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OhioBWC - Basics: (Policy library) - File

 

Policy Name:

.99 EM Construction Cap

Policy #:

EP-14-01

Code/Rule Reference:

Ohio Administrative Code (OAC) 4123-17-05 Appendix A, HB 15 Section 220

Effective Date:

July 1, 2016

Origin:

Employer Policy

Supersedes:

All policies, directives and memos regarding .99 EM Construction Cap that predate the effective date of this policy.

History:

Policy Original Effective July 1, 2009, Policy Revised: July 1, 2012.

Review Date:

July 1, 2021

 

I.       Policy Purpose

The Bureau of Workers’ Compensation (BWC) offers eligible construction industry employers a temporary cap on their experience modification (EM) equal to 0.99. BWC will notify qualified construction industry employers of their eligibility to participate in the program with no application required. BWC will administer the .99 EM Construction Cap in accordance with all applicable laws and rules.

II.     Applicability

This policy applies to BWC Actuarial, Employer Programs, Field Services, Departments, the Division of Safety and Hygiene and to the a private employers (PA), in Construction Industry as identified in OAC 4123-17-05 Appendix A.

III.    Definitions

A.    Industry Group: National Council on Compensation Insurance (NCCI) Codes are grouped together into ten (10) Industry Groups ORC 4123-17-05, Appendix A.

B.    Construction Industry Employer: The employer's predominant premium for the policy year beginning July 1, 2007, is in Industry Group 4, Construction. Construction Industry includes any activity performed in connection with the erection, alteration, repair, replacement, renovation, installation, or demolition of any building, structure, highway, or bridge.

C.    Experience Modifier (EM): Is the value that compares an employers claim experience to the claim experience that would be expected of an employer of similar size in the same pursuit of business.

D.    SH-26: The SH-26 form is intended to help employers evaluate their safety and claims management systems and identifies 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 should complete the form.

IV.   Policy

A.    Eligibility Criteria:

1.     Be a PA private employer.

2.     Have a predominant premium for the policy year beginning July 1, 2007, in Industry Group 4, Construction as identified in OAC 4123-17-05 Appendix A.

3.     Be current with respect to all payments due BWC as defined in OAC 4123-17-14.

4.     Not have cumulative lapses in workers' compensation coverage in excess of forty (40) days within the prior twelve (12) months.

5.     Have a published EM equal to or less than 1.0 in the preceding policy year; or,

6.     Have an EM initially calculated for the current policy year that is greater than 1.0 and not more than 1.5; or,

7.     Have been enrolled in the .99 EM Construction Cap the previous policy year.

a.     The employer must have reported actual payroll for the preceding policy year and paid any premium due upon reconciliation of estimated premium with actual premium no later than the due date per OAC rule 4123-17-14.

b.     An employer will be deemed to have met this requirement if BWC receives the premium due before the expiration of any applicable grace period.

B.    The following employers are not eligible to participate:

1.     Employers, who voluntarily opt out of the .99 EM Construction Cap from the previous policy year are not eligible to participate for the following year. Unless; they regain eligibility :

a.     Their EM drops to 1.0 or below; or,

b.     The subsequent year their published EM increases to greater than 1.0 and is no greater than 1.5.Example: A construction company opted out and did not participate in 2014. Their EM for 2015 was .98 and then in 2016 went up to 1.15. They are now eligible for participation in the .99 EM Construction Cap for 2016.

2.     State agencies.

3.     Self-insuring employers.

4.     Public Employers – Taxing Districts (PEC).

C.    Application Process: No application is required to participate in this program. BWC will notify qualified construction industry employers of their eligibility to participate as outlined in HB 15.

D.    All eligible construction industry employers meeting the conditions set forth in this policy are considered active participants unless they “opt out” of the program as described in IV.G.1. of this policy.

E.    Operation of Program:

1.     The employer’s actual premium rates will be calculated based on its earned experience modification (EM) .

2.     The employer must complete a Safety Management Self-Assessment (SH-26) by the last business day of July of the policy year of participation. An individual SH-26 is valid for twelve (12) months and may be used by BWC when evaluating all program applications that require an SH-26.

F.     Compatibility with other Programs: Employers participating in the .99 EM Construction Cap may participate in all other BWC Employer Programs as long as they meet the eligibility and application requirements of those programs.

G.    Opt Out / Exit.

1.     An employer must choose to opt out of the program in writing.

a.     Use BWC Form U-108, Opt Out of .99 EM Construction Cap.

b.     Non-participation will result in the publication of the employer’s actual EM.

c.     Voluntary opt out makes an employer ineligible to re-enter for the following year.

2.     Failure to complete the SH-26 by the deadline will result in:

a.     Removal from participation, and,

b.     Publication of the employer’s actual EM.

3.     Failure to complete the annual true-up by the required deadline will result in:

a.     Removal from program participation, and,

b.     Publication of the employer’s actual EM.

 

H.    Resolution of complaints.

1.     Employer complaints should be processed under the General Employer Complaint Policy.

2.     Specific extenuating circumstance that applies to the .99 EM Construction Cap. An employer not eligible for participation in the initial policy year may request an exception to participate in the program. BWC may grant participation under the following conditions:

a.     The employer must submit the request in writing to BWC

b.     The policy year of participation must be on or after July 1, 2016.

c.     The employer’s predominant premium for the most recently completed policy year must be in construction, industry type (4).

d.     The employer must meet all other eligibility criteria as outlined in IV. A. of this policy.

3.     BWC has not identified any other specific extenuating circumstances that apply to .99 EM Construction Cap.


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