Ohio Bureau of Workers’ Compensation owes more than $100 million to area businesses

June 27--The Ohio Bureau of Workers Compensation has until June 30 to appeal to the Ohio Supreme Court after being ordered to refund more than $859 million to thousands of businesses for overcharging them for insurance premiums.

In May, the Ohio 8th District Court of Appeals issued a strongly worded 104-page decision that described how the BWC system for more than 15 years unfairly charged different insurance premium rates to certain businesses.

"The trial court correctly determined that the BWC was responsible for developing and maintaining an unlawful rating system under which excessive premium discounts were given to group-rated employers at the expense of nongroup-rated employers," the opinion stated. "This appeal is about a cabal of Ohio Bureau of Workers' Compensation bureaucrats and lobbyists for group sponsors who rigged workers' compensation insurance premium rates so that for employers who participated in the BWC's group rating plan, it was, 'Heads we win,' and for employers who did not participate in the group rating plan, it was, 'Tails you lose.' "

Of the $859 million total, $83.47 million is owed to 29,900 Cuyahoga County businesses, $5.76 million to 2,756 Geauga County businesses and $16.35 million to 6,107 Lake County businesses, according to data provided by Dworken and Bernstein Co.

Dworken and Bernstein Co., along with Garson Johnson LLC, are representing the Ohio businesses in the case.

Since BWC insurance is required by Ohio law, the system affected all industries, including manufacturing, restaurants, landscaping, real estate, health care, veterinarians and dozens of other types of businesses.

Patrick Perotti, an attorney with Dworken, said the appellate court's decision was "probably the strongest worded court opinion I've seen in my 30 years in law."

He added that the wrongdoing by the BWC was not a simple mistake, but that multiple companies performed audits for the BWC over the years and informed the agency that the system was illegal.

"As a result of that, thousands of Ohio businesses were driven into bankruptcy and were forced to fire employees," said Perotti. "This was just devastating to Ohio.

In an effort to help inform businesses of the money they are owed, the website www.paynowbwc.com was created. Anyone can simply go on the website and enter either the company's name (exactly how it is filed with the state of Ohio) or the it's policy number to find out how much money is available.

"We know exactly what each business is owed down to the penny," said Perotti.

The website also has links and phone numbers for how to contact Gov. John Kasich. While the program did not begin while Kasich was in office, Perotti said the governor can help out the same small businesses that helped get him elected.

"The court order to repay these businesses is on his watch," he said of Kasich.

To Perotti, perhaps the worst part of the issue is that the BWC is spending millions more dollars during the appeals process and that the money Ohio businesses overpaid is simply sitting in a surplus account that stands at about $9.4 billion. Taxes do not need to be increased to refund the money.

"This isn't going to cost anybody a dime," he said. "It's just a case of you stole my bike, now give me my bike back."

___

(c)2014 The News-Herald (Willoughby, Ohio)

Visit The News-Herald (Willoughby, Ohio) at www.news-herald.com

Distributed by MCT Information Services