Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB642 Compare Versions

Version 1 (Old)

Version 2 (New)

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	3	+	ENGR. S. B. NO. 642 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 60th Legislature (2025)
34	27
35	28		ENGROSSED SENATE
36	29		BILL NO. 642 By: Paxton of the Senate
37	30
38	31		and
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40	33		Hilbert of the House
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45	38		An Act relating to workers’ compensation; amending
46	39		85A O.S. 2021, Section 5, which relates to exclusive
47	40		liability; expanding rights and remedies granted to
48	41		certain persons; stating effect of provisions to
49	42		certain contracts; making language gender neutral;
50	43		updating statutory references; defining terms;
51	44		authorizing agreement between contractors to provide
52	45		certain insurance coverage; providing for deduction
53	46		of premiums under certain agreements; clarifying
54	47		application of certain rights and remedies;
55	48		prohibiting coverage for certain contractors without
56	49		agreement; providing for codification; and declaring
57	50		an emergency.
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63	56		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOM A:
64	57		SECTION 1. AMENDATORY 85A O.S. 2021, Section 5, is
65	58		amended to read as follows:
66	59		Section 5. A. The rights and remedies granted to an employee
67	60		subject to the provisions of the Administrative Workers ’
68	61		Compensation Act shall be ex clusive of all other rights and remedies
69	62		of the employee, his or her legal representative, dependents, next
	63	+	of kin, or anyone else claiming rights to recovery on behalf of the
	64	+	employee against the em ployer, including a general contractor that
	65	+	provides workers’ compensation insurance coverage to a subcontractor
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71		-	SB642 HFLR Page 2
72		-	BOLD FACE denotes Committee Amendments. 1
	67	+	ENGR. S. B. NO. 642 Page 2 1
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97		-	of kin, or anyone else claiming rights to r ecovery on behalf of the
98		-	employee against the employer, including a general contractor that
99		-	provides workers’ compensation insurance coverage to a subcontractor
100	92		pursuant to Section 2 of this act, or any principal, officer,
101	93		director, employee, stockholder, partner, or prime contractor of the
102	94		employer on account of injury, illness, or death. Negligent acts of
103	95		a co-employee may not be imputed to the employer. No role,
104	96		capacity, or persona of any employer, principal, officer, director,
105	97		employee, or stockholder other than that existing in the role of
106	98		employer of the employee shall be relevant for consideration fo r
107	99		purposes of this act the Administrative Workers ’ Compensation Act,
108	100		and the remedies and rights provided by this act the Administrative
109	101		Workers’ Compensation Act to an employee or other person claiming
110	102		rights to recovery on behalf of the employee shall be exclusive
111	103		regardless of the multiple roles, capacities, or personas the
112	104		employer may be deemed to have.
113	105		B. Notwithstanding the date of the injury, illness, or death of
114	106		an employee, nothing in subse ction A of this section shall affect
115	107		any provision in an executed contract that requires the employer, or
116	108		any principal, officer, director, stockholder, partner, or prime
117	109		contractor of the employer, to indemnify, defend, or hold harmless
118	110		another person or entity against liability for the injury, illness,
119	111		or death of an employee, including, but not limited to, the ability
120	112		or requirement to insure for such claims.
	113	+	C. Exclusive remedy shall not apply if:
	114	+	1. An employer fails to secure the payment of compensa tion due
	115	+	to the employee as required by this act the Administrative Workers’
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122		-	SB642 HFLR Page 3
123		-	BOLD FACE denotes Committee Amendments. 1
	117	+	ENGR. S. B. NO. 642 Page 3 1
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148		-	C. Exclusive remedy shall not apply if:
149		-	1. An employer fails to secure the payment of compensation due
150		-	to the employee as required by this act the Administrative Workers ’
151	142		Compensation Act. An injured employee, or his or her legal
152	143		representative in case death results from the injury, may, at his or
153	144		her option, elect to claim compensation under this act the
154	145		Administrative Workers ’ Compensation Act or to maintain a legal
155	146		action in court for damages on account of the injury or death; or
156	147		2. The injury was caused by an intentional tort committed by
157	148		the employer. An intentional tort shall exist only whe n the
158	149		employee is injured as a result of willful, deliber ate, specific
159	150		intent of the employer to cause such injury. Allegations or proof
160	151		that the employer had knowledge that the injury was substantially
161	152		certain to result from the employer ’s conduct shall not constitute
162	153		an intentional tort. The employee shall p lead facts that show it is
163	154		at least as likely as it is not that the employer acted with the
164	155		purpose of injuring the employee. The issue of whether an act is an
165	156		intentional tort shall be a question o f law.
