Read the full stored bill text
An Act
ENROLLED SENATE
BILL NO. 642 By: Paxton of the Senate
and
Hilbert, Duel, and Ford of
the House
An Act relating to workers’ compensation; amending
85A O.S. 2021, Section 5, which relates to exclusive
liability; expanding rights and remedies granted to
certain persons; stating effect of provisions to
certain contracts; making language gender neutral;
updating statutory references; defining terms;
authorizing agreement between contractors to provide
certain insurance coverage; providing for deduction
of premiums under certain agreements; clarifying
application of certain rights and remedies;
prohibiting coverage for certain contractors without
agreement; amending 85A O.S. 2021, Section 45, which
relates to disability classification and
compensation; modifying compensation standard for
permanent partial disability; updating statutory
language; providing for codification; and declaring
an emergency.
SUBJECT: Workers’ compensation
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 85A O.S. 2021, Section 5, is
amended to read as follows:
Section 5. A. The rights and remedies granted to an employee
subject to the provisions of the Administrative Workers’
Compensation Act shall be exclusive of all other rights and remedies
of the employee, his or her legal representative, dependents, next
ENR. S. B. NO. 642 Page 2
of kin, or anyone else claiming rights to recovery on behalf of the
employee against the employer, including a general contractor that
provides workers’ compensation insurance coverage to a subcontractor
pursuant to Section 2 of this act, or any principal, officer,
director, employee, stockholder, partner, or prime contractor of the
employer on account of injury, illness, or death. Negligent acts of
a co-employee may not be imputed to the employer. No role,
capacity, or persona of any employer, principal, officer, director,
employee, or stockholder other than that existing in the role of
employer of the employee shall be relevant for consideration for
purposes of this act the Administrative Workers’ Compensation Act,
and the remedies and rights provided by this act the Administrative
Workers’ Compensation Act to an employee or other person claiming
rights to recovery on behalf of the employee shall be exclusive
regardless of the multiple roles, capacities, or personas the
employer may be deemed to have.
B. Notwithstanding the date of the injury, illness, or death of
an employee, the provisions of subsection A of this section shall
not affect any provision in an executed contract that requires the
employer, or any principal, officer, director, stockholder, partner,
or prime contractor of the employer, to indemnify, defend, or hold
harmless another person or entity against liability for the injury,
illness, or death of an employee, including, but not limited to, the
ability or requirement to insure for such claims.
C. Exclusive remedy shall not apply if:
1. An employer fails to secure the payment of compensation due
to the employee as required by this act the Administrative Workers’
Compensation Act. An injured employee, or his or her legal
representative in case death results from the injury, may, at his or
her option, elect to claim compensation under this act the
Administrative Workers’ Compensation Act or to maintain a legal
action in court for damages on account of the injury or death; or
2. The injury was caused by an intentional tort committed by
the employer. An intentional tort shall exist only when the
employee is injured as a result of willful, deliberate, specific
intent of the employer to cause such injury. Allegations or proof
that the employer had knowledge that the injury was substantially
certain to result from the employer’s conduct shall not constitute
ENR. S. B. NO. 642 Page 3
an intentional tort. The employee shall plead facts that show it is
at least as likely as it is not that the employer acted with the
purpose of injuring the employee. The issue of whether an act is an
intentional tort shall be a question of law.
C. D. The immunity from civil liability described in subsection
A of this section shall apply regardless of whether the injured
employee is denied compensation or deemed ineligible to receive
compensation under this act the Administrative Workers’ Compensation
Act.
D. E. If an employer has failed to secure the payment of
compensation for his or her injured employee as provided for in this
act the Administrative Workers’ Compensation Act, an injured
employee, or his or her legal representative if death results from
the injury, may maintain an action in the district court for damages
on account of such injury.
E. The F. Except as provided in Section 2 of this act, the
immunity created by the provisions of this section shall not extend
to action against another employer, or its employees, on the same
job as the injured or deceased worker where such other employer does
not stand in the position of an intermediate or principal employer
to the immediate employer of the injured or deceased worker.
F. The G. Except as provided in Section 2 of this act, the
immunity created by the provisions of this section shall not extend
to action against another employer, or its employees, on the same
job as the injured or deceased worker even though such other
employer may be considered as standing in the position of a special
master of a loaned servant where such special master neither is the
immediate employer of the injured or deceased worker nor stands in
the position of an intermediate or principal employer to the
immediate employer of the injured or deceased worker.
