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Policy
Name:
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Contract
for Coverage of State Agency or Political Subdivision
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Policy #:
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EP-03-02
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Code/Rule
Reference
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Ohio
Revised Codes (ORC) 4123.03
and 4123.01
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Effective
Date:
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January
11, 2016
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Approved:
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Kevin
Abrams, Chief of Employer Services
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Origin:
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Employer
Policy
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Supersedes:
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U-69
Workers’ Compensation Contract Coverage of the State and Political
Subdivisions Policy issued on February 1, 2008.
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History:
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New policy
issued February 1, 2008; revised January 11, 2016.
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Review
Date:
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January
11, 2021
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I. Policy Purpose
The
state or a political subdivision may contract with the Ohio Bureau of Workers’
Compensation (BWC) to provide workers’ compensation coverage for individuals
who are not considered employees according to ORC 4123.01.
II. Applicability
A.
This policy applies
to state agencies and institutions, political subdivisions, authorized
representatives, and BWC Policy Processing.
B.
This policy does NOT
apply to:
1.
Private employers.
ORC 4123.03 is limited to
public employers.
2.
Self-insuring public
employers. Employers who elect to cover volunteers and probationers performing
service for the political subdivision as employees must include those employees
under the self-insurance policy, as set forth in Ohio Administrative Code (OAC)
4123-19-03(N).
3.
Public Works Relief
Employees. These individuals perform services in exchange for welfare benefits.
Welfare recipients are covered under each county’s welfare program and wages
are reported to that county’s Public Works Relief Employee policy number, as
set forth in ORC 4127.01.
III. Definitions
A.
Inmate: An individual convicted of a criminal
offense and serving a sentence in confinement. Other terms used to describe
these individuals include prisoner, offender, and resident. This term may also
pertain to a pre-trial detainee.
B.
Inmate worker
program: A program in
which an inmate is allowed to leave confinement for community service work or
work in or about the jail.
C.
Juvenile: An individual under age eighteen (18)
controlled by the jurisdiction of the Juvenile Division of Common Pleas Court.
D.
Non-emergency volunteer: An individual who chooses freely to
perform community service work and usually does not receive wages or
remuneration for services rendered. For the purpose of this policy,
non-emergency volunteer will be referred to as volunteer. Examples of
volunteers are individuals picking up trash in parks, clearing walk trails, or
planting flowers. Volunteer does not mean members of volunteer auxiliary police
or patrolmen and fire departments, including emergency medical technicians.
E.
Political
subdivision: A public
employer within the state, usually referred to as public employer taxing
district (PEC). These employers consist of the counties and every taxing
district within the county such as cities, villages, townships, local school
districts, public libraries, public hospitals, public transit authorities and
special taxing districts, which includes port authorities and joint vocational
schools.
F.
Probationer: An individual convicted of a criminal
offense and serving any portion of the sentence by performing community service.
G.
Public employer: The state, including state hospitals,
each county, municipal corporation, township, school district, and hospital owned
by a political subdivision or subdivisions other than the state. (ORC
4123.01(B)(1))
H.
Resolution: An official action of a political
subdivision that authorizes the execution of a contract for workers’
compensation coverage with BWC. The resolution specifically defines all
categories of individuals for which the contract covers.
I.
Roster: A verifiable list including the names,
addresses and types of work performed or position descriptions of all
individuals qualifying for the extension of workers’ compensation benefits by
reason of services rendered. The roster also must document the period of time
over which the services are rendered and when the services are terminated.
J.
State: Referred to as state agency in this
policy, is any institution or agency of the state of Ohio, usually referred to
as public employer state (PES). These include, but are not limited to, the Ohio
Department of Jobs and Family Services, Ohio Bureau of Workers’ Compensation,
University of Akron, and the Ohio State University Hospitals.
K.
Contract for
Coverage of State Agency or Political Subdivision (U-69): A BWC form which becomes a contract
between a state agency or political subdivision and BWC.
IV. Policy
A.
Only public
employers may contract with BWC to provide workers’ compensation coverage for
individuals who are not considered employees according to ORC 4123.01.
B.
Initiating coverage.
1.
State agencies.
a.
To initiate contract
coverage, an institution or agency administrator, director or other top
official, who is authorized to execute contracts on behalf of the institution
or agency, shall sign and date the U-69 contract.
b.
The state agency must
provide a list of specific categories of individuals (see IV.B.4.a through e
below) the contract covers.
c.
A copy of the U-69
contract shall be submitted to BWC.
2.
Political subdivisions.
a.
To initiate contract
coverage, a U-69 contract shall be signed and dated by the employer.
b.
The employer’s appointing
authority must pass a resolution authorizing the political subdivision to enter
into a contract for workers’ compensation coverage with BWC. The resolution
must identify specific categories of individuals the contract covers.
c.
A copy of the
resolution and U-69 contract shall be submitted to BWC.
3.
The employer must
mail the U-69 contract (PES and PEC), resolution (PEC only), and the specific
categories of individuals the contract covers to:
Bureau of Workers’ Compensation
Attention: Policy Processing
30 West Spring Street
Columbus, Ohio 43215
4.
