Workers’ compensation has a two-fold purpose. First, it is a no-fault form of liability that acts as a deal between an employer and an employee. For employees, it is a form of insurance that can replace their wages after a workplace injury. This serves as a positive alternative to litigation, which could take an injured employee longer to receive financial compensation. In exchange, the employee relinquishes their right to sue their employer for negligence.
Virtually all employers in the state must secure compensation for their employees’ injuries via workers’ compensation or a few other insurance forms according to Louisiana Revised Statutes 23:1168. Any business that attempts to avoid this obligation by providing false information is under L.A. Rev. Stat. §12:1168(2)(C), subject to state perjury laws.