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DI 52120.200: Oklahoma Workers’ Compensation (WC)

changes
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  • Effective Dates: 09/25/2017 - Present
  • Effective Dates: 03/30/2018 - Present
  • BASIC (09-08)
  • TN 11 (03-18)
  • DI 52120.200 Oklahoma Workers’ Compensation (WC)
  • A. Types of WC payments
  • * Temporary Total (TT) — maximum period is 300 weeks. The WC court can extend the initial period up to the maximum for good cause. TT is not paid covering the same period of time as unemployment compensation benefits provided by the Oklahoma Employment Security Commission.
  • * Temporary Partial (TP) — maximum period is duration of disability
  • * Permanent Partial (PP) — maximum period is 500 weeks
  • A. Types of WC payments subject to WC offset
  • * Oklahoma’s Administrative Workers’ Compensation Act (AWCA) (Effective 02/01/2014): The AWCA applies to claims for injuries and death based on accidents occurring on or after 02/01/2014 and provides for the following types of WC benefits:
  • * Temporary Total (TT) Disability
  • Disfigurement awards — In the case of an injury resulting in serious and permanent disfigurement, the Court determines the amount, but not in excess of $20,000.00 for an injury occurring before 11/01/2005 and not in excess of $50,000.00 for an injury occurring on or after 11/01/2005. An award for permanent disfigurement shall not be made for a part of the body for which PP disability is awarded. Disfigurement awards under the Oklahoma WC statutes are offsettable.
  • * Permanent Total (PT) — physical or mental impairment, disease, or loss from which recovery or substantial improvement cannot be expected, therefore, considered permanent. Permanent total disability awards paid from the Special Indemnity Fund or Multiple Injury Trust Fund, shall accrue from the file date of the court order finding the claimant to be permanently and totally disabled. See DI 52120.200F.1. & F.2. for types of taxes assessed on payments made from these two funds
  • TT disability may be available if the injured employee is temporarily unable to perform his or her job or any alternative work offered by the employer.
  • B. Cost-of-living adjustments (COLAs)
  • PP payments are periodically adjusted based on the date and nature of the injury. Otherwise, Oklahoma does not provide for cost of living increases for WC payments.
  • C. Attorney fees
  • Attorney fees of 10 percent permitted from TT and 20 percent permitted from other types, and based on state statutes, as determined by the courts.
  • D. Retirement insurance benefit (RIB) considerations
  • Oklahoma does not offset its WC for SSA retirement benefits.
  • Amount: compensation equal to 70% of the injured employee’s average weekly wage; but not to exceed 70% of the state average weekly wage.
  • E. Oklahoma Workers’ Compensation Court
  • Duration: may not exceed 104 weeks (plus up to 52 weeks for a consequential injury).
  • * Temporary Partial (TP) Disability
  • The Oklahoma Workers' Compensation Court administers the Workers' Compensation Act.  The Court’s responsibility is to determine claims for compensation, the liability of employers and insurers, and any rights asserted under the Act.
  • TP disability may be available if the injured employee is temporarily unable to perform his or her job, but may perform alternate work offered by the employer.
  • F. Types of taxes
  • Amount: compensation equal to 70% of the difference between the employee’s average weekly wage (before the injury) and the employee’s weekly wage for performing alternative work after the injury. This only applies if the weekly wage for the alternative work is less than the TT disability rate.
  • 1. Special Indemnity Fund Tax
  • * Oklahoma law used to provide that a percentage of the WC amount due a worker be withheld and paid to the State of Oklahoma taxing authority for a special indemnity fund for subsequent injuries.
  • * The employer or carrier withheld the amount from what was due the worker and pays that plus a matching amount into the indemnity fund. This "Special Indemnity Fund Tax" was excludable for offset purposes.
  • * In the case of a lump sum settlement, it was treated as an exclusion and deducted from the gross settlement amount prior to the proration of the settlement. It is not included with the other excludable expenses. The applicable tax percentages were:
  • Duration: TP disability may not exceed 52 weeks.
