Ohio plans $5 billion workers' comp payment to businesses

Ohio businesses are in line for a big payoff from the state to help them through the pandemic.

The Ohio Bureau of Workers' Compensation announced on Wednesday that it will award a $5 billion dividend to 178,425 public and private employers. The amount each company receives will depend on a variety of factors such as number of employees, injury history and industry, but will average about $28,000 per company.

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The city of Columbus, for example, stands to collect $64 million, bringing its total payments this year from the bureau to $100 million.

The payment represents more than three times what employers pay in premiums each year, and it's on top of the $1.5 billion dividend that the bureau just paid to employers this month and another $1.5 billion payment in April.

More:Ohio to send $429.5 million in relief to low-income families, small businesses, bars and restaurants

The dividend will be welcome news to restaurants, bars, hotels and other businesses that have been battered by the pandemic. 

The bureau said it wants the money in the hands of employers by year's end.

"We are ready to support businesses to stay open, to reduce layoffs and to keep Ohioans employed," Stephanie McCloud, the bureau's administrator, said during Gov. Mike DeWine's news conference on Wednesday.

Even with this latest dividend, the bureau remains financially sound with $6.3 billion in assets, said Chan Cochran, chairman of the bureau's board.

"The BWC exists to help Ohio employees who are hurting," he said. 

Sheila Trautner, president of Taste Hospitality Group in Columbus, which operates three restaurants and two event facilities, welcomed the news, calling it a "pleasant surprise."

"We thank you all for this announcement and appreciate that you're pushing the envelope in an effort to help Ohio businesses to offset the cost of operating under the conditions we're facing this year," she said. "Restaurants operate on tight margins so every dollar counts."

More:Ohio’s local government agencies to get 10% cut in workers’ comp premium

The payment would be the latest in a string of rate cuts and dividends that the bureau has awarded to businesses in the last several years. The bureau has credited lower injury rates, lower-than-expected medical inflation and sound investment policies for its ability to return money to employers. 

McCloud said the bureau's investments have earned $1 billion since July.

A 13% cut in workers' compensation rates for private employers went into effect July 1, saving employers $132 million this year.

A 10% cut for the state’s 3,700 counties, cities, public schools and other public employers will go into effect Jan. 1. The cut will save those agencies $14.8 million collectively.

mawilliams@dispatch.com

@BizMarkWilliams