Policy
Name:
|
Industry-Specific
Safety Program (ISSP)
|
Policy #:
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EP-09-01
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Code/Rule
Reference
|
Ohio
Administrative Code (OAC) 4123-17-56.3; 4123-17-74, Appendix A, B, and C; and 4123-17-75, Appendix
|
Effective
Date:
|
June 8,
2023
|
Approved:
|
Rex
Blateri, Chief of Employer Services
|
Origin:
|
Employer
Policy
|
Supersedes:
|
Industry-Specific
Safety Program (ISSP) dated July 1, 2021.
|
History:
|
Revised June
8, 2023; November 8, 2021; October 24, 2019; August 18, 2016; July 14, 2015.
New policy issued October 30, 2013.
|
Review
Date:
|
January 1,
2026
|
I. Policy Purpose
The
Ohio Bureau of Workers’ Compensation (BWC) offers an Industry-Specific Safety
Program (ISSP) bonus to employers who meet the program requirements in
accordance with all applicable laws and rules.
II. Applicability
This
policy applies to employers, authorized representatives, BWC Employer Programs,
Regional Employer Services, and the Division of Safety & Hygiene (DSH).
III. Definitions
A.
Alternate
Employer Organization (AEO):
A sole proprietor, partnership, association, limited liability company, or
corporation that enters into an agreement with one or more client employers for
the purposes of providing human resource management services and sharing
employer responsibility and liability. AEO does not include a temporary service
agency. OAC 4123-17-15.
B.
Combine: Where one employer succeeds another
employer in the operation of a business, BWC combines the employers into one
policy for workers’ compensation purposes.
C.
Eligibility
determination year: The
most recent full policy year, prior to the program year, for which payroll
information is available. For private employers the policy year is July 1
through the following June 30. For public employers the policy year is January
1 through December 31. See section IV.D.3.d for explanation of how new
employers without a full year of recorded premium are handled.
D.
Loss prevention
activities: Program activities
that participants must complete to satisfy program requirements. Participants
are required to complete one, two, or three activities, which are:
1.
Industry-specific safety
classes prescribed by DSH;
2.
Individual safety and
health consulting with staff from DSH; or
3.
Attendance at DSH’s
annual Ohio Safety Congress & Expo.
E.
New employer: An employer who is a new business
entity in Ohio; or an out of state employer who has not had prior operations in
Ohio and no prior workers’ compensation coverage in Ohio.
F.
Primary industry: The industry group with the highest
premium during the employer’s eligibility determination year. Industry groups
and classification codes are set forth in OAC 4123-17-05, Appendix A.
G.
Professional
Employer Organization (PEO):
A sole proprietor, partnership, association, limited liability company or
corporation that enters into an agreement with one or more client employers for
the purpose of co-employing all or part of the client employer’s workforce at
the client employer’s work site. PEO does not include a temporary service
agency. OAC 4123-17-15.
H.
Program year: The policy year for which the employer
seeks to obtain the ISSP bonus.
I.
Pure premium: The employer’s calculated premiums
prior to adding any administrative cost or Disabled Workers’ Relief Fund (DWRF)
assessments.
J.
Safety Management
Self-Assessment (SH-26):
The SH-26 helps employers evaluate their safety and claims management systems
and identify opportunities for improvement. The form contains eleven (11) safety
and health categories considered critical to an effective safety and health
process. The person(s) in the organization most familiar with the current
safety and claims management process must complete the form.
IV. Policy
A.
BWC is rescinding
the ISSP. For private employers (PA employers), the ISSP is rescinded effective
June 30, 2023. For public employer taxing districts (PEC employers), the ISSP is
rescinded effective December 31, 2023.
B.
Eligibility
Criteria:
1.
The employer must be
a state-fund PA employer or a PEC employer.
2.
As of the
application deadline, the employer must:
a.
Be current with
respect to all payments due BWC as defined in OAC 4123-17-14;
b.
Not have cumulative
lapses in workers' compensation coverage in excess of forty (40) days within
the prior twelve (12) months; and
c.
Report actual
payroll for the preceding policy year and paid any premium due upon
reconciliation of estimated premium with actual premium for that policy year no
later than the application deadline. See the Payroll True-Up policy for additional information.
3.
The following
employers are not eligible for ISSP:
a.
Employers paying the
minimum administrative charge for the applicable payroll reporting period as
set forth in OAC 4123-17-26;
b.
State agencies; and
c.
Self-insuring
employers.
C.
An AEO or a PEO may
be eligible for the ISSP bonus under the following conditions:
1.
All the AEO’s
clients and the AEO, or all the PEO’s clients and the PEO, must meet all
eligibility and program requirements.
2.
The AEO or the PEO submits
affirmation to BWC that the AEO and all the AEO’s clients, or the PEO and all
the PEO’s clients, have submitted applications consistent with OAC 4123-17-56.3(C)(1).
3.
The AEO or the PEO submits
an electronic list to BWC of each of the client employers with whom the AEO or
the PEO has an agreement as of May 1 of the applicable policy year.
a.