  • * Permanent Partial (PP) Disability
  • PP disability may be available if the injured employee has permanent loss of, or loss of use of, one or more body parts. In this situation, the employee is unable to perform his or her same job duties from prior to the injury, but is still capable of working in some capacity. Each body part has a legally determined number of weeks of WC payments that the disabled worker is entitled to receive.
  • Amount: compensation equal to 70% of the injured employee’s average weekly wage; but not to exceed $323.00 per week.
  • Duration: may not exceed a total of 350 weeks for the body as a whole. The law sets forth the total weekly duration of PP disability for specific parts of the body.
  • * Disfigurement Awards
  • Period
  • Payments made due to a permanent injury, usually to the head, face, or neck, which impedes the progress of finding future employment.
  • Amount: compensation for disfigurement may not exceed $50,000.00.
  • * Permanent Total (PT) Disability
  • Tax Rate
  • PT disability may be available if the employee’s injury or illness permanently removes the person from the work force.
  • Amount: compensation equal to 70% of the injured employee’s average weekly wages; but not to exceed 100% of the state’s average weekly wage.
  • Duration: paid during the continuance of the disability and until the employee reaches the age of maximum Social Security retirement benefits, or for a period of 15 years, whichever period is longer. PT disability awards shall not be commuted to a lump-sum payment.
  • * or additional information, see Okla. Stat. Ann. tit. 85a, §§ 3, 45, 46, 49.
  • * Oklahoma WC Code (08/26/2011 to 01/31/2014): The Oklahoma WC Code applies to claims for injuries or deaths based on accidents occurring from 08/26/2011 to 01/31/2014. It provides the following types of WC benefits:
  • * TT Disability
  • 1970s to 1984
  • TT disability may be available if the injured employee is temporarily unable to perform his or her job or any alternative work offered by the employer.
  • Amount: compensation is equal to 70% of the injured employee’s average weekly wages; but not to exceed 100% of the state’s average weekly wage.
  • 2 percent
  • Duration: may not exceed 156 weeks (plus up to 52 weeks for a consequential injury).
  • * TP Disability
  • TP disability may be available if the injured employee is temporarily unable to perform his or her job, but may perform alternate work offered by the employer.
  • Amount: compensation is equal to 70% of the difference between the employee’s average weekly wages and the employee’s wage-earning capacity in the same employment or otherwise, if less than before the injury. It may not exceed 80% of the employee’s average weekly wages at the time of the accident.
  • 1985 to 10/31/1992
  • Duration: may not exceed 156 weeks.
  • * PP Disability
  • PP disability may be available if the injured employee has permanent loss of, or loss of use of, one or more body parts. In this situation, the employee is unable to perform his or her same job duties from prior to the injury, but is still capable of working in some capacity. Each body part has a legally determined number of weeks of WC payments that the disabled worker is entitled to receive.
  • 3 percent
  • Amount: compensation is equal to 70% of the injured employee’s average weekly wage; but not to exceed $323.00 per week. It may not be less than $150 per week for the period prescribed for scheduled members (parts of the body).
  • Duration: may not exceed 500 weeks. The employee may ask the WC Court to change the award to a lump-sum payment rather than weekly payments, but the lump-sum payment shall not exceed 25% of the total award. Any balance of the total award shall be paid in periodic payments.
  • * Disfigurement Awards
  • Payments made due to a permanent injury, usually to the head, face, or neck, which impedes the progress of finding future employment.
  • 11/01/1992 to 10/31/1999
  • Amount: compensation for disfigurement may not exceed $50,000.00.
  • * PT Disability
  • PT disability may be available if the worker’s injury or illness permanently removes the person from the work force.
  • 5 percent
  • Amount: compensation is equal to 70% of the injured employee’s average weekly wages; but not to exceed 100% of the state’s average weekly wage.
  • Duration: paid during the continuance of the disability and until the employee reaches the age of maximum Social Security retirement benefits, or for a period of 15 years, whichever period is longer. PT disability awards shall not be commuted to a lump-sum payment.
