Ohio Class Action Lawsuit Forces State To Reimburse Employers $859 Million

by | April 15th, 2013

April 15, 2013

The Ohio Bureau of Workers’ Compensation (BWC) has been ordered by a Cuyahoga County Common Pleas Court Judge to pay $859 million to approximately 270,000 employers in the state who were overcharged for insurance premiums.

The employers who filed the Ohio Class Action Lawsuit alleged the BWC had forced them to pay unreasonably high premium amounts because they were not members of certain employer groups. The plaintiffs went on to explain that significant discounts were offered to those who were members of these particular groups during the eight-year period spanning from 2001 to 2009. The inflated premiums paid by non-members covered the cost difference.

When the inflated costs were brought to light, it was determined that many employers were owed anywhere between $5,000 and $100,000 for overpayments.

Since the ruling was issued, the BWC has issued a statement saying it has done nothing illegal and that the awards are “not warranted in this case”. According to an article from Risk & Insurance, the BWC went on to explain how the organization had actually lowered costs to employers over the last two years. The BWC may still appeal the decision.

Nurenberg, Paris, Heller & McCarthy and their team of Cleveland Personal Injury Attorneys are hopeful the decision in the case will allow for more of a focus to be placed on workplace safety in the state of Ohio.