Who Must Carry Workers' Compensation Insurance in Louisiana

Who Is Required to Carry Workers' Compensation in Louisiana

Louisiana law mandates that almost every employer provide workers' compensation coverage for employees who perform any work for the business. The statute does not distinguish by industry or wage level; the obligation exists as soon as a person is hired, paid, or assigned to a job within the company's operations.

Exemptions and Special Cases

Only a handful of employers are exempt from purchasing workers' compensation insurance. These include:

• Owners of sole‑person corporations, partnerships, or LLCs who employ no one other than themselves.
• Employers who hire a single employee who is a spouse or a child under 18 years of age and the employee's salary is less than $500 per year.
• Employers who hire a single employee who is a spouse or a child under 18 years of age and the employee's salary is $500 or more per year, if the employer elects the "small business exemption" by filing a written statement with the Department of Labor.

All other employers—whether they have a single worker or hundreds—must obtain a workers' compensation policy from a licensed insurer or the state‑funded workers' compensation fund.

Why the State Requires Coverage

The purpose of the coverage is to provide medical care, wage replacement, and rehabilitation for employees who are injured on the job. Without insurance, an employer faces potential civil liability, fines, and the administrative burden of managing claims.

How to Verify Compliance

Employers should keep a copy of their workers' compensation policy and proof of payment. The Louisiana Department of Labor maintains a public registry of employers who have filed for coverage. A quick check of the registry confirms whether an employer is compliant.

Common Misconceptions

Many small business owners assume that if they have fewer than five employees, coverage is optional. That is false; the law does not provide a threshold based on headcount. The only exemptions are the ones listed above.

Penalties for Non‑Compliance

Failure to carry required insurance can result in civil penalties, suspension of business licenses, and criminal charges for willful non‑compliance. Employers who ignore the law risk significant financial and legal consequences.