Riser (SB 198) Act No. 375
Prior law provided that an employer doing business in the state must provide workers'
compensation coverage for the employees of the business.
Prior law provided 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. Prior law provided that the workers' compensation insurer shall file
notice of coverage with the director of the office of workers' compensation with the
Workforce Commission.
New law retains prior 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.
New 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.
Prior law provided that in addition to any other penalty prescribed by law, any employer who
fails to secure compensation required by prior law shall be liable for a civil penalty, to be
assessed by the executive director or his designee, of not more than $250 per employee for
a first offense, and liable for a civil penalty of not more than $500 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.
New law retains prior 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.
New 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.
Prior law provided 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. Prior law provided that the financial
and compliance officer shall assess a penalty commensurate with the violation so adjudged.
Prior law provided 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.
New law retains prior 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.
Prior law provided 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. Prior law provided 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.
New law retains prior 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.
New 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))