G. H. This section shall not be construed to abrogate the
loaned servant doctrine in any respect other than that described in
subsection F G of this section. Nothing in this act the
Administrative Workers’ Compensation Act shall be construed to
relieve the employer from any other penalty provided for in this act
the Administrative Workers’ Compensation Act for failure to secure
ENR. S. B. NO. 642 Page 4
the payment of compensation under this act the Administrative
Workers’ Compensation Act.
H. I. For the purpose of extending the immunity of this
section, any architect, professional engineer, or land surveyor
shall be deemed an intermediate or principal employer for services
performed at or on the site of a construction project, but this
immunity shall not extend to the negligent preparation of design
plans and specifications.
I. J. If the employer has failed to secure the payment of
compensation as provided in this act the Administrative Workers’
Compensation Act or in the case of an intentional tort, the injured
employee or his or her legal representative may maintain an action
either before the Oklahoma Workers’ Compensation Commission or in
the district court, but not both.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 126 of Title 85A, unless there
is created a duplication in numbering, reads as follows:
A. For the purposes of this section:
1. “General contractor” means a person or entity who undertakes
to procure the performance of work or a service, either separately
or through the use of subcontractors. General contractor shall
include, but is not limited to, a principal contractor, an original
contractor, a prime contractor or other analogous term, and one who
owns, occupies, possesses, or otherwise controls a premises who
enters into contracts with subcontractors for all or part of the
work being performed on the premises;
2. “Provides workers’ compensation insurance coverage” means to
make available workers’ compensation insurance coverage. Workers’
compensation insurance coverage may be provided, even if it does not
ultimately cover an incident, so long as it was made available to
the subcontractor. The following does not constitute acceptable or
relevant evidence to suggest that workers’ compensation insurance
made available to a subcontractor was not provided to the
subcontractor:
ENR. S. B. NO. 642 Page 5
a. timing discrepancies between the issuance of workers’
compensation insurance policies and contracts between
and among general contractors and subcontractors,
b. factual discrepancies in secondary documentation such
as certificates of insurance or enrollment forms,
c. a general contractor’s lack of notice of election of
coverage, or
d. payment of premiums, or lack thereof, by the general
contractor; and
3. “Subcontractor” means a person or entity with whom the
general contractor has entered into a contract to perform all or
part of the work or services that the general contractor has
undertaken to perform, and includes a person or entity with whom a
subcontractor contracts to perform the work.
B. A general contractor and a subcontractor may enter into a
written agreement under which the general contractor provides
workers’ compensation insurance coverage to the subcontractor and
employees of the subcontractor.
C. If a general contractor has workers’ compensation insurance
to protect the general contractor’s employees and if, in the course
and scope of the general contractor’s business, the general
contractor enters into a contract with a subcontractor who does not
have employees, the general contractor shall be treated as the
employer of the subcontractor for the purposes of the Administrative
Workers’ Compensation Act and may enter into an agreement for the
deduction of premiums paid in accordance with subsection D of this
section. A premise owner who acts as a general contractor shall be
treated as the employer of all subcontractors for the purposes of
the Administrative Workers’ Compensation Act and may enter into an
agreement for the deduction of premiums paid in accordance with
subsection D of this section.
D. If a general contractor elects to provide coverage, then the
actual premiums based on payroll that are paid or incurred by the
general contractor for the coverage may be deducted from the
ENR. S. B. NO. 642 Page 6
contract price or other amount owed to the subcontractor by the
general contractor.
E. An agreement under this section makes the general contractor
the employer of the subcontractor and the subcontractor’s employees
only for the purposes of this title. A subcontractor or
subcontractor’s employee’s rights and remedies against the general
contractor or any principal, officer, director, employee,
stockholder, partner, or prime contractor of the general contractor
shall be subject to the limitations pursuant to Section 5 of Title
85A of the Oklahoma Statutes. The limitations in this subsection
shall only apply to claims against the general contractor. To the
extent not otherwise precluded by Section 5 of Title 85A of the
Oklahoma Statutes, a subcontractor or subcontractor’s employee
retains the right to recover from another subcontractor or
subcontractor’s employee.
