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Ohio Laws and Rules
An employer, as defined in division (B) of section 4123.01 of the Revised Code, who either fails to establish industrial coverage and make payments of premiums to the state insurance fund, as required by Chapter 4123. of the Revised Code and the rules of the industrial commission and the bureau of workers’ compensation, or fails to comply with the requirements for self-insurance under section 4123.35 of the Revised Code and the rules of the industrial commission or bureau of workers’ compensation, shall be regarded as a noncomplying employer.
Replaces: 4121-14-01
R.C. 119.032 review dates: 07/08/2004 and 03/01/2007
Promulgated Under: 119.03
Statutory Authority: 4121.12, 4121.121, 4121.30
Rule Amplifies: 4123.01, 4123.35, 4123.50, 4123.75
Prior Effective Dates: 11/26/79, 12/18/89 (Emer.), 2/22/90
(A) Whenever the bureau of workers’ compensation finds that an employer who was subject to division (B)(2) of section 4123.01 of the Revised Code failed to comply with the law in matters of industrial coverage, the bureau shall forthwith notify said employer in writing of such a finding. The notice shall outline the period(s) of time during which the employer was an amenable employer, and further, it shall specify that the employer has twenty days from the receipt of the notice to furnish the bureau of workers’ compensation with the appropriate payroll report and pay the applicable premium, as required by law.
(B) Where the employer is not a resident of the state of Ohio, or conceals its whereabouts or its whereabouts are unknown and cannot be ascertained, and no forwarding address can be found, or where the employer is deceased, the service of process shall be made in accordance with sections 4123.751 to 4123.756 of the Revised Code.
(C) If the employer does not furnish the required payroll report and does not pay to the state insurance fund the applicable premium and/or the premium security deposit within the twenty-day period referred to in paragraph (A) of this rule, the bureau of workers’ compensation shall immediately take the following action:
(1) Make an assessment of the premium due from the employer, in accordance with sections 4123.32 and 4123.37 of the Revised Code and rule 4123-19-07 of the Administrative Code. The assessment shall be based on such information as may be in the possession of the bureau of workers’ compensation.
(2) Under the authority of section 4123.78 of the Revised Code, file with the county recorder of any counties in which such employer’s property may be located a certificate of the amount of premium(s) due from such an employer and the amount so due shall be a lien from the date of such filing against the real and personal property of the employer within the county in which such certificate is filed.
(D) The bureau of workers’ compensation shall forthwith give to the employer a written notice of any action taken. The notice shall be mailed to the employer at its residence or usual place of business by certified mail with return receipt requested or as provided in paragraph (B) of this rule. Furthermore, the notice shall inform the employer that unless it files with the bureau of workers’ compensation, within twenty days after receipt of said notice, a petition for reassessment in writing, verified under oath by said employer, or its authorized agent having knowledge of the facts, setting forth in detail the items of the assessment objected to and the reason(s) for the objection, such assessment shall become final and the amount thereof shall be due and payable from the employer so assessed to the state insurance fund.
(E) In the event a petition objecting to the assessment is duly filed by the employer, the matter shall be referred to the administrator of workers’ compensation, who may refer the matter to be set for a hearing before the bureau of workers’ compensation adjudicating committee. The notice of hearing shall be mailed to the petitioner by certified mail and to its representative, setting forth the date, time and place of the hearing. It will be mailed to the parties, as indicated above, not less than fourteen days before the date of such a hearing. In justifiable cases an emergency hearing may be arranged.
(F) A copy of the finding and order of the administrator shall be mailed by certified mail to the party assessed and by regular mail to the representative of such a party.
(G) If it is the order of the administrator that the employer pay the assessment, payment shall become due ten days after the notice of the finding and order of the administrator was mailed to such employer.
(H) The employer has the right to appeal the decision of the administrator to the court of common pleas of Franklin county upon the execution of a bond to the state in double the amount due and ordered paid by the bureau, upon the condition that the employer will pay any judgment and costs rendered against it for the premium(s), as provided in section 4123.37 of the Revised Code.
