08/07/2009

BWC Update

BWC TEMPORARY CAPPED EM
In reforms put in place earlier this year, the Ohio Board of Workers Compensation (BWC) changed the way it calculates the Experience Modifier (EM). This change inadvertently exaggerated a large number of otherwise safe contractors to an EMR +1 status. This inflated EMR could potentially put a contractor at a competitive disadvantage since many owners stipulate that a contractor must have an EMR below 1 to bid or be awarded work. The Builders Exchange of Dayton, which participated in a construction industry coalition led by AGC of Ohio, raised this issue during consideration of House Bill 15, the Workers Compensation Budget Bill. The BWC responded by creating a program to correct the problem by developing a temporary capped EM.

The Bureau has determined that approximately 1,000 contractors, state-wide, will qualify for this program. You should have been contacted by the BWC directly if your firm falls into this category. If you have not been contacted, but believe that your company should qualify for the program, please reference the BWC's letter at www.bxdayton.com or contact your BWC representative immediately.

Please follow the link below to access additional information.

www.bxdayton.org/pdf/bwcupdate0809.pdf