F. Notwithstanding subsection C of this section, a person who
performs work or provides a service for an oil or gas well operator
and who is an independent contractor that has no employees shall be
treated in the same manner as an independent contractor with
employees and is not entitled to coverage under the general
contractor’s workers’ compensation insurance policy unless the
independent subcontractor and the general contractor enter into an
agreement under this section.
SECTION 3. AMENDATORY 85A O.S. 2021, Section 45, is
amended to read as follows:
Section 45. A. Temporary Total Disability.
1. If the injured employee is temporarily unable to perform his
or her job or any alternative work offered by the employer, he or
she shall be entitled to receive compensation equal to seventy
percent (70%) of the injured employee’s average weekly wage, but not
to exceed the state average weekly wage, for one hundred fifty-six
(156) weeks. Provided, there shall be no payment for the first
three (3) days of the initial period of temporary total disability.
If an administrative law judge finds that a consequential injury has
occurred and that additional time is needed to reach maximum medical
improvement, temporary total disability may continue for a period of
not more than an additional fifty-two (52) weeks. Such finding
ENR. S. B. NO. 642 Page 7
shall be based upon a showing of medical necessity by clear and
convincing evidence. An employer shall have the right to recover
any overpayment of temporary total disability payments from a
subsequent permanent partial disability award if the offset is
deemed justified by the Oklahoma Workers’ Compensation Commission.
2. When the injured employee is released from active medical
treatment by the treating physician for all body parts found by the
Commission to be injured, or in the event that the employee, without
a valid excuse, misses three consecutive medical treatment
appointments, fails to comply with medical orders of the treating
physician, or otherwise abandons medical care, the employer shall be
entitled to terminate temporary total disability by notifying the
employee, or if represented, his or her counsel. If, however, an
objection to the termination is filed by the employee within ten
(10) days of termination, the Commission shall set the matter within
twenty (20) days for a determination if temporary total disability
compensation shall be reinstated. The temporary total disability
shall remain terminated until such time as the employee complies
with medical orders of the treating physician. Notwithstanding the
provisions of this paragraph, benefits under this subsection shall
be permanently terminated by order of the Commission if the employee
is noncompliant or abandons treatment for sixty (60) days, or if
benefits under this subsection have been suspended under this
paragraph at least two times. The administrative law judge may
appoint an independent medical examiner to determine if further
medical treatment is reasonable and necessary. The independent
medical examiner shall not provide treatment to the injured worker,
unless agreed upon by the parties.
B. Temporary Partial Disability.
1. If the injured employee is temporarily unable to perform his
or her job, but may perform alternative work offered by the
employer, he or she shall be entitled to receive compensation equal
to seventy percent (70%) of the difference between the injured
employee’s average weekly wage before the injury and his or her
weekly wage for performing alternative work after the injury, but
only if his or her weekly wage for performing the alternative work
is less than the temporary total disability rate. The injured
employee’s actual earnings plus temporary partial disability
compensation shall not exceed the temporary total disability rate.
ENR. S. B. NO. 642 Page 8
2. Compensation under this subsection may not exceed fifty-two
(52) weeks.
3. If the employee refuses to perform the alternative work
offered by the employee employer, he or she shall not be entitled to
benefits under subsection A of this section or under this section.
C. Permanent Partial Disability.
1. A permanent partial disability award or combination of
awards granted to an injured worker may not exceed a permanent
partial disability rating of one hundred percent (100%) to any body
part or to the body as a whole. The determination of permanent
partial disability shall be the responsibility of the Commission
through its administrative law judges. Any claim by an employee for
compensation for permanent partial disability must be supported by
competent medical testimony of a medical doctor, osteopathic
physician, or chiropractor, and shall be supported by objective
medical findings, as defined in this act the Administrative Workers’
Compensation Act. The opinion of the physician shall include
employee’s percentage of permanent partial disability and whether or
not the disability is job-related and caused by the accidental
injury or occupational disease. A physician’s opinion of the nature
and extent of permanent partial disability to parts of the body
other than scheduled members must be based solely on criteria
established by the Sixth Edition of the American Medical
Association’s “Guides to the Evaluation of Permanent Impairment”. A
copy of any written evaluation shall be sent to both parties within
seven (7) days of issuance. Medical opinions addressing
compensability and permanent disability must be stated within a
reasonable degree of medical certainty. Any party may submit the
report of an evaluating physician.
