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OhioBWC - Basics: (Policy library) - File

 

Policy Name:

Industry-Specific Safety Program (ISSP)

Policy #:

EP-09-01

Code/Rule Reference:

Ohio Administrative Code (OAC) 4123-17-56.3; 4123-17-74, Appendix A, B, and C; and 4123-17-75, Appendix

Effective Date:

July 1, 2016

Origin:

Employer Policy

Supersedes:

Industry-Specific Safety Program (ISSP) dated July 1, 2015.

History:

Revised August 18, 2016; July 14, 2015. New policy issued October 30, 2013.

Review Date:

July 1, 2021

 

 

I.       Policy Purpose

 

The Ohio Bureau of Workers’ Compensation (BWC) will offer a bonus to employers who meet the program requirements of the Industry-Specific Safety Program (ISSP) in accordance with the applicable laws and rules.

 

II.     Applicability

 

This policy applies to employers, authorized representatives, BWC Employer Programs, Field Operations, and Division of Safety & Hygiene (DSH).

 

III.    Definitions

A.     Eligibility determination year: The most recent full policy year, prior to the program year, for which payroll information is available. For private employers, July 1 through the following June 30. For public employers, January 1 through December 31. See section IV(D)(2)(d) for explanation of how new employers without a full year of recorded premium are handled.

B.     Loss prevention activities: Program activities that participants must complete to satisfy program requirements. Participants are required to complete one, two, or three activities.

1.     Industry-specific safety classes prescribed by DSH.

2.     Individual safety consulting with staff from DSH.

3.     DSH’s annual Ohio Safety Congress & Expo.

C.    Professional Employer Organization (PEO): A sole proprietor, partnership, association, limited liability company or corporation that enters into an agreement with one or more client employers for the purpose of co-employing all or part of the client employer’s workforce at the client employer’s work site. PEO does not include a temporary service agency. (4123-17-15(A)(1))

D.    Program year: The policy year for which the employer seeks to obtain the industry safety bonus.

E.     Pure premium: The employer’s calculated premiums prior to any administrative cost or Disabled Workers’ Relief Fund (DWRF) assessments are added to it.

F.     Reported payroll: Payroll reported by the employer during the eligibility determination year.

G.    Safety Management Self-Assessment (SH-26): The SH-26 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) in the organization most familiar with the current safety and claims management process should complete the form.

IV.   Policy

A.     Eligibility Criteria:

1.     The employer must be a state-fund private employer (PA) or a public employer taxing district employer (PEC).

2.     As of the application deadline, the employer must:

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

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

3.     As of the application deadline, 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. 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 applicable grace period.

4.     The following employers are not eligible for ISSP:

a.     Employers paying the minimum administrative charge for the applicable payroll reporting period.

b.     State agencies.

c.      Self-insuring employers.

B.     A PEO may be eligible for the ISSP safety bonus under the following conditions:

1.     All the PEO’s clients and the PEO must meet all eligibility and program requirements.

2.     PEO submits affirmation to BWC that the PEO and all its clients have submitted applications consistent with OAC 4123-17-56.3(C)(1).

3.     PEO submits an electronic list to BWC of each of the client employers with whom it has an agreement as of May 1 of the applicable policy year.

a.     BWC will determine the format of the list.

b.     The PEO will include each employer’s name, address, federal tax identification number (TIN), BWC risk number, and amount of payroll, listed by manual class code, reported by the PEO on behalf of each client employer.

c.      If BWC determines the PEO manipulated the client list, the PEO will not be eligible for the ISSP bonus.

d.     BWC will hold the list as a confidential trade secret per ORC 4125.05.

C.    Application Requirements.

1.     An employer must file an Application for Industry-Specific Safety Program (SH-28) with BWC.

2.     BWC will automatically renew the employer for each subsequent program year provided the employer meets all eligibility requirements.

3.     Application deadlines:

a.     For PA employers, applications must be filed by the last business day of May prior to the July 1 program year.

b.     For PEC employers, applications must be filed by the last business day of November prior to the January 1 program year.

4.     An employer who opts out, voluntarily withdraws, or is removed by BWC from the program, must file a new application in order to participate in a future program year.

D.    Operation of program.

1.     The employer must complete a Safety Management Self-Assessment (SH-26) within thirty (30) days of the start of the program year and provide any follow-up data requested by DSH. 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. For the policy year beginning July 1, 2016, participants automatically renewed into the program will have an additional thirty (30) days, for a total of sixty (60) days, to complete this requirement.

