Policy Name:	Religious Exemption
Policy #:	EP-18-03
Code/Rule Reference	Ohio Revised Code (ORC) 4123.15.
Effective Date:	May 22, 2025
Approved:	Rex Blateri, Chief of Employer Services
Origin:	Employer Policy
Supersedes:	N/A
History:	New policy issued May 22, 2025.
Review Date:	May 22, 2030

 

I.       Policy Purpose

 

BWC grants a religious exemption when the employer and the individual employee meet the requirements set forth in ORC 4123.15.

II.     Applicability

The policy applies to BWC Underwriting, employers, their employees, and their authorized representatives.

III.   Definition

Recognized religious sect or division of a recognized religious sect (religious sect): For purposes of this policy, a religious sect or division of a religious sect having established tenets or teachings which are conscientiously opposed to benefits to employers and employees from any public or private insurance that makes payment in the event of death, disability, impairment, old age, or retirement or makes payments toward the cost of, or provides services in connection with the payment for, medical services, including the benefits from any insurance system established by the Social Security Act. It is the practice, and has been for a substantial number of years, for the members of the religious sect or division of the religious sect to make provision for their dependent members and the religious sect or division of the religious sect has been in existence at all times since December 31, 1950. “Religious group” has the same meaning as “religious sect.”

IV.   Policy

A.      An employer who is a member and adherent of a religious sect may apply to BWC to be exempted from the payment of premiums and assessments for an individual employee who is also a member and adherent of a religious sect if the employee waives the right to receive workers’ compensation benefits.

B.      Religious exemption requirements.

1.      The religious exemption applies to employers and employees who are Old Order Amish, New Order Amish, Mennonite, or as set forth in ORC 4123.15.

2.      The employer and the individual employee must submit a fully executed Application for Exemption from Ohio Workers’ Coverage and Waiver of Benefits (U-3E).

a.      The employer must complete and sign the Employer section and the Affidavit of Employer on the U-3E.

i.        The Affidavit of Employer affirms the employer is a member and adherent of the religious sect.

ii.      BWC will accept an affidavit that is affirmed as an alternative to a sworn affidavit.

b.      The individual employee must complete and sign the Employee section and the Affidavit of Employee on the U-3E. If the individual employee is a minor, a parent or guardian’s signature is required on the U-3E. The Affidavit of Employee affirms the individual employee is a member and adherent of the religious sect.

3.      A bishop must complete and sign the Religious Group and Employee sections of the U-3E certifying the employer and the individual employee are members and adherents of the religious sect specified on the U-3E.

4.      The employer must inform each employee completing the U-3E that the employee is waiving the right to receive workers’ compensation benefits.

5.      By signing the U-3E, the employer and individual employee agree to notify BWC within thirty (30) days if the employer or the individual employee no longer:

a.      Is a member of the religious sect; or

b.      Follows the tenets and teachings of the religious sect.

6.      The religious exemption does not follow the individual employee if employed by multiple employers. A separate U-3E is required for each place of employment because both the employer and employee must be members and adherents of the same religious sect.

C.      BWC processing.

1.      BWC will grant the religious exemption to the employer for the individual employee if BWC finds the employer and individual employee are both members and adherents of a religious sect.

2.      The religious exemption is effective on the date BWC grants the religious exemption. BWC notifies the employer and the individual employee in writing if the religious exemption is granted.

3.      BWC contacts the employer or individual employee if an affidavit is missing.

a.      If the affidavit is filed with BWC within fifteen (15) days, the effective date of the religious exemption will be the date the U-3E was originally filed.

b.      If the affidavit is not filed with BWC within fifteen (15) days, BWC will decline the U-3E and the religious exemption will not be effective until the affidavit is received.

4.      On the effective date of the religious exemption, the employer is no longer required to pay premiums and assessments for the individual employee.

5.      The religious exemption is valid for all future years unless BWC determines the employer, individual employee, or religious sect ceases to meet the requirements for eligibility. On or after the date BWC makes a determination that the employer, individual employee, or religious sect ceases eligibility:

a.      The employer is liable for premiums and assessments for the individual employee; and

b.      The individual employee is eligible for workers’ compensation benefits for claims filed against the employer.

6.      BWC sends the employer an “Annual notice of exemption from Ohio workers’ compensation coverage and waiver of benefits” letter.

a.      The letter includes a roster of employees who have an approved religious exemption.

b.      The employer is to notify BWC if an employee is no longer eligible for the religious exemption or no longer works for the employer.

D.     Employer premium, payroll, and reporting.

1.      An employer with a religious exemption must report payroll and pay premium for any employees who do not qualify for the religious exemption.

2.      The religious exemption does not relieve the employer from the obligation to pay the minimum administrative charge as set forth in OAC 4123-17-26.

3.      The employer must report payroll after the completion of every policy year. See the Payroll True-Up policy for additional information.

E.      Resolution of complaints.

1.      Employer complaints are processed under the General Employer Complaint Policy.

2.      BWC has not identified any extenuating circumstances that apply to the religious exemption.