By Rob Gilmore & Alexis Preskar
Ohio Governor Mike DeWine has requested the Bureau of Worker’s Compensation send employers an additional $5 billion in dividends to mitigate losses due to the ongoing pandemic. This is the third major dividend request the Governor has submitted this year, designed to help businesses stem their losses created by COVID-19 and stay open.
The payments would be directed to businesses in Franklin ($559 million) and Cuyahoga ($528 million) counties, with the city of Columbus receiving the largest dividend at $64 million. How much each business gets depends on the number of employees, the business’ history of worker injuries and industries, among other factors. To estimate the dividend, businesses should multiply their October dividend by 3.72. For example, the Bureau says a restaurant that had received an October dividend just under $3,500 might expect a $13,000 check from this round of dividends. The BWC anticipates mailing the checks – if approved – before the end of the year.
This payment would exceed what employers have paid in premiums to the BWC, which the BWC administrator said would create tax consequences such that getting an overpayment now would allow businesses to offset other losses this year. Although the BWC has paid unprecedented amounts of dividends this year to assist businesses, due to its investments, the BWC states that it will continue to stay in a strong financial position even after the payout.
The BWC is tentatively set to vote on the request on Monday, November 2. We will update this post if the BWC approves the request.
If you have questions about BWC dividends, please contact Rob Gilmore (rsg@kjk.com, 216.736.7240), Alexis Preskar (avp@kjk.com, 614.427.5748) or any of KJK’s Labor & Employment professionals.