Ohio § 4123.35
Full text of Ohio Ohio Revised Code § 4123.35, with citation guidance and answers to common questions.
§ 4123.35.
(A) Except as provided in this section, and until the policy year commencing July 1,
2015, every private employer and every publicly owned utility shall pay semiannually
in the months of January and July into the state insurance fund the amount of annual
premium the administrator of workers' compensation fixes for the employment or occupation
of the employer, the amount of which premium to be paid by each employer to be determined
by the classifications, rules, and rates made and published by the administrator. The employer shall pay semiannually a further sum of money into the state insurance
fund as may be ascertained to be due from the employer by applying the rules of the
administrator. Except as otherwise provided in this section, for a policy year commencing on or after
July 1, 2015, every private employer and every publicly owned utility shall pay annually
in the month of June immediately preceding the policy year into the state insurance
fund the amount of estimated annual premium the administrator fixes for the employment
or occupation of the employer, the amount of which estimated premium to be paid by
each employer to be determined by the classifications, rules, and rates made and published
by the administrator. The employer shall pay a further sum of money into the state insurance fund as may
be ascertained to be due from the employer by applying the rules of the administrator. Upon receipt of the payroll report required by division (B) of section 4123.26 of the Revised Code , the administrator shall adjust the premium and assessments charged to each employer
for the difference between estimated gross payrolls and actual gross payrolls, and
any balance due to the administrator shall be immediately paid by the employer. Any balance due the employer shall be credited to the employer's account. For a policy year commencing on or after July 1, 2015, each employer that is recognized
by the administrator as a professional employer organization or alternate employer
organization shall pay monthly into the state insurance fund the amount of premium
the administrator fixes for the employer for the prior month based on the actual payroll
of the employer reported pursuant to division (C) of section 4123.26 of the Revised Code . A receipt certifying that payment has been made shall be issued to the employer by
the bureau of workers' compensation. The receipt is prima-facie evidence of the payment of the premium. The administrator shall provide each employer written proof of workers' compensation
coverage as is required in section 4123.83 of the Revised Code . Proper posting of the notice constitutes the employer's compliance with the notice
requirement mandated in section 4123.83 of the Revised Code . The bureau shall verify with the secretary of state the existence of all corporations
and organizations making application for workers' compensation coverage and shall
require every such application to include the employer's federal identification number. A private employer who has contracted with a subcontractor is liable for the unpaid
premium due from any subcontractor with respect to that part of the payroll of the
subcontractor that is for work performed pursuant to the contract with the employer. Division (A) of this section providing for the payment of premiums semiannually does
not apply to any employer who was a subscriber to the state insurance fund prior to
January 1, 1914, or, until July 1, 2015, who may first become a subscriber to the
fund in any month other than January or July. Instead, the semiannual premiums shall be paid by those employers from time to time
upon the expiration of the respective periods for which payments into the fund have
been made by them. After July 1, 2015, an employer who first becomes a subscriber to the fund on any
day other than the first day of July shall pay premiums according to rules adopted
by the administrator, with the advice and consent of the bureau of workers' compensation
board of directors, for the remainder of the policy year for which the coverage is
effective. The administrator, with the advice and consent of the board, shall adopt rules to
permit employers to make periodic payments of the premium and assessment due under
this division. The rules shall include provisions for the assessment of interest charges, where
appropriate, and for the assessment of penalties when an employer fails to make timely
premium payments. The administrator, in the rules the administrator adopts, may set an administrative
fee for these periodic payments. An employer who timely pays the amounts due under this division is entitled to all
of the benefits and protections of this chapter. Upon receipt of payment, the bureau shall issue a receipt to the employer certifying
that payment has been made, which receipt is prima-facie evidence of payment. Workers' compensation coverage under this chapter continues uninterrupted upon timely
receipt of payment under this division. Every public employer, except public employers that are self-insuring employers under
