.99 EM Construction Cap
Ohio Administrative Code (OAC) 4123-17-05
Appendix A, HB
15 Section 220
July 1, 2016
All policies, directives and memos regarding .99 EM
Construction Cap that predate the effective date of this policy.
Policy Original Effective July 1, 2009, Policy Revised:
July 1, 2012.
July 1, 2021
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.
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
Group: National Council on Compensation Insurance (NCCI) Codes are grouped
together into ten (10) Industry Groups ORC 4123-17-05, Appendix
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.
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.
a PA private employer.
a predominant premium for the policy year beginning July 1, 2007, in Industry
Group 4, Construction as identified in OAC 4123-17-05
current with respect to all payments due BWC as defined in OAC 4123-17-14.
have cumulative lapses in workers' compensation coverage in excess of forty
(40) days within the prior twelve (12) months.
a published EM equal to or less than 1.0 in the preceding policy year; or,
an EM initially calculated for the current policy year that is greater than 1.0
and not more than 1.5; or,
been enrolled in the .99 EM Construction Cap the previous policy year.
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.
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:
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 :
EM drops to 1.0 or below; or,
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.
Employers – Taxing Districts (PEC).
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
employer’s actual premium rates will be calculated based on its earned experience
modification (EM) .
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.
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.
employer must choose to opt out of the program in writing.
BWC Form U-108, Opt Out of .99 EM Construction Cap.
will result in the publication of the employer’s actual EM.
opt out makes an employer ineligible to re-enter for the following year.
to complete the SH-26
by the deadline will result in:
from participation, and,
of the employer’s actual EM.
to complete the annual true-up by the required deadline will result in:
from program participation, and,
of the employer’s actual EM.
complaints should be processed under the General
Employer Complaint Policy.
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
employer must submit the request in writing to BWC
policy year of participation must be on or after July 1, 2016.
employer’s predominant premium for the most recently completed policy year must
be in construction, industry type (4).
employer must meet all other eligibility criteria as outlined in IV. A. of this
has not identified any other specific extenuating circumstances that apply to .99
EM Construction Cap.