  • * f. For additional information, see Carlock v. Workers’ Compensation Commission, 324 P.3d 408 (Okla. 2014); Okla. Stat. Ann. tit. 85a, §§ 3, 400(L); Okla. Stat. Ann. tit. 85, §§ 332-334, 336, 345, 404; 2011 Okla. Sess. Law Serv. Ch. 318, S.B. 878 (effective 08/26/2011).
  • NOTE: See POMS DI 52150.045C.39 for Oklahoma’s state maximum weekly WC benefit amount.
  • 11/01/1999 to 06/30/2000
  • 4 percent
  • Dates shown in this chart refer to the date of the WC court order and the tax assessed is decided by the date of the WC court order.
  • * In addition, the insurance carrier also pays an additional WC tax but the carrier’s tax is NOT deductible in SSA’s WC offset computation. Therefore, when the injured worker’s WC payment is the gross amount before the WC tax has been paid, the injured worker’s portion – NOT THE INSURANCE CARRIER’S PORTION – of Oklahoma WC tax should be subtracted from the worker’s gross Oklahoma WC periodic payments or the WC lump sum.
  • * If the gross lump sum amount includes the worker’s portion of the special indemnity fund tax, subtract the tax prior to proration of the lump sum amount. The net LS amount (after the worker’s tax deducted) is your lump sum amount.
  • 2. Multiple Injury Trust Fund Tax
  • * Effective 11/01/1999, the Special Indemnity Fund was renamed the Multiple Injury Trust Fund.  Subsequent legislation has changed the manner in which the fund is funded. 
  • * Beginning with awards/settlements effective 07/01/2000 or later, the 4 percent tax was collected from the employer only.  The provision for that assessment was last in effect 12/31/2001. 
  • * Current law reads "The Oklahoma Tax Commission shall assess and collect from any uninsured employer a temporary assessment at the rate of five percent of the total compensation for permanent total disability awards, permanent partial disability awards, and death benefits paid out during each quarter of the calendar year by the employers." 
  • * Whether the tax is collected from benefits paid the injured worker is dependent on the date the settlement occurred, not the date the law changed. 
  • * A change in the law did not result in a change to or elimination of the tax for cases where the applicable tax was already being deducted at the time the law changed. 
  • * Thus, it is possible that the tax deduction from periodic payments continues based on settlements before a specific date even after the law eliminated the tax for current settlements. 
  • B. Cost-of-living adjustments (COLAs)
  • Example:
  • * A case where the settlement was effective 01/31/2000 ordering ongoing periodic payments.  The tax in effect at that time, 4 percent, has continued to be deducted from the periodic payments and would still be considered an excludable expense. 
  • * If this settlement had occurred effective 07/31/2000 rather than 01/31/2000, there would have been no taxes deducted from the compensation checks since that settlement would have been after the date the law changed.  
  • Oklahoma does not provide for cost of living increases for WC payments.
  • 3. Claimant tax
  • C. Attorney fees under the AWCA
  • Claimant tax is a filing fee and not considered an excludable expense. It can be reimbursed upon resolution of the settlement, so it’s not really an expense of the worker.
  • When evaluating attorney fees, consider the following:
  • * An attorney representing an injured employee may recover attorney fees subject to limitations set forth in the law.
  • * Attorney fees paid or incurred by the employee in connection with the employee’s WC claim are “excludable expenses”. See DI 52150.050 for more information on legal fees as excludable expenses.
  • 4. Special Occupation Health and Safety Fund Tax
  • D. Retirement insurance benefit (RIB) considerations
  • Special Occupation Health and Safety Fund Tax is paid by the respondent (the employer) and not considered an excludable expense.
  • Oklahoma does not offset its WC for SSA retirement benefits.
  • G. Compensation orders
  • * Oklahoma Court orders can be very confusing.  It is easy to mistake them for lump sum settlements when they are actually orders for the payment of additional weekly compensation.   References can be made indicating benefits due through a certain date are to be paid in a lump sum, but this is a reference to periodic benefits that are past due, not to a lump sum settlement. 