BWC will determine
the format of the list.
b.
The AEO or the PEO
will include each client employer’s name, address, federal tax identification
number (TIN), BWC policy number, and amount of payroll listed by classification
code.
c.
If BWC determines
the AEO or the PEO manipulated the client list, the AEO or the PEO will not be
eligible for the ISSP bonus.
d.
BWC will hold the
list as a confidential trade secret per ORC 4125.05 and 4133.07.
D.
Application
Requirements.
1.
An employer must
file an Application for Industry-Specific Safety Program (SH-28) with BWC.
2.
BWC will
automatically renew the employer for each subsequent program year provided the
employer has completed activities in at least one of the previous two program
years and meets all eligibility requirements.
3.
Application
deadlines:
a.
For PA employers,
applications must be filed by the last business day of May prior to the July 1
program year.
b.
For PEC employers,
applications must be filed by the last business day of November prior to the
January 1 program year.
4.
An employer who opts
out, voluntarily withdraws, or is removed or non-renewed by BWC, must file a
new application to participate in a future program year.
E.
Operation of
program.
1.
The employer must
complete a Safety Management Self-Assessment (SH-26) annually. The SH-26 must be completed no earlier than
four months prior to the start of program year and no later than thirty (30)
days after the start of the program year.
a.
An employer
participating in multiple programs may submit one SH-26 to fulfill the annual
requirement for all programs requiring an SH-26.
b.
Multiple submissions
of the SH-26 for the prior program year will not relieve the employer of the
requirement to submit an SH-26.
2.
The employer must
provide any follow-up data or information requested by DSH.
3.
The employer must
complete the required number of loss prevention activities prior to the end of
the program year to qualify for an ISSP bonus. The required number of loss
prevention activities will be based on the employer’s eligibility determination
year payroll.
a.
If payroll is less
than or equal to $100,000, the employer must complete one loss prevention
activity;
b.
If payroll is
greater than $100,000 and less than or equal to $300,000, the employer must
complete two loss prevention activities; or
c.
If payroll is
greater than $300,000, the employer must complete three loss prevention
activities.
d.
In determining the
loss prevention activities for a new employer without a full year of recorded
premium, BWC may calculate and use the employer’s estimated expected payroll.
If a new employer combines with an existing policy, the predecessor’s payroll
will be used in the second year of participation to determine the number of
required activities.
e.
BWC provides the
employer a service offering on www.bwc.ohio.gov that defines the employer’s eligibility
determination year payroll. The service offering also provides the employer’s:
i.
Required number of
loss prevention activities based on payroll level;
ii.
Primary industry;
and
iii. Number of loss prevention activities
completed.
4.
Industry-specific
safety courses prescribed by DSH.
a.
The employer’s
industry classification and payroll amount define the type and length of
industry-specific safety courses the employer must complete to qualify for one
loss prevention activity credit. Not all DSH courses qualify for every industry
classification.
b.
Online education: An
employer successfully completing three hours of online education earns one loss
prevention activity credit.
c.
DSH classroom courses: An employer successfully completing a
half day, full day, or multiple day course earns one loss prevention activity
credit.
d.
An employee of the
employer must attend and complete courses for the employer to receive loss
prevention activity credit. Employer representatives, including, but not
limited to, employees of third-party administrators, are not considered
employees of the employer.
e.
Attendance at a
single safety course by multiple employees for a single employer results in a
maximum of one loss prevention activity credit, regardless of the number of
employees in the course.
f.
Completion of a
multiple day course by multiple employees for a single employer results in one
loss prevention activity credit regardless of the number of employees in
attendance; e.g., OSHA 10-hour and 30-hour multiple day classes only qualify as
one loss prevention credit.
g.
Only DSH
industry-specific courses are eligible for loss prevention activity credit.
DSH’s Industry-specific safety classes webpage identifies industry-specific courses and
online education that qualify for loss prevention activity credit.
5.
Industry-specific
safety courses must be satisfied by the employer on a policy number basis
because each policy number is considered a separate entity.
6. Individual safety and health consulting
with staff from DSH.
a.
DSH safety and
health specialists may conduct loss prevention consultation activities based on
the employer’s unique needs, qualifying the employer for up to three loss
prevention activity credits.
b.
Following the
consultation, the employer must complete follow-up activities to receive credit
for the loss prevention activity. Follow-up activities may include responding
to a DSH action plan or completing a post-training survey. Follow-up activity documentation
must be submitted to DSH prior to the end of the program year.
c.
DSH determines the
availability of safety and health consulting staff. DSH safety and health consultation
staff are scheduled far in advance and may not be available to meet employer
needs on short notice, especially near the end of the program year. Employers
are advised to schedule safety and health consultations early in the program
year to ensure services are received prior to the end of the program year and
allow sufficient time to address DSH action plan recommendations.
d.
The employer does
not receive credit for multiple consultations of the same type of service. For
example, two ergonomic consultations will only count as one loss prevention
activity within the program year.
e.
