3. Employees covered by the Federal Employer’s Liability Act, the Longshoremen’s and Harbor Workers’ Compensation Act, or any of its extensions, or the Jones Act
4. Any employer acting as a common carrier while engaged in interstate or foreign commerce by railroad
5. Members of crews of any airplane engaged in dusting or spraying operations
6. Uncompensated officers and uncompensated members of boards of directors of certain nonprofit organizations
7. Any real estate broker or salesmen licensed to do business in the State of Louisiana
8. Any landman rendering services relating to the exploration, development, production, or transportation of minerals

Where applicable, an employee who falls under these exemptions may seek tort recovery for injuries arising out of such labor, work, or services from any insurance policy that a homeowner or employer may have which extends coverage to persons injured on their premises.

Factors that Impact Coverage

  • You are a real estate agent: If you are licensed to conduct business in Louisiana, you are exempt from carrying workers’ compensation insurance.
  • You are a sole proprietor or partner: In Louisiana, you are included in coverage but have the option to exclude yourself.
  • You are a corporate officer: You are included in coverage but have the option to exclude yourself.
  • You are a member of an LLC: Louisiana includes you in coverage, but you have the option to exclude yourself if you own 10% or more of the company.

Failure to Secure Compensation

The penalty for not maintaining current workers’ compensation coverage as required by law the employee or the legal dependent of a deceased employee may elect to sue the direct employer for all legal damages.

Proof of Coverage is Required

The employer must keep posted at some convenient and conspicuous point in his place of business a notice reading substantially as follows:

"In case of accidental injury or death, an injured employee or any person claiming to be entitled to compensation either as a claimant or as a representative of a person claiming to be entitled to compensation must give notice to (name and address of employer) within thirty days. If notice is not given to the above party within thirty days, no payments will be made under the law for such injury or death. In addition, any fraudulent action by the employer, employee, or any other person for the purpose of obtaining or defeating any benefit or payment of worker’s compensation shall subject such person to criminal as well as civil penalties.

If the employer fails to keep a notice posted, the time in which the notice of injury must be given will be extended to twelve months from the date of injury.

Independent Contractors

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties.

View 20 factors used by the IRS and our independent contractor questionnaire to determine whether you have enough control over a worker to be an employer.

Other Tips

If your insured employs workers in multiple states or your insured’s employees are temporarily working out-of-state, they need to purchase insurance for all the states where their workers are located, according to each state’s laws. Call 1-800-476-2948 and let us walk you through it.

The nature of your insured’s business, number of employees being covered and past coverage and claims are all factors in how much their premium will cost.