Temporary Labor Services (Temp or Staffing) Agency
Ohio Revised Code (ORC) 4123.01 and Ohio Administrative
Code (OAC) 4123-17-05,
Appendix A, 4123-17-08,
December 5, 2015
All policies and procedures regarding Temporary Labor Services that
predate the effective date of this policy.
Original Policy Effective Date: February 2007, Revised:
March 12, 2008
December 4, 2020
Labor Services (Temp Agencies) are classified using the same operational classifications
of their client customers. BWC will ensure that Temp Agencies applying for
workers’ compensation and conducting business in the State of Ohio do so in
accordance with the applicable laws and rules.
applies to Bureau of Workers’ Compensation (BWC) Policy Processing/Underwriting
Department, NCCI Classification unit, Payroll Auditors, Field Services, Call
Center, Temp agencies, public employer taxing districts (PEC) private employers
(PA) and their authorized representatives.
Staffing Agency: An employer in the business of hiring individuals for the
purpose of using their services for a short-term period to fill vacant position(s)
at the customer (employer’s) location. They may also place employees on a
temporary basis with the intent of becoming full time employees with the customer.
Group: Used in calculating a company's premium rate and in some program
participation, this is the main business pursuit of an individual employer (ex.
Construction, Transportation, etc.). By assigning one of ten Industry Groups,
BWC can ensure employers rates are determined by using the claims cost and
payroll of all similar companies.
Employee Organizations: 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)).
A. Temp agency
application for coverage.
designated as a Temp Agency use the U-3 Application
for Ohio Workers’ Compensation Coverage form and are processed the same as
other business entities following the Application
for Coverage policy.
Temp agencies may request one policy per industry group for a total
of ten policies.
agencies are not permitted to establish separate policies based on
a policy is issued by Industry Group, only the classifications within that
Industry Group will be assigned to that policy. Exception: NCCI classification 8810.
group policies cover the entire state for that particular Industry Group.
from existing policy(ies) will be segregated and transferred to the associated
Industry Group policies. The historical payroll and claims information will be
used to develop the experience modifier for the new policies.
agencies must report all payroll by Industry Group the same at both the federal
and State level.
BWC will include the Industry Group type in the employer’s entity name
to effectively manage each policy.
Temp agencies may request one policy per industry group for a total of ten
policies with no Grow Ohio discount available for these succeeding policies,
Ohio eligibility is available to the original policy participating in Grow
Ohio transfers for any period of remaining period of eligibility
agencies, applying for initial coverage, may request one policy per industry
group for a total of ten policies and they may have the Grow Ohio discount.
applications are forwarded to the Underwriting NCCI Classification unit, who
will assign NCCI Classifications. Each policy will be issued with every
available NCCI classification for that Industry Group.
Ohio discount is applied to a new Temp agencies starting business in the state
regardless if they choose one policy or up to ten policies.
B. Temp Agency NCCI
agencies, continuing with one policy for their entire operation, should contact
BWC prior to any employees being assigned to employers for additional NCCI Classifications.
will require the following information from the Temp agency:
number or FEIN (not always available. Employer look up may be required to
obtain the policy number.)
of the employee’s job duties.
classifications(s) will be added to the Temp agency’s policy number and
the Temp agency has chosen the Industry Group policies, all NCCI
Classifications will have already been assigned to each policy.
The Temp agency cannot add a classification from another industry group
to industry group specific policies.
If this is being requested, the Temp agency may no longer be a
good candidate for industry specific policies.
BWC may contact the Temp agency and
advise them to go back to one policy to cover all of their operations.
agencies are required to assign their employees to the same NCCI classification
assigned to the employers operations.
exception is when a Temp agency contracts with a Public entity.
Public entity (PEC or PES) classifications cannot be added to the Temp agencies
jobs contracted with the PEC or PES will have to be classified based on private
employer’s NCCI classification options and the appropriate payroll will be
reported to that classification.
The Temp agency contracts with a city for clerical employees. The clerical
employees for the city are classified to 9431 City Employees – All Employees
& Clerical, Clerical Telecommuter, Salespersons, and Drivers. However 9431
cannot be added to the Temp agencies policy.
the employee is performing clerical duties the Temp agency must classify and
report the employees to 8810 Clerical.
C. Temp Agency
Temp agency will follow the guidelines outlined in Prospective
Installment Payments policy for paying premiums.
Temp agency will follow the guidelines outlined in the Payroll
True-up policy to reconcile estimated annual premium with actual
D. Temp Agency
may verify that Temp agencies are properly reporting their employee payroll through
will verify the wages being reported by the Temp agency are correct by policy,
classification and that the proper classifications are assigned to their
E. Temp Agency
complaints shall be processed under the General
Employer Complaint Policy.
has not identified any employer-specific extenuating circumstances that apply
to Temp agencies.