this section, shall comply with sections 4123.38 to 4123.41 , and 4123.48 of the Revised Code in regard to the contribution of moneys to the public insurance fund. (B) Employers who will abide by the rules of the administrator and who may be of sufficient
financial ability to render certain the payment of compensation to injured employees
or the dependents of killed employees, and the furnishing of medical, surgical, nursing,
and hospital attention and services and medicines, and funeral expenses, equal to
or greater than is provided for in sections 4123.52 , 4123.55 to 4123.62 , and 4123.64 to 4123.67 of the Revised Code , and who do not desire to insure the payment thereof or indemnify themselves against
loss sustained by the direct payment thereof, upon a finding of such facts by the
administrator, may be granted the privilege to pay individually compensation, and
furnish medical, surgical, nursing, and hospital services and attention and funeral
expenses directly to injured employees or the dependents of killed employees, thereby
being granted status as a self-insuring employer. The administrator may charge employers who apply for the status as a self-insuring
employer a reasonable application fee to cover the bureau's costs in connection with
processing and making a determination with respect to an application. All employers granted status as self-insuring employers shall demonstrate sufficient
financial and administrative ability to assure that all obligations under this section
are promptly met. The administrator shall deny the privilege where the employer is unable to demonstrate
the employer's ability to promptly meet all the obligations imposed on the employer
by this section. (1) The administrator shall consider, but is not limited to, the following factors, where
applicable, in determining the employer's ability to meet all of the obligations imposed
on the employer by this section: (a) The employer has operated in this state for a minimum of two years, provided that
an employer who has purchased, acquired, or otherwise succeeded to the operation of
a business, or any part thereof, situated in this state that has operated for at least
two years in this state, also shall qualify; (b) Where the employer previously contributed to the state insurance fund or is a successor
employer as defined by bureau rules, the amount of the buyout, as defined by bureau
rules; (c) The sufficiency of the employer's assets located in this state to insure the employer's
solvency in paying compensation directly; (d) The financial records, documents, and data, certified by a certified public accountant,
necessary to provide the employer's full financial disclosure. The records, documents, and data include, but are not limited to, balance sheets
and profit and loss history for the current year and previous four years. (e) The employer's organizational plan for the administration of the workers' compensation
law; (f) The employer's proposed plan to inform employees of the change from a state fund
insurer to a self-insuring employer, the procedures the employer will follow as a
self-insuring employer, and the employees' rights to compensation and benefits; and (g) The employer has either an account in a financial institution in this state, or if
the employer maintains an account with a financial institution outside this state,
ensures that workers' compensation checks are drawn from the same account as payroll
checks or the employer clearly indicates that payment will be honored by a financial
institution in this state. The administrator may waive the requirements of division (B)(1)(a) of this section
and the requirement of division (B)(1)(d) of this section that the financial records,
documents, and data be certified by a certified public accountant. The administrator shall adopt rules establishing the criteria that an employer shall
meet in order for the administrator to waive the requirements of divisions (B)(1)(a)
and (d) of this section. Such rules may require additional security of that employer pursuant to division (E) of section 4123.351 of the Revised Code . The administrator shall not grant the status of self-insuring employer to the state,
except that the administrator may grant the status of self-insuring employer to a
state institution of higher education, including its hospitals, that meets the requirements
of division (B)(2) of this section. (2) When considering the application of a public employer, except for a board of county
commissioners described in division (G) of section 4123.01 of the Revised Code , a board of a county hospital, or a publicly owned utility, the administrator shall
verify that the public employer satisfies all of the following requirements as the
requirements apply to that public employer: (a) For the two-year period preceding application under this section, the public employer
has maintained an unvoted debt capacity equal to at least two times the amount of
the current annual premium established by the administrator under this chapter for
that public employer for the year immediately preceding the year in which the public
employer makes application under this section. (b) For each of the two fiscal years preceding application under this section, the unreserved
