Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney licensed in Oklahoma before making legal decisions.
Detailed Answer
Under Oklahoma law, when you receive a personal injury settlement related to an accident covered by workers’ compensation benefits, the Oklahoma Workers’ Compensation Commission (OWCC) holds a statutory lien to recoup benefits already paid. You must verify and satisfy this lien before you can disburse the full net proceeds of your settlement. The key statute is 85A O.S. § 43 (subrogation and lien for third-party recoveries). For more details, see the OWCC rules at https://www.oklegislature.gov.
1. Identify the Workers’ Compensation Lien
- Review your OWCC case file. The Commission issues a Notice of Lien or Order establishing the subrogation amount.
- Check the OWCC’s online docket or request a lien statement from your employer’s insurance carrier.
2. Verify the Lien Amount
- Obtain a written statement from the insurance carrier showing all compensation benefits paid and all medical bills covered.
- Confirm the calculation includes:
- Temporary total and temporary partial disability benefits
- Permanent partial disability benefits, if any
- Medical payments
- Cross-check these figures against OWCC records to ensure accuracy.
3. Negotiate Reduction of the Lien
- Under 85A O.S. § 43, you can argue that your attorney’s fees and costs should be deducted before reimbursing the lien. The OWCC may reduce the lien by a pro rata share of attorney fees paid on the third-party recovery.
- Submit a Motion to Settle Lien in OWCC to request a hearing on lien reduction if negotiations stall.
4. Draft a Lien Satisfaction Agreement
- Prepare a written agreement that specifies the exact amount to be paid to the carrier or OWCC.
- Include payment terms and a release clause confirming the lien is fully satisfied.
- Obtain signatures from all parties: you (the claimant), your attorney, the insurance carrier, and OWCC if required.
5. File Required Documents and Make Payment
- Submit the signed Lien Satisfaction Agreement to the OWCC docket clerk.
- Attach proof of payment (e.g., check copy or wire transfer receipt).
- Request an OWCC order or endorsement acknowledging the lien is satisfied.
Helpful Hints
- Start the lien verification process early to avoid delaying your settlement disbursement.
- Keep all correspondence and payment records organized in one file.
- Communicate in writing with the insurance carrier to create an audit trail.
- Remember that OWCC approval may take several weeks—plan accordingly.
- If the carrier disputes your fee-sharing calculation, consider mediation through the OWCC.