Lohan spent four-and-a-half hours in an LA jail earlier this month after admitting her failure to complete court-ordered community service.
Judge Stephanie Sautner had initially ordered Lohan to complete 360 hours of community service for pleading no contest to misdemeanour theft.
Lohan has now been told to continue volunteering at an LA morgue in order to avoid more jail time.
Law enforcement insiders told TMZ that the actress has already finished 10 of her 12 scheduled sessions at the morgue ahead of the December 14 status hearing set by Judge Sautner.
The source claimed that Lohan hopes to complete several more morgue shifts beyond the required 12 sessions in order to get ahead on her requirement for her second court hearing next year.
Lohan has apparently impressed her supervisors at the morgue by showing up on time and completing all of her tasks during the shifts.
On Friday, Lindsay's father Michael Lohan was hospitalised after suffering from chest pains.
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