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Media Advisory: July 16, 2008
New BWC Unit to Target Non-Compliant Employers
Focus on better protection for injured workers and employers that play by the rules
COLUMBUS – Ohio Bureau of Workers’ Compensation (BWC) Administrator Marsha Ryan announces the
creation of the BWC compliance unit. The unit will aggressively pursue those operating businesses
in Ohio and do not have workers’ compensation coverage to protect the health and well-being of
their employees.
“Ohio’s greatest business assets are the hard working men and women who faithfully perform
their duties, despite the risk of injury,” said Ryan. “BWC’s new compliance unit will work to
ensure each business pays its fair share for workers’ compensation coverage. Thus, protecting
working Ohioans and the businesses that comply with the laws of our state.”
Non compliant employers include those whose coverage has lapsed, been cancelled as uncollectible,
are operating their businesses without required coverage or have applied for coverage and failed
to meet minimum payments. Today, more than 5,540 Ohio employers have an outstanding balance of
more than $10,000 in workers’ compensation premiums and penalties. These employers collectively
owe the State Insurance Fund more than $235 million. Of these, 1,132 employers have had claims
filed by injured workers in the last two years.
Since January 2004, 1,655 employers without workers’ compensation coverage have had 2,160 claims
filed against them for wage compensation totaling more than $9.2 million and medical costs totaling
nearly $5.9 million. In addition, 1,477 employers have reported $0 payroll, which is utilized for
premium calculation. However, these same employers reported more than $101 million in total
payroll to the Ohio Department of Taxation.
Ryan added, “Because BWC is revenue neutral, wage compensation and medical costs paid to employees
of non compliant business owners forces employers who abide by the law to absorb the costs through
higher workers’ compensation premiums. By focusing on enforcing compliance BWC is making progress
in its commitment to make certain Ohio workplaces are safe and all employers pay fair and
accurate premiums.”
The compliance unit will be staffed with current BWC employees who will be trained to aggressively
police compliance, collect overdue premiums, and work with the Office of the Ohio Attorney General
when legal action is necessary.
Categories in which the compliance unit will pursue non-compliant employers fall under Ohio
Revised Code 4123.01 and include:
- Employers operating a business without required coverage;
- Employers with coverage but are not reporting the correct payroll or correct manual classifications;
- Employers whose coverage has lapsed, though continues to operate without coverage as required.
For more information about BWC and its customer-focused reform efforts visit www.ohiobwc.com/reform.
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Contact: Keary McCarthy
614-644-8944 or 614-312-7272
mccarthy.keary@bwc.state.oh.us
Contact: Maria Smith
614-728-8045 or 614-205-5709
mccarthy.keary@bwc.state.oh.us
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