We get asked this question quite often by our clients that are domiciled in Ohio: Since we purchase our worker's compensation through the Ohio BWC, why would we need to purchase Kentucky worker's compensation if we cross "the river"?
According to the Ohio BWC, Ohio employers with employees working out of state must comply with the other state’s workers’ compensation laws. This even includes sales people making outside sales calls or deliveries being made. Kentucky requires all out-of-state employees working in the state, regardless of the time spent in the state, and coverage in the employees’ home state to obtain coverage through Kentucky's workers compensation system or a private insurance carrier.
Furthermore, according to Kentucky's Workers Compensation Act an Ohio employer performing work (even temporary) in Kentucky must have a separate insurance policy. Coverage must be afforded by an approved carrier providing benefits in accordance with the Kentucky Workers’ Compensation Act. Kentucky does not accept the Form C-110s filed by Ohio employees as these are not enforceable by Kentucky courts. Any worker injured in this state has the right to file a claim for benefits under terms of our law.
As an Ohio employer, what if I do not comply?
There no grace period for Ohio Employers to work in Kentucky under Ohio Workers Compensation, but that Ohio Employers are also open to a fine for not obtaining Kentucky Workers Compensation coverage beginning with the first day they have employees working in Kentucky. The statutory fine is not less than $100.00 or more than $1,000 per occurrence; with an occurrence being defined as each employee and each day worked by that employee. This means that if you have five employees working in Kentucky without Kentucky Workers Compensation coverage you are subject to five separate violations and fines.
Contact us if you need help becoming compliant.
Sources: www.labor.ky.gov, www.ohiobwc.com, & www.aci-construction.com
Wednesday, February 27, 2013
Subscribe to:
Posts (Atom)