The contract must be
signed by the BWC Administrator before coverage can take effect. The contract
shall be in effect from and after the date BWC receives the contract. The
employer will only have active coverage for the categories specified under the
individual contract, which may include the following:
a.
Volunteers rendering
service.
b.
Probationers performing
court ordered community service.
c.
Inmates performing
work or providing services.
d.
Juveniles performing
community service.
e.
Jurors.
C.
Reporting payroll
for premium purpose.
1.
Volunteers.
a.
For political
subdivisions, payroll for a volunteer is based on the total number of hours
worked times the current Ohio minimum wage, and never less than twenty (20)
hours a week for each volunteer.
b.
For state agencies,
no payroll is to be reported for a volunteer for premium rate making purposes
due to state agencies rate making methodology that calculates a rate
representing paying dollar-for-dollar for claims costs.
2.
Jurors: Payroll is
based on the total number of hours worked times the current Ohio minimum wage,
and never less than twenty (20) hours a week for each juror. If a juror’s
weekly wages exceed the minimum wage times twenty (20) hours, then actual wages
must be reported.
3.
Probationers, inmates,
and juveniles: Reportable payroll is based on the total number of hours worked
by each probationer, inmate, or juvenile times the current Ohio minimum wage.
4.
Ohio minimum wage.
a.
The Department of
Commerce, Division of Industrial Compliance, is responsible for establishing
the Ohio minimum wage
according to an amendment, Ohio
Constitution, Article II, Section 34a, which was passed in 2006.
b.
The amendment
requires the minimum wage rate to increase each year in accordance with the
Consumer Price Index.
5.
National Council on
Compensation Insurance (NCCI) manual codes.
a.
Wages calculated for
the work hours of a volunteer, probationer or inmate worker must be reported to
the National Council on Compensation Insurance (NCCI) manual of the political
subdivision.
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NCCI
Manual Number
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Political
Subdivision
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9430
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Counties
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9431
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Cities
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9432
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Villages
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9433
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Townships
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9434
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Schools
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9435
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Libraries
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9436
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Special
Public Universities
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9437
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Special
Vocational Schools
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9440
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Public
Hospitals
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9441
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Special
Public Institutions
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9442
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Public
Transit Authority
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9443
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Special
Public Authority, two or more taxing districts involved. (Excluding Transit
Authority)
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b.
There will be no
separate policy number for contract coverage.
6.
The wage estimates
provided by the political subdivision shall be construed as the minimum premium
amount and are therefore nonrefundable, except in the event that there is an
adjustment in the premium rate by BWC.
D.
Keeping and
maintaining records.
1.
State agencies and
political subdivisions must create and maintain a roster at the outset of the
contract and update the roster throughout the entire term of the contract. The
roster must list names, addresses, termination dates, and any other information
needed to identify and verify persons covered under the contract.
2.
The roster will not
be submitted to BWC. The employer must keep the roster at the employer location
as a component of recordkeeping and make the roster available to BWC upon
request.
3.
State agencies and
political subdivisions must maintain records to support the reporting of wages,
allowances, or any other type of remuneration.
E.
Participating in BWC
discount programs.
1.
Political subdivisions
are eligible to participate in BWC discount programs. Employers must comply
with all program laws, rules and procedures.
2.
State agencies are
not eligible for BWC discount programs.
F.
Terminating
coverage.
1.
Either party may
terminate the contract.
2.
The intent to
terminate the contract must be in writing and sent by certified mail. The
termination shall take effect on the date in the written notification, but not
less than thirty (30) days after the mailing of the notification.
3.
Upon termination,
the rights, duties, and liabilities of the state agency or political
subdivision and BWC shall cease except as to injuries occurring before the date
of termination and as premiums accrued prior to the date of termination.
4.
Employers must mail
the terminating notification to:
Bureau of Workers’ Compensation
Policy Processing
30 West Spring Street
Columbus, Ohio 43215
G.
Scenarios.
1.
Juvenile performed
community service.
a.
A political
subdivision initiated U-69 workers’ compensation contract coverage. A completed
U-69 contract was on file at BWC. A resolution, which authorized extending
workers’ compensation coverage for juveniles and probationers performing
community service as assigned to the Alternative Community Outreach Program,
was on file at BWC. Juvenile Center administration recorded juvenile community
service work hours and communicated those hours to Juvenile Court. Juvenile
Court Employer maintained an electronic record of work hours and roster of
juveniles’ names, types of work being done and hours worked. In case of a
juvenile’s work related injury or illness, the Court verified that the specific
juvenile was on the roster.
An eleven (11) year old juvenile,
confined in a Juvenile Center, was ordered by the Court to complete
seventy-five (75) hours of community service in the public employer’s
Alternative Community Outreach Program. On one occasion, the juvenile performed
community service under supervision by pulling weeds and picking up trash in a
park. The juvenile inadvertently stepped in a hole, fell and fractured a wrist.
b.
