Dive Brief:
- Is Oklahoma’s workers’ compensation alternative, called by the Oklahoma Option, legal? In February, the Oklahoma Workers’ Compensation Commission (OWCC) deemed the law to be unconstitutional and “not enforceable.” Today, briefs are being filed prior to the case making it to state court.
- The Oklahoma change allows qualified employers to use an alternative to the state's traditional workers’ comp system by establishing an Employee Benefit Plan under the provisions of the federal Employee Retirement lncome Security Act (ERISA). Benefits plans in the option are supposed to be equal to or better than those provided under the workers’ comp system.
- The Insurance Journal points out that the odd aspect of this case is insurance company trade groups and plaintiffs’ lawyers are on the same side — that is, getting rid of the Oklahoma Option.
Dive Insight:
Supporters of the opt out law say it can both lower employer costs and result in positive outcomes for the employees. The larger question for HR leaders in states where the opt out trend is catching on is, can employees be treated fairly when the employer has so much input in deciding if benefits are given or not? It looks like a long legal fight before it will be answered.