Workers compensation law, rules and policy information for Oklahoma

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State: Oklahoma

Updated: Rating Payroll 07-01-2023

Authority/State Rating Bureau: NCCI

National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362
800-622-4123

Compulsory: Yes

Private Insurance: Allowed

Self-Insurance: Allowed

State Fund: CompSource Oklahoma, a competitive state fund. Contacted at:

CompSource Oklahoma
1901 N. Walnut Ave
Oklahoma City, OK 73105-3295
(405) 232-7663 or (800) 347-3863
http://www.compsourceok.com/

Assigned Risk: CompSource Oklahoma, same as state fund.

Assigned Risk Contact Information: CompSource Oklahoma, same as state fund. Contact at:

http://www.compsourceok.com/

Numerical Exceptions: None – As a general rule, the law applies to all employees hired in the state of Oklahoma or who are injured in the state of Oklahoma. Some workers employed in agriculture or horticulture, licensed real estate brokers, most household workers and employees of the federal government are not covered. A person performing voluntary service who receives no wages for the services other than meals, drug or alcohol rehabilitation therapy, transportation, lodging or reimbursement for incidental expenses is not an employee under the Workers’ Compensation Act.

Individual Waivers Allowed: No

Small Deductible Program Details:
Allowed: Yes – It is mandatory that insurance carriers make available
Deductible Range: $500 – $2,500
Type: Medical and/or Indemnity
Effect on Experience Rating: Net
Available In: Voluntary Markets
For More Information About How Deductible Programs Work

Sole Proprietor: Excluded from coverage/may elect to be included. When included a rating payroll of $37,200 is used as of 1-1-11, $40,100 as of 1-1-2013, $41,700 as of 1-1-2014. $42,400 as of 1-1-2015. $43,800 as of 1-1-2016. $44,400 as of 1-1-2017. $43,900 as of 1-1-2018. $45,100 as of 1-1-2019. $45,100 as of 1-1-2020. $46,700 as of 1-1-2021. $48,000 as of 1-1-2022. $49,600 as of 1-1-2023.

Partners: Excluded from coverage/may elect to be included. When included a rating payroll of $37,200 is used as of 1-1-11, $40,100 as of 1-1-2013, $41,700 as of 1-1-2014. $42,400 as of 1-1-2015. $43,800 as of 1-1-2016. $44,400 as of 1-1-2017. $43,900 as of 1-1-2018. $45,100 as of 1-1-2019. $45,100 as of 1-1-2020. $46,700 as of 1-1-2021. $48,000 as of 1-1-2022. $49,600 as of 1-1-2023.

Corporate Officers: Excluded from coverage/may elect to be included – stockholder employees who own at least ten percent (10%) stock in the corporation are specifically excluded from the definition of “employee” under the Workers’ Compensation Act. When included the rating payroll is banded between a minimum of $36,400 and a maximum of $150,800 as of 1-1-11, $39,000 / $161,200 as of 1-1-2013, $41,600 / $166,400 as of 1-1-2014. $41,600 / $171,600 as of 1-1-2015. $44,200 / $176,800 as of 1-1-2016. $850 min / $3,400 max per week as of 1-1-2017. $850 min / $3,400 max per week as of 1-1-2018. $850 / $3,500 as of 1-1-2019. $850 min / $3,500 max per week as of 1-1-2020. $900 / $3,600 as of 1-1-2021. $900/$3,700 as of 1-1-2022. $950/$3,800 as of 1-1-2023.

LLC Members: Excluded from coverage/may elect to be included – members who own at least ten percent (10%) of the LLC are specifically excluded from the definition of “employee” under the Workers Compensation Act. When included rating payroll same as Proprietor/Partner.

Election or Rejection of Coverage Form: These forms are not readily available on the Oklahoma Workers Compensation Court of Existing Claims Website. Make sure you contact them with any questions you may have about exclusion or inclusion in coverage for their state.

Notes About Forms: Oklahoma inclusion forms are not available on their state website. Be sure to contact your workers compensation insurance company for information about special workers compensation forms they may require and or use in Oklahoma.


Contractors: Both an independent contractor who subcontracts part of a job and the principal employer can be held liable for injuries to any employee of the subcontractor if the subcontractor has not secured workers’ compensation coverage for his employees.

