Senator Abraham's bill to allow optional contractor occupational-accident coverage is amended and deferred

Senator Abraham told the Senate Labor and Industrial Relations Committee on April 22 that his bill would create an optional occupational-accident coverage (OAC) pathway for contractors in Louisiana, a state with mandatory workers' compensation. He walked the committee through an 11-part amendment set that, he said, aims to add guardrails including minimum coverage limits and clarity on contractor responsibility.

"This is not mandatory," Abraham said, describing OAC as a voluntary alternative that contractors could elect. He and the amendment package emphasize that a contractor who chooses OAC would assume financial responsibility for catastrophic claims that exceed the policy limits. The author said he had discussed the approach with insurers and stakeholders and proposed a $1,000,000 floor on OAC limits as a practical benchmark.

Members asked how the measure would affect statutory-employer rules and whether it could shift liability away from principals. Abraham said the bill does not change who is a statutory employer; it creates an alternate form of coverage and includes language to limit principal liability when a contractor has OAC. Committee members signaled concern about how catastrophic claims would be handled and asked for confirmation that the bill would not implicitly expand the definition of a statutory employer.

Because the amendment set was circulated only shortly before the hearing and raised complex legal questions about liability and coverage limits, the committee agreed to voluntarily defer the bill to next week so practitioners and interested parties can review the engrossed amendments. The chair noted several red cards from injured-worker advocates and labor groups and said the postponement would allow more time for review and possible adjustments.