04/01/2003

Wage Continuation Policy Changes

Submitted by Compensation Consultants, Inc.

Wage continuation occurs when an employer continues an injured employee's regular wages or salary at the onset of a work-related injury. By using wage continuation employers may reduce the reserve established for lost time claim.

When an employer elects to use wage continuation there are two key elements to remember:
1. The BWC must be notified that the employer is continuing wages at the time the industrial injury is reported.
2. There must be no break in payment of the wages or salary to the injured worker from the date of injury.

The BWC's revised policy now includes these points not previously included:
* If the BWC discovers that an employer is not paying full salary/ wages, the BWC will immediately begin paying compensation and set the appropriate reserves unless the employer aggress to comply within 48 hours of notification by the BWC;
* The payment of salary continuation in lieu of temporary total is a privilege granted by the BWC. Payment must continue uninterrupted following the injury and not wait until the BWC or Industrial Commission decision is made regarding the claim;
* If an injured worker ends employment with the incident employer, salary continuation is no longer payable by the employer;
* If an injured worker continues employment with the incident employer, and has restrictions regarding his or her physical capacity and agrees to work in a different position, the employer has the option to continue salary continuation at the full salary or wages of the original position;
* Employers cannot force injured workers to use sick days, unless a collective bargaining agreement states otherwise;
* Employers are not required to submit documentation for every payment made to the injured worker. However, employers must submit the prior 52 weeks of wage information to the BWC;
* Employers are required to notify the BWC when the payment of salary continuation is discontinued and/or when the injured worker returns to work. Employers must report the return to work to the BWC within 72 hours. Failure to do so may affect the employer's eligibility to participate in the wage continuation program

For extensive details on the BWC's wage continuation policy, www.ohiobwc.com
or call 800.OHIOBWC. For more information on how wage continuation can benefit your company or possibly lower your workers' compensation costs, contact your Compensation Consultants Inc. rate analyst at 800.837.3200.