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ENGROSSED SENATE
BILL NO. 642 By: Paxton of the Senate
and
Hilbert of the House
An Act relating to workers’ compensation; amending
85A O.S. 2021, Section 5, which relates to exclusive
liability; expanding rights and remedies granted to
certain persons; stating effect of provisions to
certain contracts; making language gender neutral;
updating statutory references; defining terms;
authorizing agreement between contractors to provide
certain insurance coverage; providing for deduction
of premiums under certain agreements; clarifying
application of certain rights and remedies;
prohibiting coverage for certain contractors without
agreement; providing for codification; and declaring
an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOM A:
SECTION 1. AMENDATORY 85A O.S. 2021, Section 5, is
amended to read as follows:
Section 5. A. The rights and remedies granted to an employee
subject to the provisions of the Administrative Workers ’
Compensation Act shall be ex clusive of all other rights and remedies
of the employee, his or her legal representative, dependents, next
of kin, or anyone else claiming rights to recovery on behalf of the
employee against the em ployer, including a general contractor that
provides workers’ compensation insurance coverage to a subcontractor
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pursuant to Section 2 of this act, or any principal, officer,
director, employee, stockholder, partner, or prime contractor of the
employer on account of injury, illness, or death. Negligent acts of
a co-employee may not be imputed to the employer. No role,
capacity, or persona of any employer, principal, officer, director,
employee, or stockholder other than that existing in the role of
employer of the employee shall be relevant for consideration fo r
purposes of this act the Administrative Workers ’ Compensation Act,
and the remedies and rights provided by this act the Administrative
Workers’ Compensation Act to an employee or other person claiming
rights to recovery on behalf of the employee shall be exclusive
regardless of the multiple roles, capacities, or personas the
employer may be deemed to have.
B. Notwithstanding the date of the injury, illness, or death of
an employee, nothing in subse ction A of this section shall affect
any provision in an executed contract that requires the employer, or
any principal, officer, director, stockholder, partner, or prime
contractor of the employer, to indemnify, defend, or hold harmless
another person or entity against liability for the injury, illness,
or death of an employee, including, but not limited to, the ability
or requirement to insure for such claims.
C. Exclusive remedy shall not apply if:
1. An employer fails to secure the payment of compensa tion due
to the employee as required by this act the Administrative Workers’
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Compensation Act. An injured employee, or his or her legal
representative in case death results from the injury, may, at his or
her option, elect to claim compensation under this act the
Administrative Workers ’ Compensation Act or to maintain a legal
action in court for damages on account of the injury or death; or
2. The injury was caused by an intentional tort committed by
the employer. An intentional tort shall exist only whe n the
employee is injured as a result of willful, deliber ate, specific
intent of the employer to cause such injury. Allegations or proof
that the employer had knowledge that the injury was substantially
certain to result from the employer ’s conduct shall not constitute
an intentional tort. The employee shall p lead facts that show it is
at least as likely as it is not that the employer acted with the
purpose of injuring the employee. The issue of whether an act is an
intentional tort shall be a question o f law.
C. D. The immunity from civil liability described in subsection
A of this section shall apply regardless of whether the injured
employee is denied compensation or deemed ineligible to receive
compensation under this act the Administrative Workers ’ Compensation
Act.
D. E. If an employer has failed to sec ure the payment of
compensation for his or her injured employee as provided for in this
act the Administrative Workers ’ Compensation Act, an injured
employee, or his or her legal representative if de ath results from
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the injury, may maintain an action in th e district court for damages
on account of such injury.
E. F. The immunity created by the provisions of this section
shall not extend to action against another employer, or its
employees, on the same job as the injured or deceased worker where
such other employer does not stand in the position of an
intermediate or principal employer to the immediate employer of the
injured or deceased worker.
F. G. The immunity created by the provisions of this sec tion
shall not extend to action against another employer, or its
employees, on the same job as the injured or deceased worker even
though such other employer may be considered as standing in the
position of a special master of a loaned servant where such special
master neither is the immediate employer of the in jured or deceased
worker nor stands in the position of an intermediate or principal
employer to the immediate employer of the injured or deceased
worker.