2.     The employer must complete the required number of loss prevention activities prior to the end of the applicable program year in order to qualify for a bonus. The required number of loss prevention activities will be based on the employer’s eligibility determination year payroll.

a.     If payroll is less than or equal to $100,000, the employer must complete one loss prevention activity.

b.     If payroll is greater than $100,000 and less than or equal to $300,000, the employer must complete two loss prevention activities.

c.      If payroll is greater than $300,000, the employer must complete three loss prevention activities.

d.     In determining the loss prevention activities for a new employer without a full year of recorded premium, BWC may calculate and use the employer’s estimated expected payroll.

e.     BWC provides the employer a service offering on www.bwc.ohio.gov that defines the employer’s eligibility determination year payroll. The service offering also provides the employer’s:

i.       Required number of loss prevention activities based on payroll level.

ii.      Primary industry based on primary industrial pursuit from manual classification.

iii.     Number of loss prevention activities completed.

3.     Industry-specific safety classes prescribed by DSH.

a.     The employer’s industry classification and payroll amount define the type and length of industry-specific safety classes that it is required to complete to qualify for one loss prevention activity credit. Not all DSH classes qualify for each industry classification.

i.       If the employer’s eligibility determination year payroll is less than $100,000, it must complete at least a half-day (three hour) class, either classroom or online.

ii.      If the employer’s eligibility determination year payroll is greater than $100,000 and less than or equal to $300,000, it must complete at least a half-day (three hour) classroom class.

iii.     If the employer’s eligibility determination year payroll is greater than $300,000, it must complete at least a full day (six hour) classroom class or a combination of two half-day (three hour) classroom classes.

b.     Classes consist of both classroom and online courses, either half-day (three hours) or full day (six hours). Hours for both online and classroom classes are cumulative (e.g. two online courses of two hours in length equals four hours).

c.      Attendance at a single safety class by multiple employees for a single employer can result in a maximum of one loss prevention activity credit, regardless of the number of employees in the class.

d.     Completion of multiple day classes by multiple employees for a single employer result in one loss prevention activity credit regardless of the number of employees in attendance. (E.g. OSHA 10 and 30 hour multiple day classes only qualify as one loss prevention credit).

e.     Online classes do not qualify at the greater than $100,000 payroll level.

f.       Only DSH industry-specific classes are eligible for loss prevention activity credit. DSH’s Services Catalog and Course Guide identify industry-specific courses that qualify as loss prevention activity credit.

4.     Industry-specific safety classes must be satisfied by the employer on a policy number basis because each policy number is considered its own separate entity.

a.     An employer with one policy number who is participating in multiple programs may use one training to fulfill the requirements for multiple programs because each policy number:

i.       May participate in multiple compatible programs.

ii.      May attend classes relevant to multiple safety disciplines, thus multiple programs.

b.     An 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:

i.       Has separate responsibilities to complete the requirements set forth in the programs chosen.

ii.      Receives discounts separately.

5.     Individual safety consulting with staff from DSH.

a.     DSH safety specialists can conduct one of the following on-site consultation activities, qualifying the employer for a loss prevention activity credit.

i.       Company-specific safety training.

ii.      Customer safety team development.

iii.     Ergonomics assessment.

iv.    Industrial hygiene assessment.

v.      Safety hazard assessment.

vi.    Safety management process evaluation.

vii.   Safety program/process development.

b.     Following the on-site consultation, the employer must complete an Industry-Specific Safety Program Post on-site consultation survey (SH-29) in order to receive credit for the loss prevention activity. The SH-29 must be submitted to BWC prior to the end of the applicable program year or at such time as determined by DSH.

c.      BWC will determine the availability of safety consulting staff. Employers will be required to complete different loss prevention activities if DSH staff is not available to perform the requested on-site consultation.

d.     The employer will not receive credit for multiple on-site consultations of the same type of service. For example, two ergonomic assessments at two different sites will only count as one loss prevention activity within the program year.

e.     Employers participating in ISSP and engaging in an OSHA On-site evaluation must sign the authorization form for loss prevention activity.

6.     Attendance at DSH’s annual Ohio Safety Congress & Expo.

a.     A minimum of three one-hour sessions (educational and general sessions both qualify), a half-day workshop, or a full day workshop is required to qualify for an Ohio Safety Congress activity credit.

b.     Attendance at the Ohio Safety Congress can result in a maximum of one loss prevention activity credit, no matter how many days or how many employees are in attendance.

