By Fred Morgan
Guest Columnist
Posted: Friday, May 14, 2010

Memo to our governor and Legislature: If you don’t fix our broken workers’ compensation court, we’re leaving. Signed, The Employers of Oklahoma

Sound a bit drastic? Let’s look at the numbers. Manufacturers across the state have told me that their workers’ compensation costs have gone through the roof during the past five years. This is after the reforms of 2005 that were touted by Gov. Brad Henry as “comprehensive reform legislation which will save businesses more than $100 million annually and protect the rights of injured workers.”

Boy, were we wrong. When the last reforms were passed, a workers’ compensation lawyer reportedly said to one of our members, “That’s OK. You’ve got the laws … we’ve got the judges.” Apparently he knew what he was talking about.

Since his inauguration in 2003, Henry has appointed (or reappointed) all 10 of the judges currently making up Oklahoma’s Workers’ Compensation Court. This porcupine sits squarely in his lap and may well be his legacy to the economic development future of our state.

The manufacturers mentioned earlier told me their payrolls are basically the same as they were five years ago. So, what’s the difference? How can their costs skyrocket so high in just five years? How can Oklahoma be the most expensive state in the region for workers’ compensation premiums after all of the years of “reform?” How can Arkansas rank 47th in the country in workers’ compensation premiums, while Oklahoma ranks as the ninth most expensive?

Here’s a clue: Five years ago, an operated shoulder injury cost about $15,000 in permanent partial disability. That’s over and above the medical costs. Today, that same injury is being awarded $80,000 by the judges appointed by Henry.

In the last two years, Oklahoma’s manufacturing sector has lost almost 30,000 jobs. That’s about 20 percent of our higher-paying jobs. If you don’t think part of that job loss was due to our out-of-control Workers’ Compensation Court, just ask some of the companies. They will all tell you that Oklahoma is not a place where you want to do business if you are concerned about workers’ compensation costs.

Yes, we’ve passed reforms. But until our legislators and our governor wake up and take strong measures to change this current court structure, we will continue to struggle as a state in attracting and retaining good companies providing high-paying jobs.

One last time, look at the numbers: The new average permanent partial disability order of $28,004 is now the highest in the last 20 years and represents almost a 125-percent increase from 2000, with a 12-percent increase in just the last year! Court decisions have gutted any major reforms anticipated.

Governor – you appointed them. The Legislature is going to send you another reform bill this session. It will address some of the problems of this court. We urge you to sign it. Otherwise, the next message you receive could be a postcard from an employer who left Oklahoma.

Fred Morgan is president and CEO of The State Chamber of Oklahoma.