Ohio Workers' Comp: State Fund & Self-Insurance Rules

#Employer Immunity from Lawsuits

Employers in Ohio who comply with state workers' compensation rules are not liable for damages from employee injuries, occupational diseases, or deaths. This protection applies to employers who pay premiums into the state insurance fund and those approved to be self-insuring employers.

The immunity from lawsuits is broad. It covers incidents that happen in the course of employment, whether or not the specific injury or condition is compensable under the workers' compensation system. This legal shield is outlined in section 4123.35 of the Ohio Revised Code.

#Who Counts as an Employee in Ohio?

Ohio law has specific tests for determining who is an employee for workers' compensation purposes. For contractors, a person performing labor or services under a construction contract is considered an employee if at least ten criteria related to control, integration, and compensation are met.

The definition also extends to other types of labor. A household worker or casual worker is an employee if they earn one hundred sixty dollars or more in cash in any calendar quarter from a single household or employer.

#Becoming a Self-Insuring Employer

Employers have an alternative to paying premiums into the state insurance fund. They may apply to the Ohio Bureau of Workers' Compensation to become a self-insuring employer, which means paying compensation and benefits directly.

The bureau's administrator is permitted to charge a reasonable application fee for this status. The fee is intended to cover the bureau's costs for processing the application and making a determination on the employer's request.

#Financial Requirements for Self-Insurance

All employers granted self-insuring status must prove they possess sufficient financial and administrative ability. This is to ensure all obligations to injured workers are met promptly.

To verify financial stability, the bureau requires applicants to submit specific records. These include balance sheets and profit and loss history for the current year and the previous four years.

Additionally, the administrator requires a surety bond from every self-insuring employer. The bond must be large enough to secure all potential compensation and expenses and must be at least what the state insurance fund would provide in a similar case.

#Special Rule for Public Employers

Public employers face a specific financial test to qualify for self-insurance. On the date of application, a public employer must hold a minimum debt rating.

The required rating is Aa3 or higher according to Moody's Investors Service, Inc. A comparable rating from another similar independent rating agency is also acceptable.

#The Governing Statute

The primary rules for employer compliance and legal immunity are located in the Ohio Revised Code. Section 4123.35 is the statute that provides liability protection to employers who pay into the state fund or are approved to self-insure.

The mandate for a surety bond for self-insuring employers is found in section 4123.351 of the Revised Code. These statutes form the legal basis for the state's workers' compensation system.