and undesignated year-end fund balance in the public employer's general fund is equal
to at least five per cent of the public employer's general fund revenues for the fiscal
year computed in accordance with generally accepted accounting principles. (c) For the five-year period preceding application under this section, the public employer,
to the extent applicable, has complied fully with the continuing disclosure requirements
established in rules adopted by the United States securities and exchange commission
under 17 C.F.R. 240.15c 2 - 12 . (d) For the five-year period preceding application under this section, the public employer
has not had its local government fund distribution withheld on account of the public
employer being indebted or otherwise obligated to the state. (e) For the five-year period preceding application under this section, the public employer
has not been under a fiscal watch or fiscal emergency pursuant to section 118.023 , 118.04 , or 3316.03 of the Revised Code . (f) For the public employer's fiscal year preceding application under this section, the
public employer has obtained an annual financial audit as required under section 117.10 of the Revised Code , which has been released by the auditor of state within seven months after the end
of the public employer's fiscal year. (g) On the date of application, the public employer holds a debt rating of Aa3 or higher
according to Moody's investors service, inc., or a comparable rating by an independent
rating agency similar to Moody's investors service, inc. (h) The public employer agrees to generate an annual accumulating book reserve in its
financial statements reflecting an actuarially generated reserve adequate to pay projected
claims under this chapter for the applicable period of time, as determined by the
administrator. (i) For a public employer that is a hospital, the public employer shall submit audited
financial statements showing the hospital's overall liquidity characteristics, and
the administrator shall determine, on an individual basis, whether the public employer
satisfies liquidity standards equivalent to the liquidity standards of other public
employers. (j) Any additional criteria that the administrator adopts by rule pursuant to division
(E) of this section. The administrator may adopt rules establishing the criteria that a public employer
shall satisfy in order for the administrator to waive any of the requirements listed
in divisions (B)(2)(a) to (j) of this section. The rules may require additional security from that employer pursuant to division (E) of section 4123.351 of the Revised Code . The administrator shall not waive any of the requirements listed in divisions (B)(2)(a)
to (j) of this section for a public employer who does not satisfy the criteria established
in the rules the administrator adopts. (C) A board of county commissioners described in division (G) of section 4123.01 of the Revised Code , as an employer, that will abide by the rules of the administrator and that may be
of sufficient financial ability to render certain the payment of compensation to injured
employees or the dependents of killed employees, and the furnishing of medical, surgical,
nursing, and hospital attention and services and medicines, and funeral expenses,
equal to or greater than is provided for in sections 4123.52 , 4123.55 to 4123.62 , and 4123.64 to 4123.67 of the Revised Code , and that does not desire to insure the payment thereof or indemnify itself against
loss sustained by the direct payment thereof, upon a finding of such facts by the
administrator, may be granted the privilege to pay individually compensation, and
furnish medical, surgical, nursing, and hospital services and attention and funeral
expenses directly to injured employees or the dependents of killed employees, thereby
being granted status as a self-insuring employer. The administrator may charge a board of county commissioners described in division (G) of section 4123.01 of the Revised Code that applies for the status as a self-insuring employer a reasonable application
fee to cover the bureau's costs in connection with processing and making a determination
with respect to an application. All employers granted such status shall demonstrate sufficient financial and administrative
ability to assure that all obligations under this section are promptly met. The administrator shall deny the privilege where the employer is unable to demonstrate
the employer's ability to promptly meet all the obligations imposed on the employer
by this section. The administrator shall consider, but is not limited to, the following factors,
where applicable, in determining the employer's ability to meet all of the obligations
imposed on the board as an employer by this section: (1) The board has operated in this state for a minimum of two years; (2) Where the board previously contributed to the state insurance fund or is a successor
employer as defined by bureau rules, the amount of the buyout, as defined by bureau
rules; (3) The sufficiency of the board's assets located in this state to insure the board's
solvency in paying compensation directly; (4) The financial records, documents, and data, certified by a certified public accountant,