G. H. This section shall not be construed to abrogate the
loaned servant doctrine in any respect othe r than that described in
subsection F G of this section. Nothing in this act the
Administrative Workers ’ Compensation Act shall be construed to
relieve the employer from any other penalty provided for in this act
the Administrative Workers ’ Compensation Act for failure to secure
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the payment of compensation under this act the Administrative
Workers’ Compensation Act.
H. I. For the purpose of extending the immunity of this
section, any architect, prof essional engineer, or land surveyor
shall be deemed an in termediate or principal employer for services
performed at or on the site of a construction project, but this
immunity shall not extend to the negligent preparation of design
plans and specifications.
I. J. If the employer has failed to secure the payment of
compensation as provided in this act the Administrative Workers ’
Compensation Act or in the case of an intentional tort, the injured
employee or his or her legal representative may maintain an ac tion
either before the Oklahoma Workers’ Compensation Commission or in
the district court, but not both.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 126 of Title 85A, unless there
is created a duplication in numbering, reads as follows:
A. For the purposes of this section:
1. “General contractor” means a person who undertakes to
procure the performance of work or a service, either separately or
through the use of subcontractors. Gener al contractor shall
include, but is not limited to, a pri ncipal contractor, an original
contractor, a prime contractor or other analogous term, and a
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premises owner who contract s all or part of the work being performed
on the premises;
2. “Provides workers’ compensation insurance coverage ” means to
make available workers’ compensation insurance coverage. Workers ’
compensation insurance coverage may be provided, even if it does not
ultimately cover an incident, so long as it was made available to
the subcontractor. The following does not constitute acceptable o r
relevant evidence to suggest that workers ’ compensation insurance
made available to a subcontractor was not provided to the
subcontractor:
a. timing discrepancies between the issuance of workers ’
compensation insurance policies and contracts between
and among general contractors and subcontractors,
b. factual discrepancies in secondary documentation such
as certificates of insurance or enrollment forms,
c. a general contractor ’s lack of notice of el ection of
coverage, or
d. payment of premiums, or lack th ereof, by the general
contractor; and
3. “Subcontractor” means a person who contracts with a general
contractor to perform all or part of the work or services that the
general contractor has undertaken to perform.
B. A general contractor and a subcontrac tor may enter into a
written agreement under which the general contractor provides
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workers’ compensation insurance coverage to the subcontractor and
employees of the subcontractor.
C. If a general contractor has workers ’ compensation insurance
to protect the general contractor ’s employees and if, in the course
and scope of the general contractor ’s business, the general
contractor enters into a contract with a subcontractor who does not
have employees, the general contractor shall be treated as the
employer of the subcontractor for the purposes of the Administrative
Workers’ Compensation Act and may enter into an agreement for the
deduction of premiums paid in accordance with subsection D of this
section. A premises owner who acts as a general contractor sh all be
treated as the employer of all subcontractors for the purposes of
the Administrative Workers ’ Compensation Act and may enter into an
agreement for the deduction of premiums paid in accordance with
subsection D of this section.
D. If a general contr actor elects to provide coverage, then the
actual premiums based on payroll that are paid or incurred by the
general contractor for the coverage may be deducted from the
contract price or other amoun t owed to the subcontractor by the
general contractor.
E. An agreement under this section makes the general contractor
the employer of the subcontractor and the subcontractor ’s employees
only for the purposes of this title. A subcontractor or
subcontractor’s employee’s rights and remedies against the general
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contractor or any principal, officer, director, employee,
stockholder, partner, or prime contractor of the general contractor
shall be subject to the limitations pursuant to Section 5 of Title
85A of the Oklahoma Statutes.
F. Notwithstanding subsection C of this section, a person who
performs work or provides a service for an oil or gas well operator
and who is an independent contractor that has no employees shall be
treated in the same manner as an independent contractor with
employees and is not entitled to coverage under the general
contractor’s workers’ compensation insurance policy unless the
independent subcontractor and the general contractor enter into an
agreement under this section.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
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Passed the Senate the 18th day of March, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2025.
Presiding Officer of the House
of Representatives