OhioBWC - Basics: (Policy library) - File


Policy Name:

Lapse-Free Rebate

Policy #:


Code/Rule Reference

OAC 4123-17-14.4; 4123-17-74, Appendix C; 4123-17-75, Appendix

Effective Date:

July 1, 2015


Kevin R. Abrams, Chief of Employer Services


Employer Policy


Lapse-Free Discount policy effective July 1, 2012.


Revised August 29, 2016; July 30, 2015. New policy issued April 5, 2013.

Review Date:

July 1, 2020



I.      Policy Purpose


The Ohio Bureau of Workers’ Compensation (BWC) will provide a rebate to employers that maintain lapse-free coverage as outlined in OAC 4123-17-14.4.


II.    Applicability


This policy applies to employers, authorized representatives, BWC Employer Programs, and Field Operations.


III.   Definitions

A.    Active status: A coverage status applied to an employer’s policy. Active status does not include an employer policy with a status of lapsed, cancelled, or no coverage.

B.    Rebate eligibility evaluation dates:

1.    For a private employer (PA) the evaluation date is the July 1 immediately after the conclusion of the participating policy year.

2.    For a public employer taxing district (PEC) employer the evaluation date is the January 1 immediately after the conclusion of the participating policy year.

IV.  Policy

A.    Eligibility criteria:

1.    The employer must:

a.    Have coverage that is in an active policy status at the time of calculation;

b.    As of the rebate eligibility evaluation date, not have had a lapse in coverage during the preceding sixty (60) months, and;

c.     Have reported actual payroll for the applicable policy year and paid any premium due upon reconciliation of estimated premium and actual premium, no later than the due date set forth in OAC 4123-17-14.

2.    The following employers are not eligible for the Lapse-Free Rebate:

a.    Employers paying the minimum administrative charge for the applicable policy year as set forth in OAC 4123-17-26.

b.    State agencies.

c.     Self-insuring employers.

B.    Operation of program.

1.    No application is required. If an employer meets the eligibility criteria, BWC will calculate a rebate.

2.    The reporting of zero payroll or the paying of the minimum administrative charge in prior payroll periods are not factors in evaluating the employers Lapse-Free eligibility.

3.    The rebate percentage is the amount identified in the appendix to OAC 4123-17-75. The rebate is the lesser of:

a.    One percent (1%) of the employer’s blended premium costs in the applicable policy year; or.

b.    A maximum of two thousand dollars ($2,000).

4.    The rebate is calculated after the employer has reported annual payroll for the applicable policy year and paid any premium it owes, no later than the due date.

5.    The rebate cannot reduce the employer’s premium below the amount of the minimum administrative charge.

6.    BWC may recalculate the employer’s rebate if there is a subsequent rate adjustment to the employer’s account for the applicable policy year.

7.    An employer receiving the Lapse-Free Rebate may participate in other compatible BWC employer programs as outlined in OAC 4123-17-74, Appendix C.

C.   Resolution of complaints.

1.    Employer complaints should be processed under the General Employer Complaint Policy.

2.    BWC has not identified any specific extenuating circumstances that apply to the Lapse-Free Rebate.