This summer the Board of Directors for the Ohio Bureau of Workers’ Compensation (BWC) approved a proposal from Governor DeWine to send $1.5 billion of the agency’s revenue back to Ohio employers. This is the BWC’s largest rebate in 20 years.

The Ohio Workers’ Compensation System provides benefits from an insurance fund to workers who are injured or diseased. State law requires employers to carry coverage. Through the fund, injured employees are compensated for losses in wages and medical expenses incurred relating to a workplace injury or disease. The employers’ premiums are invested to grow the fund that supports the injured worker claims.

The Bureau insures approximately 242,000 public and private employers. The Bureau credits the rebates to fewer injury claims, safety and wellness initiatives, and strong returns on the agency’s investments. The state’s rebates will go to both private employers who will collect $638 million and public employers collecting $152 million beginning in late September.

The rebates amount to about 88 percent of the amount an employer spent on premiums in the prior year. Local governments around the state would receive about $114 million total, according to figures provided by the governor’s office. The city of Columbus stands to receive more than any other employer. School districts would receive an additional $50 million or so.

Governor DeWine along with BWC Administrator, Stephanie McCloud, announced the goal is to present employers with resources they can use to strengthen and expand their businesses, but the BWC is encouraging employers to invest in workplace safety measures to prevent injuries and reduce their workers compensation costs.

This proposal continues a trend of lowering workers’ compensation costs for Ohio’s public and private employers. Additionally, the BWC will reduce premium rates for public employers an average of 10% effective January 1, 2020, pending the Board’s approval. This follows a 20% rate reduction for private employers that went into effect July 1, 2019. The actual premium change for a public entity will differ based on factors such as recent claims history and its participation in BWC rate discount programs.

Attorneys with Fishel Downey Albrecht Riepenhoff regularly represent employers in all aspects of workers compensation matters.   To stay abreast of the latest in Ohio Workers’ Comp policies, sign up for our mailing list and follow us on social media.