Oklahoma Workers Compensation - laws,rules,statutes,state contacts and detailed policy information

State: Oklahoma

Authority/Rating Bureau: NCCI, National Council on Compensation Insurance

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.

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

Sole Proprietor: Excluded from coverage/may elect to be included

Partners: Excluded from coverage/may elect to be included

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.

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.

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 recent 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?
- New 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.

Regulated By:

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:

http://www.oscn.net/applications/oscn/index.asp?ftdb=STOKST85&level=1

Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.

Contact Us:
WORKERS COMPENSATION CONSULTANT
Voice: (573) 999-6948
Fax: (573) 447-4998
email: rks@workcompconsultant.com

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Oklahoma Workers Compensation Laws

Workers compensation policy information for the State of Oklahoma