Labor & Employment (Gig Economy)

This bill asks the Louisiana State Law Institute to study whether employers should be required to provide accident insurance for independent contractors and single-member business entities. The study will examine how current laws handle these workers, who are currently often excluded from standard workers' compensation coverage. It will also gather input from various groups, including business leaders and labor representatives, to assess the impact of such a change. Finally, the Institute must submit a report with its findings and recommendations to state committees by January 1, 2027.

SB 358 creates a new insurance requirement for independent contractors in Louisiana, specifically providing occupational accident coverage to protect them if injured on the job. It defines "independent contractor" (excluding most manual labor) and mandates that contractors obtain private insurance meeting minimum standards: $1 million in medical benefits per injury, temporary disability payments, and death/disfigurement coverage. Principals (businesses hiring contractors) avoid liability as "statutory employers" if contractors maintain this coverage, have a written agreement, and retain control over work methods. The law directly affects independent contractors in construction, commercial driving, and equipment operation who currently lack workers' compensation protections.

HB 301 creates the "Independent Contractor Voluntary Portable Benefits Act," allowing independent contractors in Louisiana to establish portable benefit accounts. These accounts, owned by the contractor and not tied to any specific employer, can be funded through voluntary contributions from hiring parties (like companies) or the contractors themselves, with clear opt-in and opt-out requirements. Key provisions include allowing contributions for health insurance, retirement, disability, and other benefits, while explicitly stating these contributions cannot be used to determine employment status or create employer liability under state labor laws. The bill directly affects independent contractors by providing a mechanism to access portable benefits across multiple clients.

HB 185 clarifies the definition of an "independent contractor" under Louisiana's workers' compensation law. It states that independent contractors are generally excluded from workers' comp coverage unless "a substantial part" of their work involves manual labor. The bill specifically excludes trucking-related tasks (like driving, fueling, or connecting trailers) from counting as manual labor. Additionally, it expands coverage to include employees of independent contractors and other contractors working through them. This change directly affects workers and businesses classified as independent contractors in Louisiana.