Ohio Company Ordered – Provide Workers Comp Coverage or Stop Operations

April 16, 2012 By // by Robert Elliott, J.D. Leave a Comment

A Cuyahoga County, Ohio judge has ordered Gray Container, a 55-gallon drum manufacturer, to discontinue its operations for repeatedly refusing to maintain workers compensation coverage. See Ohio's Guidelines here in our WC resource center.

The injunction against Gray Container, requested by the Ohio Bureau of Workers Compensation (BWC), was filed to protect employees. This injunction is believed to be the first action of its kind by BWC. The Attorney General’s Office represented BWC during this action. [WCx]

“This case is ultimately about fairness to the employees who deserve protection in the case of workplace injury and fairness to the 250,000 other Ohio businesses that have to pick up the tab when a worker for an uninsured company is injured," said BWC Administrator/CEO Steve Buehrer. "In this instance, Gray Container ignored repeated efforts by our staff to find a workable solution, even as multiple claims were filed by its workers."

Gray Container allowed its policy to lapse in September, 2006 and despite repeated attempts by BWC to assist the company to maintain coverage, it failed to protect its employees.

During that time, 22 claims, one of which was a death claim, were filed and Gray Container now owes almost $700,000. Ohio law ensures benefits for the injured workers even if the employer is without coverage. When an employer fails to pay premiums, other Ohio employers are forced to carry the burden. [WCx]

The company's owner already pled guilty in May to felony failure to comply with workers comp laws.

At a hearing in June of last year, Gray agreed to make a lump sum payment, make monthly payments, and continue to report payroll and pay premium in a timely manner. In all instances, Gray failed to meet any of these agreements.

Author Robert Elliott, executive vice president, Amaxx Risk Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He is an editor and contributor to Workers Compensation Management Program: Reduce Costs 20% to 50%. Contact: Info@ReduceYourWorkersComp.com.

WORKERS COMP MANAGEMENT MANUAL: www.WCManual.com

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MODIFIED DUTY CALCULATOR: www.LowerWC.com/transitional-duty-cost-calculator.php

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.

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