WORKER'S COMPENSATION COURT

MISSION STATEMENT
The Workers' Compensation Court applies the law as set out in the Oklahoma Workers' Compensation Act. Its responsibility is to provide fair and timely procedures for the resolution of disputes and identification of issues involving on-the-job injuries.

THE COURT
Workers' Compensation Court judges are appointed by the Governor from a group of applicants that includes the incumbent judge (if any) and nominees submitted by the Judicial Nominating Commission. Unless legislation provides otherwise, terms are for six years. Judges may be appointed to successive terms. A judge must have been licensed as an attorney for five years at the time of appointment.

DUTIES / RESPONSIBILITIES
The Workers' Compensation Court applies the Workers' Compensation Act by:
1. Resolving disputes between respondent-employers and claimant-employees regarding on-the-job injuries.
2. Determining reasonableness and necessity of disputed medical bills;
3. Receiving all employer's First Notice of Accidental Injury (approximately 100,000 per year)
4. Serving as Court-of-Record for all claims for accidental injury (approximately 25,000 filed each year);
5. Maintaining records of workers' compensation insurance coverage by employers (approximately 80,000 filings each year);
6. Approving and monitoring all self insurance programs;
7. Maintaining an Ombudsman Department to provide information to employees and employers;
8. Developing and adopting a Schedule of Medical Fees;
9. Adopting Court and Administrative rules.

STATUTORY REFERENCES
Title 85, of the Oklahoma Statutes.

PERFORMANCE CRITERIA / SERVICES PROVIDED

                                     FY-93        FY-94        FY-95       
 Criteria/Service:                  Actual       Actual      Budgeted     

 Court Clerk:
 Certification of court documents      10,000       12,000       12,000       
 Filing of bonds pertaining to Supreme Court
    appeals                               138           90           90          
 Preparation and submission of Supreme Court 
    appeals                               263          281          281          
 Court File Room (Records):(Each document is filed into an existing file or a new file is created.)
 Receipt of filing fees & other    $1,238,500   $1,290,000   $1,300,000   
 Court file creation                   24,770       25,800       26,000      
 Receipt of Employer's First Notice of Injury 
    filings                            86,088       86,178       87,000      
 Receipt of Employee's First Notice of Accidental Injury 
    filings                            24,053       25,800       26,000       
 Receipt of Employee's First Notice of Death 
    filings                               266          164          170         
 Receipt of Employee's First Notice of Occupational Disease 
    filings                               550          500          500          
 Employee claim for benefit from the Special 
    Indemnity Fund                      3,000        3,000        3,500        
 Receipt of Employer's or Insurance Carrier's* Initial Report 
    of Payment of Compensation filings 25,000      100,000      130,000     
    *or Claims Servicing Company
 Receipt of all "Motions to Set for   112,000      100,000      100,000      
            Hearing" (modified FY '95)
 Request for Prehearing Conference     11,140       30,000       40,000       
 Receipt of Request For Review of Medical or Rehab Services
    filings                             3,820        3,000        3,500        

 Insurance Department:
 Own Risk applications submitted for review and 
    approval                              312          393          393          
 Receipt and processing of Notice of Insurance 
    Coverage filings                   86,000       85,000       85,000       
 Receipt and processing of Notice of Insurance
    Cancellation filings               30,000       25,000       25,000       
 Maintenance of list of authorized insurance 
    carriers                              150          171          171          
 Orders Department:
 Court approved orders ( added FY-95)  15,452       16,625       17,000      
 Court orders prepared from judge      22,235       28,099       30,000       

 Docketing Department:
 Cases scheduled for trial             45,991       39,354       37,000       
 Cases stricken from docket             2,400          n/a          n/a          
 Cases settled out of court            15,453       16,625       17,500       
 Pretrial hearings                      8,663       31,280       35,000       
 Cases set for court En Banc hearings   1,489        1,418        1,450        

 Administration:
 Own Risk Application Approvals           312          368          368          
 Joint Petition Settlements             1,070          988        1,000       
 Form 14 Agreements                       856        1,316        1,350        
 Form 18 Orders                            69           59           90           

 Data Processing:
 Entry and verification of Employer's  86,088       86,178       91,230       
 Entry and verification of Employee's  24,770       25,800       26,000       
 Entry and verification of receipts    24,770       25,800       26,000       
 Entry and verification of court order 38,078       44,724       45,000       

