If you're running a business in Ohio, you've probably heard about the Ohio Bureau of Workers' Compensation, or BWC for short. Here's what makes Ohio unique: it's one of only four states in the entire country where the government runs the workers' comp system exclusively. That means you can't shop around for private insurance like you might in other states. Instead, you're working directly with the state of Ohio.
Before you start thinking that sounds restrictive, there's actually good news: Ohio's rates are lower than the national average and cheaper than all of Ohio's neighboring states. Plus, the BWC system has been around since 1912, so it's well-established and covers about 249,000 employers across the state. Whether you're launching your first small business or managing a growing team, understanding how this system works is essential for staying compliant and protecting both your employees and your bottom line.
Who Needs Workers' Compensation in Ohio?
The rule in Ohio is straightforward: if you have one or more employees, you need workers' compensation coverage. This requirement kicks in from day one—literally the first day your employee starts work. And we're not just talking about full-time employees here. Part-time workers count too, as long as they earn at least $160 per quarter. That threshold is pretty low, so it covers a wide range of employment situations, including household workers like babysitters, nannies, housekeepers, and gardeners.
If you're a sole proprietor or business partner, you're required to carry coverage for your employees, but coverage for yourself is optional. The same goes for religious organizations with no employees—you can choose whether to opt in. But if you do have employees and fail to carry coverage, you're looking at serious penalties including fines, and worse, you lose your legal protections if an employee gets hurt. Without coverage, an injured worker can sue you directly for all damages and expenses, which could be financially devastating.
Understanding Ohio's Monopolistic System
The term "monopolistic" might sound a bit ominous, but it simply means the state runs the show. You have two options: purchase coverage through the Ohio Bureau of Workers' Compensation, or if you're a larger employer who meets specific financial requirements, you can apply to become self-insured. Most businesses—especially small and medium-sized companies—will go through the BWC.
The BWC has 10 service offices throughout Ohio and a headquarters in Columbus, so support is accessible wherever you're located. When you establish coverage, you'll also select a Managed Care Organization (MCO) that will handle the medical side of any workers' comp claims—approving or denying treatment requests, managing cases, coordinating return-to-work services, and paying medical bills. Think of the MCO as your partner in keeping claims efficient and employees healthy.
How Rates and Premiums Are Calculated
Every job classification in Ohio gets assigned a base rate for workers' compensation coverage. These rates are calculated per $100 of employee payroll and reflect how risky the job is. Low-risk office jobs might cost around 15 cents per $100 of payroll, while higher-risk work like house painting could run about $10 per $100. It's all about the likelihood of serious injury happening on the job.
But your base rate is just the starting point. Your actual premium is heavily influenced by your Experience Modifier Rate, or EMR. This number compares your company's workers' comp claim costs to the industry average. If you have fewer or less expensive claims than expected, your EMR will be below 1.00, and you're considered "credit rated"—meaning you pay less. If your claims are worse than average, your EMR goes above 1.00, and your premiums increase. Keeping your workplace safe directly impacts your bottom line.
The BWC sends out annual premium invoices in June, and you can choose from different payment installment options that apply for a full year. Don't miss the August 31 deadline for payroll reporting and payment—if you do, you'll be removed from discount programs and lose eligibility for the coming year. The BWC also offers grants worth $35 million annually and free safety consulting services to help you reduce injuries and lower your costs.
What Happens When an Employee Gets Injured?
Workplace injuries can happen in any business, no matter how careful you are. When they do, knowing the process helps everyone move forward quickly. The injured employee needs to report the injury to you immediately—Ohio law gives them up to one year, but prompt reporting is always better. As soon as you're notified, the employee should seek medical treatment right away. Delaying treatment can worsen the injury and complicate the claim.
Next, someone needs to file a First Report of Injury, Occupational Disease or Death (FROI) with the BWC. This can be done by you, the injured worker, the treating physician, or your MCO. You can file online through the BWC website, or print and mail or fax the form. The key deadline to remember is that the FROI must be filed within two years of the injury or the date the employee became unable to work. Once filed, the BWC issues a claim number, which should be used on all future documents and medical records.
The BWC reviews the claim by talking to the injured worker, you as the employer, and the medical team. Within 28 days, they'll send a decision allowing or denying the claim. If it's denied and the employee disagrees, they have 14 days to file an appeal in writing, typically using an IC-12 form. Your selected MCO may also reach out to help the injured worker get treatment and coordinate their return to work.
What Injuries and Benefits Are Covered?
Ohio workers' compensation covers most types of injuries and occupational diseases that occur in the course of employment. The key is proving the injury happened during job duties and was serious enough to require medical treatment or time off work. Covered injuries include physical trauma like fractures, amputations, burns, lacerations, back and neck injuries, vision and hearing loss, and more. The system also covers occupational diseases listed on Ohio's schedule, including certain cancers, infections, and poisoning from substances like asbestos, lead, mercury, and arsenic.
Interestingly, psychological conditions like depression or post-traumatic stress disorder can be covered too—but only if they result from a physical injury. Benefits include full coverage of medical expenses related to the injury, including diagnostic tests like X-rays, MRIs, and CT scans. The BWC also pays for lost wages when an employee can't work due to the injury. For 2025, the maximum weekly compensation is $1,231 per week for workers not receiving Social Security retirement, with a minimum of $615.50 for survivor benefits.
Getting Started and Staying Compliant
If you're a new employer, establishing your BWC coverage should be one of your first priorities. Visit the BWC website or contact one of their service offices to set up your account and select an MCO. Make sure you understand your job classification codes and base rates so you can budget appropriately. Once you're set up, keep accurate payroll records—you'll need to report your payroll annually for the policy year running from July 1 to June 30.
Take advantage of the BWC's safety resources. Completing required safety training each policy year (between July 1 and June 30) keeps you eligible for programs and discounts. The free safety consultants can visit your workplace and identify hazards before they cause injuries. Remember, preventing injuries isn't just the right thing to do for your employees—it's also the smartest financial move. Fewer claims mean a lower EMR, which means lower premiums year after year. Ohio's system rewards safe workplaces, so make safety a core part of your business culture from day one.
