Policy
Name:
|
Apprenticeship
Elective Coverage
|
Policy #:
|
EP-01-02
|
Code/Rule
Reference
|
ORC 4123.038, 4123.039, 4139.01
|
Effective
Date:
|
July 1,
2017
|
Approved:
|
Ronald L.
Suttles, Interim Chief Employer Services
|
Origin:
|
Employer
Policy
|
Supersedes:
|
Apprenticeship
Elective Coverage policy revised April 25, 2011.
|
History:
|
Revised September
22, 2017; April 25, 2011. New policy issued March 28, 2011.
|
Review
Date:
|
July 1,
2022
|
I. Policy Purpose
A
joint apprenticeship committee or a sponsoring organization may contract with
the Ohio Bureau of Workers’ Compensation (BWC) to provide workers’ compensation
coverage for apprentices, pre-apprentices, entry-level trainees, or
journeyperson trainees who are not considered employees according to ORC 4123.01.
II. Applicability
This
policy applies to the BWC Policy Processing Department, joint apprenticeship
committees, sponsoring organizations, and their authorized representatives.
III. Definitions
A.
Apprentice: A person at least sixteen (16) years of
age, except when a higher minimum age standard is otherwise fixed by law, who
is in a registered apprenticeship program to learn a skilled occupation
pursuant to a registered apprenticeship agreement. When used in policy section
IV below, the term apprentice also includes entry-level trainees, journeyperson
trainees, and pre-apprentices.
B.
Apprenticeship
agreement: A written
agreement, registered with the apprenticeship council, providing for not less
than two thousand (2,000) hours of reasonably continuous employment, and for
participation in an approved schedule of work experience through employment,
which shall be supplemented by a minimum of one hundred forty-four (144) hours
per year of supplemental instruction.
C.
Employer: For purposes of this policy employer
means a joint apprenticeship committee or a sponsoring organization.
D.
Entry-level
trainee: A person who
possesses experience that would qualify the person as a journeyperson but for
the existence of certain other disqualifying conditions and who receives
on-the-job training accompanied by classroom instruction outside of normal
working hours.
E.
Joint
apprenticeship committee:
A group consisting of an equal number of employer representatives and employees
represented by a collective bargaining agent designated by the sponsor to act
for it in administering the apprenticeship program and entering into
apprenticeship agreements.
F.
Journeyperson
trainee: A person with
journeyperson status in a given trade who receives classroom and laboratory
training for the purpose of broadening the person’s skills and acquainting the
person with new techniques and ideas in the trade.
G.
Pre-apprentice: A person who receives formal classroom
training designed to provide the person with the basic education, attitudes,
skills, trade knowledge, and motivation necessary to enter a formal
apprenticeship program.
H.
Sponsoring
organization: An entity
offering, conducting, supervising, or giving training to apprentices.
I.
Supplemental
instruction: Classroom instruction,
workshop training, or on-the-job training.
J.
Statewide average
weekly wage (SAWW): The
average weekly earnings of all workers in Ohio as determined annually by the
Ohio Department of Jobs and Family Services (ODJFS). See ORC 4123.62.
IV. Policy
A.
Apprentices and
workers’ compensation coverage.
1.
An employer may
voluntarily contract with BWC for workers’ compensation coverage for
apprentices while those persons are in the performance of related training
activities.
2.
Upon execution of a
contract with BWC, the persons covered by such contract are entitled to the
same benefits, payable from the state insurance fund, accorded to employees as
defined in ORC 4123.01(A).
B.
Initiating coverage.
1.
The employer must
submit an Apprenticeship Elective Coverage Contract (U-80) to BWC.
2.
The U-80 must be
signed by an officer, member, partner, agent, or other designee having the
authority to enter into a contract on behalf of the employer.
3.
The U-80 must be
signed by the BWC Administrator, or an appointed agent or designee of the
Administrator with authority to enter into the contract.
4.
Coverage is
effective on the date specified in the Duration of Contract section of the
U-80. If such a date is not specified, coverage is effective on the latest of
the dates listed immediately below:
a.
The date the
contract is signed by the Administrator,
b.
The date the
contract is signed by the employer,
c.
The date the
employer submits an Application for Ohio Workers’ Compensation Coverage (U-3) satisfying all BWC requirements (See the Application for Coverage policy for additional information), or
d.
The date the
employer remits premium to BWC.
5.
Coverage will remain
in effect until terminated. See section IV.F below.
C.
Payment of premium.
1.
BWC will estimate
premium for the employer for each policy year.
2.
Premium from the
employer is due and payable prior to BWC extending coverage.
3.
The employer may
make premium payments in installments. See the Prospective Billing Installment Payments policy for additional information
regarding installment payment plans, due dates, grace periods and default.
4.
If the employer
fails to pay premium when due, BWC will lapse the employer’s coverage. The
lapse in coverage will have the same effect as if the U-80 had been terminated
and will continue until the employer remits all premiums due and payable to BWC.
5.
BWC may cancel the
U-80 of an employer who fails to pay premiums when due pursuant to OAC 4123-17-76.
D.
Reporting payroll.
1.
The employer is
required to file an annual payroll true-up with BWC at the conclusion of the
policy year. See the Payroll True-Up policy for additional information.
2.
