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Policy Name:
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Contract for Coverage of State Agency or Political
Subdivision
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Policy #:
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EP-03-02
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Code/Rule Reference
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Ohio Revised Codes (ORC) 4123.01
and 4123.03
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Effective Date:
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August 3, 2023
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Approved:
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Rex Blateri, Chief of Employer Services
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Origin:
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Employer Policy
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Supersedes:
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Contract for Coverage of State Agency or Political
Subdivision effective January 11, 2016.
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History:
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Revised August 17, 2023; March 22, 2023; January 11, 2016.
New policy issued February 1, 2008.
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Review Date:
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August 3, 2028
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I.
Policy Purpose
The state or a political
subdivision may contract with the Ohio Bureau of Workers’ Compensation (BWC) to
provide workers’ compensation coverage for individuals who are not considered
employees according to ORC 4123.01.
II.
Applicability
A. This
policy applies to BWC Policy Processing, state agencies, political
subdivisions, and their authorized representatives.
B. This
policy does NOT apply to:
1.
Private employers. ORC 4123.03
is limited to public employers.
2.
Self-insuring public employers. Employers who elect to cover volunteers
and probationers performing service for the political subdivision must include
those volunteers and probationers as employees under the self-insurance policy,
as set forth in OAC 4123-19-03(O).
3.
Public Works Relief Employees. These individuals perform services in
exchange for welfare benefits. Welfare recipients are covered under each
county's welfare program and wages are reported to that county's Public Works
Relief Employee policy number, as set forth in ORC 4127.01.
4.
Members of volunteer auxiliary police and volunteer fire departments,
including emergency medical technicians.
III. Definitions
A. Inmate:
An individual convicted of a criminal offense and serving a sentence in
confinement. Other terms used to describe these individuals include prisoner,
offender, and resident. This term may also pertain to a pre-trial detainee.
B. Inmate
worker program: A program in which an inmate is allowed to leave
confinement for community service work or work in or about the jail.
C. Juvenile:
An individual under age eighteen (18) controlled by the jurisdiction of the
Juvenile Division of Common Pleas Court.
D. Non-emergency
volunteer: An individual who chooses freely to perform community service
work and usually does not receive wages or remuneration for services rendered.
For this policy, non-emergency volunteer will be referred to as volunteer.
Examples of volunteers are individuals picking up trash in parks, clearing walk
trails, or planting flowers. Volunteer does not mean members of volunteer
auxiliary police and fire departments, including emergency medical technicians.
E. Political
subdivision: A public employer within the state, usually referred to as
public employer taxing district (PEC employer). These employers consist of the
counties and every taxing district within the county such as cities, villages,
townships, local school districts, public libraries, public hospitals, public
transit authorities and special taxing districts, which includes port
authorities and joint vocational schools.
F. Probationer:
An individual convicted of a criminal offense and serving any portion of the
sentence by performing community service.
G. Public
employer: The state, including state hospitals, each county, municipal
corporation, township, school district, and hospital owned by a political
subdivision or subdivisions other than the state. ORC 4123.01(B)(1)(a).
H. Resolution:
An official action of a political subdivision that authorizes the execution of
a contract for workers' compensation coverage with BWC. The resolution
specifically defines all categories of individuals for which the contract
covers.
I.
Roster: A verifiable list including the names, addresses, and
position descriptions of all individuals qualifying for the extension of
workers' compensation benefits by reason of services rendered. The roster also
must document the period of time over which the services are rendered and
include termination dates for all individuals.
J. State:
Referred to as state agency in this policy, is any institution or agency of the
state of Ohio, usually referred to as public employer state (PES employer).
K. Contract
for Coverage of State Agency or Political Subdivision (U-69):
A BWC form which becomes a contract between a state agency or political
subdivision and BWC.
IV. Policy
A. Only
public employers may contract with BWC to provide workers’ compensation
coverage for individuals who are not considered employees according to ORC 4123.01.
B. Initiating
coverage.
1.
The state agency or the political subdivision is defined as the
"employer" on the U-69 contract.
a.
To initiate contract coverage, an official, who is authorized to execute
contracts on behalf of the employer, shall complete, sign, and date the U-69
contract.
b.
The employer must list on the U-69 the group or categories of persons
the contract covers, see IV.B.3.a. through e. below.
c.
The employer must provide the name and contact information of the roster
holder who is responsible for maintaining the roster.
d.
A copy of the U-69 contract shall be submitted to BWC.
2.
The employer must submit the U-69 contract to BWC by one of the
following methods:
Email:
policyprocessing@bwc.state.oh.us
Fax:
614-719-5313
Mail:
BWC Mail Processing Center
Attention:
Employer Services
30 W. Spring
St.
Columbus,
Ohio 43215-2256
3.
The contract must be signed by the BWC Administrator before coverage can
take effect. The contract shall be in effect as of the date BWC receives the
contract. The employer will only have active coverage for the categories
specified under the individual contract, which may include the following:
a.
