Continuation/Wages in Lieu of Temporary Total Compensation
4123.56; O.A.C. 4123-5-20
Chief of Operational Policy, Analytics and Compliance (Signature on file)
Injury Management policies, directives and memos regarding salary
continuation/wages in lieu of temporary total compensation that predate the
effective date of this policy.
The purpose of this
policy is to ensure that BWC properly identifies and records payment of salary continuation
by the employer of record (EOR) to ensure that full wages are being paid and
the EOR reserves are accurately calculated when an EOR opts to pay salary continuation.
policy applies to Field Operations staff.
Any benefit (e.g., accrual of vacation leave, holiday pay and scheduled pay
increases) the injured worker (IW) would have received if he/she continued to
work for the EOR.
Regular full wages: Earnings (i.e.,
salary/wages) the IW would have received had he/she continued to work for the
continuation/wages in lieu of temporary total compensation (SC): Regular full wages and
benefits the EOR pays the IW, in lieu of BWC paying the IW temporary total
compensation (TT) or living maintenance (LM). This includes payment of
sick leave and occupational injury leave (OIL).
Compensation paid to an IW who is unable to return to the former position of
employment on a temporary basis due to the work-related injury or occupational
disease and who has not been found to have reached maximum medical improvement
A. Payment of SC – It is
the policy of BWC that:
1. The payment of SC
cannot be made to an IW who is no longer working for the EOR.
2. BWC considers SC as
payment in lieu of TT only when the IW is eligible to receive TT (e.g., If the
IW continues to work a second job, the IW would not be eligible for TT and any
payment the EOR makes would not be considered payment in lieu of TT).
3. The payment of SC shall
continue without interruption beginning with the first day of disability in a
lost-time claim. Payment shall be made on the EOR’s normal payment cycle.
a. The EOR cannot hold
payment pending a decision from BWC or the Industrial Commission of Ohio
i. If BWC or the District
Hearing Officer (DHO) at the IC issues an order denying the claim, then the EOR
may discontinue payment of SC during the appeal period.
DHO overturn BWC’s denial of the claim, or the Staff Hearing Officer (SHO)
overturns the DHO’s denial of the claim, then the EOR may begin paying SC
again. SC must begin from the last previously paid date.
b. The EOR does not have
to pay SC in a medical-only claim; however, once it appears the IW will lose
eight (8) or more days of work, if the EOR chooses to pay SC, the EOR must
begin payment immediately or lose its privilege to do so.
c. Once the IW has missed
eight (8) or more days of work, the EOR shall pay the IW for all missed time,
including the first seven (7) days missed from work.
4. The EOR must state its
intent to pay the IW SC:
a. Within seven (7) days
of the filing of the First Report of an Injury (FROI); or
b. For periods of
disability that begin after the filing of the FROI, within seven (7) days of
the onset of the period of disability.
5. The EOR must provide
the following information to BWC within ten (10) days of receipt of the Salary
Continuation Compliance letter, unless excluded below:
a. The IW’s earnings for
the fifty-two (52) fully paid weeks prior to the date of injury (DOI) or date
of disability (DOD) as needed for the calculation of the full weekly wage (FWW)
and average weekly wage (AWW).
i. The EOR shall use the Employer
Report of Employee Earnings (Wages-Emp) or an
equivalent form; and
shall inform BWC if the IW did not work for the EOR for the full fifty-two (52)
b. A Salary
Continuation Agreement (C-55), or equivalent, which includes:
i. The period
of time SC will be paid (each period cannot exceed forty-five (45)
of SC to be paid;
iii. An indication if the SC
payment includes replacement earnings from secondary
iv. Signatures of the IW
a) The title of the person
signing on behalf of the EOR must be included.
b) The EOR must attempt to
obtain the IW’s signature. The EOR can submit the form without the signature of
the IW; however, BWC must be able to verify with the IW that he/she agrees to
the payment of SC by the EOR.
c. If there is a
bargaining unit contract that specifically addresses payment of SC, then it is
not necessary for the EOR to submit the C-55.
i. BWC may require that
the EOR submit a copy of the bargaining unit contract.
C-55 is not required, proof of payment as outlined in the contract and wages
are required. Section IV.A.5.a of this policy
defines the wages that are required.
iii. The EOR must submit
documentation for payments made beyond the period covered in the bargaining
6. Considerations for
determining if SC is payable are as follows:
a. SC cannot be paid by
the EOR once TT is established and paid in a claim. The only exception is when
the payment of SC is according to a bargaining unit contract.
b. SC should be paid only
for periods of disability related to the allowed conditions in the claim.
7. The requirements for
continued payment of SC are as follows:
a. It is the policy of BWC
that an EOR, without a bargaining unit contract, must submit a newly completed
C-55 or equivalent form for each subsequent forty-five (45) day period of SC.
b. If there is a
bargaining unit contract, the EOR must submit the C-55 or proof of ongoing
payment upon expiration of the previous period reported.
