STATE OF OKLAHOMA

1st Session of the 53rd Legislature (2011)

SENATE BILL 838	By:	Ivester

AS INTRODUCED

An Act relating to payment of wages upon death of employee; amending 40 O.S. 2001, Section 165.3a, which relates to payment of certain wages to proper person; increasing amount of certain wages paid upon death of employee; providing for treatment of remainder; providing for treatment of final wages if certain option or life insurance policy exists; authorizing certain affidavit; limiting liability of employer; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     40 O.S. 2001, Section 165.3a, is amended to read as follows:
Section 165.3a.  Other than an employee provided with an option of beneficiary designation with respect to his wages and benefits by his employer, all A.  Except as provided in subsection B of this section, all wages earned by an employee, not exceeding Three Thousand Dollars ($3,000.00) Five Thousand Dollars ($5,000.00), shall, upon the employee's death, become due and payable to the employee's surviving spouse, or if there is no surviving spouse, the dependent children, or their guardians or the conservators of their estates, in equal shares, without the necessity of a probate court action.  Any remainder shall be deposited in the deceased employee’s bank account if such employee had paychecks paid via automatic deposit, or to the deceased employee at the last known address of such employee.
B.  If the employee had completed an employer provided option of beneficiary designation with respect to the employee’s wages and benefits, or if there is no such option of beneficiary designation but the employee has a life insurance policy through the employer, the beneficiary named in the employee’s option of beneficiary designation or named in the life insurance policy if there is no such option, shall be paid all wages earned by the deceased employee without the necessity of a probate court action.  If the beneficiary is deceased and there is no living secondary or subsequent beneficiary named in the option or life insurance policy if there is no such option, then the final wages and benefits shall be paid pursuant to subsection A of this section.
C.  An employer may require the proper beneficiary or recipient, as provided in this section, to complete an affidavit of verification before any payment is made pursuant to this section.
D.  An employer who complies with the provisions of this section shall not be liable to any heir, legatee, devisee, creditor or other person having rights or claims to funds or property of the decedent, nor for any estate, inheritance or other taxes which may be due the state from the estate as a result of the payment.
SECTION 2.  This act shall become effective November 1, 2011.

53-1-355	SJ	1/20/2011 1:03:05 PM