Get Involved
Historic Workers’ Comp Reform Enters Final Stretch Amid Ongoing Changes
Louisiana’s long-standing status as a workers’ compensation outlier is facing its most significant reform opportunity in decades. As the legislative session enters its final month, a coordinated package of bills aimed at modernizing the state’s system is advancing through the Capitol. Given the fluid nature of the process, LABI continues to work daily with members and stakeholders to evaluate developments and advocate for a fair outcome that does not water down the intended reforms.
Workers’ comp has long been a core area of focus for LABI, driven by the need to ensure Louisiana’s system promotes balance, predictability and competitiveness for employers while continuing to provide fair, timely care and benefits for injured workers.
We will lead off in the upper chamber with SB 408 by Sen. Brach Myers (R-Lafayette), which will be heard this week. It proposes major updates to the states outdated medical fee schedule, including modernized utilization review and billing processes and higher reimbursement for healthcare providers.
While LABI agrees physician reimbursement increases are overdue, the bill in its current form would dramatically raise professional fees—potentially tripling or more—at a time when Louisiana employers already pay among the highest workers’ compensation premiums in the country. Business leaders have emphasized that increased medical costs must be balanced with reforms that reduce indemnity and litigation expenses.
That balance is the goal of the following House bills moving alongside SB 408.
HB 456 by Rep. Emily Chenevert (R-Baton Rouge) focuses on fairness in the WC litigation process by restoring employers’ ability to petition the Office of Workers’ Compensation courts to resolve disputes—rights currently available to employees but largely denied to employers. The measure allows businesses to continue paying benefits while seeking judicial clarity, reducing the risk of excessive penalties and attorney fees and helping ensure disputes are resolved efficiently. After clearing House Labor, Rep. Chenevert’s bill is on the House Floor and will be scheduled for a vote soon.
HB 780 by Rep. Gabe Firment (R-Pollock) addresses the state’s exceptionally high litigation costs by applying a uniform legal standard for punitive attorney fees and reviving an expedited administrative review process intended to help resolve disputes quickly, in lieu of costly litigation. The bill cleared the House, 71-24, last month and is waiting to be heard in Senate Judiciary A.
HB 1101 by Rep. Michael Melerine (R-Shreveport) targets Louisiana’s high indemnity costs, which are nearly double those of neighboring Southern states. The bill restores the meaning of “temporary” to temporary disability benefits by ending payments at “maximum medical improvement” or after a three-year cap, while maintaining long-term support through supplemental earnings benefits and strengthening fraud protections. Just as importantly, nothing in the bill significantly impacts healthcare providers or the delivery of medical care.
Also addressed in the bill are stronger anti-fraud protections, reinforced return-to-work efforts through improved vocational rehabilitation, and greater alignment of Louisiana’s system with neighboring states—restoring workers’ compensation to its intended purpose of supporting injured employees in recovering and reentering the workforce as quickly and safely as possible.
LABI points out that HB 1101’s fiscal note finds a $7 million in annual savings to the state, with far greater savings expected across private businesses statewide. That is the bill’s purpose: reduce excessive indemnity costs and redirect those dollars toward workforce development, higher wages, lower prices and business growth. By improving affordability and predictability, the reform would help existing Louisiana employers compete and attract new investment to the state. The bill also recently advanced from House Labor and is working its way through the House Floor process.
Together, these measures represent a comprehensive reform package designed to reduce excessive costs while preserving care and benefits for injured workers. Each bill addresses a specific challenge—medical, indemnity, and litigation—but responsible stakeholders agree they must move forward as a package to truly modernize Louisiana’s system and improve the state’s competitiveness.
After decades of incremental efforts that have fallen short, this moment presents a rare opportunity to enact meaningful, lasting reform and LABI urges support for these long-overdue changes.