The original instrument was prepared by Carla S. Roberts. The following digest,
which does not constitute a part of the legislative instrument, was prepared by
Cathy R. Wells.
DIGEST
Riser (SB 198)
Present law provides that an employer doing business in the state of Louisiana must provide
workers' compensation coverage for the employees of the business.
Present law provides that an employer may provide statutorily required workers' compensation
coverage for employees by purchasing coverage from a stock corporation, mutual association, or
other concern authorized to transact the business of workers' compensation insurance in this
state. Present law provides that the workers' compensation insurer shall file notice of coverage
with the director of the office of workers' compensation with the Workforce Commission.
Proposed law retains present law but changes the requirement that the notice of coverage be sent
to the National Council on Compensation Insurance instead of the director of the office of
workers' compensation.
Proposed law provides that proof of coverage must be filed no later than 30 days after the
effective date of coverage and include the name of each business entity operating in the state of
La. for which coverage has been obtained.
Present law provides that in addition to any other penalty prescribed by law, any employer who
fails to secure compensation required by present law shall be liable for a civil penalty, to be
assessed by the executive director or his designee, of not more than $250.00 per employee for a
first offense, and liable for a civil penalty of not more than $500.00 per employee for a second or
subsequent offense; however, the maximum civil penalty for a first offense shall not exceed
$10,000 for all related series of violations.
Proposed law retains present law but provides that a workers' compensation judge shall assess
any civil penalty against an employer who fails to provide proof of compliance within 15 days of
any notice.
Proposed law provides that, in addition to any penalties assessed, the workers' compensation
judge shall order the employer to provide proof of workers' compensation coverage within 45
days of the order.
Present law provides that the financial and compliance officer shall determine, based upon all of
the evidence submitted by the employer, a fair and equitable resolution of the violation, taking
into consideration any mitigating circumstances. Present law provides that the financial and
compliance officer shall assess a penalty commensurate with the violation so adjudged. Present
law provides that any appeal regarding a disputed claim shall be decided in the district court in which the business of the employer is located or East Baton Rouge Parish.
Proposed law retains present law but provides that the workers' compensation judge shall
conduct the hearing on the matter and an appeal may be made in the appropriate circuit court of
appeal.
Present law provides that the director shall investigate an employer if he receives information
from any person or entity that such employer has failed to provide workers' compensation
coverage for his employees. Present law provides that if such allegations can be reasonably
substantiated, the director, shall notify the employer that, unless he can show proof of coverage,
he may be subject to further fines and penalties including but not limited to an injunction against
further business operations.
Proposed law retains present law but provides that if such allegations can be reasonably
substantiated and the employer has been fined or penalized under, the director, or his designee,
shall notify the employer that unless he can show proof of coverage within 15 days, the employer
will be subject to further fines and penalties including but not limited to an injunction against
further business operations.
Proposed law provides that if within 15 days of the employer's receipt of such notice he has not
submitted to the director satisfactory proof of such compliance, the director or his designee shall
request the workers' compensation judge of any district where the employer does business to set
the matter for hearing and the workers' compensation judge shall issue a rule to show cause to the
employer why he should not be fined or penalized for failure to show proof of workers'
compensation coverage.
Effective August 1, 2014.
(Amends R.S. 23:1168(A)(1) and (4) and (B), 1170(A) and (B), 1171, 1171.1, and 1291(C)(5);
adds R.S. 23:1170(C); repeals R.S. 23:1168(A)(5))
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Makes technical corrections, including citation.