Workers' comp laws in Louisiana
Louisiana requires workers' comp for every employee, with no minimum headcount, and the Louisiana Workforce Commission's Office of Workers' Compensation Administration enforces it. Owners opt out only in writing with the insurer, and the fine is counted per employee.
- No minimum headcount. The exceptions are small household and farm jobs and contract performers.
- An owner with 10% or more opts out only in writing with the insurer. There is no state form.
- The fine is up to $250 per employee on a first offense, capped at $10,000.
Do I have to carry workers' comp in Louisiana?
Yes, if anyone works for you as an employee. The statute sets no minimum number of employees and exempts only a few narrow kinds of work.
Insurance that pays an employee's medical bills and lost wages after a work injury is called workers' compensationWorkers' Compensation Insurance that pays medical bills and lost wages when an employee is hurt or sick because of work. Insurers call it workers' compensation. more →, or workers' comp.
Household work and unincorporated-farm work are exempt only if the worker earns $1,000 or less a year, all the farm's workers together earn $2,500 or less, and the work is not part of a business. Performers under contract are exempt too. (Source: La. R.S. 23:1035) A hotel need not cover a band it books, but its banquet and bar staff are covered. A food manufacturer's farm arm gets little from the farm rule.
The state's coverage verification service shows which insurer held an employer's policy on a given date. (Source: Louisiana Workers' Compensation Corporation) The other seven states are on the index of workers' comp laws by state.
Who counts as my employee in Louisiana?
Independent contractors are outside the law unless the work is substantially manual labor. A business that contracts out its own regular work can owe comp to the contractor's crew.
A contractor does non-manual work for set pay, controlled only as to the result. If much of the working time is manual labor, the worker is covered anyway. (Source: La. R.S. 23:1021) Act 133 of 2026, in effect since August 1, 2026, widens that definition to employees of contractors who are also substantially engaged in manual labor. (Source: Louisiana Legislature, Act 133 digest) An online seller using gig or delivery workers should test them against it. See what changes when you hire.
A business that contracts out work belonging to its own trade becomes the contractor's statutory employer and must pay comp to the contractor's workers. (Source: La. R.S. 23:1061) A wholesaler, distributor or importer that hires haulers to fill a customer contract takes on that status automatically. A trucking owner-operator is a contractor only under a written contract with a carrier. A commercial landlord is a statutory employer only for work in its own trade.
What goes in payroll?
Pay to employees, less tips and a few other items. Owners and officers are covered unless they opt out in writing.
A restaurant meets two rules here. Tips stay out of the payroll insurers charge on. (Source: NCCI Rule 2-B, 2020 filing bulletin) The second is the owner's own pay: an officer or LLC member holding at least 10%, a partner, or a sole proprietor may opt out by written agreement with the insurer. Louisiana has no state form, and the owner's pay stays out of the premium. (Source: La. R.S. 23:1035)
An owner who stays in is rated on a band. For policies effective May 1, 2026 to April 30, 2027, one carrier's sheet lists $59,800 to $182,000 for corporation and LLC officers and $60,800 for sole proprietors and partners. (Source: LUBA officer payroll sheet, May 2026) The year-end check, a premium audit, tests the real figures; see the guide to it.
Who sets the rate in Louisiana?
NCCI files the yearly base rates and the Louisiana Department of Insurance approves the change; a 9% cut took effect in May 2024. (Source: Business Insurance) A state-created mutual insurer is the safety net.
Oregon's 2024 comparison ranks Louisiana's $1.41 per $100 of payroll ninth from the top, at 129% of the median. (Source: Oregon Department of Consumer and Business Services) Your claims record then moves your price through an experience modification factorExperience Modification Factor (E-Mod) A number, with 1.0 as average, that raises or lowers your workers' compensation price based on your claims compared with similar businesses. Insurers call it the experience modification factor. more →, a number where 1.0 is average.
The Louisiana Workers' Compensation Corporation, created by Act 814 of 1991, is a private nonprofit mutual, not a state agency. It takes employers that tried in good faith and could not buy coverage elsewhere. (Source: La. R.S. 23:1393) A grocery store turned down elsewhere has it to turn to. Our workers' comp coverage page covers the policy.
What about workers in other states?
An employee hurt outside Louisiana gets Louisiana benefits if the job is principally based here or the hiring contract was made here. The statute sets no number of days out of state.
Benefits paid by another state do not bar a Louisiana claim. (Source: La. R.S. 23:1035.1) With no day count, a commercial fleet should record each driver's home base and where the hire was made. The Corporation's policies may cover out-of-state work by Louisiana insureds, up to 20% of its comp premiums and 30% of any one insured's premium. (Source: La. R.S. 23:1393) See the guide to opening in a new state.
What happens if I don't carry it?
A judge can fine you up to $250 per employee on a first offense and $500 after that, capped at $10,000 the first time. Without proof of coverage 45 days after the order, you can be ordered to stop operating.
After notice, you have 15 days to prove coverage. (Source: La. R.S. 23:1171.1) A restaurant depot with a big crew of loaders and drivers feels the headcount rule most. Take a crew of 60 with no coverage; the administrator can also reduce a fine. (Source: La. R.S. 23:1170)
| What happens | Amount |
|---|---|
| The business has this many employees and no coverage | 60 |
| The most the judge can set per employee on a first offense | $250 |
| Multiplied out, that comes to (60 × $250) | $15,000 |
| But a first offense is capped, so the most the judge can set is | $10,000 |
Illustration only, with round numbers. It is not a statement of what any agency would assess; the statute and the agency's schedule govern.
Willful failure is also a crime: a fine of up to $250 a day, up to a year of imprisonment, or both. (Source: La. R.S. 23:1172) An injured worker's benefits rise 50% if the employer was uninsured. (Source: La. R.S. 23:1171.2)
Frequently asked questions about workers' comp in Louisiana
Louisiana generally shields employers from employee lawsuits. One that knowingly went without coverage can be sued if it leaves a final comp judgment unpaid for 60 days after appeals and no insurer has paid.
For an employee who lives in Louisiana, yes, if the choice is stated clearly in a written contract signed before the injury and Louisiana has jurisdiction.
Workers under the federal railroad, longshore and Jones Act systems are not. Ask your agent which federal coverage applies.
Not sure which Louisiana rule you fall under?
Tell us who works for you, and we will help you sort out which rules apply.