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Economy and Business


Employers seek $1.3 billion in repayments from Bureau of Workers Comp
The class action lawsuit claims businesses overpaid Ohio Bureau of Workers Comp $1.3 billion dollars 
by WKSU's JEFF ST. CLAIR


Morning Edition Host
Jeff St. Clair
 
Opening statements began this week in the largest class action suit ever against the Ohio Bureau of Workers Comp.  Plaintiffs representing hundreds of thousands of employers are asking the agency to return $1.3 billion in over-payments. 
Employers seek $1.3 billion in workers comp suit

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The dispute dates back to 2007 when Cleveland area restaurant Corky & Lenny’s filed a class action suit against the Ohio Bureau of Workers Comp.  The suit claimed the businesses had been overcharged for premiums paid to the state-run workers insurance agency.

What’s at issue is the discount rates the bureau charged to special low-cost groups of businesses versus the higher rates those outside the groups paid. 

Will Ross of Calfee, Halter & Griswold LLP in Cleveland represents employers in workers comp cases; he’s not part of the suit, but he says because of the complexity of the discount system, the $1.3 billion pay out the class action suit is seeking will actually cost some businesses.

Ross says every employer, "essentially has to take out its own calculator and determine whether they would come out ahead, break even, or behind if the plaintiffs are successful in this lawsuit.”

The workers comp discount system was overhauled in the early stages of this case. Now the plaintiffs are saying they should be repaid for subsidizing the system earlier in the last decade.  Ross believes whoever loses will take it to the Ohio Supreme Court before any checks are signed.  

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