Ohio Code 4125.07 – Workers’ compensation lease termination notice; self-insuring employers; report regarding transfer of employees
(A) As used in this section, “self-insuring employer” has the same meaning as in section 4123.01 of the Revised Code.
Terms Used In Ohio Code 4125.07
- Client employer: means a sole proprietor, partnership, association, limited liability company, or corporation that enters into a professional employer organization agreement and is assigned shared employees by the professional employer organization. See Ohio Code 4125.01
- in writing: includes any representation of words, letters, symbols, or figures; this provision does not affect any law relating to signatures. See Ohio Code 1.59
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Professional employer organization: means a sole proprietor, partnership, association, limited liability company, or corporation that enters into an agreement with one or more client employers for the purpose of coemploying all or part of the client employer's workforce at the client employer's work site. See Ohio Code 4125.01
- Professional employer organization agreement: means a written contract to coemploy employees between a professional employer organization and a client employer with a duration of not less than twelve months in accordance with the requirements of this chapter. See Ohio Code 4125.01
- Professional employer organization reporting entity: means two or more professional employer organizations that are majorityowned or commonly controlled by the same entity, parent, or controlling person and that satisfy reporting entity control rules as defined by the financial accounting standards board and under generally accepted accounting principles. See Ohio Code 4125.01
- state: means the state of Ohio. See Ohio Code 1.59
(B) Not later than thirty calendar days after the date on which a professional employer organization agreement is terminated, the professional employer organization is adjudged bankrupt, the professional employer organization ceases operations within the state of Ohio, or the registration of the professional employer organization is revoked, the professional employer organization shall submit to the administrator of workers’ compensation and each client employer associated with that professional employer organization a completed workers’ compensation lease termination notice form provided by the administrator. The completed form shall include all client payroll and claim information listed in a format specified by the administrator and notice of all workers’ compensation claims that have been reported to the professional employer organization in accordance with its internal reporting policies.
(C)(1) If a professional employer organization that is a self-insuring employer is required to submit a workers’ compensation lease termination notice form under division (B) of this section, not later than thirty calendar days after the lease termination the professional employer organization shall submit all of the following to the administrator for any years necessary for the administrator to develop a state fund experience modification factor for each client employer involved in the lease termination:
(a) The payroll of each client employer involved in the lease termination, organized by manual classification and year;
(b) The medical and indemnity costs of each client employer involved in the lease termination, organized by claim;
(c) Any other information the administrator may require to develop a state fund experience modification factor for each client employer involved in the lease termination.
(2) The administrator may require a professional employer organization to submit the information required under division (C)(1) of this section at additional times after the initial submission if the administrator determines that the information is necessary for the administrator to develop a state fund experience modification factor.
(3) The administrator may revoke or refuse to renew a professional employer organization’s status as a self-insuring employer if the professional employer organization fails to provide information requested by the administrator under division (C)(1) or (2) of this section.
(D) The administrator shall use the information provided under division (C) of this section to develop a state fund experience modification factor for each client employer involved in a lease termination with a professional employer organization that is a self-insuring employer.
(E) A professional employer organization shall report any transfer of employees between related professional employer organization entities or professional employer organization reporting entities to the administrator within fourteen calendar days after the date of the transfer on a form prescribed by the administrator. The professional employer organization or professional employer organization reporting entity shall include in the form all client payroll and claim information regarding the transferred employees listed in a format specified by the administrator and a notice of all workers’ compensation claims that have been reported to the professional employer organization or professional employer organization reporting entity in accordance with the internal reporting policies of the professional employer organization or professional employer organization reporting entity.
(F) Prior to entering into a professional employer organization agreement with a client employer, a professional employer organization shall disclose in writing to the client employer the reporting requirements that apply to the professional employer organization under division (C) of this section and that the administrator must develop a state fund experience modification factor for each client employer involved in a lease termination with a professional employer organization that is a self-insuring employer.