(I) When no petition objecting to the assessment is filed or when a finding is made affirming or modifying such an assessment after hearing, a certified copy of the assessment, as affirmed or modified, shall be filed by the bureau of workers’ compensation, not later than twenty days from the date the order has become final, with the clerk of the common pleas court in any county in which the employer has property or in which the employer has a place of business, for the purpose of obtaining a judgment for the state against the employer in the amount shown on the assessment. As soon as the judgment is rendered, proper action shall be taken to levy execution on said judgment.
(J) However, an assessment or judgment, as outlined in the preceding paragraphs of this rule, shall not be a bar to the adjustment of the employer’s account upon the employer furnishing his payroll records to the bureau.
(K) In addition to the procedures outlined in paragraphs (A) to (I) of this rule, the administrator of workers’ compensation shall, in justifiable cases, certify the matter to the attorney general’s office with a request that the employer be enjoined from further operation in accordance with section 4123.79 of the Revised Code and/or that criminal proceedings be instituted against the employer for penalties under division (C) of section 4123.99 of the Revised Code. Furthermore, in cases where the employer failed to furnish to the bureau of workers’ compensation the annual payroll report and other related information required by section 4123.26 of the Revised Code, a civil action shall be brought against such employer in the name of the state to collect the penalty, as provided in that section.
(L) For counties and public employer taxing districts, the bureau shall keep an individual account showing the amount of money paid into the public insurance fund and the amount of losses incurred against the fund. When any such employer defaults in the payment of sums required to be contributed to such fund or any official fails to perform any act required to be performed in reference to the making of payments, the bureau shall institute the proper proceedings in the court to compel such payment.
Replaces: 4121-14-02
R.C. 119.032 review dates: 07/08/2004 and 03/01/2007
Promulgated Under: 119.03
Statutory Authority: 4121.12, 4121.121, 4121.30
Rule Amplifies: 4123.24, 4123.26, 4123.32, 4123.37, 4123.48, 4123.50, 4123.751 to 4123.756, 4123.78, 4123.79, 4123.99
Prior Effective Dates: 11/26/79, 12/18/89 (Emer.), 2/22/90, 12/14/92
(A) The administrator of workers’ compensation, for good cause shown, may:
(1) Waive a default in the payment of premium by an employer whose industrial coverage has lapsed, if such a default is of less than sixty days duration; if such a waiver is granted, industrial coverage shall be reinstated retroactively;
(2) Approve the original industrial coverage to take effect retroactively;
(3) Abate penalties imposed on employers for failure to comply with the Ohio workers’ compensation statute.
(B) The term “good cause,” as used in paragraph (A)(1) of this rule, means a substantial reason, one that affords a legal justification or a legal excuse.
(C) Such requests shall be in writing. They shall be properly signed in handwriting by the employer concerned or by its duly authorized representative. The reason(s) for the relief sought shall be fully explained. Unsigned requests shall be held in abeyance until they are properly completed, and the applicant shall be notified accordingly.
(D) The administrator may refer such requests to the adjudicating committee, established by the administrator of workers’ compensation, for further consideration and for the determination of the issue(s) raised.
Replaces: 4121-14-03
R.C. 119.032 review dates: 07/08/2004 and 03/01/2007
Promulgated Under: 119.03
Statutory Authority: 4121.12, 4121.121, 4121.30
Rule Amplifies: 4123.32, 4123.37, 4123.50
Prior Effective Dates: 11/26/79, 12/18/89 (Emer.), 2/22/90
(A) Upon the filing of an industrial claim, naming a noncomplying employer as the employer, and as soon as the claim has been numbered and recorded by the bureau of workers’ compensation, the bureau shall prepare and, by certified mail, file for record in the office of the county recorder in the counties where the employer’s property is located, if known, or in the county (or counties) where the employer’s business is located, an affidavit showing the date on which the application for compensation and/or benefits was filed, the name and address of the employer against whom it was filed, and the fact that said employer has not complied with section 4123.35 of the Revised Code. A copy of the application for compensation and/or benefits shall be filed with the affidavit. The affidavit shall constitute a lien on employer’s real property and tangible personal property within the county where it was filed.