2. Permanent partial disability shall not be allowed to a part
of the body for which no medical treatment has been received. A
determination of permanent partial disability made by the Commission
or administrative law judge which is not supported by objective
medical findings provided by a treating physician who is a medical
doctor, doctor of osteopathy, chiropractor or a qualified
independent medical examiner shall be considered an abuse of
discretion.
ENR. S. B. NO. 642 Page 9
3. The examining physician shall not deviate from the Guides
except as may be specifically provided for in the Guides.
4. In cases of permanent partial disability, the compensation
shall be seventy percent (70%) of the employee’s average weekly
wage, not to exceed Three Hundred Fifty Dollars ($350.00) Three
Hundred Sixty Dollars ($360.00) per week which shall increase to
Three Hundred Sixty Dollars ($360.00) per week on July 1, 2021, for
a term not to exceed a total of three hundred sixty (360) weeks for
the body as a whole Three Hundred Seventy-five Dollars ($375.00) per
week on July 1, 2025.
5. Assessments pursuant to Sections 31, 98 and 122 of this
title shall be calculated based upon the amount of the permanent
partial disability award.
6. Previous Disability: The fact that an employee has suffered
previous disability or received compensation therefor shall not
preclude the employee from compensation for a later accidental
personal injury or occupational disease. In the event there exists
a previous permanent partial disability, including a previous non-
work-related injury or condition which produced permanent partial
disability and the same is aggravated or accelerated by an
accidental personal injury or occupational disease, compensation for
permanent partial disability shall be only for such amount as was
caused by such accidental personal injury or occupational disease
and no additional compensation shall be allowed for the preexisting
disability or impairment. Any such reduction shall not apply to
temporary total disability, nor shall it apply to compensation for
medical treatment. If workers’ compensation benefits have
previously been awarded through settlement or judicial or
administrative determination in Oklahoma, the percentage basis of
the prior settlement or award shall conclusively establish the
amount of permanent partial disability determined to be preexisting.
If workers’ compensation benefits have not previously been awarded
through settlement or judicial or administrative determination in
Oklahoma, the amount of preexisting permanent partial disability
shall be established by competent evidence and determined by the
Commission.
ENR. S. B. NO. 642 Page 10
7. No payments on any permanent partial disability order shall
begin until payments on any preexisting permanent partial disability
orders have been completed.
8. The whole body shall represent a maximum of three hundred
sixty (360) weeks.
9. The permanent partial disability rate of compensation for
amputation or permanent total loss of use of a scheduled member
specified in Section 46 of this title shall be seventy percent (70%)
of the employee’s average weekly wage, not to exceed Three Hundred
Fifty Dollars ($350.00) Three Hundred Sixty Dollars ($360.00), with
an increase to Three Hundred Sixty Dollars ($360.00) on July 1, 2021
Three Hundred Seventy-five Dollars ($375.00) on July 1, 2025,
multiplied by the number of weeks set forth for the member in
Section 46 of this title, regardless of whether the injured employee
is able to return to his or her pre-injury or equivalent job.
10. An injured employee who is eligible for permanent partial
disability under this subsection shall be entitled to receive
vocational rehabilitation services provided by a technology center
or public secondary school offering vocational-technical education
courses, or a member institution of The Oklahoma State System of
Higher Education, which shall include retraining and job placement
to restore the employee to gainful employment. Vocational
rehabilitation services or training shall not extend for a period of
more than fifty-two (52) weeks.
D. Permanent Total Disability.
1. In case of total disability adjudged to be permanent,
seventy percent (70%) of the employee’s average weekly wages, but
not in excess of the state’s average weekly wage, shall be paid to
the employee during the continuance of the disability until such
time as the employee reaches the age of maximum Social Security
retirement benefits or for a period of fifteen (15) years, whichever
is longer. In the event the claimant dies of causes unrelated to
the injury or illness, benefits shall cease on the date of death.
Provided, however, any person entitled to revive the action shall
receive a one-time, lump-sum payment equal to twenty-six (26) weeks
of weekly benefits for permanent total disability awarded to the
claimant. If more than one person is entitled to revive the claim,
ENR. S. B. NO. 642 Page 11
the lump-sum payment shall be evenly divided between or among such
persons. In the event the Commission awards both permanent partial
disability and permanent total disability benefits, the permanent
total disability award shall not be due until the permanent partial
disability award is paid in full. If otherwise qualified according
to the provisions of this act the Administrative Workers’
Compensation Act, permanent total disability benefits may be awarded
to an employee who has exhausted the maximum period of temporary
total disability even though the employee has not reached maximum
medical improvement.
