State, Businesses Reach Deal Over Workers’ Comp Overcharges

Ohio Bureau of Workers Compensation administrator Steve Buehrer says the state has made major changes to its system.(Photo: OBWC)
Ohio Bureau of Workers Compensation administrator Steve Buehrer says the state has made major changes to its system.(Photo: OBWC)

A settlement has been reached in a class-action lawsuit charging that Ohio’s state insurance fund for injured workers overcharged employers hundreds of millions of dollars over several years.

The agreement announced Wednesday night creates a $420 million fund to repay businesses that were overcharged for workers’ compensation premiums from July 2001 to June 2009. About 270,000 small business owners in the state were affected.

An appeals court had ruled against the Ohio Bureau of Workers Compensation in the case. The court said that the agency set up an illegal rating system that resulted in employers being overcharged nearly $860 million.

Both sides said they were satisfied with the settlement. Ohio Bureau of Workers Compensation administrator Steve Buehrer says the state has made major changes to its system.

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