R.C. 4123.56; OAC 4121-3-32(B)(2); OAC 4123-3-34; 4123-3-37
Industrial Commission of Ohio (IC) Joint Resolution R89-3-27; IC Hearing
Officer Manual Memo P3 (VSSR Overpayment Due to Court Decision)
Chief of Operational Policy, Analytics & Compliance (Signature on File)
Management policies, directives and memos regarding overpayment of compensation
that predate the effective date of this policy.
The purpose of
this policy is to ensure that BWC appropriately declares an overpayment when a
claimant receives compensation that the claimant is not entitled to receive.
applies to BWC field staff.
Claimant: The individual seeking
workers’ compensation benefits, typically the injured worker (IW) or a
dependent of a deceased IW.
A final administrative or judicial determination holding that the claimant
received compensation to which he or she was not entitled, and which entitles BWC
or a self-insuring employer to withhold a percentage amount of compensation
from any claims, past, present or future, to which the IW or claimant becomes
A. An overpayment of
compensation may include:
1. BWC payments paid directly to
2. BWC payments paid to another
entity on the claimant’s behalf, including, but not limited to, payments to:
a. A child support enforcement
b. The Ohio Department of Job
and Family Services.
B. Except as noted in section
IV.C. of this policy, BWC shall:
1. Seek recoupment of an
overpayment of compensation until it recovers the total amount of the
overpayment, regardless of the amount of overpayment and/or time that has
passed since the overpayment occurred.
2. Recoup the overpayment from
any amount of compensation to which the claimant becomes entitled in a past,
present or future claim, except that an overpayment shall not be recouped from:
a. A lump sum advancement for
b. Disabled worker relief fund
c. Living maintenance payments,
but not to include living maintenance wage loss payments.
d. The first twelve (12) weeks
of temporary total compensation.
C. BWC shall not seek recoupment
of an overpayment:
1. If the injured worker
received compensation in a claim that is subsequently disallowed by the Court
of Appeals or Supreme Court;
2. When, absent an indication of
fraud, existing death-benefit award dependents are overpaid because a new dependent
is identified as being eligible for a portion of the previously paid death
3. When the overpayment is
caused by a court subsequently overturning an Industrial Commission (IC)
violation of specific safety regulation award;
4. When the statute of
limitations on the claim in which the overpayment occurred expired prior to
declaration of the overpayment.
D. BWC shall provide notice of
its intent to recoup an overpayment via:
1. A BWC order; or
2. An “Initial Notification of
Industrial Commission Declared Overpayment” letter.
BWC staff may refer to the
corresponding procedure for this policy entitled “Procedure for Overpayment of
Compensation” for further guidance.