Workers' Compensation and Labor Laws
Issue Overview: Ohio's dividend credit on workers' compensation premiums masked systemic problems within the workers' compensation system. Furthermore, Ohio Supreme Court rulings during the 1990s expanded benefits and increased costs while allowing for a greater amount of abuse. NFIB/Ohio is working on a number of reforms aimed at improving the performance of the workers' compensation system while reducing costs for small business.
The reaction to recent investment scandals has created another set of problems whereby the investment portfolio has become so conservative and underperforming, that the state fund continues to lose money. Recent changes to the Bureau of Workers' Compensation include the appointment of a new administrator, Marsha Ryan, and Gov. Strickland's appointment of a new 11-member BWC Board of Directors including NFIB member Jim Matesich, owner of Matesich Distributing Company in Granville, Ohio. The Board will serve as the primary oversight entity for the BWC.
Issue Background: The business structure, investment portfolio and statutory benefits all need to be reviewed and reforms are necessary to make workers' compensation insurance affordable, predictable and competitive for employers in Ohio. In November of 2007, the BWC Board of Directors voted to lower the maximum group rating discount allowed to Ohio employers from the previous maximum of 90 percent, to 85 percent.
NFIB Position: NFIB opposed the decrease in the maximum group rating discount without a simultaneous and corresponding reduction in base rates. NFIB will continue to pursue workers' compensation reforms that ensure a high level of accountability while establishing a workers' compensation system that makes injured workers healthy without hindering the ability of small employers to create jobs and grow Ohio's economy.
What to Do: Check back at www.nfib.com/OH as legislation is introduced.
American Medical Association Guidelines for Diagnosis and Treatment of Injured Workers
Issue Overview: Currently when a workers' compensation claim is appealed, and challenged to the Industrial Commission, lawyers -- with little or no medical expertise -- presiding as hearing officers, have the ability to arbitrarily determine the level of impairment for injured workers. This flaw in the system has an adverse effect on Ohio employers.
Issue Background: While NFIB pursues further reforms to Ohio's Workers' Compensation System, the goal of restoring fairness and balance is a high priority that can be better achieved by adopting diagnosis and treatment guidelines from the American Medical Association (AMA). Doing so will allow the Ohio Industrial Commission to better serve injured workers and small employers.
NFIB Position: NFIB will continue to advocate for sensible reforms including the adoption of the AMA guidelines. These guidelines will strengthen the focus of the workers' compensation system with the goal of making injured workers healthy.
What to Do: Check back at www.nfib.com/OH as legislation is introduced.
12-Week Maternity Leave Proposal
Issue Background: Ohio law currently stipulates that employers should provide a "reasonable time period" for pregnant women taking maternity leave. While many employers and employees have been able to establish a set timeframe for maternity leave, the Ohio Civil Rights Commission (OCRC) believed more clarity was necessary to ensure women were given ample time for maternity leave. The OCRC filed an Administrative Rule to require employers to provide 12 weeks of maternity leave regardless of the size of the business.
NFIB Position: NFIB opposes this one-size-fits-all mandate on small employers. NFIB believes that decisions regarding benefits and time off are best left to employers to decide. NFIB will work to mollify this anti-small business proposal during the rule-making process.
Issue Status: The Joint Committee on Agency Rule Review ordered the OCRC to do an analysis of the economic impact of the proposed maternity leave rule change before the change could receive any further consideration. This action has stalled the implementation of the proposed maternity leave rule for now, but NFIB will continue to monitor any developments and will continue to oppose the rule.
What to Do: Check back at www.nfib.com/OH for updates on any future developments.
Mandatory Paid Sick Leave
Issue Background: Proponents of a plan to require all Ohio employers with 25 or more employees to provide seven days of paid sick time to each employee have been busy collecting signatures to place the measure before the Ohio General Assembly, and potentially, before Ohio voters in the November elections. The proposal, dubbed the Health Families Act, would require employers to allow full-time workers to accrue at least seven paid sick days throughout the course of a year. Part-time employees would accrue paid sick time on a pro-rated basis.
NFIB Position: NFIB strongly opposes this measure as it further erodes the flexibility that employers and employees have in determining benefits packages. The proposal is seen as an unfunded mandate to the state’s employers that would place Ohio at a competitive disadvantage when compared to other states that do not dictate private employee benefits packages.
Issue Status: Having received the necessary number of signatures to place the measure before the Ohio General Assembly, the mandatory paid sick leave proposal will be considered by lawmakers who have 120 days to act on the proposal. If they do not pass the measure, or if they pass it in an amended form, backers of the proposal will have the opportunity to collect another round of signatures to place the original proposal on the November ballot to be voted upon by all Ohioans.
What to Do: Watch your mailbox and e-mail inbox for updates and alerts from NFIB as this issue progresses. Also, check back at www.nfib.com/OH for the latest updates.
