Monday, October 13, 2014

Ohio BWC Settles Group Rating Class Action Lawsuit: Deadline For Ohio Businesses To Apply For Refund is October 22, 2014

By Scott Coghlan*

The Ohio BWC has settled a class action lawsuit brought on behalf of Ohio businesses alleging that they paid inflated workers’ compensation premiums as non-group rated employers for policy years 2001 to 2008. The case is San Allen, et al. v. Ohio Bureau of Workers’ Compensation. The lawsuit claimed that the Ohio BWC’s group rating system violated certain provisions of the Ohio Revised Code. Employers that were eligible for group rating paid artificially low workers’ compensation premiums. This led to employers that were not group eligible paying artificially high premiums to make up for the shortfall created by the group rating system. A settlement has been reached pursuant to which the Ohio BWC has established a $420 million dollar settlement fund. Eligible employers have until October 22, 2014 to submit a claim form requesting a refund of premiums. The litigants created a website to explain refund eligibility and to submit claim forms. To see if your business is eligible for a refund or to file a claim form, go to www.OhioBWCLawsuit.com.

*Scott Coghlan practices Workers’ Compensation Law. He has extensive experience counseling employers as to workplace safety and related issues. If you have any questions regarding this matter or any other workers’ compensation issue, please contact: Scott Coghlan | sc@zrlaw.com | 216.696.4441