Workers compensation insurance is required in most states for businesses that have employees. There are, however, some cases where business owners and workers can be exempt.

Workers compensation insurance provides compensation for disability, and medical and rehabilitation benefits for employees injured on the job. In the case of accidental death, it provides benefits to the employee’s dependents. It is beneficial for both the employee and employer because each covered worker has a right to benefits from a workplace injury and employers are protected from liability lawsuits outside the workers compensation system.

For those who are asserting exemption from the Workers Comp code as an independent contractor, may complete an “Affidavit of Exempt Status” which is available on the Workers’ Compensation Commission website. This form was introduced in 2019 and is the only accepted form allowed. More details on this form can be found later in the article.

Exemptions to Workers Comp

Every employee hired or injured in Oklahoma is covered by the state’s workers compensation laws. However, independent contractors are not employees and are therefore not covered. According to the Oklahoma Workers’ Compensation Court of Existing Claims, “Other exceptions to coverage include:

• Persons covered for job-related injuries under the federal law;

• Certain agricultural workers;

• Licensed real estate brokers paid on a commission basis;

• Certain persons providing services administered by the Oklahoma Department of Human Services;

• Any person employed by an employer with 5 or fewer employees, all of whom are related by blood or marriage to the employer;

• Any person employed by a tax-exempt youth sports league;

• Sole proprietors, members of a partnership, certain persons who are a party to a franchise agreement, certain members of a limited liability company and certain stockholders of a corporation;

• Any person that provides voluntary service who receives no wages for the services other than meals, drug or alcohol rehabilitation therapy, transportation, lodging or reimbursement for incidental expenses; owner-operators of a truck-tractor; and drive-away owner operators.”

Independent Contractors – New Affidavit Form

For independent or subcontractors who are waiving exemption of workers compensation, the form to file with the Oklahoma Insurance Department is CC-Form-36A. This form is in effect as of January 2019 and no other forms will be accepted. Basic facts about the form:

• You must file an original and one copy of the form with the Workers Compensation Commission (WCC) either in-person, by mail, or online at www.ok.gov/wcc.

• The form must be accompanied with a $50 filling fee payable to the WCC. Checks are not accepted.

• Must be approved by the state before a subcontractor can start work if they are to have payroll excluded during an audit.

• Once approved, a copy must be provided to the company whom you are completing work for.

Questions?

If you are currently an independent contractor and have questions regarding filing for exemption from workers’ compensation on job sites, please reach out to our experienced producer, Sean Leigh, and he can help guide you through the process and answer any questions you may have.