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Oklahoma Gov. Mary Fallin on Monday signed into law legislation allowing employers to implement an alternative to the state's traditional workers compensation system.
The signing makes Oklahoma only the second state after Texas to allow employers to leave the traditional state workers comp insurance system.
The law will decrease permanent and temporary total disability benefits and shorten benefit durations, which is expected to reduce Oklahoma workers comp system costs by $125 million annually, or 12.5%, according to an April report from Boca Raton, Fla.-based NCCI Holdings Inc.
Legislation allowing Oklahoma employers to opt out of their state's workers compensation system advanced Tuesday with supporters predicting adoption.