necessary to provide the board's full financial disclosure. The records, documents, and data include, but are not limited to, balance sheets
and profit and loss history for the current year and previous four years. (5) The board's organizational plan for the administration of the workers' compensation
law; (6) The board's proposed plan to inform employees of the proposed self-insurance, the
procedures the board will follow as a self-insuring employer, and the employees' rights
to compensation and benefits; (7) The board has either an account in a financial institution in this state, or if the
board maintains an account with a financial institution outside this state, ensures
that workers' compensation checks are drawn from the same account as payroll checks
or the board clearly indicates that payment will be honored by a financial institution
in this state; (8) The board shall provide the administrator a surety bond in an amount equal to one
hundred twenty-five per cent of the projected losses as determined by the administrator. (D) The administrator shall require a surety bond from all self-insuring employers, issued
pursuant to section 4123.351 of the Revised Code , that is sufficient to compel, or secure to injured employees, or to the dependents
of employees killed, the payment of compensation and expenses, which shall in no event
be less than that paid or furnished out of the state insurance fund in similar cases
to injured employees or to dependents of killed employees whose employers contribute
to the fund, except when an employee of the employer, who has suffered the loss of
a hand, arm, foot, leg, or eye prior to the injury for which compensation is to be
paid, and thereafter suffers the loss of any other of the members as the result of
any injury sustained in the course of and arising out of the employee's employment,
the compensation to be paid by the self-insuring employer is limited to the disability
suffered in the subsequent injury, additional compensation, if any, to be paid by
the bureau out of the surplus created by section 4123.34 of the Revised Code . (E) In addition to the requirements of this section, the administrator shall make and
publish rules governing the manner of making application and the nature and extent
of the proof required to justify a finding of fact by the administrator as to granting
the status of a self-insuring employer, which rules shall be general in their application,
one of which rules shall provide that all self-insuring employers shall pay into the
state insurance fund such amounts as are required to be credited to the surplus fund
in division (B) of section 4123.34 of the Revised Code . The administrator may adopt rules establishing requirements in addition to the requirements
described in division (B)(2) of this section that a public employer shall meet in
order to qualify for self-insuring status. Employers shall secure directly from the bureau central offices application forms
upon which the bureau shall stamp a designating number. Prior to submission of an application, an employer shall make available to the bureau,
and the bureau shall review, the information described in division (B)(1) of this
section, and public employers shall make available, and the bureau shall review, the
information necessary to verify whether the public employer meets the requirements
listed in division (B)(2) of this section. An employer shall file the completed application forms with an application fee,
which shall cover the costs of processing the application, as established by the administrator,
by rule, with the bureau at least ninety days prior to the effective date of the employer's
new status as a self-insuring employer. The application form is not deemed complete until all the required information is
attached thereto. The bureau shall only accept applications that contain the required information. (F) The bureau shall review completed applications within a reasonable time. If the bureau determines to grant an employer the status as a self-insuring employer,
the bureau shall issue a statement, containing its findings of fact, that is prepared
by the bureau and signed by the administrator. If the bureau determines not to grant the status as a self-insuring employer, the
bureau shall notify the employer of the determination and require the employer to
continue to pay its full premium into the state insurance fund. The administrator also shall adopt rules establishing a minimum level of performance
as a criterion for granting and maintaining the status as a self-insuring employer
and fixing time limits beyond which failure of the self-insuring employer to provide
for the necessary medical examinations and evaluations may not delay a decision on
a claim. (G) The administrator shall adopt rules setting forth procedures for auditing the program
of self-insuring employers. The bureau shall conduct the audit upon a random basis or whenever the bureau has
grounds for believing that a self-insuring employer is not in full compliance with
bureau rules or this chapter. The administrator shall monitor the programs conducted by self-insuring employers,