The employer must
document and report payroll for all of its apprentices.
3.
In defining reportable payroll, BWC generally follows the guidelines
of Medicare wage reporting.
4.
The employer must
record and report payroll for each apprentice according to National Council on
Compensation Insurance (NCCI) manual classifications.
a.
The employer must
report payroll for apprentices in classroom instruction or workshop instruction
where no physical activity or hands on participation is performed under NCCI
manual classification 9101, College: All Other Employees.
b.
The employer must
report payroll for apprentices in on-the-job training or workshop training
where physical activity or hands on participation is performed under NCCI
manual classifications based on the apprentices’ documented duties.
c.
The employer must
report payroll for apprentices who receive classroom instruction and perform
physical activity under NCCI manual classifications on a prorated basis. This
exception to NCCI standards is permissible under the U-80.
5.
The employer must
report payroll for each apprentice according to the weekly minimum and maximum
payroll reporting limits:
a.
The minimum weekly
payroll reporting limit is fifty percent (50%) of the SAWW in the policy year
the premium is due.
b.
The maximum weekly
payroll reporting limit is one hundred fifty percent (150%) of the SAWW in the
policy year the premium is due.
c.
Actual payroll must
be reported if the amount falls between the minimum and maximum payroll
reporting limits.
E.
Keeping and maintaining
records.
1.
The employer must
keep and maintain current verifiable and accurate records of apprentices
covered under the U-80.
2.
The employer must
keep an accurate number of the apprentices covered under the U-80 and report
the number of apprentices to BWC when required.
3.
The employer must
maintain during the life of the contract a list of the names, addresses, and
last four digits of the Social Security number of apprentices engaged in
supplemental instruction.
4.
The employer must
maintain and report payroll records for each individual apprentice for a period
of four years. The four year retention period begins the date each apprentice
completes or otherwise leaves the supplemental instruction of the employer or
the termination date of the U-80, whichever is earlier.
5.
The employer must
release information when requested by BWC either verbally or in writing.
6.
BWC has the right to
audit the employer’s records with proper notice in accordance with BWC policies
in effect on the date of notification.
F.
Terminating
coverage.
1.
Coverage will
terminate on the date specified on the U-80.
2.
If a date is
specified on the U-80, the employer or BWC may terminate coverage on an earlier
date by notifying the other party via US certified mail.
3.
If no date is
specified on the U-80, the employer or BWC may terminate coverage by notifying
the other party via US certified mail.
4.
To terminate
coverage either the employer or BWC must notify the other party in writing via
US certified mail.
a.
The employer must
send the termination notice to BWC at the following address:
Ohio Bureau of Workers' Compensation
Policy Processing
30 W. Spring St., 22nd Floor
Columbus, OH 43215
b.
Termination will
take effect on the date specified in the written notification, but not prior to
the date said notification is received by the other party.
G.
Contract amendments
and complaint resolution.
1.
Any amendments or
modifications to the U-80 must be made in writing. BWC and the employer must
sign the written amendment and a copy of the amendment must be filed with BWC.
2.
An employer may file
a complaint due to BWC’s decision including, but not limited to, a denial or
termination of the U-80.
3.
Employer complaints
should be processed under the General Employer Complaint Policy. BWC has not identified any specific
extenuating circumstances that apply to Apprenticeship Elective Coverage.
H.
Scenarios.
1.
An electrical
contractor is having difficulty hiring experienced electricians so it
establishes its own “apprenticeship” program for new hires. The contractor
submits a U-80 to BWC to cover these “apprentices.”
Response: The contractor is not eligible
for apprenticeship elective coverage. Only a joint apprenticeship committee or
a sponsoring organization offering supplemental instruction may obtain
apprenticeship elective coverage. The new hires of the electrical contractor
are employees and must be treated as such for workers’ compensation purposes.
2.
An individual is
enrolled in an approved apprenticeship program and works two days a week for a
plumbing and heating company. Who reports payroll?
Response: The plumbing and heating
company must report the individual’s payroll for the two days per week he/she
works for the company. The joint apprenticeship committee or sponsoring
organization administering the apprenticeship program may elect to cover the
apprentice by submitting a U-80 to BWC.
3.
A joint
apprenticeship committee has an approved U-80 with BWC. One of the apprentices
is provided a lodging stipend, transportation to/from the lodging and the
school, and a noon time meal on class days. What does the joint apprenticeship
committee report as payroll.
Response: The joint apprenticeship
committee must report as payroll the cost of the lodging stipend and the fair
and equitable cost of the transportation and meals provided to the apprentice.
The payroll is subject to the minimum and maximum limits outlined in section
IV.D.5 above.
4.
A sponsoring
organization has an approved U-80 with BWC. The sponsoring organization has
instructors and assistant instructors who teach apprentices. Can the sponsoring
organization cover its instructors and assistant instructors for workers’
compensation under the U-80?
Response: No, a sponsoring organization
may only elect to cover apprentices, pre-apprentices, entry-level trainees, and
journeyperson trainees for workers’ compensation under a U-80 with BWC.
Instructors and assistant instructors are either employees of the sponsoring
organization, or they may be independent contractors. If they are employees,
the sponsoring organization must report their payroll and the minimum and
maximum payroll reporting limits do not apply.