Transitional Work Performance Bonus
July 1, 2016
Transitional Work Performance Bonus dated July 1, 2012.
Revised December 29, 2016; May 12, 2015. New policy
issued October 25, 2013.
July 1, 2021
The Ohio Bureau of Workers’ Compensation
(BWC) will provide a Transitional Work Performance Bonus to eligible employers
that meet program requirements in accordance with the applicable laws and rules.
This policy applies to employers,
authorized representatives, BWC Employer Programs, Transitional Work Unit, Field
Operations, and transitional work developers.
employer: A sole proprietor, partnership, association, limited liability
company, or corporation that enters into a Professional Employer Organization
(PEO) agreement and is assigned shared employees by the PEO. ORC 4125.01, OAC 4123-17-15(A)(2)
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. ORC 4125.01, OAC 4123-17-15(A)(1)
period: Generally, the policy year an employer participates in the
Transitional Work Performance Bonus. For a private employer who participates in
the program beginning January 1, 2015, the program period is January 1, 2015,
to June 30, 2015. BWC will transition such employer to a policy year program
period effective July 1, 2015.
D. Pure premium:
The employer’s calculated premiums before any administrative costs or Disabled
Workers’ Relief Fund (DWRF) assessments are added.
work (TW): A work-site program that provides an individualized interim step
in the recovery of an injured worker (IW) with job restrictions resulting from
the allowed conditions in the claim. Developed in conjunction with the employer
and the IW, or with others as needed, including, but not limited to the
collective bargaining agent (where applicable), the physician of record,
rehabilitation professionals, and the managed care organization (MCO), a
transitional work program assists the IW in progressively performing the duties
of a targeted job. OAC 4123-6-01(AA)
work developer: The provider who develops the employer’s transitional work
program. OAC 4123-17-55(A)(6)
Criteria: To qualify for the program the employer must be a state-fund private
employer (PA) or a public employer taxing district employer (PEC). The employer
must meet the following eligibility criteria:
the time BWC reviews the employer’s application, the employer must:
current with respect to all payments due BWC, as defined in OAC 4123-17-14(A)(1)(b).
in an active policy status. “Active policy status” does not include an employer
with a coverage status of “no coverage” or “lapsed.”
employer cannot have cumulative lapses in workers’ compensation coverage in
excess of forty (40) days within the twelve (12) months preceding the
application deadline for the Performance Bonus. OAC 4123-17-55(B)(1)(b)
of the application deadline, the employer must timely report actual payroll for
the preceding policy year and pay any premium due upon reconciliation of
estimated premium and actual premium. An employer will be deemed to have met
this requirement if BWC receives the payroll report and the employer pays
premium associated with such report before the expiration of any grace period.
See the Payroll
True-Up policy for additional information.
employer must continue to meet all eligibility requirements as listed in
section IV.A of this policy during the program period.
employer must provide documentation that it has developed and implemented a
transitional work program. BWC will accept the following documentation:
transitional work plan developed with a previous BWC grant that BWC has
reviewed and approved for updates, or
company-created transitional work plan that has been reviewed by BWC, or
A copy of the company’s transitional work policy from its human resource
manual or employee handbook, or
transitional work plan developed under the Transitional
Work Grant Program that began on July 1, 2012, or
signed letter from a company officer stating the employer has a transitional
work plan or is in the process of developing a BWC Transitional Work Grant
must receive documentation of the employer’s transitional work program no later
than thirty (30) days after the application deadline. An employer previously
approved to participate in the Transitional Work Performance Bonus is not
required to submit transitional work plan documentation for subsequent program
following employers are not eligible for the Transitional Work Performance Bonus
Employers paying only the minimum administrative charge for the
applicable payroll period. OAC 4123-17-16
employer who is determined to be ineligible for the program may apply for a
subsequent program period if the employer becomes eligible.
B. A PEO may
participate in the Transitional Work Performance Bonus program as follows.
performance bonus calculation purposes, BWC will assign eligible transitional
work bonus claims to the employer of record on the date of injury, regardless
of a subsequent PEO contract termination or change.
work services may be provided under a transitional work program of either the
PEO or the client employer.
