DeWine seeks approval of $1 billion workers’ compensation dividend for Ohio employers

Gov. Mike DeWine is asking the Ohio Bureau of Workers’ Compensation Board of Directors to approve a projected $1 billion dividend for Ohio’s public and private employers, a proposal that would bring total dividend payments issued during his administration to $10.2 billion if approved next month.

The proposed dividend, announced Thursday, would equal approximately 90% of the workers’ compensation premiums employers paid during policy year 2022, according to the governor’s office. The Bureau of Workers’ Compensation Board is expected to consider the request during its August meeting.

If approved, the payment would mark the fifth major dividend issued by the Bureau of Workers’ Compensation since DeWine took office in 2019. State officials said the total amount returned to employers would exceed the premiums businesses have paid into the system during that period, meaning the typical employer would have received more in dividends than it paid in workers’ compensation premiums over the course of DeWine’s two terms.

“Ohio employers have a bright future ahead,” DeWine, a Republican, said in a statement. “Our state continues to grow and be one of the best places to live, own a business, and have a family.”

Bureau of Workers’ Compensation Administrator Stephanie McCloud said the proposed payment reflects the agency’s financial position.

“Governor DeWine has requested another $1 billion be paid to Ohio business owners,” McCloud said. “If this dividend is approved, BWC will have paid employers more in dividends than employers have paid in premiums under this administration.”

According to the governor’s office, the proposed dividend is possible because of the bureau’s financial management and investment returns.

The announcement follows a 1% reduction in workers’ compensation premium rates for private employers that took effect July 1. State officials estimate the rate cut will save private employers approximately $10 million annually while leaving Ohio with its lowest workers’ compensation rates in more than 65 years.

Not every employer would qualify for the proposed dividend.

Businesses that failed to complete their 2022 policy year true-up or whose workers’ compensation accounts remain in a lapsed status may be ineligible. The Bureau of Workers’ Compensation said employers have until Aug. 28 to complete the required true-up and resolve any lapsed status to remain eligible if the dividend is approved.

The Bureau of Workers’ Compensation Board of Directors is scheduled to consider the proposal during its August meeting.