to ensure compliance with bureau requirements and for that purpose, shall develop
and issue to self-insuring employers standardized forms for use by the self-insuring
employer in all aspects of the self-insuring employers' direct compensation program
and for reporting of information to the bureau. The bureau shall receive and transmit to the self-insuring employer all complaints
concerning any self-insuring employer. In the case of a complaint against a self-insuring employer, the administrator shall
handle the complaint through the self-insurance division of the bureau. The bureau shall maintain a file by employer of all complaints received that relate
to the employer. The bureau shall evaluate each complaint and take appropriate action. The administrator shall adopt as a rule a prohibition against any self-insuring employer
from harassing, dismissing, or otherwise disciplining any employee making a complaint,
which rule shall provide for a financial penalty to be levied by the administrator
payable by the offending self-insuring employer. (H) For the purpose of making determinations as to whether to grant status as a self-insuring
employer, the administrator may subscribe to and pay for a credit reporting service
that offers financial and other business information about individual employers. The costs in connection with the bureau's subscription or individual reports from
the service about an applicant may be included in the application fee charged employers
under this section. (I) A self-insuring employer that returns to the state insurance fund as a state fund
employer shall provide the administrator with medical costs and indemnity costs by
claim, and payroll by manual classification and year, and such other information the
administrator may require. The self-insuring employer shall submit this information by dates and in a format
determined by the administrator. The administrator shall develop a state fund experience modification factor for
a self-insuring employer that returns to the state insurance fund based in whole or
in part on the employer's self-insured experience and the information submitted. (J) On the first day of July of each year, the administrator shall calculate separately
each self-insuring employer's assessments for the safety and hygiene fund, administrative
costs pursuant to section 4123.342 of the Revised Code , and for the surplus fund under division (B) of section 4123.34 of the Revised Code , on the basis of the paid compensation attributable to the individual self-insuring
employer according to the following calculation: (1) The total assessment against all self-insuring employers as a class for each fund
and for the administrative costs for the year that the assessment is being made, as
determined by the administrator, divided by the total amount of paid compensation
for the previous calendar year attributable to all amenable self-insuring employers; (2) Multiply the quotient in division (J)(1) of this section by the total amount of paid
compensation for the previous calendar year that is attributable to the individual
self-insuring employer for whom the assessment is being determined. Each self-insuring employer shall pay the assessment that results from this calculation,
unless the assessment resulting from this calculation falls below a minimum assessment,
which minimum assessment the administrator shall determine on the first day of July
of each year with the advice and consent of the bureau of workers' compensation board
of directors, in which event, the self-insuring employer shall pay the minimum assessment. In determining the total amount due for the total assessment against all self-insuring
employers as a class for each fund and the administrative assessment, the administrator
shall reduce proportionately the total for each fund and assessment by the amount
of money in the self-insurance assessment fund as of the date of the computation of
the assessment. The administrator shall calculate the assessment for the portion of the surplus fund
under division (B) of section 4123.34 of the Revised Code that is used for reimbursement to a self-insuring employer under division (H) of section 4123.512 of the Revised Code in the same manner as set forth in divisions (J)(1) and (2) of this section except
that the administrator shall calculate the total assessment for this portion of the
surplus fund only on the basis of those self-insuring employers that retain participation
in reimbursement to the self-insuring employer under division (H) of section 4123.512 of the Revised Code and the individual self-insuring employer's proportion of paid compensation shall
be calculated only for those self-insuring employers who retain participation in reimbursement
to the self-insuring employer under division (H) of section 4123.512 of the Revised Code . An employer who no longer is a self-insuring employer in this state or who no longer
is operating in this state, shall continue to pay assessments for administrative costs
and for the surplus fund under division (B) of section 4123.34 of the Revised Code based upon paid compensation attributable to claims that occurred while the employer
