Business Advisory Services Blog

Overcharged for Workers’ Comp? First of Many Goings On at the Bureau

Last month, it was announced that the final settlement the Ohio Bureau of Workers’ Compensation (BWC) owes to Ohio employers could be as much as $420 million.  This settles a long-standing case that started in 2007 and alleged that the BWC overcharged premiums to Ohio businesses that were not group-rated between 2001 and 2008.  In March 2013, a Cuyahoga County judge initially awarded over $859 million to plaintiffs and through appeals and settlements the amount has been revised to $420 million in July 2014.

A group of 270,000 Ohio businesses were part of the class action law suit and the BWC had until August 8, 2014 to notify all class members with a “’Notice of Class Action and Proposed Settlement”.  The court has defined the class as private employers who:

  • Subscribed to the state workers’ compensation fund in policy years 2001 – 2008
  • Were not group-rated in one or more of those policy years
  • Reported payroll and paid premiums in a manual classification of the group experience rating plan

The Notice will provide information on the claims procedure.  Employers should carefully review their mail from the BWC this month as responses back to the claims administrator are due September 22, 2014.

Stay in the know. In my next blog, I will evaluate the upcoming changes at the BWC as it relates to prospective billing; workers’ comp in Ohio fundamentally changes on July 1, 2015 for private employers and advance preparation will be recommended for Ohio companies. If you have any questions, contact me at 330-668-1100 or kgoodwin@skodaminotti.com.

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