of Overpaid Compensation
Reference: Industrial Commission of Ohio (IC)/Ohio Bureau of Workers’
Compensation (BWC) Joint Resolution R89-3-27
Chief of Operational Policy, Analytics and Compliance (Signature on File)
Management policies, directives and memos regarding adjustment of overpaid compensation
that predate the effective date of this policy
The purpose of
this policy is to ensure that compensation is entered and adjusted correctly in
the claims management system when compensation is overpaid, and overpayments
are collected according to Ohio law and applicable case law.
applies to BWC Field Operations staff.
individual seeking workers’ compensation benefits, typically the injured
worker (IW) or a dependent of a deceased IW.
of this policy, when the claimant, including IW, employer, and BWC take action
on a compensation decision in the claim based on the belief that all relevant
and necessary information was available at the time the decision was made, and
all parties were acting reasonably and with an honest belief that compensation
was lawfully due.
BWC’s policy to adjust compensation when:
1. A claimant’s full weekly
wage (FWW) and/or average weekly wage (AWW) are reset (refer to the Wages
policy for more information regarding FWW and AWW); or
2. A claimant receives
compensation that he/she is no longer entitled to receive.
BWC’s policy to adjust payment of compensation and, if applicable, collect an overpayment
from any past, present, or future workers’ compensation claims according to
Ohio law, unless:
1. The claim meets the criteria
for non-collection, as outlined in this policy;
2. The overpayment is waived in
a lump sum settlement agreement; or
3. The IC has directed otherwise.
not collect an overpayment when field staff, in consultation with a BWC
attorney, determines that the claimant, employer and BWC all believed, in good
faith, at the time the payments were made, that compensation was lawfully due.
1. When an overpayment is
created by some means other than a reversal, upon appeal, of a decision to pay
compensation (e.g., duplicate payment, wage adjustment, etc.), BWC is not bound
by R.C. 4123.511(K); however, it is BWC’s policy to recoup the overpayment
according to R.C. 4123.511(K) as this recoupment method is reasonable to
recover overpaid funds.
2. It is BWC’s policy to collect:
a. An overpayment from any
amount of compensation the claimant may receive in any past, present, or future
claim in accordance with Ohio law, even if the claimant has arranged to make
payments to BWC’s Collection Department to reduce the overpayment; and
b. Overpayments according to the
percentages listed in the chart on www.bwc.ohio.gov titled “Absorption Rates for
and external customers may refer to BWC Library/About BWC/Tools for Authorized
Reps/Resources to locate the chart on www.bwc.ohio.gov.
ii. Internal customers will find
the chart on Claims Online Resources (COR)/Adjustment of Overpaid Compensation/Tips
3. BWC will not absorb an
overpayment from the first 12 weeks of payment of temporary total compensation
(TT), except when the overpayment is due to a finding of fraud, but will absorb
the overpayment following payment of the first 12 weeks of TT.
4. Refer to the Overpayment
of Compensation policy on www.bwc.ohio.gov for more information
1. When the Court of Common
Pleas issues a decision that reverses a previous BWC or IC claim allowance or
compensation payment decision, it is BWC’s policy to seek recovery of any
compensation paid (set the IW up overpaid).
2. When an appeal on the allowance
of the claim or payment of compensation is filed and the Court of Appeals or
the Supreme Court reverses the appealed decision, BWC will not seek recovery of
any compensation paid (IW is not set up overpaid), except for claims assigned
to a public employer-state (PES).
employer’s risk will be adjusted, if compensation has been paid; and
overpayment that occurs due to the reversal of the claim allowance or
compensation payment will be charged to the Surplus Fund.
claims assigned to a PES employer:
employer’s risk will not be adjusted; and
ii. Any overpayment that occurs
due to the reversal of the claim allowance or compensation payment will not be
charged to the Surplus Fund.
3. Refer to the Orders,
Waivers, Appeals and Hearings policy on www.bwc.ohio.gov for more information
regarding appeals to court.
BWC’s policy to send periodic notice to the claimant when a subsequent reduction
is made to a declared overpaid balance due to the receipt of a personal check,
returned warrant, or issuance of an award for a new period of compensation.
of travel expenses is a reimbursement of previously paid expenses, not a form
of compensation; therefore, BWC will not collect compensation overpayments from
travel expense reimbursement. Refer to the Travel Reimbursement policy
and procedure for more information regarding reimbursement of travel expenses.
may contact BWC’s Collections Department to set up a schedule of payments to
reduce the overpayment.
1. The claimant may send
payments for non-fraud collections to:
Ohio Bureau of Workers’
P. O. Box 89492
Cleveland, OH 44101-6492.
2. Fraud collections are to be
Ohio Bureau of Workers’
Attn: Fraud Collections
P.O. Box 15187
Columbus, OH 43215.
3. When sending a payment
overnight or express mail or a signature is required for delivery, send payment
to the following address:
Ohio Bureau of Workers’
ATTN: Lockbox 89492
4910 Tiedeman Road
Cleveland, OH 44144.
4. A check(s) or money order(s)
must be payable to Ohio Bureau of Workers’ Compensation or BWC.
BWC staff may refer to the
corresponding procedure for this policy entitled “Adjustment of Overpaid Compensation”
for further guidance.