was a self-insuring employer within this state. (K) There is hereby created in the state treasury the self-insurance assessment fund. All investment earnings of the fund shall be deposited in the fund. The administrator shall use the money in the self-insurance assessment fund only
for administrative costs as specified in section 4123.341 of the Revised Code . (L) Every self-insuring employer shall certify, in affidavit form subject to the penalty
for perjury, to the bureau the amount of the self-insuring employer's paid compensation
for the previous calendar year. In reporting paid compensation paid for the previous year, a self-insuring employer
shall exclude from the total amount of paid compensation any reimbursement the self-insuring
employer receives in the previous calendar year from the surplus fund pursuant to section 4123.512 of the Revised Code for any paid compensation. The self-insuring employer also shall exclude from the paid compensation reported
any amount recovered under section 4123.931 of the Revised Code and any amount that is determined not to have been payable to or on behalf of a claimant
in any final administrative or judicial proceeding. The self-insuring employer shall exclude such amounts from the paid compensation
reported in the reporting period subsequent to the date the determination is made. The administrator shall adopt rules, in accordance with Chapter 119. of the Revised
Code, that provide for all of the following: (1) Establishing the date by which self-insuring employers must submit such information
and the amount of the assessments provided for in division (J) of this section for
employers who have been granted self-insuring status within the last calendar year; (2) If an employer fails to pay the assessment when due, the administrator may add a
late fee penalty of not more than five hundred dollars to the assessment plus an additional
penalty amount as follows: (a) For an assessment from sixty-one to ninety days past due, the prime interest rate,
multiplied by the assessment due; (b) For an assessment from ninety-one to one hundred twenty days past due, the prime
interest rate plus two per cent, multiplied by the assessment due; (c) For an assessment from one hundred twenty-one to one hundred fifty days past due,
the prime interest rate plus four per cent, multiplied by the assessment due; (d) For an assessment from one hundred fifty-one to one hundred eighty days past due,
the prime interest rate plus six per cent, multiplied by the assessment due; (e) For an assessment from one hundred eighty-one to two hundred ten days past due, the
prime interest rate plus eight per cent, multiplied by the assessment due; (f) For each additional thirty-day period or portion thereof that an assessment remains
past due after it has remained past due for more than two hundred ten days, the prime
interest rate plus eight per cent, multiplied by the assessment due. (3) An employer may appeal a late fee penalty and penalty assessment to the administrator. For purposes of division (L)(2) of this section, “ prime interest rate ” means the average bank prime rate, and the administrator shall determine the prime
interest rate in the same manner as a county auditor determines the average bank prime
rate under section 929.02 of the Revised Code . The administrator shall include any assessment and penalties that remain unpaid for
previous assessment periods in the calculation and collection of any assessments due
under this division or division (J) of this section. (M) As used in this section, “ paid compensation ” means all amounts paid by a self-insuring employer for living maintenance benefits,
all amounts for compensation paid pursuant to sections 4121.63 , 4121.67 , 4123.56 , 4123.57 , 4123.58 , 4123.59 , 4123.60 , and 4123.64 of the Revised Code , all amounts paid as wages in lieu of such compensation, all amounts paid in lieu
of such compensation under a nonoccupational accident and sickness program fully funded
by the self-insuring employer, and all amounts paid by a self-insuring employer for
a violation of a specific safety standard pursuant to Section 35 of Article II, Ohio Constitution and section 4121.47 of the Revised Code . (N) Should any section of this chapter or Chapter 4121. of the Revised Code providing
for self-insuring employers' assessments based upon compensation paid be declared
unconstitutional by a final decision of any court, then that section of the Revised
Code declared unconstitutional shall revert back to the section in existence prior
to November 3, 1989, providing for assessments based upon payroll. (O) The administrator may grant a self-insuring employer the privilege to self-insure
a construction project entered into by the self-insuring employer that is scheduled
for completion within six years after the date the project begins, and the total cost
of which is estimated to exceed one hundred million dollars or, for employers described
in division (R) of this section, if the construction project is estimated to exceed
twenty-five million dollars. The administrator may waive such cost and time criteria and grant a self-insuring
employer the privilege to self-insure a construction project regardless of the time
