Premium Reduction Credit Improper

Premium Reduction Credit Improper

Posted: July, 2002

State, ex rel. United Auto Aerospace & Agricultural Implement Workers of Am. v. Ohio Bur. of Workers’ Comp. (6/12/02), 95 Ohio St.3d 408, 2002-Ohio-2491.

The Supreme Court held that the BWC improperly gave a premium reduction credit to employers in 1999 (which gave employers credit for past premiums) because the BWC did not follow the statute. The statute only permits the BWC to reduce future premiums.

The Supreme Court also found the credit improper because the BWC failed to adopt a rule providing for reduction of premiums as required by statute.

The BWC had already changed its procedure in response to the Court of Appeals’ decision which found its premium reduction credit improper and indicated that this ruling would not affect its actions. However, the BWC also indicated that it may seek to have the statute changed to permit it to give premium reduction credits.

Information courtesy of the Ohio Workers’ Compensation Bulletin. Subscribe to the Ohio Workers’ Compensation Bulletin to keep informed about the Ohio workers’ compensation system.