  • * Instructions in a subsequent order can supersede the payment instructions in a prior order.  In fact, part of the amount shown as past due on a later order could have already been paid pursuant to an earlier order.  As a result, it is often not possible to determine the payments actually made simply by looking at the orders themselves. 
  • * Contact with the WC carrier to verify the actual payments made is usually necessary.
  • E. Oklahoma WC Court of Existing Claims and Oklahoma WC Commission
  • * Oklahoma WC Court of Existing Claims
  • * For claims involving injuries and death based on accidents that occurred prior to 02/01/2014, the Oklahoma WC Court of Existing Claims determines claims for compensation, the liability of employers and insurers, and rights asserted under the prior WC law found in Title 85 of the Oklahoma Statutes (now repealed).
  • * Information regarding the Oklahoma WC Court of Existing Claims, including current court forms such as Compromise Settlement forms, is available at http://cec.ok.gov/.
  • * Oklahoma WC Commission
  • * For claims involving injuries and death based on accidents that occurred on or after 02/01/2014, the Oklahoma WC Commission administers the AWCA. 
  • * The Commission’s responsibility is to determine claims for compensation, the liability of employers and insurers, and any rights asserted under the AWCA. An administrative law judge will issue the judgment/award on WC claims. Any appeal of an administrative law judge’s decision goes to the Oklahoma WC Commission.
  • * Information on the Oklahoma WC Commission is available at http://ok.gov/wcc/.
  • H. Verifying WC
  • F. Verifying WC payments under the AWCA
  • In Oklahoma there are six sources for Workers' Compensation (WC) information. In priority order of verification requests, these are:
  • Sources to Verify Payments: In order of priority, the following are potential sources for WC information:
  • * Claimant;
  • * Claimant's Attorney;
  • * Insurance Carrier;
  • * Self-Insured Employer;
  • * CompSource Oklahoma P. O. Box 53505 Oklahoma City, OK 73105;
  • * Workers’ Compensation Court 1915 N. Stiles Denver City, OK 73105 Oklahoma City, OK 73105
  • If unable to obtain WC verification from other sources, such as CompSource Oklahoma or another individual WC carrier, it might on rare occasions be necessary to contact the Oklahoma Workers' Compensation Court. 
  • * The WC Court waives their normal search fee for government employees performing in their official capacities, but does not waive the fee for making copies of the material located by the search.  They also will not accept SSA-1709's, requiring that SSA complete and submit the "Copy Request Form" available on their website. 
  • * They will then send an invoice requesting payment before they release the material.
  • * Since the Processing Centers (PCs) have no mechanism for paying the requested fees, any request for a search of WC Court records should be routed to the Oklahoma City Field Office. 
  • * The FO has an employee that will visit the WC Court and obtain the information. 
  • * Claimant's attorney;
  • * Insurance carrier;
  • * Self-insured employer;
  • * CompSource Mutual Insurance CompanyP. O. Box 53505 Oklahoma City, OK 73105
  • The WC Court records approximately 80 percent of all WC claims. Their files include requests for court actions, court orders, and/or joint petitions.
  • (405) 232-7663 or (800) 347-3863
  • The following factors limit the information from the WC Court:
  • * The WC court will not have any records for injuries which occurred in the current or preceding 3 months;
  • * WC Court records are often incomplete;
  • * WC Court records are not automated and are often not updated timely with appeals or settlement information;
  • * WC Court records frequently cannot resolve conflicts in prior WC information; and
  • * WC Court verifications require a time-consuming, manual search through paper files, by a representative of the Social Security Administration.
  • Formerly CompSource Oklahoma, this is an insurance carrier that must provide WC insurance to any employer in Oklahoma that seeks coverage and meets certain requirements.
  • * Oklahoma WC Court of Existing ClaimsRecords DepartmentDenver Davison Building1915 N. Stiles Ave, Suite 127 Oklahoma City, OK 73105(405) 522-8640
  • CompSource Oklahoma is an insurance carrier. They insure all State, county and local government employees and some "high-risk" employers. In the event of court action, the WC Court records their cases.
