Ohio Supreme Court Decision Reinforces Workers’ Compensation Rules — Even During COVID
Although the verdict came on April Fool's Day, the decision issued by Ohio's highest court was no joke: administrative agencies must follow their own rules — even during extraordinary circumstances.
Spooner Incorporated is proud to have been the only Third-Party Administrator (TPA) in Ohio that supported our clients in this fight, advocating for fair and proper administration of the Group Retrospective (Retro) rating program.
What Happened?
The Ohio Supreme Court ruled that the Ohio Bureau of Workers’ Compensation (BWC) must still administer its group retrospective rating program for the 2018 policy year, even though those employers received dividends in 2020 equal to 100% of their 2018 premiums. During the first year of the COVID-19 pandemic, BWC issued a one-time dividend to policyholders as financial relief from the impact COVID had on Ohio businesses. Following that, the agency declined to perform group retrospective calculations for the 2018 and 2019 policy years (or make associated payouts), arguing that the dividend effectively replaced any potential refunds. The team at Spooner disagreed, along with our valued client Kent Elastomer and trusted partners at Roetzel & Andress - and a six-year legal battle ensued. Read more about the background here.
Why This Matters to Employers
This ruling reinforces a critical legal principle: emergency measures do not override established regulations. Administrative rules still carry the force of law — even in unprecedented times. For employers participating in Group Retro, this decision could have meaningful implications, including:
• Potential financial impact from recalculated group-retro results
• Greater regulatory consistency moving forward
• Increased accountability for administrative agencies
Spooner’s Role
Spooner Incorporated was proud to stand alongside our clients throughout this process. Our commitment has always been to protect the intersts of Ohio employers, ensure compliance, and advocate for fair outcomes within Ohio’s monopolistic workers’ compensation system. This decision underscores the value of having an experienced partner who understands both the technical and regulatory complexities of workers’ compensation programs.
Questions? We're Here to Help
If you have questions about how this decision may affect your policy or participation in a group retrospective rating program, our team is ready to help. If you're not a Spooner client, you can complete this form to find out more about what your company's Group Retro rebates from 2018 and 2019 may have looked like.