.99 EM Construction Cap
Ohio Administrative Code (OAC) 4123-17-05 Appendix A, HB
15 Section 220
July 1, 2018
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, 2016; October 11, 2018.
July 1, 2023
Bureau of Workers’ Compensation (BWC) offers eligible construction industry
employers a temporary cap on their experience modification (EM) equal to .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, Employer Services, the Division
of Safety and Hygiene and to private employers (PA employers), in the construction
industry as identified in OAC
4123-17-05 Appendix A.
Group: National Council on Compensation Insurance (NCCI) Codes are grouped
together into ten (10) Industry Groups ORC 4123-17-05, Appendix A.
Industry Employer: The employer's predominant premium 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): The value that compares an employer’s 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 identify opportunities for improvement. The form contains eleven (11)
safety and health categories considered critical to an effective safety and
health process. The person(s) within the employer’s organization most familiar with
the current safety and claims management process should complete the form.
Annual reconciliation of estimated payroll and actual payroll. All
employers must file annual payroll after the conclusion of the policy year. BWC
will calculate any premium obligation or credit for the completed policy year.
Initial Eligibility – All of the following must be met:
Be a Private Employer (PA);
One of the following two situations apply:
Employer, for the policy year beginning July 1, 2007 and for all policy
years thereafter, is a Construction Industry Employer; or
Employer submits a written request for participation in the program, and
the employer qualifies as a Construction Industry Employer for the most
recently completed policy year;
Be current with respect to all payments due BWC as defined in OAC 4123-17-14;
Not have cumulative lapses in workers' compensation coverage in excess
of forty (40) days within the prior twelve (12) months;
Have a published EM equal to or less than 1.0 in the preceding policy
Have an EM initially calculated for the current policy year that is
greater than 1.0 and not more than 1.5.
Renewal Eligibility – All of the following must be met:
The employer was enrolled in the .99 EM Construction Cap program the
previous policy year;
The employer did not opt out of, and BWC did not remove the employer
from, the .99 EM Construction Cap program during the previous policy year;
The employer completed a SH-26 by the last business day of July of the
preceding policy year of participation;
The employer has an EM initially calculated for the current policy year
greater than 1.0 and not more than 1.5;
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 4123-17-14, plus any applicable
grace period; and
The employer qualifies as a Construction Industry Employer for the most
recently completed policy year.
following employers are not eligible to participate:
Employers that voluntarily opt out of the .99 EM Construction Cap program,
or BWC removes from the .99 EM Construction Cap program. An employer that
voluntarily opts out, or BWC removes them from the .99 EM Construction Cap
program during the previous policy year, is not eligible to participate for the
following year; such an employer can become eligible in a subsequent policy
year if the employer meets Initial Eligibility in Section IV.A.1. above.
Public Employers – Taxing Districts (PEC employers).
Process: There is no formal application to participate in this program. BWC
will notify qualified Construction Industry Employers under HB 15
of their eligibility to participate. However, employers seeking to participate
in the program because the employer has either previously opted out of the
program, or is seeking participation and did not qualify as a Construction
Industry Employer for the policy year beginning on July 1, 2007, must notify BWC
in writing of the employer’s intent and desire to participate in the program.
D. All eligible construction industry employers meeting the
conditions set forth in this policy are considered active participants unless an
employer opts out of, or BWC removes an employer from, the program as described
in IV.G. of this policy.
The employer’s actual premium rates will be calculated based on its
The employer must complete a 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 program
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.
An employer must choose to opt out of the program in writing by
completing BWC Form U-108, Opt Out
of the .99 EM Construction Cap.
If an employer has any of the following occur, an employer’s actual EM is
published, the employer is no longer participating in the .99 EM Construction
Cap Program for the current policy year, and the employer is ineligible to
re-enter the .99 EM Construction Cap program for the following policy year:
Employer opts out of .99 EM Construction Cap program;
BWC removes an employer from the .99 EM Construction Cap program;
Employer fails to complete the SH-26 by the
Employer fails to complete the annual-true up by the required deadline.
Employer complaints should be processed under the General
Employer Complaint Policy.
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 if all the following
conditions are satisfied:
The employer must submit the request in writing to BWC;
The policy year of participation must be on or after July 1, 2016;
The employer’s predominant premium for the most recently completed
policy year must be in construction, industry type (4); and
The employer meets all other eligibility criteria as outlined in IV. A.
of this policy.