  • http://cec.ok.gov/records.htm
  • If you are unable to obtain WC verification through one of the first four sources, field offices (FO) should request verification from the WC Court by means of an SSA-562 or E562, Request for Assistance, sent to:
  • For claims prior to 02/01/2014, the records department of the Oklahoma WC Court of Existing Claims contains specific information on obtaining claims records. 
  • * Oklahoma WC Commission
  • D/O 783 Oklahoma City District Office 12301 N Kelley Ave Oklahoma City, OK 73131
  • For claims on or after 02/01/2014, the Oklahoma WC Commission website provides that the contact for records issues is Norma McRae, Director (405) 522-8776. http://ok.gov/wcc/About_the_Commission/Contact_Us/index.html
  • * Assistance from SSA Oklahoma City District Office
  •          
  • FOs should request verification from the WC Court of Existing Claims or WC Commission via Form SSA-562U3 (Request for Assistance Certification) or Form E562 (Electronic 562), sent to:
  • FO’s can FAX requests to the Oklahoma City District Office at (405) 752-4726.
  • D/O 783SSA, Oklahoma City District Office
  • A fully completed SSA-1709, Request for Workers' Compensation Disability Benefit Information, must accompany the SSA-562 or E562. Instructions for completing the SSA-1709 are in DI 52145.010. Show the address of the contact source in the applicable block on the SSA-1709. Be sure to include both sides of the SSA-1709 when faxing. Finally, if the WC verification request is the result of a Processing Center memorandum, include a copy of the memorandum with the SSA-1709 and SSA-562 or E562. The information on the memorandum often aids in the search for WC records.
  • 12301 N Kelley Ave
  • You can request information from the CompSource Oklahoma directly in the following manner:
  • * Telephone the CompSource Oklahoma at (405) 232-7663 or (800) 347-3863. You will need to have available identifying information about the claimant including the Social Security number when you call.
  • * The personnel at the CompSource Oklahoma office will give you the name of the examiner assigned to the case.
  • * You may fax an SSA-1709 to the attention of that examiner. The fax number is (405) 962-3000. The examiner will then return the information they have concerning your claimant by fax. Include your name, office address, phone number and office fax number on the cover sheet you use to send the SSA-1709 to the CompSource Oklahoma.
  • Oklahoma City, OK 73131
  • I. Exhibit
  • The FO’s can FAX requests to the SSA Oklahoma City District Office at (405) 752-4726.
  • Oklahoma Workers’ Compensation Court Form 1X – Compromise Settlement
  • A fully completed Form SSA-1709 (Request for Workers' Compensation/Public Disability Benefit Information) must accompany the SSA-562 or E562. Instructions for completing the SSA-1709 are in DI 52145.010. Show the address of the contact source in the applicable block on the SSA-1709. Be sure to include both sides of the SSA-1709 when faxing. Finally, if the WC verification request is the result of a Processing Center memorandum, include a copy of the memorandum with the SSA-1709 and SSA-562 or E562. The information on the memorandum often aids in the search for WC records.
  • J. References
  • * Oklahoma Workers' Compensation site:
  • * Oklahoma Workers’ Compensation Court Laws/Rules/Charts:
  • G. References
  • * Oklahoma WC Court of Existing Claims website:http://cec.ok.gov/
  • * Oklahoma WC Commission website: http://ok.gov/wcc/
  • * Oklahoma Insurance Commissioner’s website: https://www.ok.gov/oid/
  • * Titles 85 and 85a of the Oklahoma Statutes are available on the Oklahoma Legislature’s website: http://www.oklegislature.gov/osStatuesTitle.aspx
The materials available at this web site are provided free of charge, for informational purposes only, and without warrant by True Link Financial, Inc., and are not legal advice or Social Security benefits advice. You should contact your attorney to obtain advice with respect to any particular issue or problem, or the Social Security Administration with any general inquiries. Click here to view this section of the POMS on the Social Security Administration website.