Most Ohio businesses with employees are required to buy workers’ compensation insurance (WC or workers’ comp insurance). The insurance provides compensation to employees that suffer work-related injuries. Here are some basic facts that you simply got to realize workers’ comp insurance in Ohio as a business owner and employer.
Who is Required to Have Workers’ Comp Insurance?
If your Ohio business has only one employee, you’re generally required to hold workers’ compensation insurance. There are exceptions for:
- workers in your home like cooks, gardeners, housekeepers, and babysitters, who earn but $160 per calendar quarter; and
- most volunteer workers.
In addition, business owners, like sole proprietors, partners in partnerships, and members of indebtedness companies, aren't required to be covered by workers’ compensation insurance. You can find more information here.
Who Administers Workers’ Comp Insurance in Ohio?
The Ohio Bureau of Workers’ Compensation (BWC) is that the primary state agency that handles workers’ comp claims. Most of the law for WC insurance is contained in Ohio’s Workers’ Compensation Act (Chapter 4123 of the Ohio Revised Code). In addition to the Act, there also are administrative rules that cover workers’ compensation in Ohio.
Where Can You Get Workers’ Comp Insurance?
Ohio is one among four states where workers’ compensation insurance is provided through the state itself instead of through private insurance companies. You can apply for WC insurance from the state by completing the BWC’s Form U-3, Application for Ohio Workers’ Compensation Coverage, online. There is a minimum $120 application fee. Apart from coverage through the state, there's also an choice to self-insure, but this might not be advisable for smaller businesses, partially because it requires that a lot of cash be put aside to hide potential claims.
What Steps Should You Take if an Employee Gets Hurt?
Apart from getting medical aid , the injured employee should notify you of his or her injury. The employee, the employee’s medical provider, your business’s managed care organization, otherwise you because the employer must report the injury or accident to the BWC. This initial report, a Form FROI, First Report of an Injury, industrial disease or Death, An injury report are often filed on paper or online.
Beyond filing the initial report, there also are subsequent steps to the WC claims process, not covered here.
What If You Don’t Believe Your Employee Has a Valid Claim?
You can reject an employee’s workers’ comp claim. Otherwise, the BWC makes an initial decision about the claim. If you either reject the claim or wish to dispute the BWC’s decision, the dispute initially are going to be mentioned the economic Commission of Ohio (IC).
The IC may be a state agency specifically intended to resolve WC disputes through a series of hearings.
There are often as many as three levels of hearings, counting on how far you or the worker wishes to appeal the matter. The first hearing is held before a neighborhood hearing examiner (DHO) within 45 days after you appeal a BWC order. The second hearing is held before a staff hearing examiner (SHO) if you or the worker appeals the DHO decision. The third hearing is held before the IC Commissioners’ Panel if you or the worker appeals the SHO decision.
Beyond IC hearings, you'll appeal decisions to the Ohio state courts, starting with the Court of Common Pleas, then to appeals court , and ultimately to the state Supreme Court.
What If You Don’t Have Workers’ Compensation Insurance?
If you don’t carry workers’ compensation insurance you'll be subject to varied penalties. For example, if an employee makes a claim to the BWC while you're without coverage, and therefore the BWC accepts the claim, you want to reimburse the BWC for all costs. In addition, the injured worker can sue you directly for all damages and expenses associated with the injury. Still further, if you fail to form timely premium payments to the BWC, you'll need to pay other penalties that would be the maximum amount as 15% of the premium amount. There also are penalties for failing to file required payroll reports with the BWC on a timely basis. Check this BWC webpage for more information.
Additional Information
There are many other workers’ compensation requirements for Ohio employers that aren't covered here like putting up posters about workers’ compensation coverage where employees can see them. For more information, see the Nolo website section on workers’ compensation and therefore the BWC’s online guide for employers and employees.
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