By Dan Burghardt, Owner, Dan Burghardt Insurance Agency
Workers’ compensation is designed to be a safety net. It ensures that when employees are injured on the job, they receive medical treatment and income support without having to navigate lawsuits or prove employer negligence. In Louisiana, as in most states, workers’ compensation is not just a benefit—it’s a legal requirement for nearly all employers. Yet many employees and business owners still find themselves unclear about how this coverage works, who needs it, and what legal protections it actually provides.
What Workers’ Compensation Covers
Workers’ compensation insurance in Louisiana covers a broad range of work-related injuries and illnesses. This includes sudden accidents—like falls, fractures, or machinery incidents—as well as conditions that develop over time, such as repetitive stress injuries or occupational diseases like hearing loss or respiratory illness.
The core benefits of a Louisiana workers’ comp policy include:
- Medical Expenses: Hospital bills, surgeries, prescriptions, and follow-up visits related to the injury
- Wage Replacement: A percentage of lost income during recovery (Temporary Total Disability, or TTD)
- Permanent Disability: Compensation for permanent loss of function or mobility
- Vocational Rehabilitation: Job training or placement assistance if returning to the previous job isn’t possible
- Death Benefits: Funeral costs and survivor benefits for families of employees killed in work-related incidents
Unlike personal injury cases, workers’ comp is a no-fault system. That means benefits are available regardless of who caused the accident, as long as it occurred within the course and scope of employment.
Who Needs Workers’ Comp—and Why?
In Louisiana, most businesses with one or more employees, whether full-time, part-time, seasonal, or temporary, are required by law to carry workers’ compensation insurance. There are limited exceptions—such as for certain real estate agents, domestic employees, or subcontractors—but they are the exception rather than the rule.
The requirement applies to:
- Construction firms
- Restaurants
- Retail stores
- Professional offices
- Medical facilities
- Transportation companies
- Industrial manufacturers
- Small businesses of nearly every kind
The reason for this legal mandate is simple: without workers’ compensation, both the injured worker and the employer are exposed to serious financial risk. An uncovered injury could result in personal hardship for the worker and a costly lawsuit for the employer. Workers’ comp creates a structured, predictable framework for managing workplace injuries, ensuring fair treatment for employees and legal protection for businesses.
Can an Employee Be Terminated While on Workers’ Comp?
Employment laws in Louisiana follow the “at-will” standard. This means that an employer may terminate an employee at any time, for any reason that is not illegal—or even for no specific reason at all. However, firing an employee because they filed a workers’ compensation claim is strictly prohibited.
Filing a claim does not provide blanket job protection. Employers may still terminate an employee on workers’ comp if the decision is unrelated to the injury—such as downsizing, restructuring, or documented performance issues that predated the incident. However, any action that even appears to be retaliatory can lead to a wrongful termination claim and expose the business to legal penalties.
Retaliation and Legal Risk
Termination in retaliation for filing a workers’ compensation claim is a violation of Louisiana employment law. If challenged in court, employers may face claims for back pay, reinstatement, and damages. Proving retaliation requires documentation—employees are encouraged to keep records of communication, performance evaluations, and any relevant discussions surrounding the termination.
Employers, too, should maintain detailed records to justify employment decisions and demonstrate that any termination was unrelated to the workers’ compensation case.
Light-Duty Work and Return-to-Work Scenarios
Some injured employees are released by their physician to return to work with light-duty restrictions. In these situations, if the employer offers a modified role that aligns with medical recommendations and the employee refuses to return, termination may be legally permissible. Refusal to accept light-duty work can result in the suspension of benefits.
If no light-duty option is available—or if the employee is not cleared for any form of work—employers must tread carefully. They are not required to hold a position open indefinitely, but the decision must be based on legitimate business needs, not frustration over the claim itself.
Employer Obligations Under Louisiana Law
Every Louisiana employer required to carry workers’ compensation must also:
- Report injuries promptly
- Provide claim forms and documentation to the injured worker
- Cooperate with medical evaluations and treatment timelines
- Avoid retaliatory behavior or decisions that could be misinterpreted as such
Failure to carry coverage is a serious violation that can result in fines, criminal charges, or civil litigation. Enforcement is handled by the Louisiana Workforce Commission, which audits and investigates businesses suspected of being uninsured or noncompliant.
Employee Rights
Injured workers in Louisiana have the right to:
- File a claim for benefits without retaliation
- Receive timely and appropriate medical treatment
- Receive wage replacement benefits if medically unable to work
- Be evaluated for light-duty work when applicable
- Seek legal assistance if employment is terminated during a workers’ comp claim
Education is key. Many workers mistakenly believe that filing a claim makes them untouchable, while others fear retaliation so strongly that they avoid filing at all. Both misconceptions can lead to poor outcomes—either through delayed care or unnecessary job loss.
Final Thoughts
Workers’ compensation is not a shield against termination, but it is a legal right backed by strong anti-retaliation laws. Employers must navigate the balance between business operations and employee protections carefully. Employees must understand the scope of their rights and act in accordance with medical advice and employer policies.
For businesses, carrying proper workers’ compensation coverage is more than a legal obligation—it is a foundation for operational integrity and risk management. For workers, it is the first line of defense in the event of injury on the job.
Dan Burghardt Insurance Agency has served Louisiana and Mississippi for over four decades, helping protect workers and employers in cities like New Orleans, Metairie, Baton Rouge, Slidell, Lafayette, Lake Charles, Shreveport, and beyond.
For assistance with coverage or compliance, call (504) 441-RATE (7283) or visit our website to complete the Online Quote Request form.
