By Gongwer Staff
Posted: February 26, 2023 7:58 AM

Ohio's private employers will pay a projected $90 million less overall in workers' compensation premiums next fiscal year after action Friday by the Bureau of Workers Compensation.

BWC's Board of Directors approved an average 8% rate reduction at its February meeting, bringing the average rates for both private and public employers to the lowest levels in more than 60 years.

The rates had been considered on first reading at the board's January meeting and will take effect July 1. (See Gongwer Ohio Report, January 27, 2023)

This marks the sixth straight year BWC has lowered its rates, which have been largely on the decline since 2011.

Last year, BWC reduced the private employer rate by 10% – a cut that followed a 7.1% reduction the year prior.

"Our rate reductions continue to advance Ohio's strong economic position," BWC Administrator/CEO John Logue said in a statement. "We continue to improve the way we do business with our customers and make it easier for them to succeed."

BWC noted that a recent study found it had the fifth lowest workers' compensation premium rates among all states and Washington D.C. through Jan. 1, marking a stark improvement since 2008 when Ohio had the third highest rate in the country.

The rate reduction represents the average statewide change. Actual premiums depend on several factors, like the industry, recent claims history and participation in BWC programs.

Gov. Mike DeWine applauded Ohio employers for their efforts in keeping their workplaces safe.

"Businesses adopting a safety-focused culture is what allows us to reduce the rates to the lowest they have been in 60 years," he said.

Steve Stivers, president and CEO of the Ohio Chamber of Commerce, agreed.

"Lower workers' compensation premiums are no accident," he said. "Ohio employers are prioritizing safety by making investments in new technologies and safety equipment at their workplace."

"Thanks to those investments, Ohio workers are safer, and employers are set to save more than $90 million in workers' compensation costs next year," he said. "The Ohio Chamber also commends BWC for their continued investment into safety grant programs that help small employers purchase equipment to make their workers safer."

Chris Ferruso, National Federation of Independent Business interim state director, said any reduction is appreciated given small businesses' concerns around inflation, quality of labor and the pandemic.

"The bureau's decision to cut rates by 8% is going to help relieve the financial pressure on Main Street businesses and go a long way toward getting them back to where they need to be," he said.