Ohio’s small business advocates are asking lawmakers to address the issue of high premiums for workers’ compensation and torts by pushing for significant reform. According to their argument, the Ohio Bureau of Workers’ Compensation (BWC) is imposing exorbitant charges while retaining funds that belong to employers, thereby impeding the possibility of lowered premiums and inhibiting a stable financial landscape for small businesses.
Ohio employers received substantial rebates from the BWC during the COVID-19 pandemic, a testament to the fact that employers have been overcharged for an extended period of time. The consistent overcharging has severely impacted small businesses’ financial stability, hindering their ability to operate smoothly and sustainably.
Proposed Actuarial Model
To address this issue, small business advocates are proposing that the BWC use a more sophisticated actuarial model to determine premium rates. This model would take into account a range of factors, such as an employer’s industry, claims history, and safety record, to more accurately determine the risk of a workplace injury or illness.
If implemented, this reform could help to lower premiums for small businesses and provide them with the financial stability they need to grow and thrive. The money that the BWC has been holding onto could be used to fund this reform, which would be a significant boost for small businesses across Ohio.
However, some opponents of the reform argue that it would not do enough to address the underlying issues with Ohio’s workers’ compensation and tort systems. They argue that there are deeper problems with these systems, such as the high costs of litigation and the need for more effective safety regulations.
Recent BWC Audits
In addition, there has been a recent surge in BWC audits, which has led to increased scrutiny of employers’ workers’ compensation policies and procedures. Some small business advocates worry that these audits could result in increased premiums and financial burdens for small businesses, which would be counterproductive to the goal of providing a more stable financial environment for them.
Despite these challenges, small business advocates remain optimistic that their proposed reforms will be taken seriously by lawmakers in Ohio. They argue that the COVID-19 pandemic has highlighted the need for more flexible and responsive workers’ compensation and tort systems, which can adapt to changing circumstances and provide meaningful support to small businesses.
In addition, they point to the success of other states, such as Texas and Oklahoma, which have implemented similar reforms and seen significant benefits for small businesses. These states have seen lower premiums, increased safety standards, and more efficient claims processes, which have helped to create a more supportive environment for small businesses.
As Ohio lawmakers consider these proposals, it is important for them to take into account the needs and concerns of small businesses. While there may be challenges and obstacles to implementing these reforms, the potential benefits for small businesses are significant and could have a positive impact on the state’s economy as a whole.
The implementation of a more sophisticated actuarial model by the BWC can be instrumental in accurately setting premium rates, ensuring that small businesses receive the necessary financial stability to grow and succeed. Although the path toward reform may present challenges, small business advocates remain confident that policymakers in Ohio will heed their call for action. By doing so, they can promote a more supportive and equitable business landscape across the state.
a partner in the Labor & Employment practice group, brings over 20 years of experience representing management and employers in workplace law. Formerly a partner at Dworken & Bernstein, Jon specialized in heavy litigation, administrative practice, and counseling clients through employment law matters and Class Actions. Beyond his legal practice, Jon is an avid Cleveland sports enthusiast and holds a soft spot for his alma mater, the Washington Huskies. For consultations or inquiries, Jon can be reached at [email protected] or (216) 573-6000 x7013.
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