Failure to pay workers’ comp results in business being shut down

On 7/25/11, I wrote about a company that had let its coverage lapse in 2006.  Since then, 22 claims have been filed including one death claim.  The business now owes almost $700,000 in premiums, penalties, interest, and claims costs.

The BWC has successfully gotten an injunction to close the business to protect the employees and the other employers in Ohio from having to pay for the claims.  This is believed to be the first action of its kind by the BWC.

Now the employees are safer, but unemployed.  Will ODJFS pay the unemployment compensation claims even if the business owner hasn’t paid those premiums either?

Here’s a link to the press release on the BWC website if you want to read the details:  https://www.ohiobwc.com/home/current/releases/2012/032812refuse.asp

 

Posted in fraud, premiums.