Opt Out Workers Comp System Ruled Unconstitutional by OK Supreme Court

The Oklahoma Supreme Court ruled Tuesday that a workers’ compensation law is unconstitutional. The Opt Out Act allows a company to not participate in the state’s workers’ comp system, if they provide a system for injured employees to receive treatment.

The case is Vasquez v. Dillard’s Inc. It involved a Dillard’s employee named Jonnie Yvonne Vasquez. According to court documents, Vasquez was lifting shoe boxes when she injured her neck and shoulder. She filed for benefits under Dillard’s Opt-Out plan. Those requests were denied. Vasquez then filed for an appeal to the Workers’ Compensation Commission.

Dillard’s tried to get the case moved to federal court, but it was decided that the Workers’ Comp Commission had the proper jurisdiction for the case. The Commission decided for Vasquez. Dillard’s appealed and the Supreme Court revealed its decision which will have ramifications for the new workers’ comp system and the various Opt-Out plans in Oklahoma.

The State Chamber of Commerce is calling the decision an overreach of power by the Supreme Court.

“Once again the Oklahoma Supreme Court has shown disdain for the legislative process by legislating from the bench. Today’s ruling that the Oklahoma Option is unconstitutional ‘special law’ shows a lack of understanding of the reason for that article in the constitution — and a willingness to use that provision as a ‘hammer’ to pound any legislative ‘nail’ it doesn’t like. The workers’ compensation reforms of 2013 incorporated competition into the workers’ compensation market and the Oklahoma Option was a valuable component. Justice Winchester and Taylor’s dissent is correct that the court pays lip service to the idea of judicial restraint and then dismisses their own standards in today’s ruling. The court should practice judicial restraint or run for the legislature if they want to write laws,” said State Chamber Senior Vice President of Government Affairs Jonathan Buxton.

The Opt-Out law was passed in 2013. The Supreme Court ruled that it is a “special law” which creates a class of people. The ruling was a 7-2 decision with Justices James Winchester and Steven Taylor dissenting.

Several other challenges to the Opt-Out Act are in various stages within the Commission and the court system.