Oklahoma State Workers Compensation Laws
Workers' compensation is required by employers in all states. Many states have a Department of Insurance that determines the rates and benefits that are provided by a workers' compensation policy. In the state of Oklahoma, the enforcement of workers' compensation is the responsibility of the state's Employment Standards Division. Oklahoma has laws that are similar to other states, with similar penalties for employers that fail to obtain a policy.
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Coverage Requirements
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All employers in the state of Oklahoma are required to obtain a workers' compensation insurance policy. Coverage is required for employers even if they have only one part-time employee. Employers or business owners can purchase a workers' compensation insurance policy from any licensed insurer or insurance agent in the state. Waivers are not permitted in the state and fines can result for failure to obtain a workers' compensation policy.
Fines
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Employers that fail to obtain a workers' compensation policy in the state of Oklahoma face fines for violating the states Workers' Compensation Act. Employers are fined a maximum of $250 per employee for the first offense. However, the fine is reduced to $75 if a workers' compensation policy is obtained by the employer within 30 days. If an employer receives a second violation, the fine increases to $1,000 for each employee.
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Exceptions
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The state's Workers' Compensation Act provides exceptions for certain situations where a workers' compensation policy is not required. Exceptions are granted to individuals who own an equity stake in a business. Equity states can include being a sole proprietor, being a partner in a partnership, owning more than 10 percent of a corporation's shares of stock and owning more than 10 percent of a limited liability company's capital.
Family Business
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Oklahoma also provides an exception for a small family business. Small family businesses must have less than five employees who are related by blood or marriage to the employer or business owner. The exception that is provided applies to an individual person such as a sole proprietor. Exceptions do not apply to an organization such as a limited liability company, partnerships or corporations.
Premium Calculation
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Insurance companies that provide a workers' compensation policy use various factors to determine the amount of premium that is paid for a policy. One factor that is used is the compensation paid or the amount of payroll for an employer. Another factor that is used is the classification types of a company's employees. Classification type can include secretaries, truck drivers, mechanics, custodians and salespeople.
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