On February 24, Governor Mike DeWine and the Ohio Bureau of Workers’ Compensation (BWC) announced an 8% reduction in workers’ compensation premiums for the next fiscal year. The decrease is consistent with the reduction in loss cuts and administrative costs the BWC has experienced. The 8% reduction is expected to be an average cost change, as premiums paid by employers are dependent on expected future claims, recent claims, and participation in various BWC programs.

The state of Ohio reported that, with this reduction, the average workers’ compensation rates are at their lowest levels in over sixty years. Further, this is only one of several actions the BWC has taken to support Ohio’s businesses in recent years. For instance, they have worked to lower rates as Ohio has moved from having the third highest rates in the country before 2008 to the fifth lowest rates through January 1, 2022. In addition, in 2020, the BWC issued three dividend payments, totaling approximately $8 billion, to support employers through the COVID-19 pandemic. The state also offers safety resources and training programs to help businesses keep employees safe, thereby reducing Workers’ Compensation claims.

To discuss your manufacturing business, please contact a member of HBK Manufacturing Solutions at 330-758-8613 or manufacturing@hbkcpa.com.