What are the regulations on workers' compensation insurance in Ohio for small businesses with less than 5 employees?
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In Ohio, workers' compensation insurance is mandatory for all employers with one or more employees. This means that even small businesses with less than 5 employees must obtain workers' compensation insurance. Failure to obtain coverage may result in penalties and fines.
Ohio state law requires that employers provide workers' compensation coverage for their employees, which includes payment for medical expenses, lost wages, and any permanent disability or disfigurement resulting from a work-related injury or illness.
However, there are certain exceptions to the workers' compensation requirements for some small business owners, such as sole proprietors, partners, and some corporate officers who may choose to opt out of coverage. These individuals must file a written notice with the Bureau of Workers' Compensation (BWC) indicating their decision to opt out of workers' compensation coverage. It's important to note that this decision cannot be made on behalf of employees – they must still be covered by workers' compensation insurance.
In Ohio, workers' compensation insurance can be obtained through a private insurance company or self-insured programs through the Ohio BWC. Small businesses with less than 500 employees may be eligible for group rating programs, which can provide discounted rates for workers' compensation insurance.
It's also worth noting that Ohio law provides protection for employees who suffer retaliation, discrimination, or termination for filing a workers' compensation claim. Employers who retaliate against employees for filing a workers' compensation claim or reporting a work-related injury or illness may face legal consequences.
In summary, small businesses with less than 5 employees must obtain workers' compensation insurance in Ohio. Exceptions may apply for certain individuals, but coverage must still be provided for employees. Obtaining coverage may be done through private insurance or through the Ohio BWC, and group rating programs may be available for eligible businesses. Employers should also be aware of the legal protections provided to employees who file workers' compensation claims.
