WeVote
Log In

Bill

Bill

SB 358

WORKERS' COMPENSATION: Provides for Occupational Accident Insurance for independent contractors. (gov sig)

2026 Regular Session Introduced by Mark Abraham

Creates private independent contractor occupational accident coverage with minimum benefits, and a safe-harbor to limit statutory employer liability if four conditions are met.

Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Labor and Industrial Relations.
0
WeVote Research Nonpartisan
Bill Summary · SB 358

Summary: Senate Bill 358 (2026) – Louisiana Workers’ Compensation: Occupational Accident Insurance for Independent Contractors

Purpose and intent

SB 358 seeks to clarify and expand the framework for independent contractors in Louisiana by:
- Providing a defined pathway for independent contractors to obtain occupational accident coverage.
- Establishing a safe-harbor (presumptive status) for independent contractor relationships to avoid automatic designation as statutory employers.
- Extending workers’ compensation-like protections to independent contractors through private occupational accident insurance, with specified minimum benefits.
- Preserving existing statutory employer concepts while allowing contract-based arrangements to limit statutory employer liability under defined conditions.

Key provisions and changes

Definitions

  • Independent contractor (existing law): A person who renders services (excluding manual labor) for a specified recompense and outcome, controlled by the principal only as to the result, not the means. If a substantial portion of work time is spent in manual labor, the contractor is covered under the workers’ compensation statute.

Independent contractor occupational accident coverage (new concept)

  • Introduces “independent contractor occupational accident coverage” as private insurance for independent contractors who are injured, disabled, or die due to a work-related accident.
  • Such coverage must be approved by the Louisiana Commissioner of Insurance.
  • Coverage must satisfy injury coverage requirements for the contractor’s employee even if the principal is a statutory employer.

Minimum benefits under independent contractor coverage

  • Medical benefits: At least $1,000,000 per occurrence for medical treatment resulting from a work-related injury.
  • Temporary disability benefits: Payments aligned with scheduled injury guidelines when the worker cannot work temporarily.
  • Accidental death and dismemberment benefits.
  • Certificate of coverage: Must be filed with Louisiana Workforce Commission (La. Works).

Principal contractor liability and safe harbor (statutory employer framework)

  • Principal will not be deemed a statutory employer if all four conditions are satisfied:
    1. Contractor has a valid Employer Identification Number (EIN) or is a registered business entity.
    2. Contractor signs a written independent contractor agreement.
    3. Contractor maintains active independent contractor occupational accident coverage meeting minimum standards.
    4. Contractor retains control over the means and methods of performing the contracted work.
  • Satisfaction of these conditions creates a rebuttable presumption of independent contractor status.
  • The construction sector includes construction trades, CDL owner-operators, and equipment operators may elect coverage under this Chapter.

Remedies and enforcement

  • When the principal is liable to pay compensation under this section, the principal may seek indemnity from any person who would have been liable outside this framework and may pursue a corresponding cause of action.

Who is affected

  • Independent contractors who work for principals under contract and who want or need occupational accident coverage.
  • Principals/contractors who hire independent contractors, particularly in construction-related fields.
  • Insurance regulators and the Louisiana Workforce Commission, due to certificate-of-coverage requirements and regulatory approval.

Timelines and effective date

  • The act becomes effective upon the governor’s signature or, if not signed, upon expiration of the gubernatorial action period. If vetoed and subsequently approved, it becomes effective the day after legislative approval.

Notable details

  • Clarifies that independent contractor status can shield principals from statutory employer liability if conditions are met.
  • Emphasizes private insurance as an alternative to traditional workers’ compensation coverage for independent contractors.
  • Highlights specific benefit levels and administrative steps (certificate of coverage with La. Works).

This bill, sponsored by Sen. Mark Abraham, addresses evolving work arrangements by enabling private occupational accident coverage for independent contractors and delineating subcategories of practice within the statutory-employer framework.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.