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Small Business Work Comp Requirements in Louisiana

Unlike other small business policies, workers’ compensation is regulated at the state level, so rates and coverage requirements also differ from state to state. Almost universal, however, is that employers are legally required to carry workers’ compensation insurance that covers all employees on their payroll.

Louisiana small businesses are generally required to carry workers’ compensation insurance.

Businesses with one or more employees working in Louisiana must carry a workers’ compensation insurance policy. This includes may be full-time, part-time, seasonal workers and minors.

Some exceptions include:

Subcontractors: Unless considered an employee, subcontractors won’t be covered by the company’s insurance policy and may be asked to provide proof of work comp. In specific situations, subcontractors or independent contractors may be considered employees if performing “substantial manual labor.”
Real estate agents: If licensed to conduct business in Louisiana, real estate agents are exempt from carrying workers’ compensation insurance.
Sole proprietors, corporate officers and partners: In Louisiana, they are counted as employees and included in coverage, but have the option to exclude themselves.
LLC members: Louisiana includes members in coverage, but they have the option to exclude themselves if they own 10% or more of the company.
Domestic employees, uncompensated officers and directors of certain non-profit organizations, and public officials might be specifically exempted.

An expert in workers’ compensation insurance can help you determine which employees can choose to exclude themselves, and help you comply with your state’s laws.

Coverage and Rates in Louisiana

A Louisiana small business workers’ compensation policy will vary in cost based on payroll, industry and claims history. A work comp policy protects both employee and employer from risk when a worker is injured on the job. This means that the cost is going to be dictated by the size of your workforce and the type of work employees do.

Louisiana is one of the safest states for workers, with some of the lowest rates of workplace injuries nationwide. Still, costs remain high compared to other states and has some of the highest work comp costs per claim. Critics point to high medical costs and a complex system as possible culprits.

Rates have declined over the past decade, just not at the same rate as other states.

Contact the Louisiana Workforce Commission for information on controlling worker health and safety. Companies that participate in the commission’s educational programs may be able to reduce their workers’ compensation premiums.