needed to complete the construction project and provided that the cost of the construction
project is estimated to exceed fifty million dollars. A self-insuring employer who desires to self-insure a construction project shall
submit to the administrator an application listing the dates the construction project
is scheduled to begin and end, the estimated cost of the construction project, the
contractors and subcontractors whose employees are to be self-insured by the self-insuring
employer, the provisions of a safety program that is specifically designed for the
construction project, and a statement as to whether a collective bargaining agreement
governing the rights, duties, and obligations of each of the parties to the agreement
with respect to the construction project exists between the self-insuring employer
and a labor organization. A self-insuring employer may apply to self-insure the employees of either of the following: (1) All contractors and subcontractors who perform labor or work or provide materials
for the construction project; (2) All contractors and, at the administrator's discretion, a substantial number of all
the subcontractors who perform labor or work or provide materials for the construction
project. Upon approval of the application, the administrator shall mail a certificate granting
the privilege to self-insure the construction project to the self-insuring employer. The certificate shall contain the name of the self-insuring employer and the name,
address, and telephone number of the self-insuring employer's representatives who
are responsible for administering workers' compensation claims for the construction
project. The self-insuring employer shall post the certificate in a conspicuous place at
the site of the construction project. The administrator shall maintain a record of the contractors and subcontractors whose
employees are covered under the certificate issued to the self-insured employer. A self-insuring employer immediately shall notify the administrator when any contractor
or subcontractor is added or eliminated from inclusion under the certificate. Upon approval of the application, the self-insuring employer is responsible for the
administration and payment of all claims under this chapter and Chapter 4121. of the
Revised Code for the employees of the contractor and subcontractors covered under
the certificate who receive injuries or are killed in the course of and arising out
of employment on the construction project, or who contract an occupational disease
in the course of employment on the construction project. For purposes of this chapter and Chapter 4121. of the Revised Code, a claim that
is administered and paid in accordance with this division is considered a claim against
the self-insuring employer listed in the certificate. A contractor or subcontractor included under the certificate shall report to the
self-insuring employer listed in the certificate, all claims that arise under this
chapter and Chapter 4121. of the Revised Code in connection with the construction
project for which the certificate is issued. A self-insuring employer who complies with this division is entitled to the protections
provided under this chapter and Chapter 4121. of the Revised Code with respect to
the employees of the contractors and subcontractors covered under a certificate issued
under this division for death or injuries that arise out of, or death, injuries, or
occupational diseases that arise in the course of, those employees' employment on
that construction project, as if the employees were employees of the self-insuring
employer, provided that the self-insuring employer also complies with this section. No employee of the contractors and subcontractors covered under a certificate issued
under this division shall be considered the employee of the self-insuring employer
listed in that certificate for any purposes other than this chapter and Chapter 4121.
of the Revised Code. Nothing in this division gives a self-insuring employer authority to control the
means, manner, or method of employment of the employees of the contractors and subcontractors
covered under a certificate issued under this division. The contractors and subcontractors included under a certificate issued under this
division are entitled to the protections provided under this chapter and Chapter 4121.
of the Revised Code with respect to the contractor's or subcontractor's employees
who are employed on the construction project which is the subject of the certificate,
for death or injuries that arise out of, or death, injuries, or occupational diseases
that arise in the course of, those employees' employment on that construction project. The contractors and subcontractors included under a certificate issued under this
division shall identify in their payroll records the employees who are considered
the employees of the self-insuring employer listed in that certificate for purposes
of this chapter and Chapter 4121. of the Revised Code, and the amount that those employees
earned for employment on the construction project that is the subject of that certificate. Notwithstanding any provision to the contrary under this chapter and Chapter 4121.
