Affidavit is Back

Exempt Status” form. The CNC cards were no longer being accepted. This system was a little better in that you had to sign a sworn statement and get it notarized. But last fall, our legislature wrote a bill, that in its language, unintentionally did away with the Affidavit.

The Oklahoma Workers Compensation Commission stepped in to fill the void by bringing back the CNC card. This form was hopefully the cure all. The application process was more stringent. It asked for Federal tax numbers, social security numbers, and required several points of validation. In addition it required a $50 fee. So, at least it was a process. This spring our legislature met and by emergency legislation re-instituted the Affidavit. Is your head spinning yet?

So effective August 2, 2018 we’re back to the Affidavit (CC-Form-36A is available on the Oklahoma Workers Compensation Commission website). But, be careful when accepting these forms. Please don’t blindly assume that these documents will work in court or at an audit. Insurance company auditors have been very well trained to ask pointed questions to determine their validity. The auditor will look to see if there is an employee/employer relationship between the general contractor and the subcontractor. Do you control their work? Is there a contract in place? Does the sub work for others? Do you supply the tools? In addition, the auditor will look to see if the work could have been performed by an individual or would it have taken a crew. And are the amounts paid for the work consistent with a single person doing the job.

For those builders who have already secured the old CNC card from their subcontractor, CompSource Mutual will honor these cards through their expiration date (two years from the date of issue).

But truthfully, the best way to avoid the headaches, heartaches, and disappointing audits is to insist that all subcontractors purchase a workers compensation policy and present you a certificate of insurance. ¦