Summary of SB1062

1. Summary of SB1062 An Overhaul of Oklahoma’s Workers Compensation System

2. Three Sections Administrative Workers Compensation Act Workers Compensation Arbitration Act Oklahoma Employee Injury Benefit Act

3. Administrative Workers Compensation Act • Replaces Court System w/3 person Commission; • Appointed by Governor • 3 years WC experience • Create Rules • Drive the Program • Appoint ALJs • Commission can: Review cases when requested; Hold hearings & Investigate Cases; Hear & Approve Compromise Settlements; • Hear Medical Cases; • Appoint Mediators

4. Claims Process – Much Faster • Employee files 1st Notice of Claim w/Commission; • Commission notifies employer within 10 days of claim; • Employer files Notice of Contested Issues; • Commission assigns case to ALJ; • 60 Days for Discovery & Med. Eval.; • Parties given 10 days notice of hearing; • 10 days right of appeal to Commission; • 20 days right of appeal to SC

5. Physicians’ Advisory Committee 9-Member Advisory Committee; 3 Appointments each by Governor, Speaker of the House, and Senate President

6. Changes in Definitions Compensable Injury; Course and Scope of Employment; Cumulative Trauma; Major Cause

7. Changes in Benefits Temporary Total Disability; Temporary Partial Disability; ‘Permanent Partial Disability; Employer Right to Choose Treating Physician; Limitations on Recovery

8. Workers Compensation Arbitration Act Allows Employers to Implement Alternative Dispute Resolution Program; Must be Filed with and Approved by the Commission; Allows Employer to Tailor a System to Meet its Needs; Party Initiations Proceeding w/written Notice to Commission; Parties Agree to Arbitrator/Comm. Appt.

9. Workers Compensation Arbitration Act (cont’d) Parties May Be Represented by Attorney; Employer Pays Cost of Arbitration; Arbitrator Makes a Reward, but May Be Vacated by Commission if Fraud by Any Party Involved, Misconduct by Arbitrator, or Other Specified Reasons; Commission Can Modify Arbitrator’s Decision

10. Oklahoma Employee Injury Benefit Act Oklahoma Option – Unlike Texas – Employers Cannot Go Bare – Must Carry WC, Use Arbitration, or OEIB; Employers Must Cover Occupational Injuries to Payment of the Same Form of Benefits included in Administrative Act; Federal ERISA Laws Generally Govern Benefit Plan Established;

11. Oklahoma Employee Injury Benefit Act (cont’d) Exclusive Remedy Provisions Apply; Injured Employee May Challenge Plan’s Final Decision by Appeal to Commission or in Federal Court; Dissatisfied Party May Bring Suit to Recover Benefits Only AFTER Plan’s Administrative Procedures Have Been Exhausted;

12. Oklahoma Employee Injury Benefit Act (cont’d) Little, if Any Discovery – And No Trial; Greater Control, Flexibility, and Accuracy of Claims Process by Employer

13. Oklahoma Workers Compensation Commission Go to www.ok.gov/wcc/ for more information about the new system.