(B) The bureau shall notify the employer, within the shortest time possible, of the filing of the application, which notice shall be mailed by certified mail. Such notice shall be accompanied by a copy of the application and a copy of the affidavit, as described in paragraph (A) of this rule, and shall advise the employer that unless it files a timely answer to the application, as required by rules 4121-03-14 and 4123-03-14 of the Administrative Code, the claim shall be adjudicated upon the application that has been filed.
(C) The lien on employer’s property, as described in paragraph (A) of this rule, shall be cancelled under the following circumstances:
(1) The employer has paid the amount of all awards made by the commission and/or the bureau;
(2) There was a final order of disallowance of claim(s);
(3) The employer has filed a bond or other security in such an amount and with such a surety as the bureau approves, conditioned on the employer’s payment of all awards made by the commission and/or the bureau. The bureau may, in its discretion, grant a partial release of the lien, should this be necessary to facilitate the conduct of the employer’s business, provided a sufficient security remains to pay any award that may be made in the claim or claims.
(4) Settlement of employer’s liability as provided in rule 4123-14-05 of the Administrative Code.
(D) In all cases of employer’s failure to pay the award(s) of compensation and/or benefits, as approved by the commission and/or the bureau, or to furnish a satisfactory bond within ten days after notification of such award(s), payment of the award(s) from the surplus fund and the recovery of the monies so paid by the bureau shall be in accordance with section 4123.75 of the Revised Code.
(E) The award(s) of compensation and/or benefits, referred to in paragraph (D) of this rule, shall constitute a liquidated claim for damages against the noncomplying employer. The bureau shall certify the record to the attorney general to institute a civil action against the employer for collection of the award(s). Such action may be joined with the action to recover premium(s) due from such employer.
Replaces: 4121-14-04
R.C. 119.032 review dates: 07/08/2004 and 03/01/2007
Promulgated Under: 119.03
Statutory Authority: 4121.12, 4121.121, 4121.30
Rule Amplifies: 4123.50, 4123.75, 4123.76
Prior Effective Dates: 11/26/79, 12/18/89 (Emer.), 2/22/90
(A) A noncomplying employer may apply to the administrator of workers’ compensation for settlement of its liability to the state insurance fund. The request shall:
(1) Be in writing and properly signed in handwriting by the employer concerned or by its duly authorized representative. Unsigned requests shall be held in abeyance until properly completed, and the applicant shall be notified accordingly;
(2) Clearly set forth the circumstances by reason of which the proposed settlement is deemed desirable;
(3) Include, but not be limited to, the following information:
(a) The size of employer’s business-number of employees;
(b) The location of the business (Ohio, other states, etc.);
(c) The length of time the employer has been in business;
(d) The nature and type of employer’s business for the past five years;
(e) A copy of the employer’s federal and state income tax return for the past three years;
(f) A notarized financial statement of current assets and liabilities;
(g) A sworn statement to explain the reason for noncompliance with the “Ohio Workers’ Compensation Act”;
(h) The amount of the requested settlement;
(i) Is the employer in business at the present time and complying with the “Ohio Workers’ Compensation Act.”
(B) The administrator may refer the request to the law section of the bureau of workers’ compensation for review, preparation of memorandum, and presentation to the adjudicating committee for approval or disapproval of the offer of settlement. The employer’s past history with the bureau, if any, as reflected by the records of the bureau or commission, shall be checked and verified. If additional information is needed for proper disposition of the case, the matter may be referred for investigation. In justifiable cases an independent financial statement and employer’s credit rating may be obtained.
(C) The adjudicating committee may accept the offer of settlement if it finds from a preponderance of the evidence that such a settlement shall be:
(1) In the best interest of the state insurance fund; or
(2) In the best interest of the employees of the employer concerned; or
(3) That it will be beneficial to the general welfare of the community; or
(4) That it will best serve any other public purpose.
The decision of the adjudicating committee shall be reduced to writing and shall be mailed forthwith to all interested parties.
