Workers’ Comp Rate Discount Part of Ohio Job Creation Plan

The Ohio Bureau of Workers’ Compensation has proposed an economic development initiative that would offer workers’ compensation premium discounts to new employers in the state. With the goal of creating jobs, BWC would offer new employers in Ohio a 50 percent or higher discount on their workers’ compensation premiums.

If approved by the BWC board of directors, Grow Ohio would offer eligible employers a 25 percent discount on their workers’ comp premiums for two years, or give them immediate access to participation in the Group Experience Rating Program.

Under Grow Ohio, new employers will receive the 25 percent discount on their workers’ compensation premiums unless they elect to participate in another program incompatible with the Grow Ohio discount. The discount will be applied for the payroll period in which a new employer’s coverage becomes effective and the four subsequent, six-month payroll periods.

Alternatively, employers new to the state may instead elect to immediately participate in the Group Experience Rating Program, which normally is not accessible to new employers until the first full policy year following the date they obtain workers’ comp coverage.

Employers have 30 days to decide whether to pursue the Group Rating option. Participation in group rating could reduce premiums up 51 percent for the July 1, 2011, policy year.

If approved by the board, the incentives will apply to new business entities or out-of-state businesses that are new to Ohio and report payroll in Ohio on or after July 1, 2011. Those incentives would be reflected on bills employers pay beginning in February 2012.