Yes, But what have you done lately?
The Supreme Court takes another look at Voluntary Abandonment
State ex rel. Corman v. Allied Holdings Inc., Slip Opinion No. 2012-Ohio-2579
Claimant, Corman retired from Allied Holdings, Inc. one year after his 2002 injury and never worked again. The record contains no evidence that he was medically incapable of other work. The court deemed his failure to seek other work in the years after he retired demonstrated his permanent abandonment of the labor market.
In defending against a new period of temporary total compensation, employers must look at the claimant’s actions following a separation. In State ex rel. Pierron v. Indus. Comm. 120 Ohio St.3d 40 the Court found the separation event was an elimination of his position; however because he sought no work after the separation he cannot credibly alleged that loss of wages was as a result of the injury. The plus side to this analysis, is that it changes the focus from the employer’s separating event to what has the claimant done to become re-employed.
State Fund Employers Now Get What The Governor Ordered
On January 10, 2011 Governor John R. Kasich issued Executive Order 2011-01K. The purpose of the order was to establish a Common Sense Initiative to independently evaluate the economic impact of agency rules on small businesses. It specifically addressed that “wherever possible, penalties should be waived for first-time violators, especially for administrative matters such as filing and reporting deadlines.”
Under this Common Sense Initiative an employer with a lapse in coverage could apply for a one time reinstatement, no matter what the reason for the lapse. Historically, the Ohio BWC had refused to apply the plain text of the Executive Order and instead ruled upon whether the employer can demonstrate “good cause” shown for the lapse.
For those of you that remember, Butler County, Ohio was one of the first high profile employers to suffer a lapse due to failure to remit their premium payment on time. This late payment resulted in a lapse of coverage. Interestingly enough, this lapse however, was forgiven by the BWC under Kasich’s Executive Order.
Finally, after much dispute and discussion the BWC is now applying the plain meaning of the Executive Order and will forgive a one time lapse for any reason. Since it can only be used a single time, it will be important to evaluate if you want to use this for any specific lapse. Factors to consider would be the cost of the claim, the potential liability imposed by the failure to have coverage on the date of the injury and the likelihood of a repeat lapse.
Ohio BWC Extends Private Employer Rate Cut on Administrative Rates
On May 24, 2012, the IC announced proposed lower administrative rates for three of four Ohio employer groups. Ohio employers pay assessments that are used to fund the administrative operations of the Industrial Commission of Ohio.
The current and proposed rates are listed below:
Employer Group: 2012 2013
Private: 2.10% 2.03%
Public State: 3.31% 3.26%
Public Taxing Districts: 1.81% 1.81%
Self-Insuring: 7.50% 7.25%
Breaking News!!! (July 2012)
The Industrial Commission changes Continuance Policy over the next 60 days!
On July 10, 2012, the Industrial Commission has issued Resolution No. R12-1-01 modifying the current Continuance rules.
Beginning July 11 through September 8, 2012, hearings will be docketed according to new rules.
Specifically, hearings will no longer be docketed by how many attorneys are designated in a specific office, and conflicting Industrial Commission hearings can no longer be used as a justification for continuances.
The full text of the Resolution is available on the Industrial Commission website. With the impetus for hearings to be held faster, it is crucial that an employer have an immediate defense strategy in place to dispute allowances, additional allowances or treatment authorizations.
Timely evaluation of these issues will lessen the reliance on future continuance requests.
Things Clients Want to Know (NOVEMBER 2011)
What are the benefits I get when I pay salary continuation?
(Wages in lieu of temporary total compensation)
Under MIRA II, Salary Continuation lost its luster?
The joys of salary continuation are waning. Salary continuation was initially the first recommendation to an employer with a lost time claim. Why? Because it allowed the employer to keep its premiums low by not paying temporary total compensation in the claim and suppressing the indemnity reserve. Read More