Recent Louisiana law developments: 2010 Legislative Updates
By: Natasha Z. Wilson & Katherine Lee Juneau
LEGISLATIVE UPDATE
House Bill 873, relative to workers’ compensation coverage.
SUMMARY
House Bill 873 was presented by Patricia Smith, a democrat representing District 67. The bill amends and reenacts provisions relative to workers’ compensation. On June 17, 2010, House Bill 873 was signed by the governor and became Act No. 288. The Act became effective on August 15, 2010.
Several amendments were adopted and they can be viewed at http://www.legis.state.la.us/. The notable amendments require an increase in penalties for employers who fail to secure coverage and provide for all fines collected to be deposited in the Workers’ Compensation Administrative Fund. The prior law provided that any employer who failed to secure workers’ compensation coverage shall be liable for civil penalties. Under the prior law, a first offense penalty for an employer was $250 per employee, a second or subsequent offense was $500 per employee, and all related series offenses had a maximum civil penalty of $10,000 The new law provides for a maximum civil penalty of $10,000 for the first offense. Additionally, the new law provides an employer who fails to provide workers’ compensation coverage may be fined up to $250 per day that the employer willfully failed to provide security for compensation. The law no longer provides for a $10,000 cap on this daily fine.