Volunteers rendering service;
b.
Probationers performing court ordered community service;
c.
Inmates performing work or providing services;
d.
Juveniles performing community service; or
e.
Jurors.
4.
Prior to the effective date of this policy revision, a political
subdivision was required to sign and date a U-69 contract, and the appointing
authority was required to pass a resolution authorizing the political
subdivision to enter into a contract for workers' compensation coverage with
BWC. The political subdivision was required to submit both the U-69 and
resolution to BWC to initiate coverage. BWC no longer requires the resolution.
The U-69 now has a section to define the group or categories of persons
covered.
C. Reporting
payroll for premium purpose.
1.
Volunteers.
a.
For political subdivisions, payroll for a volunteer is based on the
total number of hours worked times the current Ohio minimum wage, and never
less than twenty (20) hours a week for each volunteer. If the volunteer
performs no work in a given week, there is no reporting requirement for that
week.
b.
For state agencies, no payroll is to be reported for a volunteer for
premium rate making purposes due to state agencies rate making methodology that
calculates a rate representing paying dollar-for-dollar for claims costs.
2.
Jurors. Payroll is based on the total number of hours of service times
the current Ohio minimum wage, and never less than twenty (20) hours a week for
each juror. If a juror's weekly wages exceed the minimum wage times twenty (20)
hours, then actual wages must be reported.
3.
Probationers, inmates, and juveniles. Reportable payroll is based on the
total number of hours worked by each probationer, inmate, or juvenile times the
current Ohio minimum wage.
4.
Ohio minimum wage.
a.
The Department of Commerce, Division of Industrial Compliance, is
responsible for establishing the Ohio
minimum wage.
b.
The minimum wage rate changes each year in accordance with the Consumer
Price Index.
5.
National Council on Compensation Insurance (NCCI) classification codes.
a.
Wages calculated for the work hours of a volunteer, probationer or
inmate worker must be reported to the National Council on Compensation
Insurance (NCCI) classification code of the political subdivision.
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Classification
Code
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Political
Subdivision
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9430
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County
employees
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9431
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City
employees
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9432
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Village
employees
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9433
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Township
employees
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9434
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Local school
districts
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9435
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Public
libraries
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9436
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Special
public universities
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9437
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Joint
vocational schools
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9440
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Public
hospitals
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9441
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Special public
universities
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9442
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Public
transit authorities
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9443
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Special
public authorities
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9444
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Public
employee clerical and clerical telecommuter
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b.
There will be no separate policy number for contract coverage.
6.
The wage estimates provided by the political subdivision shall be
construed as the minimum premium amount and are therefore nonrefundable, unless
there is an adjustment in the premium rate by BWC.
D. Keeping
and maintaining records.
1.
State agencies and political subdivisions must create and maintain a roster
at the outset of the contract and update the roster throughout the entire term
of the contract. The roster must list names, addresses, termination dates, and
any other information necessary to identify and verify persons covered under
the contract.
2.
The roster will not be submitted to BWC. The employer must keep the
roster at the employer location as a component of recordkeeping and make the
roster available to BWC upon request.
3.
State agencies and political subdivisions must maintain records to
support the reporting of wages, allowances, or any other type of remuneration.
E. Terminating
coverage.
1.
Either party may terminate the contract.
2.
The intent to terminate the contract must be in writing. The termination
shall take effect on the date of the written notification, but not less than
thirty (30) days after the mailing of the notification.
3.
Upon termination, the rights, duties, and liabilities of the state
agency or political subdivision and BWC shall cease except as to injuries or
occupational diseases occurring before the date of termination and as to
premiums accrued prior to the date of termination.
4.
Employers must send the terminating notification to:
Bureau of
Workers' Compensation
Attn:
Employer Services
30 W. Spring
St.
Columbus,
Ohio 43215-2256
F. Scenarios.
1.
Juvenile performed community service.
a.
A Juvenile Court initiated U-69 workers' compensation contract coverage.
A completed U-69 contract was on file at BWC, which authorized extending
workers' compensation coverage for juveniles and probationers performing
community service as assigned to the Alternative Community Outreach Program.
Juvenile Center administration recorded juvenile community service work hours
and communicated those hours to Juvenile Court. Juvenile Court Employer
maintained an electronic record of work hours and roster of juveniles' names,
types of work being done, and hours worked. In case of a juvenile's
work-related injury or illness, the Court verified that the specific juvenile
was on the roster.
An eleven
(11) year old juvenile, confined in a Juvenile Center, was ordered by the Court
to complete seventy-five (75) hours of community service in the public
employer's Alternative Community Outreach Program. On one occasion, the
juvenile performed community service under supervision by pulling weeds and
picking up trash in a park. The juvenile inadvertently stepped in a hole, fell,
and fractured a wrist.
b.
Was the juvenile covered under the U-69 contract for coverage? Yes.