 Trials:
 Oklahoma City Court                   30,660       46,089       46,250       
 Tulsa Court                           15,330       24,545       26,000       

 General Court:
 Information requests                  21,094       35,000       35,000       

 Medical Fee Schedule:
 Information requests                   2,800        3,200        3,300       
 Insurance Coverage Requests           50,000       50,000       50,000       
 Requests to Other Departments         20,000       20,000       20,000       
 Orders issued requiring payment of
 benefits and fixing amount of benefits   496          500          500          

EXPENDITURES BY FUND

                                     FY-93        FY-94        FY-95
 Type of Fund:                      Actual       Actual      Budgeted
 State Appropriated Funds:
      General Revenue                 $13,308      $74,303           $0
      Workers' Comp. Admin. Fund   $3,345,270   $3,381,775   $3,673,846
 State Continuing/Revolving Funds:
    Workers' Comp Revolving Fund      428,703      477,540      443,601
 Federal Funds:                             0            0            0
 Total Expenditures by Fund        $3,787,281   $3,933,618   $4,117,447

EXPENDITURES BY OBJECT

                                     FY-93        FY-94        FY-95
 Object of Expenditure              Actual       Actual      Budgeted
 Salaries and Benefits             $3,050,417   $3,137,730   $3,307,985
 Professional Services                  8,735       26,880       65,000
 Travel                                60,016       67,753       60,000
 Lease-Purchase Expenditures                0            0
 Equipment                             38,309       53,725       51,100
 Payments to local governments        156,229      175,614      155,125
 Other Operating Expenses             473,575      471,916      478,237
 Total Expenditures by Object      $3,787,281   $3,933,618   $4,117,447

EXPENDITURES BY BUDGET ACTIVITY / SUB-ACTIVITY

                                     FY-93        FY-94        FY-95
 Activity No. and Name              Actual       Actual      Budgeted
 01 General Court                  $3,297,936   $3,445,719   $3,629,045
 88 Data Processing                  $489,345     $487,899     $488,402
 Total Expenditures by Activity    $3,787,281   $3,933,618   $4,117,447

FULL-TIME-EQUIVALENT EMPLOYEES (FTE) and VEHICLES

                                    FY-93        FY-94        FY-95
 Activity No. and Name              Actual       Actual      Budgeted
 01 General Court                        73.5         79.6         81.0
 88 Data Processing                      10.0         10.0         10.0

 Total FTE                               83.5         89.6         91.0
 Number of Vehicles                         0            0            0

HISTORICAL PERSPECTIVE/REVIEW

Workers Compensation Reform
Major reforms to the Workers Compensation System in Oklahoma were initiated during FY-93. Incumbent judges are permitted to be re-appointed to the bench in an effort to retain expertise and assure that consistency of case law is being developed on the bench. The statutes relating to heart related injuries were also changed so that those injuries which are caused by undue stress in the work place are now allowed to be considered as a disability for Workers Compensation benefits. The statutes were also changed such that any benefit for mental stress must be accompanied by a physical injury. Limits were placed on employers right to terminate declaring that an employee may not be discharged while on Temporary Total Disability for reason of that absence, however the employer does not have to rehire that employee. The law surrounding the Special Indemnity Fund was changed so that a 40% disability must be shown before claim can be made against the fund. This should save the fund money over the long run.

Historically Oklahoma has a large number of workers compensation claims filed each year. While the number of claims filed in Oklahoma may be high, the level of benefits paid are comparatively low. Nevertheless the State of Oklahoma paid over $145 million in Permanent Partial Disability payments in 1990. Permanent Partial Disability claims are the largest growing component of Workers Compensation benefits and the most expensive. Permanent Total Disability payments comprise 3.5% of these payments. These payments are often payable for life and also have an effect on the Special Indemnity Fund.

In FY-94 the Attorney General's Workers' Compensation Fraud Unit received (5) additional investigators to address the issue of fraud. The governor later called a special session of the legislature to address workers' compensation reform which resulted in the passage of HB 1002. The court received half-year funding for a Physicians Advisory Committee, an Independent Medical Examiners System, and additional staffing for the Counselor's Program. Major efforts were begun to direct resources at reducing workers compensation fraud.

During FY-95, the Governor-Elect proposed adding an additional (15) investigators to the Attorney General's Workers' Compensation Fraud Unit and expressed intention of adding a total of (40) investigators of the next four years.