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House Labor Committee—Thursday, March 26
Three LABI-supported measures reforming aspects of Louisiana’s expensive and onerous workers’ compensation system cleared the House Labor Committee Thursday morning. Guided by our Program of Work—crafted with the input of LABI members—we are advocating to lower costs and modernize a system that continues to fall behind the rest of the country.
The Committee reported Rep. Michael Echols’ (R-Monroe) HB 357 with amendments by an 8-4 vote. Louisiana is an outlier when it comes to medical reimbursement in workers compensation claims. Rep Echols’s legislation seeks to overhaul Louisiana’s decades-old medical compensation fee schedule. HB 357 would require the Office of Workers’ Compensation to evaluate multiple criteria and establish rates that align more closely with those in other states in an effort to make Louisiana a more competitive and affordable place for both providers and businesses.
Rep. Gabe Firment’s (R-Pollock) HB 780 was also reported with amendments by an 8-3 vote. The bill addresses two issues. First, it consolidates standards for punitive attorney fees and raises the threshold for when those fees may be awarded in workers’ compensation court. It also removes technical barriers that have been used to bypass preliminary determination hearings—an important “safe harbor” process that encourages faster resolutions when employers comply. Strengthening this pathway will help injured workers receive decisions and benefits sooner while reducing unnecessary litigation costs. Overall, the measure represents a practical step toward a more efficient and balanced workers’ compensation system.
Patrick Robinson, LABI’s Vice President of Government Relations, testified in support of the bill, alongside Trent Oubre, LABI’s Employee Relations Council Chair.
“We’re dealing with penalties and attorney’s fees,” Oubre said. “The other side doesn’t want to give that up. They don’t want this to get worked out. But at the end of the day, who does it cost? Everybody in this room. Every business, every industry, every job. And the ultimate decision, do we stay in Louisiana or do we leave? This directly impacts it.”
[In Louisiana] “we file lawsuits that cause delays, raise litigation costs and cause employers to have to pay significant attorney’s fees,” Robinson testified. “This bill is a solution to that part of it, that over-litigiousness that infects our system. By reducing that, we are going to get faster dispute resolution, quicker answers for our employees, lower costs for our employers and make our system run better.”
HB 537 by Chairman Raymond Crews (R-Bossier City) was reported favorably in short order. This bill does away with the Workers’ Compensation Advisory Council, an unproductive entity that has not met in years and no longer serves a meaningful role. Eliminating the inactive council is a simple and straightforward way to reduce unnecessary government overhead.