On May 21, 2019, the Oklahoma Supreme Court issued a long-awaited decision that is good news for employers and, at least for now, finally makes clear there is only one path for filing workers’ compensation-based discrimination and retaliation claims.

In Southon v. Oklahoma Tire Recyclers, LLC, the Oklahoma Supreme Court upheld the constitutionality of a state statute (“Section 7”), which mandates that the Oklahoma Workers’ Compensation Commission, and only the Commission, has the authority to hear and decide discrimination and retaliation actions arising from workers’ compensation claims.

Mr. Southon initiated an action in Creek County District Court alleging that his employer wrongfully fired him after he was injured on the job and filed for workers’ compensation benefits. The employer sought dismissal of the lawsuit, arguing “that the Workers’ Compensation Commission, and not the district court, has sole jurisdiction over wrongful termination claims involving workers’ compensation benefits.” The district court agreed with the employer and dismissed the action. Southon appealed.

On appeal, the Oklahoma Supreme Court rejected Southon’s arguments that Section 7 violates the Oklahoma Constitution by requiring him to seek relief with the Commission (as opposed to a court). Southon also argued that the remedies provided in the statute are inadequate and, therefore, leave a crack in the door to file in district court. The court disagreed, blocking any alternative way to bringing workers’ compensation-based discrimination and retaliation actions in district court.

Next steps for Oklahoma employers

Claimants have been sitting on Section 7 claims filed with the Commission awaiting this ruling. With it, employers should anticipate movement in these actions and be prepared to defend them by ensuring all witnesses are available and evidence is in order. For actions suspended at district court, now is the time to move for dismissal with prejudice. While the logistics of defending these actions before the Commission are different and discovery may be expedited, the basic principles of defense are the same, and the good news is, now, employers don’t have to defend actions on dual fronts.     

Finally, employers should make sure their legal counsel fully understands the process and important strategies for successfully defending retaliation claims under Oklahoma’s workers’ compensation statutes. Not all lawyers who handle workers’ compensation injury claims have experience defending wrongful termination and retaliation claims. Moreover, many workers’ compensation insurance carriers take the position that such claims are not covered under their workers’ compensation insurance policies.