Requirements / BWC evaluation of application.
employer must file an Application for Transitional Work Bonus Program (TWB-1) to participate
in the program.
application must be signed by the chief executive officer (CEO) or a designated
management representative who will certify to BWC that the employer will comply
with all program requirements.
will automatically renew the employer for each subsequent program period
provided the employer meets all eligibility requirements.
deadlines are outlined in OAC 4123-17-74, Appendix A and B:
private employers the application deadline is the last business day of May prior
to the July 1 program period.
public employer taxing districts the application deadline is the last business
day of November prior to the January 1 program period.
employer who opts out, voluntarily withdraws, or is removed by BWC from the
program, must file a new application to participate in a future program period.
D. Operation of
successfully implement a transitional work plan, the employer must:
obtain documentation from the physician of record or treating physician releasing
the IW to return to work (RTW) with restrictions.
work service offering on BWC’s web site to complete its section of the
Transitional Work Offer and Acceptance Form (TWB-2) online or use a document
equivalent to the TWB-2.
Print the completed TWB-2, or equivalent document, sign and date it, and
submit the form to the IW for his or her signature and date.
the TWB-2 form, or equivalent document, signed and dated by the employer and IW
to the MCO utilizing the MCO’s medical information fax number.
and payment of the Transitional Work Performance Bonus.
qualify for the bonus an employer must:
Have coverage that is in an active status at the time of calculation.
Timely report actual payroll for the preceding policy year and pay any
premium due upon reconciliation of estimated premium and actual premium. An
employer will be deemed to have met this requirement if BWC receives the
payroll report and the employer pays premium associated with such report before
the expiration of any grace period.
will evaluate all claims with injury dates that occur during the applicable
program period to determine transitional work potential and utilization. See
the Medical Policy Transitional
Work Developer; Transitional Work Grant & Transitional Work Bonus policies
for additional information.
The actual performance bonus calculation date, or “snapshot,” will occur
six months after the end of the applicable program period. This delayed review will
provide the employer the opportunity to utilize transitional work in claims
that occur late in the program period.
employer’s bonus will be based on how successfully it utilized transitional
work in claims that had the potential for transitional work services.
will calculate the employer’s performance bonus based upon the percentage of
claims eligible for transitional work services in which transitional work services
This percentage will be multiplied by a percentage of the employer’s
pure premium for the applicable program period, as outlined in the Appendix
of OAC 4123-17-75.
The employer may receive a bonus of up to ten percent (10%) of its pure
premium. BWC will post the bonus as a credit to the employer’s account. The
bonus will be refunded to the employer after any account balance is absorbed.
The Transitional Work Performance Bonus and the discounts earned through
participation in other Destination:
Excellence programs cannot reduce an employer’s premium due below the
amount of the minimum administrative charge as set forth in OAC 4123-17-26.
will not issue a bonus to an employer paying only the minimum administrative
charge for the applicable program period.
adjustments made to an employer’s account after the issuance of the bonus may
result in recalculation of the bonus.
will require an employer to repay any bonus it was not entitled to receive.
employer may, during its participation in the Transitional Work Performance
Bonus, participate in other compatible BWC programs. Employer program
compatibility is outlined in OAC 4123-17-74, Appendix
E. Exit or
removal from program.
employer may voluntarily withdraw from the Transitional Work Performance Bonus
during the program period by notifying BWC in writing.
will remove an employer from the program who fails to timely report actual
payroll for the preceding policy year and pay any premium due upon
reconciliation of estimated premium and actual premium. BWC will not remove an
employer if BWC receives the payroll report and the employer pays premium
associated with such report before the expiration of any grace period.
employer who voluntarily withdraws or is removed from the program will not be
eligible for a bonus for that program period and must repay the Transitional Work
Performance Bonus as set forth in OAC 4123-17-75(D).
employer who elects to opt out of the program for the subsequent policy year
must notify BWC in writing by the application deadline as set forth in OAC
complaints filed due to program eligibility issues (e.g. lapse days, coverage
status) will be addressed by the Employer Programs Unit. Employer complaints
filed due to transitional work plan issues (e.g. employer believes it did not
get appropriate credit for a RTW) will be addressed by the Transitional Work
employer, whose application for the transitional work bonus has been denied, or
who disagrees with BWC’s performance bonus determination, may file an appeal to
BWC’s Adjudicating Committee pursuant to ORC 4123.291 and OAC 4123-14-06.
has not identified any program-specific extenuating circumstances that apply to
the Transitional Work Performance Bonus program. Employer complaints should be processed
under the General
Employer Complaint Policy.