Okla. Labor Dept. asks for steep fine increase for workers' comp

Journal Record, The (Oklahoma City), Oct 26, 2007 by Janice Francis-Smith

When caught violating Oklahoma's workers' compensation insurance laws, the first question on the lips of some employers is, "What's the most you can fine me?"

"Some of them will happily write a check, because it's easier to pay the $10,000 than for them to pay for workers' compensation insurance," said Ray Andrews, director of the Oklahoma Department of Labor's Employment Standards Division. "It's frustrating when some of the first words out of their mouth is, 'Try and stop me."

The situation is frustrating for Labor Department employees, who try to first work with employers to help get them in compliance with the law, said Andrews. The department needs some more legal muscle - and a higher fine.

Labor Department officials asked legislators Thursday to raise the maximum penalty for workers' compensation insurance violations from $10,000 to $25,000.

The amount of fine imposed is based on the number of employees on the payroll, so increasing the maximum would not impose an undue burden on the smallest, family-owned businesses, he said. An employer would have to have at least 40 employees to reach the maximum fine.