The Ohio Workers’ Compensation System is a compromise between the rights of
injured workers and employers.
Employers can not be sued, have limited the amount a worker receives for their
injuries (e.g. you do not receive your full wages for time off work and are not
entitled to pain and suffering) and get the ability to spread the risk among
thousands of employers.
Workers received a no fault system and ongoing benefits.
Most employers pay into the Ohio State Insurance Fund, which has the lowest
average workers’ compensation premiums in the region, and among the lowest in
the nation (Source: Ohio Bureau of Workers’ Compensation). The Ohio State
Insurance Fund, despite mismanagement costing the fund hundreds of millions of
dollars ($100,000,000) of stolen or lost funds (Source: Toledo Blade) and refunds of
over Ten Billion Dollars ($10,000,000,000.00) in premiums over the last Nine (9)
years, the Ohio State Insurance Fund has assets of over Fourteen Point Four
Billion Dollars ($14,400,000,000.00) (Source: Ohio Bureau of Workers’
Compensation). These funds can only be used to protect Ohio’s workers and
employers.
In 1997, the legislature passed Senate Bill 45 which would have cut Hundreds of
Millions of Dollars in benefits claiming these cuts were needed to keep the fund
solvent. By a margin of nearly Two to One, the voters of Ohio rejected these cuts in
Ballot Issue Two. Once again, without these cuts, the Ohio Bureau of Workers’
Compensation has refunded over Ten Billion Dollars in premiums (Source: Ohio
Bureau of Workers’ Compensation).
In 2004, James Conrad, the now disgraced Administrator of the Bureau of Worker’s
Compensation, and Governor Taft, held meetings with special interest groups and
crafted Senate Bill 7, which they hoped would cut Hundreds of Millions of Dollars of
benefits ($100,000,000.00) each year. Many of the terms of Senate Bill 7 were
rejected in Issue Two. It was passed by the Ohio Senate and was headed to fast
track approval in the Ohio House.
The Toledo Blade, and other media outlets, then went public with information that
Governor Taft and Administrator Conrad had invested Hundreds of Millions of
Dollars with campaign contributors. This resulted in the loss of Hundreds of
Millions of Dollars and the alleged theft of Tens of Millions of Dollars by Tom Noe, a
Toledo area coin dealer. For a time, Senate Bill 7 was tabled. But then a the bill’s
House Sponsor, who received thousands of dollars of contributions from Mr. Noe,
put the bill back on the fast track and it was passed along an almost party lined
vote and signed by Governor Taft, who stated that it was a priority of his
administration. Submitting over 200,000 signatures of registered voters, a coalition
led by the United Auto Workers is trying to challenge this change via Issue One.
KURT M. YOUNG,
LLC
709 Madison,
Suite 307
Toledo,OH 43624
419-244-7885
419-244-7886 -
Fax
877-244-7885 -
Toll Free
(THANK YOU TO STUART JAFFY & PHILIP FULTON FOR THEIR WORK
ON SUMMARIZING THIS BILL)
Some provisions of Senate Bill 7 took effect on June 30, 2006, the
remaining parts took effect October 11, 2006, here are the changes:
I. PROTECTING THE FUND FROM FURTHER MISCONDUCT: New R.C.
4121.12 provides that the Oversight Commission cannot create limits on
conducting business with investment managers that are more
restrictive than those contained in R.C. 3517.13. This takes away vital
protections passed in the wake of the Tom Noe scandal.
II. What is an Injury: The new law makes two changes to the injury
definition.
PSYCHOLOGICAL INJURY FROM A PHYSICAL HARM - New R.C. 4123.01
(C)(1) is amended to require that a psychological injury is only
compensable if there is a physical injury to the person suffering the
psychological harm. This requirement overrides the Republican
controlled Supreme Court's decision in Bailey v. Republic Engineered
Steels, Inc. (2001), 91 Ohio St.3d 38, 2001-Ohio-236.
AGGRAVATION OF A PRE-EXISTING CONDITION - New R.C. 4123.01(C)
(4) adds a requirement that there must be "substantial aggravation" in
order for aggravation of an injury to be compensable. This requirement
overrides the Supreme Court's decision in Schell v. Globe Trucking, Inc.
(1990), 48 Ohio St.3d 1. Further, New R.C. 4123.54(G) provides that if a
condition is "substantially aggravated", no compensation is payable
once the condition returns to the state it was in before the injury.
