$420 million settlement deadline approaching for eligible Ohio employers

With the deadline a week away, only a small fraction of eligible Ohio employers have filed claims to receive their share of a $420 million state workers’ compensation settlement.

IF AN ELIGIBLE EMPLOYER FAILS TO SUBMIT A CLAIM, POSTMARKED BY OCTOBER 22, 2014, THAT EMPLOYER WILL BE FOREVER BARRED FROM PARTICIPATING IN THE SETTLEMENT AND RECEIVING SETTLEMENT FUNDS.

On March 20, 2013, Judge Richard J. McMonagle, of the Cuyahoga County Court of Common Pleas, issued a judgment in the case San Allen Inc. v. Ohio Bureau of Workers' Compensation. The lawsuit pertains to premium overcharges made by the BWC from 2001 to 2008, inflating the premiums of Ohio employers who did not participate in group rating programs.

Judge McMonagle found for the Plaintiff, a class of approximately 300,000 businesses and employers in the state of Ohio, and against the Defendant, the Ohio Bureau of Workers’ Compensation, in the amount of $859,440,258.79. This decision was appealed to the Eighth District Court of Appeals which affirmed the decision but reduced the award to $650,978,738.82. In July 2014, a settlement between the parties was reached, with the BWC agreeing to pay a settlement of $420,000,000.00.

The case allows affected employers to easily apply for and receive reparation for overcharges, but they must file a claim form before October 22, 2014.

Although class members should have received a “Notice of Class Action and Proposed Settlement,” currently, only 7 percent of eligible class members have submitted claims. All employers are encouraged to examine their eligibility.

To apply for a refund, Ohio employers who received a “Notice of Class Action and Proposed Settlement” by mail must complete a claim form and submit it, postmarked no later than October 22, 2014. Employers who did not receive a notice by mail, but meet the eligibility requirements, should contact the Settlement Administrator toll-free at 1-844-322-8230, provide the employer’s Ohio BWC policy number and Employer Identification Number (EIN). Claim forms can be sent to employers via email.

Eligibility information, case and settlement details, sample documents and mailing information can be found at www.OhioBWCLawsuit.com The law firm of Bricker & Eckler, appointed as Special Master by the court for this litigation, may be able to provide assistance regarding the settlement procedure. Contact Bricker & Eckler at 216.523.5405 with any questions regarding the claims or eligibility.

About Bricker & Eckler:

Named to The National Law Journal’s “2013 Midsize Hot List," Bricker & Eckler is one of Ohio’s leading law firms. Located in Columbus, Cleveland, Cincinnati-Dayton, Marietta and Barnesville, the firm represents a wide variety of clients, including businesses and corporations, nonprofit organizations, governmental agencies, health care entities, school districts, municipalities, banks and insurers. Bricker & Eckler has a long history of promoting and supporting diversity and inclusion, in our ongoing effort to reflect the communities and clients that we serve. Connect with us online on Twitter, Facebook and LinkedIn.