Employers participating
in ISSP and engaging in an OSHA On-Site consultation evaluation must sign the
authorization form to receive loss prevention activity credit.
7.
Attendance at BWC’s
annual Ohio Safety Congress & Expo.
a.
A minimum of three
one-hour sessions (educational and general sessions both qualify), a half-day
workshop, or a full day workshop is required to qualify for an Ohio Safety
Congress activity credit.
b.
Attendance at the
Ohio Safety Congress can result in a maximum of one loss prevention activity
credit, no matter how many sessions or how many employees are in attendance. An
Ohio Safety Congress attendee may not represent more than one policy number.
c.
An employee of the
employer must attend Ohio Safety Congress for the employer to receive an
activity credit. Employer representatives, including, but not limited to,
employees of third-party administrators, are not considered employees of the
employer.
8.
An employer can use
multiple loss prevention activities as desired. For example:
a.
If an employer is
required to complete three loss prevention activities, the employer can
complete two different full day classes (two activities) and attend three hours
of training sessions (one activity) at the Ohio Safety Congress; or
b.
The employer could also have two different consultations (for
example, one air monitoring survey plus one ergonomics assessment equals two
activities) and complete one half-day class (one activity).
9.
ISSP bonus amount:
The ISSP bonus percentage amount identified in the appendix to OAC 4123-17-75 times
the employer’s pure premium during the program year.
a.
To qualify for the
ISSP bonus an employer must:
i.
Have coverage that
is in an active status at the time of calculation; and
ii.
Report actual
payroll for the program participation year and pay any premium due upon
reconciliation of estimated premium and actual premium. An employer will be
deemed to have met this requirement if BWC receives the payroll report and the
employer pays premium associated with such report before the expiration of any
grace period.
b.
The ISSP bonus and
the incentives earned through participation in other bonus
and rebate incentive programs
cannot reduce an employer’s premium due below the amount of the minimum
administrative charge as set forth in OAC 4123-17-26.
c.
BWC will not issue
an ISSP bonus to an employer paying the minimum administrative charge for the
applicable program year.
d.
Rate adjustments
made to an employer’s account after the issuance of the ISSP bonus may result
in recalculation of the ISSP bonus.
10.
An employer
participating in ISSP may participate in other compatible BWC rating and
discount programs. Employer program compatibility is outlined in OAC 4123-17-74, Appendix C.
F.
Exit or removal from
program.
1.
An employer may
voluntarily withdraw from the ISSP during the program year by notifying BWC in
writing, including by email or by fax. The withdrawal request must be signed by
the chief executive officer or designated management representative of the
employer.
2.
BWC will remove from
the program an employer who fails to report actual payroll for the preceding
policy year and pay any premium due upon reconciliation of estimated premium
with actual premium no later than the due date. An employer will be deemed to
have met this requirement if BWC receives the payroll report and associated
premium prior to the expiration of any grace period.
3.
An employer who
voluntarily withdraws or is removed from the program will not be eligible for
an ISSP bonus for that program year. BWC will not automatically renew the
employer in the ISSP if the withdrawal or removal occurs before the start of
the automatic renewal process.
4.
An employer who opts
out of the program for the subsequent policy year must notify BWC in writing by
the application deadline.
5.
An employer who is
removed from the program may file a new application to participate in a future
program year.
G.
Resolution of
complaints.
1.
Employer complaints
must be processed under the General Employer Complaint Policy. BWC has not identified any
program-specific extenuating circumstances that apply to ISSP.
2.
BWC does not grant
relief in circumstances where the employer fails to complete the required loss
prevention activities during the program year as outlined in IV.D.3, unless DSH
has granted an extension for all employers.
H.
Combinations and
transfers, excluding AEOs and PEOs See section IV.B for AEOs and PEOs.
1.
Predecessor: Enrolled
in ISSP.
Successor: New employer without prior
coverage.
Action: The successor is not eligible
for the ISSP until the next program year. Successor is transferred
predecessor’s rights and obligations under the ISSP. Any benefit for
predecessor’s participation is based on predecessor’s pure premium for the program
year.
2.
Predecessor: Not
enrolled in ISSP.
Successor: Enrolled in ISSP.
Action: Successor remains eligible for
ISSP participation for the entire program year.
3.
Predecessor: Enrolled
in ISSP.
Successor: Enrolled in ISSP.
Action: Successor remains eligible for
ISSP participation for the entire program year. Successor is transferred
predecessor’s rights and obligations under the ISSP. Any benefit for
predecessor’s participation is based on predecessor’s pure premium for the program
year.
4.
Predecessor:
Enrolled in ISSP.
Successor: Not enrolled in ISSP, including
a self-insuring employer.
Action: Successor is not in ISSP.
Successor is transferred predecessor’s rights and obligations under the ISSP. Any
benefit for predecessor’s participation is based on predecessor’s pure premium
for the program year.
5.
Predecessor:
Enrolled in ISSP.
Successor: Debtor-in-possession.
Action: An individual employer
participating in the ISSP who becomes a debtor-in-possession during the program
year remains eligible for ISSP participation for the entire program year.