Was the juvenile
covered under the U-69 contract for coverage? Yes. Workers’ compensation
coverage was active as a result of the public employer appropriately completing
contract coverage initiation procedures.
2.
Juvenile performed
community service. (Different fact pattern)
a.
A political
subdivision believed a U-69 contract and resolution, which authorized extended
workers’ compensation coverage for inmates performing work, has been filed with
BWC. Juvenile Court, the employer that maintained an appropriate roster,
ordered five juveniles, ages fourteen (14) to seventeen (17) years old, to
individually complete one hundred (100) hours of community service. The
juveniles were confined to the Juvenile Center and would be released under
Juvenile Center staff supervision to do community service work.
While doing community service work by
sweeping sidewalks and pulling weeds, one juvenile tripped on the edge of a
curb and broke an ankle.
b.
Was the juvenile
covered under the U-69 contract for coverage? It cannot be determined if the
juvenile was covered. This scenario presents two questionable issues:
i.
The employer
believed the material was filed with BWC; however, the employer did not confirm
that it had active U-69 coverage.
ii.
This scenario deals
with juveniles, not inmates as described in the resolution. Potential
questions include:
a)
Is a resolution and
U-69 contract actually on file with the employer and BWC?
i)
An employer should
verify that a resolution and contract are in its files.
ii)
The employer is
required to maintain a resolution and U-69 contract as a component of
recordkeeping. The employer also must submit a resolution and U-69 contract to
BWC.
iii) BWC representative should confirm that
the employer’s resolution and contract are in BWC files.
iv)
BWC stores the
resolution and U-69 contract in its electronic file room. A BWC representative
may access the electronic file room and view the materials in order to verify
that a resolution and U-69 contract exist for the specific employer. Also, the
resolution should be reviewed to determine the specific category of individual
under coverage.
v)
When a resolution
and U-69 contract cannot be found in the electronic file room by a BWC
representative, the employer probably does not have contract coverage. However,
the representative must contact Policy Processing Division to confirm the
employer has no contract coverage. A delay with posting the materials in the
electronic file room may have occurred.
b)
Is the employer
paying premiums on those individuals under contract coverage?
i)
BWC will conduct
research and fact finding to answer the question.
ii)
Employers are
required to maintain payroll reports as a component of recordkeeping. These
reports may be used to verify payment of premiums on individuals under contract
coverage.
iii) When an employer fails to comply with
U-69 contract requirements, such as keeping records of payroll reports or
paying premiums on individuals under contract coverage, the contract may be
terminated by BWC.
3.
Probationer
performed community service.
a.
A political
subdivision had U-69 contract workers’ compensation coverage. A completed U-69
contract was on file at BWC. A resolution, authorized extending coverage for
probationers performing community service in the Service Assistance Program,
also was on file at BWC. The Court maintained an electronic roster, which
listed probationers’ names, types of work being done and hours worked. In case
of a probationer’s work related injury or illness, the court verified that the
specific probationer was on the roster.
A probationer agreed to court ordered
community service in lieu of jail confinement and a fine. Community service was
directed through the public employer’s Service Assistance Program. The
probationer did housekeeping, pulling weeds, spreading mulch, and painting at
the public employer’s nursing home and Senior Citizen’s Community Center.
During one workday, the probationer fell from a ladder and injured the left
kneecap while cleaning windows.
b.
Was the probationer
covered under the U-69 contract for coverage? Yes. Workers’ compensation
coverage was active as a result of the public employer appropriately completing
contract coverage initiation procedures. The court verified that the
probationer was on the roster.
4.
Inmate in Inmate
Worker Program.
a.
A political
subdivision did not provide U-69 workers’ compensation contract coverage for
inmates working in an Inmate Worker Program. The employer decided to cover
inmates in the Inmate Worker Program under its general liability insurance.
An inmate, serving a six month sentence,
participated in an Inmate Worker Program. The inmate worked in the jail laundry
room. The inmate received a lower back injury from a fall after slipping on a
damp floor.
b.
Was the inmate
covered under a U-69 contract for coverage? No. The employer opted not to
provide workers’ compensation contract coverage for inmates in the Inmate
Worker Program.
5.
Volunteers worked
for state agency.
a.
A state agency
employer had workers’ compensation contract coverage. The agency’s director
signed and dated a U-69 contract to extend workers’ compensation coverage to
park volunteers. Extension of workers’ compensation coverage for volunteers was
documented in a memorandum and signed by the director. An electronic roster of
volunteers’ names, addresses, position descriptions, and services and
termination dates was kept and updated on a regular basis. In case of a
volunteer’s work related injury or illness, the employer verified that the
specific volunteer was on the roster.
Two volunteers worked to clear brush,
tree limbs and debris from walking trails in a park. One volunteer received a
bee sting which caused a severe adverse health reaction. The volunteer was
hospitalized for 8 days.
b.
Was the volunteer
covered under the U-69 contract for coverage?
i.
Yes. Contract
workers’ compensation coverage was active as the result of a U-69 contract
being on file at BWC and the ill volunteer was verified as being on the roster.
ii.
The memorandum
specified that volunteers were covered by workers’ compensation.