Does Louisiana require workers’ compensation insurance?
Yes. Louisiana requires workers' compensation from the first employee, whether full-time, part-time, temporary, or seasonal, according to the Office of Workers' Compensation Administration. There is no three- or five-employee floor. A sole proprietor, a partner, or a corporate officer or LLC member owning at least 10% can opt out by written agreement with the insurer under La. R.S. 23:1035, and Louisiana issues no state exemption certificate.
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
How many employees before Louisiana requires workers' comp?
One employee is enough. The Office of Workers' Compensation Administration (OWCA) says every Louisiana employer must carry workers' compensation even with a single employee, and that part-time, temporary, and seasonal workers count. There is no minimum head count and no separate construction rule.
A few workers fall outside the Act under R.S. 23:1035(B): household and small unincorporated farm workers earning $1,000 a year or less, and musicians and performers under a performance contract. OWCA also lists most real estate salespersons and unpaid nonprofit officers and directors.
Calling someone an independent contractor does not settle it. Under R.S. 23:1021(7), a contractor who spends a substantial part of the job doing manual labor is covered by the Act, and OWCA warns that a business hiring uninsured subcontractors for work that is part of its trade may owe their benefits and be charged premium for the contract.
Source: Louisiana Works, OWCA employer coverage FAQ, checked .
Which owners, officers, and family members are exempt in Louisiana?
Under La. R.S. 23:1035, a sole proprietor, a partner, an LLC member owning at least 10%, and a corporation's bona fide president, vice president, secretary, or treasurer owning at least 10% of the stock may elect not to be covered by written agreement with the insurer or group self-insurance fund. The election covers all of the business's operations and takes that person's pay out of the premium. Owners below 10%, and anyone else paid to work in the business, remain covered employees.
OWCA says a sole owner, a partnership, or a corporation owned and run by one or two officers (each owning at least 10%) may need no policy, but only with no employees, part-timers, leased workers, unpaid family helpers, or subcontractors.
Source: La. R.S. 23:1035, checked .
What happens to a Louisiana employer with no workers' comp?
A workers' compensation judge can assess a civil penalty of up to $250 per employee for a first offense and up to $500 per employee for later offenses; first-offense penalties for a related series of violations are capped at $10,000 (La. R.S. 23:1170). The judge also orders proof of coverage within 45 days. Willfully going without coverage is a crime under R.S. 23:1172: a fine of up to $250 for each day uninsured, up to a year in jail, or both.
Source: La. R.S. 23:1170, checked .
Who enforces workers' comp in Louisiana?
The Office of Workers' Compensation Administration at Louisiana Works, the agency formerly named the Louisiana Workforce Commission, enforces the requirement. OWCA monitors whether employers are insured, investigates fraud, and runs the online coverage verification search. Its Fraud & Compliance section takes reports of uninsured employers, and of employers that make workers pay for their own coverage, at 1-800-201-3362.
Source: Louisiana Works, OWCA rights and responsibilities FAQ, checked .
Where do Louisiana employers buy coverage?
Louisiana has a private market plus a competitive state-created carrier. Under R.S. 23:1168 an employer can insure with any carrier authorized in Louisiana, join a group self-insurance fund, or qualify with OWCA to self-insure. The Louisiana Workers' Compensation Corporation (LWCC), created by the Legislature in 1991 as a private, nonprofit mutual insurer, competes for preferred risks and is also the residual market for employers that tried the voluntary market in good faith and could not get coverage (La. R.S. 23:1391).
Source: La. R.S. 23:1391, checked .
Who sets the class codes and rates in Louisiana?
Louisiana is an NCCI state. La. R.S. 23:1168 requires every carrier that writes a Louisiana policy to report it to the National Council on Compensation Insurance and to file proof of coverage within 30 days of the effective date. NCCI assigns the class codes and experience mods and files advisory loss costs with the Louisiana Department of Insurance; each carrier builds its rates on those. LWCC is the exception on rates: R.S. 23:1395 exempts it from the insurance commissioner's rate regulation.
NCCI's Louisiana State Advisory Report, dated November 20, 2025, says NCCI filed for a 5.3% decrease in voluntary-market loss costs effective May 1, 2026. Your own premium still depends on your class codes, payroll, and mod.
Source: La. R.S. 23:1168, checked .
Is there an exemption or waiver form in Louisiana?
No. OWCA says Louisiana issues no exemption certificate or waiver. An eligible owner or officer opts out through the written agreement with the insurance company described in R.S. 23:1035, so the paperwork sits with the carrier, not the state. A business with no employees files nothing with OWCA, though OWCA notes that a contract may still require you to carry a policy on yourself.
Source: Louisiana Works, OWCA employer coverage FAQ, checked .
Sorting out Louisiana workers' comp for your business
Tell Redoubt what the business does, who works in it, and what the Louisiana requirement in front of you says. We will say whether a policy, a waiver, or an exclusion fits.
This is general insurance information, not legal advice or a coverage determination. Statutes, agency instructions, policy forms, and the facts of the business control.
Workers’ comp requirements in every state
Each state page gives the employee threshold, the owner and officer exemptions, the penalty for going without, the rating bureau, the market, the enforcing agency, and the exemption filing, each with its statute or agency source.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
The hub, and the Louisiana pages that go deeper
Louisiana workers’ comp FAQ
Do I need workers' comp in Louisiana with one part-time employee?+
Yes. OWCA says one employee is enough, and part-time, temporary, and seasonal workers count. Going without risks a civil penalty under La. R.S. 23:1170 and, if willful, a criminal charge under R.S. 23:1172.
Can an LLC owner in Louisiana opt out of workers' comp?+
An LLC member who owns at least 10% can elect not to be covered by signing a written agreement with the insurer under La. R.S. 23:1035. There is no state exemption form. If the LLC has no employees at all, it may not need a policy, but a contract or a general contractor can still require one.
Are 1099 subcontractors covered in Louisiana?+
Sometimes. A contractor whose work is substantially manual labor is covered by the Act under La. R.S. 23:1021(7). If you hire an uninsured subcontractor for work that is part of your trade, OWCA says you may owe their benefits, and your carrier can charge premium on the contract at audit.
What is LWCC, and do I have to buy from it?+
No. LWCC is a private, nonprofit mutual insurer the Legislature created in 1991, and not a state agency (La. R.S. 23:1393). It competes with private carriers and takes employers the voluntary market turned down. You can buy from any carrier authorized in Louisiana.
Does an out-of-state employer need a Louisiana policy?+
It depends where the workers were hired. OWCA says home-state employees can stay on home-state coverage that extends into Louisiana, but workers hired in Louisiana need a policy from a carrier authorized in Louisiana.