§ 23:1201 — Time and place of payment; failure to pay timely; failure to authorize; penalties and

Louisiana § 23:1201

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

Text

§1201. Time and place of payment; failure to pay timely; failure to authorize; penalties and
attorney fees
A.(1) Payments of compensation under this Chapter shall be paid as near as may be
possible, at the same time and place as wages were payable to the employee before the
accident; however, when the employee is not living at the place where the wages were paid,
or is absent therefrom, such payments shall be made by mail, upon the employee giving to
the employer a sufficient mailing address. However, a longer interval, not to exceed one
month, may be substituted by agreement without approval of the assistant secretary . An
interval of more than one month must be approved by the assistant secretary .
(2) Notwithstanding the requirement to make payments by mail in Paragraph (1) of
this Subsection, electronic transfer of funds, including but not limited to direct deposit or use
of a debit card, is an appropriate method of payment of compensation under this Chapter.
Where a payor or insurer elects to issue debit cards and makes weekly payments by way of
electronic funds transfers, an injured worker represented by an attorney may elect to have his
weekly indemnity check deposited directly into his attorney's trust account. Where such an
election is made, the payor or insurer shall provide notice by way of email only to the injured
worker's attorney containing a list of all claims and amounts included in the direct deposit
within forty-eight hours of the direct deposit.
B. The first installment of compensation payable for temporary total disability,
permanent total disability, or death shall become due on the fourteenth day after the employer
or insurer has knowledge of the injury or death, on which date all such compensation then
due shall be paid.
C. Installment benefits payable pursuant to R.S. 23:1221(3) shall become due on the
fourteenth day after the employer or insurer has knowledge of the compensable supplemental
earnings benefits on which date all such compensation then due shall be paid.
D. Installment benefits payable pursuant to R.S. 23:1221(4) shall become due on the
thirtieth day after the employer or insurer receives a medical report giving notice of the
permanent partial disability on which date all such compensation then due shall be paid.
E.(1) Medical benefits payable under this Chapter shall be paid within sixty days
after the employer or insurer receives written notice thereof, if the provider of medical
services is not utilizing the electronic billing rules and regulations provided for in R.S.
23:1203.2.
(2) For those providers of medical services who utilize the electronic billing rules
and regulations provided for in R.S. 23:1203.2, medical benefits payable under this Chapter
shall be paid within thirty days after the employer or insurer receives a complete electronic
medical bill, as defined by rules promulgated by Louisiana Works.
F. Except as otherwise provided in this Chapter, failure to provide payment in
accordance with this Section or failure to consent to the employee's request to select a
treating physician or change physicians when such consent is required by R.S. 23:1121 shall
result in the assessment of a penalty in an amount up to the greater of twelve percent of any
unpaid compensation or medical benefits, or fifty dollars per calendar day for each day in
which any and all compensation or medical benefits remain unpaid or such consent is
withheld, together with reasonable attorney fees for each disputed claim; however, the fifty
dollars per calendar day penalty shall not exceed a maximum of two thousand dollars in the
aggregate for any claim. The maximum amount of penalties which may be imposed at a
hearing on the merits regardless of the number of penalties which might be imposed under
this Section is eight thousand dollars. An award of penalties and attorney fees at any hearing
on the merits shall be res judicata as to any and all claims for which penalties may be
imposed under this Section which precedes the date of the hearing. Penalties shall be
assessed in the following manner:
(1) Such penalty and attorney fees shall be assessed against either the employer or
the insurer, depending upon fault. No workers' compensation insurance policy shall provide
that these sums shall be paid by the insurer if the workers' compensation judge determines
that the penalty and attorney fees are to be paid by the employer rather than the insurer.
(2) This Subsection shall not apply if the claim is reasonably controverted or if such
nonpayment results from conditions over which the employer or insurer had no control.
(3) Except as provided in Paragraph (4) of this Subsection, any additional
compensation paid by the employer or insurer pursuant to this Section shall be paid directly
to the employee.
(4) In the event that the health care provider prevails on a claim for payment of his
fee, penalties as provided in this Section and reasonable attorney fees based upon actual
hours worked may be awarded and paid directly to the health care provider. This Subsection
shall not be construed to provide for recovery of more than one penalty or attorney fee.
(5) No amount paid as a penalty or attorney fee under this Subsection shall be
included in any formula utilized to establish premium rates for workers' compensation
insurance.
G. If any award payable under the terms of a final, nonappealable judgment is not
paid within thirty days after it becomes due, there shall be added to such award an amount
equal to twenty-four percent thereof or one hundred dollars per day together with reasonable
attorney fees, for each calendar day after thirty days it remains unpaid, whichever is greater,
which shall be paid at the same time as, and in addition to, such award, unless such
nonpayment results from conditions over which the employer had no control. No amount
paid as a penalty under this Subsection shall be included in any formula utilized to establish
premium rates for workers' compensation insurance. The total one hundred dollar per
calendar day penalty provided for in this Subsection shall not exceed three thousand dollars
in the aggregate.
H. Within fourteen days after the final payment of compensation has been made, the
employer or insurer shall send a notice to the office, in the manner prescribed by the rules
of the assistant secretary , stating:
(1) The name of the injured employee or any other person to whom compensation
has been paid, or both.
(2) The date of injury or death.
(3) The dates on which compensation has been paid.
(4) The total amount of compensation paid.
(5) The fact that final payment has been made.
I. Any employer or insurer who at any time discontinues payment of claims due and
arising under this Chapter, when such discontinuance is found to be arbitrary, capricious, or
without probable cause, shall be subject to the payment of a penalty not to exceed eight
thousand dollars and a reasonable attorney fee for the prosecution and collection of such
claims. The provisions as set forth in R.S. 23:1141 limiting the amount of attorney fees shall
not apply to cases where the employer or insurer is found liable for attorney fees under this
Section. The provisions as set forth in R.S. 22:1892(C) shall be applicable to claims arising
under this Chapter.
J. Notwithstanding the fact that more than one violation in this Section which
provides for an award of attorney fees may be applicable, only one reasonable attorney fee
may be awarded against the employer or insurer in connection with any hearing on the merits
of any disputed claim filed pursuant to this Section, and an award of such single attorney fee
shall be res judicata as to any and all conduct for which penalties may be imposed under this
Section which precedes the date of the hearing.

Legislative History

Amended by Acts 1954, No. 723, §1; Acts 1983, 1st Ex. Sess., No. 1, §§1, 6, eff. July 1, 1983; Acts 1985, No. 926, §1, eff. Jan. 1, 1986; Acts 1988, No. 938, §1, eff. July 1, 1989; Acts 1989, No. 23, §1, eff. June 15, 1989; Acts 1989, No. 24, §1; Acts 1989, No. 260, §1, eff. Jan. 1, 1990; Acts 1992, No. 1003, §1, eff. Jan. 1, 1993; Acts 1995, No. 1137, §1, eff. June 29, 1995; Acts 1997, No. 88, §1, eff. June 11, 1997; Acts 2003, No. 1204, §1; Acts 2008, No. 415, §2, eff. Jan. 1, 2009; Acts 2010, No. 3, §1, eff. May 11, 2010; Acts 2012, No. 652, §1, eff. July 1, 2013; Acts 2012, No. 860, §1; Acts 2013, No. 337, §1.