2. The Oklahoma Workers’ Compensation Commission shall annually
review the status of any employee receiving benefits for permanent
total disability against the last employer. The Commission shall
require the employee to annually file an affidavit under penalty of
perjury stating that he or she is not and has not been gainfully
employed and is not capable of gainful employment. Failure to file
such affidavit shall result in suspension of benefits; provided,
however, reinstatement of benefits may occur after proper hearing
before the Commission.
E. 1. The Oklahoma Workers’ Compensation Commission may hire
or contract for a Vocational Rehabilitation Director to oversee the
vocational rehabilitation program of the Commission.
2. Upon the request of either party, an administrative law
judge shall determine if it is appropriate for a claimant to receive
vocational rehabilitation training or services. If appropriate, the
administrative law judge shall refer the employee to a qualified
expert for evaluation of the practicability of, need for and kind of
rehabilitation services or training necessary and appropriate in
order to restore the employee to gainful employment. The cost of
the evaluation shall be paid by the employer.
3. Upon receipt of such report, and after affording all parties
an opportunity to be heard, the administrative law judge shall order
that any rehabilitation services or training, recommended in the
report, or such other rehabilitation services or training as the
administrative law judge may deem necessary, provided the employee
elects to receive such services, shall be provided at the expense of
the employer. Except as otherwise provided in this subsection,
ENR. S. B. NO. 642 Page 12
refusal to accept rehabilitation services by the employee shall in
no way diminish any benefits allowable to an employee.
4. The administrative law judge may order vocational
rehabilitation before the injured employee reaches maximum medical
improvement, if the treating physician believes that it is likely
that the employee’s injury will prevent the employee from returning
to his or her former employment. In granting early benefits for
vocational rehabilitation, the Commission shall consider temporary
restrictions and the likelihood that such rehabilitation will return
the employee to gainful employment earlier than if such benefits are
granted after the permanent partial disability hearing in the claim.
5. Vocational rehabilitation services or training shall not
extend for a period of more than fifty-two (52) weeks. A request
for vocational rehabilitation services or training shall be filed
with the Commission by an interested party not later than sixty (60)
days from the date of receiving permanent disability that prevents
the injured employee from returning to his or her pre-injury or
equivalent position.
6. If rehabilitation requires residence at or near the facility
or institution which is away from the employee’s customary
residence, reasonable cost of the employee’s board, lodging, travel,
tuition, books and necessary equipment in training shall be paid for
by the insurer in addition to weekly compensation benefits to which
the employee is otherwise entitled under the Administrative Workers’
Compensation Act.
7. During the period when an employee is actively and in good
faith being evaluated or participating in a retraining or job
placement program for purposes of evaluating permanent total
disability status, the employee shall be entitled to receive
benefits at the same rate as the employee’s temporary total
disability benefits for an additional fifty-two (52) weeks. All
tuition related to vocational rehabilitation services shall be paid
by the employer or the employer’s insurer on a periodic basis
directly to the facility providing the vocational rehabilitation
services or training to the employee.
F. Disfigurement.
ENR. S. B. NO. 642 Page 13
1. If an injured employee incurs serious and permanent
disfigurement to any part of the body, the Commission may award
compensation to the injured employee in an amount not to exceed
Fifty Thousand Dollars ($50,000.00).
2. No award for disfigurement shall be entered until twelve
(12) months after the injury unless the treating physician deems the
wound or incision to be fully healed.
3. An injured employee shall not be entitled to compensation
under this subsection if he or she receives an award for permanent
partial disability to the same part of the body.
G. Benefits for a single-event injury shall be determined by
the law in effect at the time of injury. Benefits for a cumulative
trauma injury or occupational disease or illness shall be determined
by the law in effect at the time the employee knew or reasonably
should have known that the injury, occupational disease or illness
was related to work activity. Benefits for death shall be
determined by the law in effect at the time of death.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
ENR. S. B. NO. 642 Page 14
Passed the Senate the 21st day of May, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the 21st day of May, 2025.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________