What to know about workers' compensation in Oklahoma

Workers’ compensation, which can provide cash and medical care to employees injured on the job, and benefits to survivors in cases of a work-related death, began with a federal program in 1908. It gave benefits to civilian workers whose jobs were hazardous and became the first kind of social insurance established across the United States.

By 1916, the rest of the federal workforce was covered. States meanwhile were enacting their workers’ compensation laws. All but six states and the District of Columbia had them by 1921.

Today, programs exist in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

The details of each program vary by state. Four states—Ohio, North Dakota, Washington and Wyoming—require insurance be obtained through a state-administered fund rather than through a private insurer. Another option is to self-insure for approved businesses. Most states require some businesses to provide coverage and can levy substantial fines for failing to comply. South Dakota and Texas leave the choice to businesses, although Texas makes an exception for construction companies with a government contract.

Simply Business reviewed rules, statistics, and other information about workers’ compensation insurance—including the comprehensive breakdown by the National Federation of Independent Business—to offer a breakdown of what workers’ comp requirements in each state. Rules are subject to updates periodically, so it’s important to stay up-to-date based on your trade and location.

Workers' Compensation in Oklahoma

In Oklahoma, all employers have to carry workers’ compensation coverage, which can be obtained through a state-administered fund, but there are exceptions. Employers with five or fewer employees to whom they are related are exempt, as are licensed real estate brokers and associates who are paid on commission, most servants, and some agricultural and horticultural workers. Sole proprietors, independent contractors, and some partners of a limited liability company do not need to have coverage. An employer that fails to get workers’ compensation coverage could face a fine of up to $1,000 a day.

Workers’ Compensation Benefits, Costs, and Coverage, an October 2021 report from the National Academy of Social Insurance, found that total benefits paid to employees rose by 0.4% nationwide from 2015 to 2019. Cash benefits rose by 2%, but medical benefits fell by 1.1%. Standardized benefits fell— cash by 14% and medical benefits by 16.7%—over the same period.

Keep reading to see what workers' compensation looks like for other states in your area.

Workers' Compensation in Arkansas

Workers’ compensation coverage is mandated for most employers with three or more workers in Arkansas. The state, however, warns of exceptions to the three-or-more requirement and to check with authorities to confirm whether it is required. Farm laborers, real estate agents, and others are typically exempt. Employers that fail to pay compensation may be subject to a fine of up to $10,000.

Workers' Compensation in Colorado

Employers with at least one full-time or part-time worker must have coverage. But there are a number of exemptions, among them those who do maintenance or repair work for less than $2,000 a year, real estate agents and brokers who are paid by commission, independent contractors who have no employees, and some drivers. Sole proprietors and corporate officers can opt out. A business without coverage can be closed and fined up to $500 for every day without insurance. If a worker is hurt, the employer must pay the claim plus an additional penalty of 25% of the worker’s benefits.