Special Notes: Oklahoma has a special quirk. The “family of five or fewer exemption.” Here’s some information on this topic taken from the Oklahoma Attorney General:

• On March 14, 2007, the Oklahoma Attorney General issued an opinion on the “family of five or fewer exemption” to the Oklahoma Workers’ Compensation Act. The“family of five or fewer exemption” provides that “An employer with five or less total employees, all of whom are related by blood or marriage to the employer, will be exempt from the Workers’ Compensation Act.” 85 O.S.§ 2.6
• The opinion of the Attorney General states, “The exemption from the Workers’ Compensation Act provided for in 85 O.S. §2.6 applies only to employers who are natural persons, such as sole proprietors, and does not apply to employers who are artificial persons, including but not limited to corporations, partnerships and limited liability companies.” 2007 OK AG 8
• What does this mean if your business claims the family exemption on its policy?
  • Only sole proprietors will be able to claim the exemption to be eligible for a policy endorsed with the family exemption. Corporations, partnerships and limited liability companies will receive notice from CompSource Oklahoma at renewal that they are no longer eligible for the exemption. Unless otherwise exempt from the Workers’ Compensation Act, family members working for corporations, partnerships and limited liability companies will be deemed employees of the business and premium
    will be charged.
• What does this mean if your business utilized the services of contractors who claimed the family exemption?
  • The Audit Department at CompSource accepts many invoices signed by contractors of our policyholders who claim the “family of five or fewer exemption.” CompSource will continue to accept invoices signed by sole proprietors, corporations, partnerships and limited liability companies claiming the family exemption for policies with effective dates prior to September 1, 2007, 12:01 a.m. However, for new and renewal policies effective on or after September 1, 2007, at 12:01 a.m. invoices will only be accepted for sole proprietors claiming the family exemption.
• What can you do to ensure adequate documentation for your premium audit?
  • Statement Required on Invoices
    • If you employ someone who claims the “family of five or fewer exemption,” please take the following steps to ensure adequate documentation to avoid paying additional premium at your premium audit.
    • Step 1. Place the following statement on each invoice and/or settlement sheet for work done by the sole proprietor claiming the
      “family of five or fewer exemption:”
      • “We, the undersigned, do hereby certify that we are operating under the “family of five or fewer exemption” and voluntarily are excluding ourselves from the Oklahoma Workers’ Compensation Act. We also certify that we are employed by a sole proprietor; that there are five or fewer of us working including the sole proprietor; we are all related by blood or marriage; and there are no other employees, contract labor, or subcontractors working for the sole proprietor. We, the undersigned, understand that by making this statement, we are not entitled to receive workers’ compensation benefits resulting from an accidental personal injury sustained by us arising out of and in the course of employment.”
    • Step 2. Have each of the working family members sign the invoice and/or settlement sheet and include their social security numbers. This is required for the auditor to accurately identify the individuals claiming the exemption and the specific work for which they are claiming the exemption.
• Who can you contact for more information?
  • For questions regarding your policy, please contact the Underwriting Department at (405) 232-7663 extension 5102. If you have questions regarding your premium audit, please contact the Audit Department at (405) 232-7663 extension 5528. You may view a copy of the opinion of the Attorney General by clicking on the “family of five or fewer exemption” – AG Opinion link at www.compsourceok.com.

Experience Rating Eligibility: Oklahoma employers will receive an experience modification rate or EMR once they meet one of these triggers:

• $10,000 in policy premium is generated during the last year or last two years.
• $5,000 is the average policy premium generated for more than two years.

Oklahoma Subrogation:  Note: Due to Oklahoma’s re working of the state workers comp statutes this section of subrogation may no longer be current. Please check back at a later date for more information regarding Oklahoma subrogation. State statute 85 OSA 43 is the Oklahoma statute that provides information about workers compensation subrogation for this state. Statute 85 OSA 43 is called; Compensation Insurance – Liability – Subrogation. A special note found on this statute indicates that it has been superceded effective August 26, 2011 so be sure to check the updated statute after that date. Oklahoma allows viewing of superceded documents through a link at the bottom of the statute. 85 OSA 43 is available to view online by using this direct link:

Oklahoma Statute Of Subrogation

Oklahoma Workers Working In Other States; Other States Workers Working In Oklahoma, Extraterritorial, Reciprocity and Non-Compliance:  When Oklahoma workers are working temporarily in another state, then workers compensation coverage for that worker is governed by the extraterritorial provisions found in Oklahoma statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. It’s reciprocity that governs coverage for a worker from another state who is working temporarily in Oklahoma. Pay attention to the numerical exceptions and special notes that apply to Oklahoma, they apply to out of state employers and if not conformed to may make the out of state employer non-compliant. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We’ve provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic!

• Extraterritorial:
  • Provisions: Yes
  • Duration: Not Specified
• Reciprocity:
  • Allowed: Yes
• Specific Statute or Reference: Oklahoma 85-11.310 – Jurisdiction
  
• For More Information Contact: Be sure to check with Oklahoma Workers’ Compensation Court as shown below for confirmation on how extraterritorial and reciprocity work for Oklahoma. Since the re-work of the Oklahoma statutes into code there are many questions about this topic.
  

Regulated By: Oklahoma Workers Compensation Court

Oklahoma Workers’ Compensation Court
1915 N. Stiles Ave.
Oklahoma City, OK 73105
Telephone: (405) 522-8600 or (800) 522-8210
http://www.owcc.state.ok.us/

Workers compensation statute can be found here:

Oklahoma Workers Compensation Statute