Class-Action suit challenges workers’ comp rating system — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Class-Action suit challenges workers’ comp rating system

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Three Cleveland-area businesses have filed a class-action suit against the Ohio Bureau of Workers’ Compensation (BWC). Linderme Tube Co., Timely Advertising Specialty Co. and Corky and Lenny’s restaurant have charged that the BWC’s group-rating system awards unrealistically high premium discounts to elite, group-rated employers.

The lawsuit says the system is unconstitutional because it forces employers outside those groups to subsidize group-rated businesses.

BWC officials have acknowledged the rating system is flawed. BWC spokesman Keary McCarthy said addressing the inequity in the group-rating system is a top priority for BWC Administrator Marsha Ryan, and pointed to the bureau’s decision to cut the maximum discount from 90% to 85% last November.

The bureau “is developing a long-term plan to bring equity among all Ohio employers,” McCarthy said.

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