Workers' compensation coverage was active because the public employer
appropriately completed contract coverage initiation procedures.
2.
Juvenile performed community service. This scenario is a different fact
pattern and illustrates the prior requirement for a resolution from the
political subdivision.
a.
A political subdivision believed a U-69 contract and resolution, which
authorized extended workers' compensation coverage for inmates performing work,
has been filed with BWC. Juvenile Court, the employer that maintained an
appropriate roster, ordered five juveniles, ages fourteen (14) to seventeen
(17) years old, to individually complete one hundred (100) hours of community
service. The juveniles were confined to the Juvenile Center and would be
released under Juvenile Center staff supervision to do community service work.
While doing
community service work by sweeping sidewalks and pulling weeds, one juvenile
tripped on the edge of a curb and broke an ankle.
b.
Was the juvenile covered under the U-69 contract for coverage? It cannot
be determined if the juvenile was covered. This scenario presents two issues:
i.
The employer believed the material was filed with BWC; however, the
employer did not confirm that it had active U-69 coverage.
ii.
This scenario deals with juveniles, not inmates as described in the
resolution. Potential questions include:
a)
Is a resolution and U-69 contract on file with the employer and BWC?
i)
An employer should verify that a resolution and contract are in its
files.
ii)
The employer is required to maintain a resolution and U-69 contract as a
component of recordkeeping. The employer also must submit a resolution and U-69
contract to BWC.
iii) BWC
representative should confirm that the employer's resolution and contract are
in BWC files.
iv) BWC
maintains the resolution and U-69 contract electronically. A BWC representative
may access and view the materials to verify that a resolution and U-69 contract
exist for the specific employer. Also, the resolution should be reviewed to
determine the specific category of individual under coverage.
v)
When a resolution and U-69 contract cannot be found by a BWC
representative, the employer does not have contract coverage. However, the
representative must contact Policy Processing Division to confirm the employer
has no contract coverage. A delay with posting the materials electronically may
have occurred.
b) Is
the employer paying premiums on those individuals under contract coverage?
i)
BWC will conduct research and fact finding to answer the question.
ii)
Employers are required to maintain payroll reports as a component of
recordkeeping. These reports are used to verify payment of premiums on
individuals under contract coverage.
iii) When
an employer fails to comply with U-69 contract requirements, such as keeping
records of payroll reports or paying premiums on individuals under contract
coverage, the contract may be terminated by BWC.
3.
Probationer performed community service.
a.
A political subdivision had U-69 contract workers' compensation
coverage. A completed U-69 contract was on file at BWC which authorized
extending coverage for probationers performing community service in the Service
Assistance Program. The Court maintained an electronic roster, which listed
probationers' names, types of work being done, and hours worked. In case of a
probationer's work-related injury or illness, the court verified that the
specific probationer was on the roster.
A
probationer agreed to court ordered community service in lieu of jail
confinement and a fine. Community service was directed through the public
employer's Service Assistance Program. The probationer did housekeeping,
pulling weeds, spreading mulch, and painting at the public employer's nursing
home and senior citizen's community center. During one workday, the probationer
fell from a ladder and injured the left kneecap while cleaning windows.
b.
Was the probationer covered under the U-69 contract for coverage? Yes.
Workers' compensation coverage was active because the public employer
appropriately completed contract coverage initiation procedures. The court
verified that the probationer was on the roster.
4.
Inmate in Inmate Worker Program.
a.
A political subdivision did not provide U-69 workers' compensation
contract coverage for inmates working in an Inmate Worker Program. The employer
decided to cover inmates in the Inmate Worker Program under its general liability
insurance.
An inmate,
serving a six month sentence, participated in an Inmate Worker Program. The
inmate worked in the jail laundry room. The inmate received a lower back injury
from a fall after slipping on a damp floor.
b.
Was the inmate covered under a U-69 contract for coverage? No. The
employer opted not to provide workers' compensation contract coverage for
inmates in the Inmate Worker Program.
5.
Volunteer worked for state agency.
a.
A state agency employer had workers' compensation contract coverage. The
agency's director signed and dated a U-69 contract to extend workers'
compensation coverage to park volunteers. Extension of workers' compensation
coverage for volunteers was documented in a memorandum and signed by the
director. An electronic roster of volunteers' names, addresses, position
descriptions, services, and termination dates was kept and updated on a regular
basis. In case of a volunteer's work-related injury or illness, the employer
verified that the specific volunteer was on the roster.
A volunteer
worked to clear brush, tree limbs and debris from walking trails in a park. The
volunteer received a bee sting which required medical treatment.
b.
Was the volunteer covered under the U-69 contract for coverage?
i.
Yes. Contract workers' compensation coverage was active as the result of
a U-69 contract being on file at BWC and the volunteer was verified as being on
the roster.
ii.
The memorandum specified that volunteers were covered by workers'
compensation.