The board of directors for the Ohio Bureau of Workers' Compensation (“BWC”) has approved a proposal from Ohio Governor Mike DeWine to send $1.5 billion of the BWC's revenues to Ohio employers covered by the BWC system.
BWC, the state's insurance fund for injured workers, will begin sending checks to approximately 180,000 private and public employers in late September. It marks the fifth time since 2013 that the agency has returned at least $1 billion to employers following strong investment returns, falling injury claims, and other operational efficiencies.
“I am pleased that BWC's board of directors agreed with our proposal to give this money to qualifying businesses, local governments, and school districts,” Governor DeWine said in a statement. “Employers will be able to reinvest these funds in their operations and their employees, which will further strengthen Ohio's economy.”
The $1.5 billion equals 88 percent of the premiums employers paid for the policy year that ended June 30, 2018 (calendar year 2017 for public employers). The BWC said that although the bulk would go to private companies, an estimated $114 million would go to counties, cities, townships, and other local government entities. Nearly $50 million would go to public school districts.
Employers are free to spend the funds as they wish, but the BWC's administrator and chief executive officer, Stephanie McCloud, urged businesses to invest in workplace safety.
“Investing in safety reduces the risks for costly workplace injuries,” said Ms. McCloud. “It's good for the health and safety of employees, it's good for the company's bottom line, and it's good for our economy.”
The BWC returned $1 billion or more to employers in 2013, 2014, 2017, and 2018. It also returned $15 million in 2016 to counties participating in the Public Work Relief Employees' Fund.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].