of the Revised Code, the administrator shall exclude the payroll that is reported
for employees who are considered the employees of the self-insuring employer listed
in that certificate, and that the employees earned for employment on the construction
project that is the subject of that certificate, when determining those contractors'
or subcontractors' premiums or assessments required under this chapter and Chapter
4121. of the Revised Code. A self-insuring employer issued a certificate under this division shall include
in the amount of paid compensation it reports pursuant to division (L) of this section,
the amount of paid compensation the self-insuring employer paid pursuant to this division
for the previous calendar year. Nothing in this division shall be construed as altering the rights of employees under
this chapter and Chapter 4121. of the Revised Code as those rights existed prior to
September 17, 1996. Nothing in this division shall be construed as altering the rights devolved under sections 2305.31 and 4123.82 of the Revised Code as those rights existed prior to September 17, 1996. As used in this division, “ privilege to self-insure a construction project ” means privilege to pay individually compensation, and to furnish medical, surgical,
nursing, and hospital services and attention and funeral expenses directly to injured
employees or the dependents of killed employees. (P) A self-insuring employer whose application is granted under division (O) of this
section shall designate a safety professional to be responsible for the administration
and enforcement of the safety program that is specifically designed for the construction
project that is the subject of the application. A self-insuring employer whose application is granted under division (O) of this section
shall employ an ombudsperson for the construction project that is the subject of the
application. The ombudsperson shall have experience in workers' compensation or the construction
industry, or both. The ombudsperson shall perform all of the following duties: (1) Communicate with and provide information to employees who are injured in the course
of, or whose injury arises out of employment on the construction project, or who contract
an occupational disease in the course of employment on the construction project; (2) Investigate the status of a claim upon the request of an employee to do so; (3) Provide information to claimants, third party administrators, employers, and other
persons to assist those persons in protecting their rights under this chapter and
Chapter 4121. of the Revised Code. A self-insuring employer whose application is granted under division (O) of this section
shall post the name of the safety professional and the ombudsperson and instructions
for contacting the safety professional and the ombudsperson in a conspicuous place
at the site of the construction project. (Q) The administrator may consider all of the following when deciding whether to grant
a self-insuring employer the privilege to self-insure a construction project as provided
under division (O) of this section: (1) Whether the self-insuring employer has an organizational plan for the administration
of the workers' compensation law; (2) Whether the safety program that is specifically designed for the construction project
provides for the safety of employees employed on the construction project, is applicable
to all contractors and subcontractors who perform labor or work or provide materials
for the construction project, and has as a component, a safety training program that
complies with standards adopted pursuant to the “Occupational Safety and Health Act
of 1970,” 84 Stat. 1590, 29 U.S.C.A. 651 , and provides for continuing management and employee involvement; (3) Whether granting the privilege to self-insure the construction project will reduce
the costs of the construction project; (4) Whether the self-insuring employer has employed an ombudsperson as required under
division (P) of this section; (5) Whether the self-insuring employer has sufficient surety to secure the payment of
claims for which the self-insuring employer would be responsible pursuant to the granting
of the privilege to self-insure a construction project under division (O) of this
section. (R) As used in divisions (O), (P), and (Q), “ self-insuring employer ” includes the following employers, whether or not they have been granted the status
of being a self-insuring employer under division (B) of this section: (1) A state institution of higher education; (2) A school district; (3) A county school financing district; (4) An educational service center; (5) A community school established under Chapter 3314. of the Revised Code; (6) A municipal power agency as defined in section 3734.058 of the Revised Code . (S) As used in this section: (1) “ Unvoted debt capacity ” means the amount of money that a public employer may borrow without voter approval
of a tax levy; (2) “ State institution of higher education ” means the state universities listed in section 3345.011 of the Revised Code , community colleges created pursuant to Chapter 3354. of the Revised Code, university
branches created pursuant to Chapter 3355. of the Revised Code, technical colleges
created pursuant to Chapter 3357. of the Revised Code, and state community colleges
created pursuant to Chapter 3358. of the Revised Code.
Frequently Asked Questions About Ohio § 4123.35
What does Ohio Revised Code § 4123.35 cover?
Section 4123.35 is part of the Ohio Revised Code, the codified statutory law of Ohio. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Ohio § 4123.35?
A common citation format is "Ohio Revised Code § 4123.35" (Ohio). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Ohio law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Ohio official source linked on this page or consult a licensed Ohio attorney.
How does Ohio § 4123.35 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Ohio can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Ohio.