166	157		C. D. The immunity from civil liability described in subsection
167	158		A of this section shall apply regardless of whether the injured
168	159		employee is denied compensation or deemed ineligible to receive
169	160		compensation under this act the Administrative Workers ’ Compensation
170	161		Act.
	162	+	D. E. If an employer has failed to sec ure the payment of
	163	+	compensation for his or her injured employee as provided for in this
	164	+	act the Administrative Workers ’ Compensation Act, an injured
	165	+	employee, or his or her legal representative if de ath results from
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172		-	SB642 HFLR Page 4
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198		-	D. E. If an employer has failed to sec ure the payment of
199		-	compensation for his or her injured employee as provided for in this
200		-	act the Administrative Workers ’ Compensation Act, an injured
201		-	employee, or his or her legal representative if death results from
202	192		the injury, may maintain an action in th e district court for damages
203	193		on account of such injury.
204	194		E. F. The immunity created by the provisions of this section
205	195		shall not extend to action against another employer, or its
206	196		employees, on the same job as the injured or deceased worker where
207	197		such other employer does not stand in the position of an
208	198		intermediate or principal employer to the immediate employer of the
209	199		injured or deceased worker.
210	200		F. G. The immunity created by the provisions of this sec tion
211	201		shall not extend to action against another employer, or its
212	202		employees, on the same job as the injured or deceased worker even
213	203		though such other employer may be considered as standing in the
214	204		position of a special master of a loaned servant where such special
215	205		master neither is the immediate employer of the in jured or deceased
216	206		worker nor stands in the position of an intermediate or principal
217	207		employer to the immediate employer of the injured or deceased
218	208		worker.
219	209		G. H. This section shall not be construed to abrogate the
220	210		loaned servant doctrine in any respect othe r than that described in
221	211		subsection F G of this section. Nothing in this act the
	212	+	Administrative Workers ’ Compensation Act shall be construed to
	213	+	relieve the employer from any other penalty provided for in this act
	214	+	the Administrative Workers ’ Compensation Act for failure to secure
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223		-	SB642 HFLR Page 5
224		-	BOLD FACE denotes Committee Amendments. 1
	216	+	ENGR. S. B. NO. 642 Page 5 1
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249		-	Administrative Workers ’ Compensation Act shall be construed to
250		-	relieve the employer from any other penalty provided for in this act
251		-	the Administrative Workers ’ Compensation Act for failure to secure
252	241		the payment of compensation under this act the Administrative
253	242		Workers’ Compensation Act.
254	243		H. I. For the purpose of extending the immunity of this
255	244		section, any architect, prof essional engineer, or land surveyor
256	245		shall be deemed an in termediate or principal employer for services
257	246		performed at or on the site of a construction project, but this
258	247		immunity shall not extend to the negligent preparation of design
259	248		plans and specifications.
260	249		I. J. If the employer has failed to secure the payment of
261	250		compensation as provided in this act the Administrative Workers ’
262	251		Compensation Act or in the case of an intentional tort, the injured
263	252		employee or his or her legal representative may maintain an ac tion
264	253		either before the Oklahoma Workers’ Compensation Commission or in
265	254		the district court, but not both.
266	255		SECTION 2. NEW LAW A new section of law to be codified
267	256		in the Oklahoma Statutes as Section 126 of Title 85A, unless there
268	257		is created a duplication in numbering, reads as follows:
269	258		A. For the purposes of this section:
270	259		1. “General contractor” means a person who undertakes to
271	260		procure the performance of work or a service, either separately or
272	261		through the use of subcontractors. Gener al contractor shall
	262	+	include, but is not limited to, a pri ncipal contractor, an original
	263	+	contractor, a prime contractor or other analogous term, and a
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274		-	SB642 HFLR Page 6
275		-	BOLD FACE denotes Committee Amendments. 1
	265	+	ENGR. S. B. NO. 642 Page 6 1
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300		-	include, but is not limited to, a principal contractor, an original
301		-	contractor, a prime contractor or other analogous term, and a
302	290		premises owner who contract s all or part of the work being performed
303	291		on the premises;
304	292		2. “Provides workers’ compensation insurance coverage ” means to
305	293		make available workers’ compensation insurance coverage. Workers ’
306	294		compensation insurance coverage may be provided, even if it does not
307	295		ultimately cover an incident, so long as it was made available to
308	296		the subcontractor. The following does not constitute acceptable o r
309	297		relevant evidence to suggest that workers ’ compensation insurance
310	298		made available to a subcontractor was not provided to the
311	299		subcontractor:
312	300		a. timing discrepancies between the issuance of workers ’
313	301		compensation insurance policies and contracts between
314	302		and among general contractors and subcontractors,
315	303		b. factual discrepancies in secondary documentation such
316	304		as certificates of insurance or enrollment forms,
317	305		c. a general contractor ’s lack of notice of el ection of
318	306		coverage, or
319	307		d. payment of premiums, or lack th ereof, by the general
320	308		contractor; and
321	309		3. “Subcontractor” means a person who contracts with a general
322	310		contractor to perform all or part of the work or services that the
323	311		general contractor has undertaken to perform.
