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Final Pieces of Workers’ Comp Package Pass House

 

The remaining two components of the LABI-backed workers’ compensation package cleared the House Floor Wednesday with relatively little trouble. These bills—HB 456 by Rep. Emily Chenevert (R-Baton Rouge) and HB 1101 by Rep. Michael Melerine (R-Shreveport)—join previously passed HB 780 by Rep. Gabe Firment (R-Pollock) in the Upper Chamber. This trio of legislation—and its progress to this point—marks the most monumental effort to reform the state’s dated WC system in decades.

Rep. Chenevert’s HB 456 passed 67-30, after a brief question and answer session. It takes an important step toward restoring balance in Louisiana’s Office of Workers’ Compensation (OWC) litigation process. Under current law, employees may file disputes over any WC issue, while employers are largely limited to fraud claims and restricted from conducting discovery without active litigation. This leaves businesses in a difficult position—forced to either pay questionable claims with limited information or deny benefits and risk steep penalties and attorney fees.

HB 456 corrects this imbalance by giving employers the same ability as employees to file disputes and seek judicial review—while continuing to pay benefits. This commonsense reform promotes fairness, transparency and better-informed decision-making for all parties.

Less than half an hour later, Rep. Melerine’s HB 1101 cleared the House, 66-29, again, with only a brief back-and-forth between the author and legislators. This measure represents a significant opportunity to strengthen Louisiana’s WC system, reduce excessive costs and make our state more competitive for job creation and investment. As we’ve told you previously, Louisiana employers pay nearly double the indemnity benefits per claim compared to other Southern states. HB 1101 tackles this imbalance directly and responsibly. The bill realigns the system with its original mission as a short-term safety net, encouraging quicker recovery, faster return-to-work and stronger long-term economic growth.

Specifically, the bill brings Louisiana in line with other states by reducing the duration of temporary disability benefits so workers’ compensation remains a bridge back to work—not a permanent outcome, restores the meaning of “temporary” by capping Temporary Total Disability at “maximum medical improvement” or three years, strengthens fraud protections to prevent abuse that drives up costs for employers and honest workers, and empowers vocational rehabilitation experts to help injured employees return to appropriate jobs more quickly by removing unnecessary administrative barriers.

The fiscal note estimates $7 million in annual state savings, with far greater savings when applied across the private sector. Those dollars can be reinvested into workforce development, higher wages and lower prices—helping existing Louisiana businesses grow and attracting new employers to the state.

 These bills, along with Rep. Firment’s HB 780, now face intense Senate scrutiny. HB 780 was referred to the Senate Judiciary A Committee nearly a month ago but has yet to be scheduled for a hearing. This bill strengthens the preliminary determination process, a “safe harbor” pathway that encourages faster resolutions when all parties comply. Over time, technical barriers have allowed this process to be bypassed in favor of costly litigation. By removing those obstacles, the bill helps ensure injured workers receive decisions and benefits sooner—without unnecessary delays or legal expenses. Additionally, it establishes a single, consistent standard for awarding punitive attorney fees, requiring proof of “arbitrary and capricious” conduct in all cases. This aligns existing law, raises the bar for excessive fee claims and discourages litigation driven more by technicalities than merit.

On the other side of the Capitol Wednesday, the Senate passed SB 408 by Rep. Brach Myers (R-Lafayette) by a vote of 33-0. 

At its core, this bill reforms the workers’ comp fee schedule and modernizes the delivery of medical benefits for injured workers. LABI supports fair reimbursement of health care providers to maintain access to care. However, Louisiana businesses already pay among the highest medical costs per work comp claim in the nation. SB 408 potentially triples professional reimbursement for many services. Those increases must be balanced by lower indemnity and litigation costs. 

 

As SB 408 moves to the House Labor Committee, LABI looks forward to continued discussions to ensure reforms are implemented responsibly to align Louisiana with surrounding states while preserving the work comp safety net.