OKLAHOMA CITY (OBV) – A bill that clarifies liability for workers’ compensation cases involving contractors passed the Oklahoma State Senate floor this week.
Senate Bill 642, written by Senate President Pro Tem Lonnie Paxton, R-Tuttle, and House Speaker Kyle Hilbert, R-Bristow, passed the Senate with a 37-7 vote.
Sen. Julie Daniels, R-Bartlesville, presented the bill on the Senate floor.
“The option to take on this risk and cover the workers’ comp cost for subcontractors’ employees is what’s in the bill,” Daniels said. “There are added benefits to it in addition to that general contractor or premise owner mitigating their own risk by taking and covering those other employees.”
SB 642 protects business and their contractors from undue liability on workers’ compensation claims by safeguarding the role of private contracts between businesses.
Daniels said an extra benefit of the bill is that there will be a reduction of workplace injuries for premise owners or general contractors.
Sen. Aaron Reinhardt, R-Jenks, stood up and spoke in support of SB 642.
“Uninsured [subcontractors] happens quite a bit. It is a problem. This bill does help address some of that. It also cleans up the double-dipping where it is not clear who is responsible for that injured [subcontractor], and often times they get work comp from their subcontractor and then they turn around and sue the general contractor or the business owner. We are just trying to clear that up with this bill,” Reinhardt said.
Reinhardt went on to address the question of protection for the injured employees in the process. He said the bill makes sure employees have workers’ compensation coverage on worksites but prevents claims from multiple sources.
“Workers’ compensation, technically, there is no limit to coverage. If that employee is injured, that work comp policy is going to pay any of their medical and any of their TTD, which is their time away, until their age of Social Security where often a general liability policy is going to be limited to $1 million,” Reinhardt said. “Workers’ comp, there’s a reason why it’s the sole remedy for injured employees in the state of Oklahoma. It’s actually providing more potential benefits for that injured employee.”
SB 642 next moves to the Oklahoma House of Representatives.
