HLS 25RS-397 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 280
BY REPRESENTATIVE MELERINE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
WORKERS COMPENSATION: Provides relative to the collection of workers'
compensation premiums
1 AN ACT
2To amend and reenact R.S. 23:1172.3, relative to workers' compensation premiums; to
3 provide for the collection of workers' compensation premiums under certain
4 circumstances; to require notification; to provide for premiums audits; to make
5 technical corrections; to provide for an effective date; and to provide for related
6 matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 23:1172.3 is hereby amended and reenacted to read as follows:
9 ยง1172.3. Recovery of past Collection of payments of workers' compensation
10 premiums prohibited; premium audits
11 A. Notwithstanding any other provision of law to the contrary, no An insurer
12 shall be allowed to recover a past due not collect a payment of workers'
13 compensation premiums from an insured arising out of a claim for the
14 misclassification of an employee premium audit, unless the insurer provides written
15 notice to the insured within ninety days of the completion of the premium audit by
16 certified mail, commercial courier, or via electronic transmission, within ninety days
17 of the completion of the payroll audit.
18 B. In the event that an insurer conducts a payroll audit, which shall serve as
19 notice to the insured in accordance with Subsection A of this Section, the insurer
20 shall be prohibited from collecting additional workers' compensation premiums from
21 the insured.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 25RS-397 ORIGINAL
HB NO. 280
1 C. Notwithstanding any other provision of law to the contrary, no An insurer
2 shall be allowed to not modify or complete a payroll premium audit more than three
3 years after the end of the policy period. This Subsection shall not apply to the
4 following:
5 (1) A misrepresentation or omission of relevant information during a prior
6 premium audit.
7 (2) A noncompliant payroll An insured's noncompliance with a premium
8 audit.
9 (3) A payroll premium audit disputed by an insured.
10 (4) Any modification or review related to a fraud investigation.
11 (5) Reclassification due to a determination by a court of competent
12 jurisdiction.
13 D. C. Nothing in this Section shall preclude or require an insurer from
14 returning Notwithstanding anything in this Section to the contrary, a workers'
15 compensation insurer may return premiums to the insured if, as a result of a premium
16 audit, the insurer receives relevant information after the audit is completed
17 determines the insured is entitled to a refund.
18 E. D. The provisions of this Section shall not apply to self-insurance funds.
19 Section 2. This Act shall become effective upon signature by the governor or, if not
20signed by the governor, upon expiration of the time for bills to become law without signature
21by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
22vetoed by the governor and subsequently approved by the legislature, this Act shall become
23effective on the day following such approval.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 280 Original 2025 Regular Session Melerine
Abstract: Allows an insurer to collect a payment of workers' compensation premiums
under certain circumstances.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 25RS-397 ORIGINAL
HB NO. 280
Present law prohibits an insurer from collecting a past due payment of workers'
compensation premiums from an insured for a claim that arises out of the misclassification
of an employee, unless the insurer provides written notice to the insured by certified mail,
commercial courier, or via electronic transmission within 90 days of the completion of the
payroll audit.
Proposed law instead prohibits an insurer from collecting a payment of workers'
compensation premiums from an insured arising out of a premium audit, unless the insurer
provides written notice to the insured by certified mail, commercial courier, or via electronic
transmission within 90 days of the completion of the premium audit.
Present law prohibits an insurer from collecting additional workers' compensation
premiums, if the insurer conducts a payroll audit, which shall serve as notice to the insured.
Proposed law repeals present law.
Present law prohibits an insurer from modifying or completing a payroll audit more than 3
years after the end of the policy period.
Proposed law instead prohibits an insurer from modifying or completing a premium audit
more than 3 years after the end of the policy period and makes technical corrections.
Present law provides the following exceptions for instances where the provisions of present
law do not apply:
(1)A misrepresentation or omission of relevant information during a prior audit.
(2) A noncompliant payroll audit.
(3)A payroll audit disputed by an insured.
(4)Any modification or review related to a fraud investigation.
(5)A reclassification due to a determination by a court of competent jurisdiction.
Proposed law revises the aforementioned exceptions to reference or specify premium audit
where appropriate. Proposed law otherwise retains present law.
Present law allows an insurer to return premiums to the insured if the insurer receives
relevant information after the audit is completed.
Proposed law instead clarifies that a workers' compensation insurer may return premiums
to the insured if, as a result of a premium audit, the insurer determines that the insured is
entitled to a refund.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 23:1172.3)
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.