7.     An employer can mix/match loss prevention activities as desired. Example:

a.     If an employer is required to complete three loss prevention activities, it can complete two different full day classes (two activities) and attend three hours of training sessions (one activity) at the Ohio Safety Congress.

b.     The employer could also have two different consultations (e.g. one air monitoring survey and one ergonomics assessment equals two activities) and complete two half-day classroom classes (one activity).

8.     Bonus amount: The bonus percentage for ISSP is the amount identified in the appendix to OAC 4123-17-75 times the employer’s pure premium during the program year. 

a.     To qualify for the bonus an employer must:

i.       Have coverage that is in an active status at the time of calculation.

ii.      Report actual payroll and pay any premium due for the applicable program year by the deadline set forth in OAC 4123-17-14. An employer will be deemed to have met this requirement if BWC receives the payroll report and premium due before the expiration of any grace period.

b.     The bonus cannot reduce an employer’s premium due below the amount of the minimum administrative charge as set forth in OAC 4123-17-26.

c.      BWC will not issue a bonus to an employer paying the minimum administrative charge for the applicable program year.

d.     Rate adjustments made to an employer’s account after the issuance of the bonus may result in recalculation of the bonus.

9.     An employer participating in ISSP may participate in other compatible BWC rating and discount programs. Employer program compatibility is outlined in OAC 4123-17-74, Appendix C.

E.     Exit or removal from program.

1.     An employer may voluntarily withdraw from the ISSP during the program year by notifying BWC in writing. The withdrawal request must be signed by the Chief Executive Officer or designated management representative of the employer.

2.     BWC will remove an employer from the program who fails to report actual payroll for the preceding policy year and pay any premium due upon reconciliation of estimated premium with actual premium no later than the due date. An employer will be deemed to have met this requirement if BWC receives the payroll report and associated premium prior to the expiration of any grace period.

3.     An employer who voluntarily withdraws or is removed from the program will not be eligible for a bonus for that program year.

4.     An employer that elects to opt out of the program for the subsequent policy year must notify BWC in writing by the application deadline.

5.     An employer who is removed from the program may file a new application to participate in a future program year.

F.     Resolution of complaints.

1.     Employer complaints should be processed under the General Employer Complaint Policy. BWC has not identified any program-specific extenuating circumstances that apply to ISSP.

2.     BWC will not grant relief in circumstances where the employer fails to complete the required loss prevention activities during the program year as outlined in IV(D)(2), unless DSH has granted an extension for all employers.

3.     BWC will not grant relief in circumstances where the employer submits an SH-29 after the applicable program year for an individual on-site safety consultation that occurred within the applicable program year, unless DSH has granted an extension for all employers.

G.    Combinations and transfers, excluding PEOs (see IV(B) for PEOs).

1.     Predecessor: Enrolled in ISSP.

Successor: New employer without prior coverage.

Action: BWC will automatically enroll the succeeding employer in ISSP. The successor is responsible for completing program requirements. Successor is transferred predecessor’s rights and obligations under the ISSP, including the predecessor’s successfully completed loss prevention activities.

2.     Predecessor: Not enrolled in ISSP.

Successor: Enrolled in ISSP.

Action: Successor remains eligible for ISSP participation for the entire policy year.

3.     Predecessor: Enrolled in ISSP.

Successor: Enrolled in ISSP.

Action: Successor remains eligible for ISSP participation for the entire policy year. Successor is transferred predecessor’s rights and obligations under the ISSP, including the predecessor’s successfully completed loss prevention activities. Any benefit for predecessor’s participation will be based on predecessor’s pure premium for the policy year.

4.     Predecessor: Enrolled in ISSP.

Successor: Not enrolled in ISSP (includes a self-insuring employer).

Action: Successor is not in ISSP. Predecessor’s enrollment in the ISSP terminates as of the date of combination. Successor is transferred predecessor’s rights and obligations under the ISSP, however, any benefit will be based on predecessor’s pure premium for the policy year.

5.     Predecessor: Enrolled in program.

Successor: Debtor-in-possession.

Action: An individual employer which is participating in ISSP and which becomes a debtor-in-possession during the policy year remains eligible for ISSP participation for the entire policy year.


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