III. EMPLOYER APPEALS TO COURT: Ohio Workers Compensation law
allows an employer to appeal your case to court, forcing you to pay the
costs of trial, without costs to themselves should you prevail. You
have the burden of proof and currently have the right to take extra time,
if needed to strengthen your case. New R.C. 4123.512(D) provides that a
claimant cannot dismiss a case in the Common Pleas court without the
employer's consent if the employer filed the appeal. This overrides the
Supreme Court's decision in Kaiser v. Ameritemps, Inc. (1999), 84 Ohio
St.3d 411, 1999-Ohio-360.
New R.C. 4123.512(G) raises the attorney fee paid in cases where an
injured worker establishes the right to participate in an appeal to court
from $2,500 to $4,200.
IV. CONTINUING JURISDICTION: This is the time that a claim stays
open. New R.C. 4123.52 reduces continuing jurisdiction in medical only
claims from 6 years to 5 years, and reduces continuing jurisdiction in
lost time claims from 10 years to 5 years.
V. WAGE LOSS: This is a benefit to workers who can not return to the
job they were doing when they are injured and have to seek and hold
down lowering paying jobs. New R.C. 4123.56(B)(1) reduces the total
amount of weeks of wage loss compensation by counting R.C. 4123.67
(rehabilitation) wage loss compensation as part of the overall 200 week
limit for payment of working wage loss.
New R.C. 4123.56(B)(2) reduces non-working wage loss from 200 to 52
weeks but, together with R.C. 4123.56(B)(3) raises the total possible
weeks of wage loss compensation to 226 by providing that 26 weeks of
non-working wage compensation do not count against the 200 week
limit for wage loss compensation.
VI. PERMANENT PARTIAL: Is a series of lump sum benefits available to
workers whose body will never recover further. The changes here are
actually pro worker. New R.C. 4123.57 reduces the 40 week waiting
period to 26 weeks. Further, New
R.C. 4123.57(B) raises the maximum facial disfigurement award from
$5,000 to $10,000.
VII. PERMANENT TOTAL DISABILITY: A lifetime benefit for those
workers who can not return to even part time, sedentary work. Workers
under new R.C. 4123.58(A) and 4123.61 will be limited to their wages
from the year prior to injury, rather than wages before they became
disabled This overrides the Republican controlled Supreme Court's
decisions.
For Amputees, the result of Senate Bill 7 is even more atrocious. New R.
C. 4123.58(C)(1) provides that the loss of one limb does not equal the
loss of two body parts, overriding the Supreme Court's decision in
State, ex rel. Thomas v. Indus. Comm. (2002), 97 Ohio St.3d 37, 2002-
Ohio-5306 and costing amputees hundred's of thousands of dollars.
VIII. SETTLEMENT: Currently only Three Percent (3%) of claims settle
and the average settlement was $7,000 in 2005 (Source: Ohio Bureau of
Workers' Compensation). New R.C. 4123.65(C) provides that a
settlement can be voided if the employee dies within 30 days after the
settlement is signed. In one of it's rare pro worker clauses, New R.C.
4123.65(A) permits filing settlement applications without the employer's
signature in certain situations (employer no longer in state, claim not in
employer's experience, employer did not comply with 4123.35) and
indicates that if a settlement application is filed without
the employer's signature and the employer doesn't respond to a notice
within 30 days, the employer's signature is not required.
IX. FRAUD: New R.C. 2913.48 creates categories of fraud applicable to
employers. As this is the single largest fraud cost to the system.
X. CHILD SUPPORT: New R.C. 3121.0311 provides that if a claim is
subject to withholding for child support, the BWC (or self-insurer) shall
hold lump sum payments for 30 days to permit payment of the attorney’
s fee, if the attorney files the appropriate paperwork.
XI. MEDICAL ISSUES:
New R.C. 4121.441 permits the BWC to exempt medical services which
were approved by presumptive authorization or standard guidelines
from the dispute resolution process. In other words, workers will not
have the right to certain kinds of medical care without a recourse to
fight that denial.
New R.C. 4121.444 establishes health care fraud penalties, which are
long overdue.
XII. PRIVACY OF RECORDS - New R.C. 4123.88 indicates what matters
are excluded from public records laws and what information shall be
given to journalists. Allowing journalists access to your information.
KURT M. YOUNG,
LLC
709 Madison,
Suite 307
Toledo,OH 43624
419-244-7885
419-244-7886 -
Fax
877-244-7885 -
Toll Free
KURT M. YOUNG,
LLC
709 Madison,
Suite 307
Toledo,OH 43624
419-244-7885
419-244-7886 -
Fax
877-244-7885 -
Toll Free
KURT M. YOUNG,
LLC
709 Madison,
Suite 307
Toledo,OH 43624
419-244-7885
419-244-7886 -
Fax
877-244-7885 -
Toll Free
