§ 23:1171.1 — Discontinuance of business; injunction; procedure

Louisiana § 23:1171.1

• Jurisdiction: Louisiana
• Title 23: Labor and Workers' Compensation

Text

§1171.1. Discontinuance of business; injunction; procedure
A. The assistant secretary , or his designee, shall investigate an employer if he
receives information from any person or entity that such employer has failed to provide
security for compensation as required by R.S. 23:1168. If such allegations can be reasonably
substantiated, and the employer has previously been subject to a civil penalty pursuant to
R.S. 23:1170 or criminal penalties pursuant to R.S. 23:1172, the assistant secretary , or his
designee, and the employer has previously been fined under R.S. 23:1170 or been penalized
under R.S. 23:1172, the assistant secretary shall notify the employer that, unless he can show
proof of compliance with R.S. 23:1168 within fifteen days, he shall be subject to a civil
penalty pursuant to the provisions of R.S. 23:1170.
B. If such allegations can be reasonably substantiated and the employer has been
fined under R.S. 23:1170 or penalized under R.S. 23:1172, the assistant secretary shall notify
the employer that unless he can show proof of compliance with R.S. 23:1168 within fifteen
days, he shall be subject to further fines and penalties, including but not limited to an
injunction against further business operations.
C. If within fifteen days of the employer's receipt of such notice he has not submitted
to the assistant secretary satisfactory proof of such compliance, the assistant secretary or his
designee shall request the workers' compensation judge of any district where the employer
does business to set the matter for hearing in accordance with the procedures set forth by law
for claims for workers' compensation benefits. Upon the request of the assistant secretary or his designee, the workers' compensation judge shall issue a rule to show cause to the
employer why he should not be fined or penalized for failure to show proof of compliance
with R.S. 23:1168 when requested.
D.(1) If at such hearing, it is determined that the employer is in violation of his
obligation under R.S. 23:1168, the workers' compensation judge shall fine the employer in
the manner provided pursuant to R.S. 23:1170(A) and shall order the employer to provide
proof of compliance with R.S. 23:1168 within forty-five days of the order by securing the
appropriate coverage. Should the employer fail to file such evidence, the workers'
compensation judge shall assess a fine for a second offense and issue a cease and desist order
prohibiting the employer from continuing its business operations until such time as the
employer complies with R.S. 23:1168, and all fines issued are paid in full.
(2) Any cease and desist order issued by the workers' compensation judge under
Paragraph (1) of this Subsection shall include specific findings of fact based upon evidence
of all of the following:
(a) The employer received notice of the hearing.
(b) The employer employs employees for whom it must secure workers'
compensation insurance or be authorized to self-insure under the provisions of this Chapter.
(c) The employer has willfully failed to provide security for compensation as
required by R.S. 23:1168 and there has been a final determination in a matter in which the
employer has been fined under R.S. 23:1170 or penalized under R.S. 23:1172.
(d) The employer continues to operate its business in the absence of such security
for compensation.
(3) There shall be a presumption that an employer who has previously been civilly
fined for a second offense, or has previously been criminally penalized, has willfully failed
to secure his obligation under R.S. 23:1168.
(4) A cease and desist order shall not issue prior to a hearing and there shall be no
interruption of an employer's business operation if he submits satisfactory proof to the
workers' compensation judge of his compliance with R.S. 23:1168, regardless of whether he
may have been in violation thereof previously.
E.(1) After the issuance of a cease and desist order and upon the request of the assistant secretary or the assistant secretary 's designee, the attorney general shall immediately
institute proceedings for injunctive relief against the employer in the district court of any
judicial district in this state where the employer does business. In such district court
proceedings, a certified copy of any cease and desist order entered by the workers'
compensation judge in accordance with this Section based upon evidence in the record shall
be prima facie evidence of the facts found in such record.
(2) Such injunctive relief may include the issuance of a temporary restraining order
under Louisiana Code of Civil Procedure Article 3601 et seq., which order shall enjoin the
employer from continuing its business operations until it has procured the required insurance
or authorization to self-insure or has posted adequate security with the court pending the
procurement of such insurance or authorization. The court, in its discretion, shall determine
the amount that shall constitute adequate security.
F. The issuance of an order to cease and desist or the issuance of a temporary
restraining order or an injunction against an employer for failure to insure or keep insurance
in force as required by R.S. 23:1168 shall be in addition to any civil or criminal penalties
imposed by any other provision of law or Paragraph (D)(1) of this Section.

Legislative History

Acts 1995, No. 368, §1, eff. June 16, 1995; Acts 1997, No. 88, §1, eff. June 11, 1997; Acts 2008, No. 705, §1; Acts 2010, No. 288, §1; Acts 2014, No. 375, §1.