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Major Workers’ Comp Reform Clears House Labor Committee
The House Labor Committee advanced a key LABI-backed workers’ compensation reform this week, approving HB 1101 by Rep. Michael Melerine (R-Shreveport) and sending the measure to the House floor after extensive debate.
The legislation addresses one of the most significant cost drivers in Louisiana’s workers’ compensation system: indemnity benefits. The bill aims to rein in costs while refocusing the system on recovery and return-to-work. Key provisions of HB 1101 include:
- Capping total disability benefits at the lesser of three years or “maximum medical improvement” using established federal standards,
- Strengthening anti-fraud protections,
- Reinforcing return-to-work efforts through vocational rehabilitation, and
- Aligning Louisiana’s system with neighboring states and restoring workers’ comp to its intended purpose of helping injured employees recover and reenter the workforce quickly.
During testimony, LABI’s Patrick Robinson highlighted how Louisiana stands out as a regional outlier on indemnity costs. Average indemnity severity in Louisiana is about $43,400 — nearly double the regional average, making it harder for businesses to operate and discouraging new investment in the state. HB 1101 does not remove the work comp safety net. It helps mitigate the risk of abuse and aligns Louisiana with our neighboring states.
Additionally, LABI testified in support of HB 456 by Rep. Emily Chenevert (R-Baton Rouge), which seeks to restore balance and fairness in Louisiana’s workers’ comp system by reestablishing equal access to the Office of Workers’ Compensation (OWC) courts for both employees and employers. The Committee also sent this bill to the House Floor.
Prior to 2013, Louisiana law allowed both parties to bring disputes “concerning any issue arising under the Workers’ Compensation Act” before OWC judges. That structure reflected the reality that WC cases can evolve over time as medical conditions, diagnoses, disability status and earning capacity change.
In 2013, however, the law was narrowed. While employees retained broad access to the courts, employers were limited primarily to fraud allegations and appeals of medical treatment decisions. This shift created an imbalance in the system, leaving employers with limited options when faced with questionable or changing claims.
Under current law, employers are often forced into a difficult position: continue paying benefits that may no longer be justified or terminate benefits and risk significant penalties and attorney fee exposure.
HB 456 restores the pre-2013 framework, allowing both employers and employees to bring disputes before OWC judges as issues arise. Under the proposal, employers would again have the ability to seek review while continuing to provide benefits during the adjudication process, ensuring claims are properly evaluated without interrupting legitimate support for injured workers.
LABI views the measure as a step toward reestablishing a more balanced, transparent, and functional dispute resolution system within workers’ compensation courts.
Finally, during Tuesday’s hearing, LABI testified in opposition to HB 1023 by Rep. Shaun Mena (D-New Orleans), which failed, 6-7. This bill would have added bureaucratic red tape to a process that is already excessively inefficient.
Under Louisiana’s Workers’ Compensation Act, employers are responsible for paying indemnity benefits until an injured worker returns to suitable employment earning at least 90% of pre-injury wages. Due to that obligation, employers have a direct interest in selecting a certified vocational rehabilitation counselor to help facilitate a timely and appropriate return to work.
HB 1023 would have injected additional procedural layers into that process, shifting control away from vocational rehabilitation professionals and toward increased legal and administrative oversight.
LABI expressed concern that the bill reflects a broader pattern of efforts that slow or complicate return-to-work outcomes—particularly in a system where injured workers in Louisiana already remain out of work significantly longer than their peers in other states.
Rather than adding more bureaucracy, LABI supports a focused effort to allow qualified vocational rehabilitation professionals to do their jobs effectively and without unnecessary interference, so injured workers can reenter the workforce more quickly and appropriately.