For immediate release: Sept. 29, 2015
New workers' comp law provides relief for Ohio nonprofit organizations
COLUMBUS - A new law effective today helps reduce workers' compensation costs for Ohio's nonprofit organizations. The law, sought by the Ohio Bureau of
Workers' Compensation (BWC) in its biennial budget, removes the requirement for nonprofit organizations to provide workers' compensation coverage
for their unpaid corporate officers.
"From local boosters to statewide charities, volunteers are the lifeblood of the nonprofit community," said BWC Administrator/CEO Steve
Buehrer. "By allowing officers who volunteer their services to non-profit corporations not to be covered by BWC, we are freeing up money for these
organizations to provide services that help local communities throughout the state."
Previous law required BWC to treat corporate officers of nonprofit organizations as if they were earning an income regardless of whether they were
paid. This practice meant nonprofits with volunteer corporate officers had to pay workers comp premiums, placing an increased burden on already
Under the new law, BWC will no longer require nonprofits to have coverage for their volunteer corporate officers, meaning nonprofits will no longer
need to pay premiums for these individuals.
If it wishes, a nonprofit may still cover a volunteer officer by reporting any amount of payroll for that individual. This payroll reporting will
trigger minimum reporting requirements and associated premiums for the employee.
More information is available at bwc.ohio.gov.
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