State of Oklahoma Workers’ Compensation Insurance

Is workers’ comp insurance required in Oklahoma?

Oklahoma requires businesses with 1 employees to carry workers’ compensation insurance. That said, the state exempts some business and employee types, including the following:

• An employer in the agricultural/horticultural industry with less than $100,000 in payroll would not consider ag/hort workers from the previous year as employees.
• Federal employees or anyone else covered “for injuries, disease, or death arising out of and in the course of employment under any Act of Congress”.
• Real estate associates and brokers who are paid on a commission basis.
• Those providing services in a medical care or social services program (except nursing homes).
• Those participating in work training programs administered by the Department of Human Services (unless federal law requires that such coverage be provided).
• Any employee of a business with five or fewer total employees if the employees are related (by blood or marriage,) “if the employer is a natural person or a general or limited partnership, or an incorporator of a corporation if the corporation is the employer”.
• Independent contractors are not employees and are not eligible for workers’ compensation insurance.

LLCs who own at least 10% of the company’s capital

Another interesting difference in Oklahoma workers’ comp laws is how they treat members of LLCs who own at least 10% of the company’s capital. The state considers these “non-employees”. As such, they are not required to be covered by workers’ compensation, although it is highly recommended that they do so. Employees who hold stock in the companies that employ them are also considered “non-employees” for workers’ compensation insurance.