LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 529 HLS 24RS 685
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 25, 2024 7:15 PM Author: CREWS
Dept./Agy.: Louisiana Workforce Commission & Office of Risk
Subject: Managment
Redefines Wages Relative to Workers’ Compensation Analyst: Noah O’Dell
WORKERS COMPENSATION RE DECREASE SG EX See Note Page 1 of 1
Provides relative to the determination of the average weekly wage
Current law stipulates the calculation of an average weekly wage (AWW) to determine workers’ compensation (WC) benefits,
which is primarily average earnings in the four weeks prior to the date of the injury, including paid leave. Current law
provides for a calculation of WC benefits for part-time workers that may include loss of earnings from multiple employers
based on a 4 week average. Current law provides a calculation of entitled benefits for seasonal employment as an annual
weekly average earnings.
Proposed law redefines wages for all employees as AWW paid by the employer during the 52 week period prior to the date of
the injury, regardless of full-time, part-time or seasonal status, and includes paid leave and certain other earnings. The
AWW of an employee who has worked less than 1 week shall be based on the AWW agreed upon by the employer and
employee at the time of employment.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. DECREASE DECREASE DECREASE DECREASE DECREASE
Agy. Self-Gen. DECREASE DECREASE DECREASE DECREASE DECREASE
Ded./Other DECREASE DECREASE DECREASE DECREASE DECREASE
Federal Funds DECREASE DECREASE DECREASE DECREASE DECREASE
Local Funds DECREASE DECREASE DECREASE DECREASE DECREASE
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
The Office of Risk Management (ORM) reports the bill is anticipated to decrease indemnity payments by increasing the look-
back period from 4 weeks to 52 weeks in calculating the AWW of injured state workers beginning in FY 25.
According to ORM, the 52 week earnings calculation provided in the bill is anticipated to decrease indemnity payments to
eligible state workers by 2% or $114,000 annually as it captures lower salaries prior to annual market adjustments that are
not included in a 4 week look-back period. Paid leave and other earnings are currently considered so the impact from their
inclusion is expected to be immaterial. The Legislative Fiscal Office (LFO) cannot corroborate such savings will continue to
materialize annually, because indemnity payments will be associated with injuries that have not yet taken place. However,
the specifications of the bill lead LFO to believe the proposed measure will likely result in a decrease in indemnity payments
when compared to current law.
The ORM data is based on the current workforce and does not include part time or seasonal employees, which is expected to
have a minimal impact given the size of historical indemnity payments to these employees.
Though agencies transfer funds to ORM from all means of finance to fund the workers’ compensation coverage for state
employees, when a state worker becomes eligible for workers’ compensation benefits, ORM makes indemnity payments to
the worker as an SGR expenditure.
The LA Workforce Commission (LWC) is not anticipated to experience an expenditure impact from the bill.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Deborah Vivien
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Chief Economist


Statutes affected:
HB529 Original: 23:1021(13), 23:1021(11)
HB529 Engrossed: 23:1021(13), 23:1021(11)
HB529 Reengrossed: 23:1021(13), 23:1021(11)