Workers comp coverage required in Louisiana
Employers with one or more employees are required to carry workers' compensation insurance. Verified 2026-05-09.
Who must carry workers comp in Louisiana?
Louisiana workers compensation coverage is required Employers with one or more employees are required to carry workers' compensation insurance.
The threshold language matters: states write the rule slightly differently. Some count any worker, some count only W-2 employees, some count owners separately, some have industry-specific exemptions (agriculture, domestic service, casual labor). For a Louisiana employer with a non-trivial workforce, the safest default is: assume coverage is required and confirm with the state department of insurance or a local agent.
How the threshold interacts with 1099s and subs
Classification of 1099 contractors is based on a multi-factor test, primarily focusing on the right to control the details of the work performed. A principal contractor can be held liable for the workers' compensation benefits of an uninsured subcontractor's employees if the work performed is part of the principal's trade, business, or occupation.
Penalty for going without
Penalties for non-compliance include fines up to $10,000, imprisonment up to one year, and personal liability for all benefits and medical expenses. The financial penalty is usually a fraction of the human cost: an injured employee at an uncovered employer can sue directly under tort law instead of being limited to the workers comp benefit, exposing the owner to lost-wage damages, pain and suffering, and punitive damages without the corporate veil.
Related reading
FAQs
Who has to carry workers comp in Louisiana?
Employers with one or more employees are required to carry workers' compensation insurance.
When does the requirement kick in for a new Louisiana employer?
The clock starts on the first day the first qualifying employee is on the books. Louisiana does not have a grace period for new employers, so a policy needs to be bound on or before the first hire date. Some agents can issue same-day binders for low-risk class codes.
What is the penalty for not having workers comp in Louisiana?
Penalties for non-compliance include fines up to $10,000, imprisonment up to one year, and personal liability for all benefits and medical expenses.
Do 1099 contractors trigger the coverage requirement in Louisiana?
Classification of 1099 contractors is based on a multi-factor test, primarily focusing on the right to control the details of the work performed.
Are subcontractors counted toward the threshold in Louisiana?
A principal contractor can be held liable for the workers' compensation benefits of an uninsured subcontractor's employees if the work performed is part of the principal's trade, business, or occupation.
What happens if I am audited and found non-compliant in Louisiana?
Louisiana typically issues a stop-work order, assesses back premium for the period of non-coverage, and adds penalties on top. Specifically: Penalties for non-compliance include fines up to $10,000, imprisonment up to one year, and personal liability for all benefits and medical expenses. Severe or repeat violations can lead to criminal charges and personal liability for the business owner, separate from the corporate veil.