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Employee insurance milestones – what every employer needs to know

| Jul 20, 2021 | Insurance Law

If you own or run a growing business, congratulations! It’s a great feeling to be able to employ more and more people and expand your company’s reach in your chosen market. But it’s important to keep in mind that certain thresholds of numbers of employees bring on new legal requirements that your company must comply with or risk facing fines and other penalties.

Workers’ compensation

Workers’ compensation is an important program that protects both you as an employer and your employees. It prevents your employees from suing you for workplace accidents in most cases, and in return allows them to recover lost wages and compensation for their injury from the insurance company.

Louisiana law requires all employers to pay for workers’ compensation insurance right off the bat, even if they only employ one other person. This law applies to most companies, but there are a few exceptions – such as certain non-profits, private farms and domestic employees.

Federal and state anti-discrimination laws

There are federal statutes that prohibit an employer from engaging in discriminatory practices, such as firing an employee on the basis of their sex or race. Employees covered by these statutes have the grounds for bringing a wrongful termination or discrimination lawsuit against their employers.

These laws only apply to employers after they have reached a certain number of employees. This number varies based on the type of employer. For most private companies, these federal statutes kick in after they employ at least 15 employees.

Louisiana has its own state law equivalents to these federal statutes that provide employees with similar protections. Louisiana’s statutes come into effect once you employ 20 or more people.

Successfully expanding a growing business can be just as complex as starting one from scratch. It’s important to be knowledgeable of statutes that apply to your company so that you can stay in good standing with the law.