If your Louisiana nonprofit has even one paid employee, yes, it needs workers compensation. Louisiana's mandate applies to employers generally, and being a tax-exempt charity does not change it. The requirement attaches from the first paid worker's first day. The main nonprofit-specific wrinkle is at the top: an uncompensated officer of a nonprofit board is outside coverage, but your paid staff are covered like the employees of any other business.
Who this is for: Directors, officers, and operators of Louisiana nonprofits and charities, from an all-volunteer group about to make its first hire to an established organization with paid program staff.
The short version
- A nonprofit with any paid employee must carry workers comp from day one.
- Tax-exempt status does not exempt you from the coverage mandate.
- Uncompensated nonprofit board officers are outside coverage, but paid staff are not.
- Part-time, seasonal, and temporary program staff all count as employees.
- Pure volunteers are generally not employees, but a stipend can change that answer.
How the rule applies to a nonprofit
Louisiana does not give nonprofits a blanket pass. Once you pay someone to perform work for the organization, that person is an employee and must be covered, the same as at a for-profit business. Where nonprofits differ is at the board level and with true volunteers, so it helps to separate the roles.
| Role at the nonprofit | Employee for comp? | What to know |
|---|---|---|
| Paid program or admin staff | Yes | Covered from day one, full-time or part-time |
| Paid part-time or seasonal staff | Yes | Hours worked do not change the requirement |
| Uncompensated board officer | No | An unpaid board officer is outside coverage |
| True volunteer, no pay | Generally no | A pure volunteer is usually not an employee |
| Volunteer paid a stipend | Maybe | Pay can turn a volunteer into a covered worker; review it |
Volunteers and stipends
Volunteers are the question nonprofits ask most. A genuine volunteer who receives no pay is generally not an employee and is not part of the comp count. The gray area is the stipend, the travel reimbursement, or the small honorarium, because once someone is paid for their work, the analysis can flip toward employee. If your organization pays anyone in any form for services, treat it as a coverage question rather than assuming the volunteer label controls. Many nonprofits also carry coverage or a separate accident policy for volunteers by choice, so an injured helper has somewhere to turn.
Why nonprofits carry it beyond the mandate
Grant agreements, government contracts, and facility leases routinely require a nonprofit to carry workers comp and to show proof of coverage. Funders often will not release money to an organization that cannot document it. So even a small nonprofit with one part-time coordinator usually needs a policy both to follow the law and to keep its funding relationships intact.
A Metairie example
Illustrative, not a quote. A Metairie youth-services nonprofit runs on volunteers and an unpaid board, so it carries no comp, which is consistent with the rules while no one is paid. When a grant funds a part-time program coordinator, that paid hire triggers the requirement, and the nonprofit puts a policy in place before the coordinator's first day. The unpaid board officers remain outside coverage. Because the grant contract also demands proof of coverage, the timing lines up. See our workers comp for nonprofits page.
Real questions Louisiana owners ask
Does my Louisiana nonprofit need workers comp?
If you have any paid employee, yes. Louisiana's mandate applies to nonprofits the same as to businesses, and tax-exempt status does not change it. Coverage is required from the first paid worker's first day.
Does being a tax-exempt charity exempt us from workers comp?
No. Tax-exempt status is a federal tax matter and has nothing to do with Louisiana's workers comp mandate. If you pay someone to work for the organization, that person must be covered.
Do we have to cover our board members?
Not the unpaid ones. An uncompensated officer of a nonprofit board is outside coverage in Louisiana. But a board member who is also paid to do work for the organization would be treated as a covered employee.
Do volunteers count as employees?
Generally not. A true volunteer who receives no pay is usually not an employee for workers comp. The answer can change if the volunteer is paid a stipend or honorarium, so review any payment carefully.
Do part-time program staff count?
Yes. Louisiana counts part-time, seasonal, and temporary paid staff as employees. The number of hours someone works does not change whether they must be covered.
A grant says we must carry workers comp. Is that normal?
Very. Grant agreements, government contracts, and leases routinely require a nonprofit to carry coverage and show proof of it, and funders often will not release money without it, so budget for a policy.
We pay our volunteers a small stipend. Does that create a duty?
It can. Once someone is paid for their services, even a modest stipend, the volunteer label may no longer control and they can be treated as a covered worker, so treat any payment as a coverage question.
Why Louisiana owners choose Morrow
- We shop the right market for you. In Louisiana you buy workers comp on the open, competitive market from any private insurer licensed in the state or from the state-created mutual fund, the Louisiana Workers' Compensation Corporation, which also serves as the guaranteed market that cannot turn you down, so we can shop your rate freely and still have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Louisiana guides
Every Louisiana business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Louisiana (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- Louisiana nonprofit workers comp
This guide is general information, not legal advice. Louisiana rules and penalty amounts can change, so verify current requirements with the Louisiana Workforce Commission's Office of Workers' Compensation Administration or a licensed advisor before you rely on them. Last updated: July 2026.