This website publishes administrative rules on their effective dates, as designated by the adopting state agencies, colleges, and
universities.
| Rule |
Rule 4123-14-01 | Non-complying employers within the meaning of the law.
Effective:
December 13, 2014
(A) An employer, as defined in division (B) of section 4123.01 of the Revised Code, that either fails to establish or maintain industrial coverage, or fails to 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 non-complying employer. (B) An employer, as defined in division (B) of section 4123.01 of the Revised Code that, after a final adjudication, has failed to pay an obligation, billing, account or assessment that is greater than one thousand dollars on or before its due date, shall be regarded as a non-complying employer. (1) For purposes of this rule, due date shall be defined as sixty days after the invoice date of an obligation, billing, account or assessment that is greater than one thousand dollars if no administrative appeal as permitted by law is filed or sixty days following an administrative or court order that has become final. (2) Coverage will lapse if an obligation, billing, account or assessment that is greater than one thousand dollars remains unpaid as of the due date as defined in paragraph (B)(1) of this rule. (C) An employer found to be a non-complying employer under paragraph (B) of this rule shall have coverage reinstated as of the date of payment of an obligation, billing, account or assessment that is greater than one thousand dollars from which no appeal or protest is filed. (D) An employer found to be a non-complying employer under paragraph (B) of this rule and that has filed a timely protest or appeal, shall have coverage reinstated and noncompliance period vacated, pending final administrative adjudication of that protest or appeal.
Last updated September 13, 2024 at 12:15 PM
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Rule 4123-14-02 | Procedures for the collection of premiums from non-complying employers.
(A) Whenever the bureau of workers'
compensation finds that an employer that was subject to division (B)(2) of
section 4123.01 of the Revised Code failed to comply with the law in matters of
workers' compensation coverage, the bureau shall notify the employer in
writing of such a finding. The notice shall outline the period of time during
which the employer was an amenable employer, and shall specify that the
employer has twenty days from the service of the notice to pay the applicable
premium or penalty as required by law. (B) If the employer does not pay the applicable premium or
penalty within the twenty day period referred to in paragraph (A) of this rule,
the bureau or its authorized agent shall immediately make an assessment of the
amount due from the employer, in accordance with sections 4123.32 and 4123.37
of the Revised Code. The assessment shall be based on such information as may
be in the possession of the bureau. (C) The bureau or its authorized agent shall give the employer
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. The notice shall inform the employer that unless it files
with the bureau within twenty days after receipt of the notice, a petition for
reassessment in writing, verified under oath by the employer, or its authorized
agent having knowledge of the facts, setting forth in detail the items of the
assessment objected to and the reason for the objection, the assessment shall
become final and the amount thereof shall be due and payable from the employer
so assessed to the state insurance fund. (D) The bureau or its authorized agent,
under the authority of section 4123.78 of the Revised Code, shall file with the
county recorder of any counties in which such employer's property may be
located a certificate of the amount of premium and penalty due from such
employer and the amount due shall be a lien from the date of filing against the
real and personal property of the employer within each county in which such
certificate is filed. (E) In the event a petition objecting to
the assessment is duly filed by the employer, the bureau shall reexamine the
assessment. The matter shall then 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 administrator's
finding and order shall be mailed by certified mail to the party assessed and
by regular mail to the representative of such a party. (G) If the administrator orders the
employer to 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 administrator's decision 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, 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 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 the bureau
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 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.
Last updated September 13, 2024 at 12:15 PM
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Rule 4123-14-03 | Requests for waiver of a default in the payment of premium, for approval of the original workers' compensation coverage retroactively, and for abatement of penalties.
Effective:
January 1, 2022
(A) The administrator of the bureau of
workers' compensation, for good cause shown, may do any of the
following: (1) Waive a default in
the payment of premium by an employer where workers' compensation coverage
has lapsed, if such a default is of less than sixty days duration. If such a
waiver is granted, workers' compensation coverage shall be reinstated
retroactively; (2) Approve the original
workers' compensation coverage to take effect retroactively; (3) Abate penalties
imposed on employers for failure to comply with the state of Ohio's
workers' compensation statutes. (4) Waive penalties for
failure to file or pay amounts due under the annual payroll
report. (B) The term "good cause," as
used in paragraph (A) of this rule, means a substantial reason, one that
affords a legal justification or a legal excuse. If the employer is unable to
establish "good cause" under this definition, the employer may also
show "good cause" if the default is a one-time violation of the
payment of premium or the filing of the annual payroll report. (C) Such requests shall be submitted to
the bureau by the employer concerned or by its duly authorized representative.
The reason for the relief sought shall be fully explained. The bureau may hold
a request in abeyance until the request is properly completed, and the
applicant shall be notified accordingly. (D) The administrator may refer such
requests to the bureau of workers' compensation adjudicating committee for
further consideration and for the determination of the issue
raised.
Last updated September 13, 2024 at 12:15 PM
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Rule 4123-14-04 | Procedures to recover from a non-complying employer the amount of money paid out of the state insurance fund for an industrial injury, occupational disease and/or death.