Replaces: 4121-14-05
R.C. 119.032 review dates: 07/08/2004 and 03/01/2007
Promulgated Under: 119.03
Statutory Authority: 4121.12, 4121.121, 4121.30
Rule Amplifies: 4123.50, 4123.75
Prior Effective Dates: 11/26/79, 12/18/89 (Emer.), 2/22/90
(A) The administrator of the bureau of workers’ compensation may delegate the authority granted to the administrator under Chapters 4121., 4123., and 4131. of the Revised Code and Chapter 4123 of the Administrative Code for determining employer premium, assessment, or penalty obligations or liabilities, eligibility for alternative premium plans or discount programs, or other employer-related disputes or issues as may be authorized under the workers’ compensation statutes and rules. For this purpose, the administrator may appoint an adjudicating committee to provide employers with hearings on such matters referred to the committee.
(1) An employer shall file with the bureau a request, protest, or petition of a premium, assessment, or penalty obligation or liability, or an application for an alternative premium plan or discount program within the time limit established by the appropriate section of the Revised Code or rule of the Administrative Code for such matter.
(2) The bureau shall notify the employer in writing of its determination on the employer’s request, protest, petition, or application.
(3) Unless a different time is provided by the Revised Code or the Administrative Code for such matter, an employer shall file a protest or appeal of the bureau’s decision on the request, protest, petition, or application within two years of receipt of the bureau’s determination.
(4) The employer shall state the specific grounds or reasons for the protest or appeal of the bureau’s determination, and shall include supporting documentation. The bureau may refuse to grant a hearing to the employer where the employer has failed to state the specific grounds or reasons for the protest or appeal or has failed to provide supporting documentation as required by this rule.
(5) For the purpose of hearing the protest or appeal, the administrator may appoint an adjudicating committee to provide employers with hearings on such matters referred to the committee.
(B) The adjudicating committee shall consist of three members appointed by the administrator. The members shall consist of persons who shall have expertise or experience in matters relating to employers.
(C) The adjudicating committee shall hold meetings and hearings to determine matters referred to it by the administrator for adjudication. With the approval of the administrator, the committee members may delegate alternate bureau employees to act on their behalf. The committee may issue decisions without formal hearing, but shall afford an employer the opportunity for a formal hearing before the committee upon request. A prompt, efficient, and expeditious determination of matters coming before the committee shall be ensured to protect the interests of employers and the state insurance fund.
(D) If an employer requests a hearing before the adjudicating committee or the committee determines that a hearing is in the best interests of the employer or the state insurance fund, the committee shall mail a notice of hearing to the employer and its representatives by regular mail, setting forth the date, time and place of the hearing. The notice shall be mailed not less than fourteen days before the date of such hearing. In justifiable cases, an emergency hearing may be arranged with the adjudicating committee.
(E) The committee shall keep a record of its dockets and proceedings. The committee’s decisions shall be reduced to writing and mailed forthwith to all interested parties and shall state the evidence upon which the decision was based and the reasons for the committee’s actions. The decision of the committee shall be the decision of the administrator. If the employer files a written appeal within thirty days of the employer’s receipt of the committee’s decision, the administrator or the administrator’s designee shall hear the appeal of the decision of the committee, and shall conduct a hearing for such purpose.
(F) The administrator may authorize the adjudicating committee to consider the following matters:
(1) Requests for waiver of a default in the payment of a premium under section 4123.37 of the Revised Code;
(2) Requests for settlement of liability of a noncomplying employer under section 4123.75 of the Revised Code;
(3) Petitions objecting to assessment of premium under rule 4123-14-02 of the Administrative Code and section 4123.37 of the Revised Code;
(4) Employer’s request for abatement of penalties under rule 4123-09-07 of the Administrative Code and section 4123.32 of the Revised Code;
(5) Protests of audit findings, manual classifications, experience ratings, retrospective ratings, or transfers or combinations of risk experience;
(6) Any other risk or premium matters as authorized and delegated by the administrator under Chapters 4121., 4123., and 4131. of the Revised Code.
HISTORY: Eff 12-18-89; 2-22-90; 10-14-02
Rule promulgated under: RC 119.03
Rule authorized by: RC 4121.12, 4121.121, 4121.30
Rule amplifies: RC 4123.32, 4123.37, 4123.75, 4123.78
R.C. 119.032 review dates: 7/30/2002 and 03/01/2007