8. An EOR must notify BWC
within three (3) business days:
a. When the EOR stops
payment of SC; or
b. When the amount paid to
the IW changes.
9. The payment of SC does
not mean the EOR has certified the claim or has waived any appeal rights.
10. The EOR’s calculation
of regular full wages for the payment of SC is as follows:
a. If the IW has no
variance in earnings, the EOR shall pay SC based on the IW’s regular full
b. The EOR may determine
the regular full wages by calculating the average salary based on the prior
earnings when the IW:
i. Does not work a regular
Is paid on
iii. Is paid other variable
c. Payments of shift
differential, bonuses and injury-on-duty (IOD) pay shall be included in the
payment of SC.
d. The EOR may choose not
to include payments of overtime, bonuses and/or piecework in SC payments;
however, because these are included in the calculation of the FWW and AWW, the
TT rate could exceed the SC payment amount.
e. The EOR may pay the IW
more than the regular full wages.
11. The EOR shall continue
to provide the IW all regular benefits the IW would have received if he/she
continued to work.
12. The EOR may pay SC that
includes payment for the additional job(s) the IW has at the time of
13. Considerations for determining
if SC is payable during a company shut-down are as follows:
a. The EOR does not have
to pay SC during the period of a company shut-down; however, the IW is eligible
for TT. The EOR may pay SC to avoid payment of TT and having a reserve set.
b. If an IW is laid off
temporarily, BWC shall consider the IW an employee and the EOR may pay SC.
c. If the layoff is
permanent, the layoff is considered separation of employment and the EOR may no
longer pay SC.
14. If the EOR fails to
meet the SC requirements of this policy, BWC shall consider payment of TT and
this may affect the EOR’s eligibility to pay the IW SC in the future.
15. The EOR may elect to
pay the IW regular full wages in lieu of LM during the IW’s participation in a
vocational rehabilitation plan.
a. If the EOR previously
paid SC and the IW is subsequently paid LM, the EOR can resume payment of SC
after LM ends.
b. If the IW previously
received TT because the EOR did not pay SC and the IW receives LM, the EOR
cannot begin payment of SC once LM ends.
B. TT Issues That May
Impact SC – It is the policy of BWC that:
1. If TT is ordered and
paid, BWC shall not accept reimbursement for the TT from the EOR or IW.
2. For purposes of this
policy, LM will be treated the same as TT.
a. Either the IW or the
EOR may choose to discontinue payment of SC in lieu of TT or LM at any time,
except as required by a bargaining unit contract.
b. If the IW chooses to
receive TT instead of SC, BWC will only consider payment of TT when the IW
submits a Request for Temporary Total Compensation (C-84) and supporting
3. The amount paid in SC
does not count toward the EOR’s TT reserve.
4. If the IC issues an
order allowing the EOR to pay SC after the payment of TT, BWC will declare an
overpayment to the IW. The TT reserve will not be suppressed, and the EOR will
not receive credit for the period paid.
5. BWC will not adjust the
EOR’s experience for TT paid in a claim if the EOR pays SC after BWC pays TT.
6. The IW may request TT
when there is a difference between the SC rate and the TT maximum for the
7. If the EOR does not
provide required documentation for SC:
a. BWC shall not document
payment of SC in the claim; and
b. BWC shall consider
payment of TT compensation upon receipt of a C-84 and supporting medical
8. When the EOR is paying
SC incorrectly, BWC may pay supplemental TT, if appropriate.
9. BWC shall not pay TT in
a claim where an injury occurred during vocational rehabilitation if the EOR
continues to pay SC in the original injury claim.
C. Return to Work
1. The EOR may choose to
pay the IW his/her regular full wages if the IW returns to work in a job that
pays less. This is not considered a SC payment because the payment is not
being paid in lieu of TT.
2. The EOR is not required
to provide information to BWC regarding these payments.
D. Employee Leave Pay
1. BWC may consider sick
leave paid by the EOR as payment of SC.
2. All other forms of
employee leave (e.g., vacation, compensatory time, personal, disability and
paid time off used other than sick) paid by the EOR are not considered SC.
E. Other SC Policy Issues
1. SC is not considered
compensation for purposes of determining timely filing of an Application for
Determination of Percentage of Permanent Partial Disability or Increase of Permanent
Partial Disability (C-92) application.
2. It is the policy of BWC
a. Pay the Violation of
Specific Safety Requirements (VSSR) award to the IW who is receiving SC in lieu
b. Recognize that,
effective 07/01/12, the EOR may pay SC in a claim that is in the deductible
program and has a DOI on or after 7/1/2012.
c. Recognize that the EOR
cannot pay SC in a claim that is in the deductible program and has a DOI prior
BWC staff may refer to
the corresponding procedure for this policy entitled “Salary Continuation/Wages
in Lieu of Temporary Total Compensation” for further guidance.