Effective:
December 12, 2019
(A) Upon the filing of a workers'
compensation claim, naming a non-complying employer as the employer, the
attorney general's office shall prepare and the bureau shall file for
record in the office of the county recorder in any counties where the
employer's property is located, if known, or in any counties where the
employer's business is located, an affidavit showing the date on which the
application for compensation 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 or benefits shall be filed with the affidavit. The affidavit
shall constitute a lien on employer's real property and tangible personal
property within each county where it was filed. (B) The bureau shall notify the employer,
by mail and within the shortest time possible, of the filing of the
application. 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,
the claim will be adjudicated upon the filed application. (C) The employer, or its agent or
attorney, shall verify its answer. Upon filing of such answer, the bureau shall
immediately mail a copy of the answer to the employee. If the employee is
represented, the bureau shall mail a copy to the representative. (D) 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 a claim; (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; (4) Settlement of
employer's liability as provided in rule 4123-14-05 of the Administrative
Code; (5) The bureau,
industrial commission, or court has determined that the employer subject to the
lien is not the employer of record in the claim. (E) In all cases of an employer's failure to pay the award
of compensation or benefits, as approved by the industrial commission or the
bureau, or to furnish a satisfactory bond within ten days after notification of
such award, payment of the award 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. (F) The award of compensation or benefits, referred to in
paragraph (D) of this rule, shall constitute a liquidated claim for damages
against the non-complying employer. The bureau shall certify the record to the
attorney general to institute a civil action against the employer for
collection of the award. Such action may be joined with the action to recover
premium due from such employer.
Last updated September 13, 2024 at 12:15 PM
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Rule 4123-14-05 | Settlement of liability of a non-complying employer.
Effective:
January 1, 2022
(A) A non-complying employer may apply to
the administrator of the bureau of workers' compensation for settlement of
its liability to the state insurance fund. The request shall: (1) Be submitted to the
bureau by the employer concerned or by its duly authorized representative. The
bureau may hold a request in abeyance until it is 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, including the number of
employees; (b) The location of the business, including each state in which
the business is located; (c) The length of time the employer has been in
business; (d) The nature and type of the 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; and (i) Whether the employer is in business at the present time and
complying with the "Ohio Workers' Compensation
Act." (B) The administrator may refer the
request to the legal division 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 industrial commission, may be verified. If additional
information is needed for proper disposition of the case, the matter may be
referred for investigation. In justifiable situations, an independent financial
statement and the employer's credit rating may be obtained. (C) The adjudicating committee may accept
the offer of settlement if it finds by a preponderance of the evidence that
such a settlement: (1) Is in the best
interest of the state insurance fund; (2) Is in the best
interest of the employees of the employer concerned; (3) Will be beneficial to
the general welfare of the community; or (4) Will best serve any
other public purpose. The decision of the adjudicating committee
shall be reduced to writing and shall be mailed to all interested parties. An
alternative delivery method may be used if agreed upon by the parties. The
bureau may structure the payment of settlement with the employer for a period
not exceeding twenty four months. Interest charges for the structured
settlement shall be determined in accordance with section 131.02 of the Revised
Code. (D) The administrator shall process an
application to settle a liability for violation of a specific safety
requirement in the same manner as set forth in this rule.
Last updated September 13, 2024 at 12:15 PM
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Rule 4123-14-06 | Bureau of workers' compensation adjudicating committee.
Effective:
January 1, 2022
(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
the rules adopted by the bureau of workers' compensation 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 by the administrator. (1) An employer may file
with the bureau a request for a hearing with the adjudicating committee only
after the employer's request, protest, petition, or application has been
reviewed by the appropriate bureau business unit and only after that business
unit has notified the employer of the bureau's initial decision regarding
the employer's request, protest, petition, or application. (2) 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. (3) The employer shall state the specific
grounds or reasons for the protest or appeal of the bureau's
determination, and 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. (B) The adjudicating committee shall
consist of three members appointed by the administrator. The members 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.
With the approval of the administrator, the adjudicating committee members may
delegate alternate bureau employees to act on their behalf. The adjudicating
committee may issue decisions without formal hearing, but shall afford an
employer the opportunity for a formal hearing upon request. A prompt,
efficient, and expeditious determination of matters 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, and has complied with paragraph (A)(1) of
this rule, or the adjudicating committee determines that a hearing is in the
best interests of the employer or the state insurance fund, the adjudicating
committee shall notify the employer and its representatives not less than
fourteen days before the date of such hearing, setting forth the date, time and
place of the hearing. In justifiable cases, an emergency hearing may be
arranged with the adjudicating committee and the fourteen day time period for
notice may be waived. (E) The adjudicating committee shall keep
a record of its dockets and proceedings. The adjudicating committee's
decisions shall be reduced to writing and mailed to all interested parties and
shall state the reason for the adjudicating committee's decision,
including the evidence upon which the decision was based. The decision of the
adjudicating 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 decision, the administrator or the administrator's designee
shall hear the appeal of the decision and shall conduct a hearing for such
purpose. Mail service may be waived by any party where e-mail or alternative
means of delivery is agreed upon. (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 non-complying 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 4123-14-03 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 matter under Chapters 4121., 4123., and 4131. of the Revised Code;
and (7) Petitions objecting
to the amount of security required under rule 4123-17-15.3 of the
Administrative Code and division (D) of section 4125.05 of the Revised
Code.
Last updated September 13, 2024 at 12:15 PM
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