	312	+	B. A general contractor and a subcontrac tor may enter into a
	313	+	written agreement under which the general contractor provides
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325		-	SB642 HFLR Page 7
326		-	BOLD FACE denotes Committee Amendments. 1
	315	+	ENGR. S. B. NO. 642 Page 7 1
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351		-	B. A general contractor and a subcontrac tor may enter into a
352		-	written agreement under which the general contractor provides
353	340		workers’ compensation insurance coverage to the subcontractor and
354	341		employees of the subcontractor.
355	342		C. If a general contractor has workers ’ compensation insurance
356	343		to protect the general contractor ’s employees and if, in the course
357	344		and scope of the general contractor ’s business, the general
358	345		contractor enters into a contract with a subcontractor who does not
359	346		have employees, the general contractor shall be treated as the
360	347		employer of the subcontractor for the purposes of the Administrative
361	348		Workers’ Compensation Act and may enter into an agreement for the
362	349		deduction of premiums paid in accordance with subsection D of this
363	350		section. A premises owner who acts as a general contractor sh all be
364	351		treated as the employer of all subcontractors for the purposes of
365	352		the Administrative Workers ’ Compensation Act and may enter into an
366	353		agreement for the deduction of premiums paid in accordance with
367	354		subsection D of this section.
368	355		D. If a general contr actor elects to provide coverage, then the
369	356		actual premiums based on payroll that are paid or incurred by the
370	357		general contractor for the coverage may be deducted from the
371	358		contract price or other amoun t owed to the subcontractor by the
372	359		general contractor.
373	360		E. An agreement under this section makes the general contractor
374	361		the employer of the subcontractor and the subcontractor ’s employees
	362	+	only for the purposes of this title. A subcontractor or
	363	+	subcontractor’s employee’s rights and remedies against the general
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376		-	SB642 HFLR Page 8
377		-	BOLD FACE denotes Committee Amendments. 1
	365	+	ENGR. S. B. NO. 642 Page 8 1
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402		-	only for the purposes of this title. A subcontractor or
403		-	subcontractor’s employee’s rights and remedies against the general
404	390		contractor or any principal, officer, director, employee,
405	391		stockholder, partner, or prime contractor of the general contractor
406	392		shall be subject to the limitations pursuant to Section 5 of Title
407	393		85A of the Oklahoma Statutes.
408	394		F. Notwithstanding subsection C of this section, a person who
409	395		performs work or provides a service for an oil or gas well operator
410	396		and who is an independent contractor that has no employees shall be
411	397		treated in the same manner as an independent contractor with
412	398		employees and is not entitled to coverage under the general
413	399		contractor’s workers’ compensation insurance policy unless the
414	400		independent subcontractor and the general contractor enter into an
415	401		agreement under this section.
416	402		SECTION 3. It being immediately necessary for the preservation
417	403		of the public peace, health or safety, an emergency is hereby
418	404		declared to exist, by reason whereof this act shall take effect and
419	405		be in full force from and after its passage and approval.
420	406
421		-	COMMITTEE REPORT BY: OVERSIGHT COMMITTEE ON JUDICIARY AND PUBLIC
422		-	SAFETT, dated - 04/22/2025 – DO PASS.
	407	+	ENGR. S. B. NO. 642 Page 9 1
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	432	+	Passed the Senate the 18th day of March, 2025.
	433	+
	434	+
	435	+
	436	+	Presiding Officer of the Senate
	437	+
	438	+
	439	+	Passed the House of Representatives the ____ day of __________,
	440	+	2025.
	441	+
	442	+
	443	+
	444	+	Presiding Officer of the House
	445	+	of Representatives
	446	+