100% Experience Modification (EM) Cap
Ohio Administrative Codes (OAC) 4123-17-03, 4123-17-03.2, 4123-17-14(D),
July 1, 2016
All policies and procedures regarding the 100% EM Cap Program
that precede the effective date of this policy.
Initially effective July 1, 2009, revised August 6,
2012, replaced by this policy.
July 1, 2021
Bureau of Workers’ Compensation (BWC) provides a 100% Experience Modification (EM)
Cap to limit an individual employer's experience modifier (EM) to minimize the
effects of a significant premium increase for employers that become penalty
rated. BWC will manage the program in accordance with the applicable laws and
This policy applies to BWC Employer Programs, Field
Operations, employers and authorized employer representatives.
determination date: The April 1 immediately is preceding the policy year
for which the EM is being calculated for private employers (PA), and the October
1 immediately preceding the policy year for which the EM is being calculated
for public employer taxing districts (PEC).
B. Experience modification
(EM): The EM is an adjustment applied to the base rate as defined in OAC 4123-17-03(D).
C. First year
employer: An employer receiving a 100% cap on its EM where its previous
policy year’s published EM was not capped. (Example: An employer had a .47 EM
in 2015; the EM for the next policy year is capped at .94.)
year employer: An employer previously approved to participate in its
initial year of eligibility that meets the criteria to participate in a second
or subsequent year.
published experience modification (EM): An employer’s EM as established on January
1 of the policy year for PEC employers
and July 1 for PA employers.
Safety requirement completion dates: Means the last business day of March for PA employers
and the last business day of September for PEC employers as set forth in OAC 4123-17-03.2.
A. BWC shall limit the increase in EM of an employer meeting
the eligibility requirements of OAC
4123-17-03.2 to 100% of the initial EM calculated
for that employer in the preceding rating year. The prior year's EM
could be an individual EM or Group EM if the employer was participating in a Group
Experience Rating program that year.
Eligibility Criteria: There is no specific application
requirement for the 100% EM Cap program. BWC automatically evaluates an
employer’s eligibility for the program as of the eligibility determination
date. To qualify the employer:
Must be either a PA or PEC employer.
be current with respect to all payments due BWC as set forth in OAC 4123-17-14.
3. Must be
current on the payment schedule of any part-pay agreement into which it has
entered for the payment of premiums or assessments.
4. Must not
have cumulative lapses in workers’ compensation coverage in excess of forty
(40) days within the prior twelve (12) months, except:
a. For the
policy year beginning July 1, 2015, a PA employer must not have cumulative
lapses of workers’ compensation coverage in excess of forty (40) days within
the prior nine months.
the policy year beginning January 1, 2016, a PEC employer must not have
cumulative lapses of workers’ compensation coverage in excess of forty (40)
days within the prior nine months.
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 (True-up). An employer will be deemed to have met this
requirement if BWC receives the payroll report and the employer pays premium
associated with the payroll report before the expiration of any grace period.
C. An employer
participating in the 100% EM Cap program may participate in other compatible
BWC rating plans and discount programs as outlined in OAC 4123-17-74,
following employers are not eligible for the 100% EM Cap program:
employer organizations (PEO).
of Program: Employers are required to complete safety training requirements as
determined by the Superintendent of the Division of Safety and Hygiene (DSH).
An employer participating in its first year in the 100% EM Cap program
must complete a one-half day, three hour industry-specific safety classroom
course through BWC's DSH.
first year employer that has an uncapped individual EM of 1.00 (base rated) or
less (credit rated) must complete one of the following:
a. Three hours of online safety training courses offered by DSH;
b. Three one-hour safety training courses at the annual
All-Ohio Safety Congress and Expo.
employer participating in its second/subsequent year in the 100% EM Cap program,
must complete any one of the following:
a. One half-day industry-specific safety classroom course
offered by the DSH; or,
b. Three hours of online safety training courses offered by DSH;
c. Three one-hour safety training courses at the annual
All-Ohio Safety Congress and Expo.
requirements must be satisfied by the employer on a policy number basis because
each policy number is considered its own separate entity.
employer with one policy number who is participating in multiple programs may
use one training to fulfill the requirements for multiple programs because each
May participate in multiple compatible programs.
attend classes relevant to multiple safety disciplines, thus multiple programs.
employer with multiple policy numbers who is participating in a single program
may use one training credit to fulfill the requirement for one policy number
because each policy number:
Has separate responsibilities to complete the requirements set forth in
the programs chosen.
must be completed by the safety requirement
completion dates as set forth in OAC 4123-17-03.2.
employer re-entering the 100% EM Cap program will be required to meet the first
year safety training requirements outlined in section IV.E.1.-2.
of this policy.
will remove an employer from the 100% EM Cap program if:
employer fails to complete the required training for its policy year of participation;
employer fails to True-up.
consequences of failure to comply with either the required safety training or
employer will be re-rated for the full policy year at the employer’s base-rate
or experience-modified rate as determined by their expected losses for the
policy year as set forth in OAC 4123-17-14;
remaining installment payments will be adjusted to reflect the new estimated
employer may voluntarily withdraw from the 100% EM Cap program by providing
written notice to BWC.
employer’s uncapped EM will be used to recalculate the estimated annual premium
and any remaining installment payments will be adjusted to reflect the new
estimated annual premium.
G. Resolution of Complaints:
Employer complaints should be processed under the General
Employer Complaint Policy.
and transfers: BWC will only transfer a predecessor’s 100% EM Cap from the
prior policy year to a successor employer when one of the following apply:
transfer is a combination as a result of bankruptcy proceedings, when the
transaction is a change in policy number without any change in exposure; or,
base-rated successor wholly or partially succeeds a single policy.
either of these conditions is met, the predecessor’s published EM in the prior
rating year will be the EM published for the successor in the same policy year
for purposes of determining whether the cap applies as referenced in OAC