What is the primary source of funding for workers' compensation benefits in Oklahoma?

The primary source of funding for workers' compensation benefits in Oklahoma comes from insurance premiums paid by employers. This system requires employers to purchase workers' compensation insurance or self-insure, depending on their size and financial ability. The premiums that employers pay are calculated based on various factors, including the nature of the business, the number of employees, and the company's claims history.

These premiums fund the benefits that injured employees receive, such as medical expenses, rehabilitation, and wage loss benefits. Unlike other forms of funding, such as federal grants or state allocations, which may not provide a reliable and continuous source of support, premiums create a direct and consistent funding stream tied to the number of employees and the payroll of the company.

Contributions from employees typically do not play a role in funding the workers' compensation system in Oklahoma, as the responsibility falls primarily on the employers to cover these costs. This structure helps ensure that employees receive timely benefits for workplace injuries without directly contributing financially to the workers' compensation fund.