$860M In Overcharges Ordered Repaid For Ohio Workers Comp Restitution

$860M In Overcharges Ordered Repaid For Ohio Workers Comp Restitution

$860M in overcharges are ordered to be repaid after a Ohio workers comp lawsuit. Thousands of Ohio businesses had sued after they were overcharged by the state’s insurance program for injured workers.

Judge Richard McMonagle of Cuyahoga County ruled that the Ohio Bureau of Workers’ Compensation (BWC) has been overcharging by $860 million more than 270,000 businesses throughout the state for more than a decade.

Earl Stein, lead plaintiff in the case and small business owner, explains how the $860M in overcharges being repaid will affect the Ohio economy:

“We’ve spent years on this case and the BWC never denied that we were overcharged. Now the Court has ordered them to pay. Tens of thousands of businesses can now put those dollars back to work, creating and protecting Ohio jobs.”

Although the judge agreed with the $860M in overcharges, the BWC argues that the estimated overcharges were “only” around $400 million dollars:

“We believe the dollars we’ve collected have been spent appropriately and that all Ohio businesses have benefitted and continue to benefit from BWC programs and services.”

Judge McMonagle rejects the BWC’s argument, saying that the “figure submitted by the plaintiffs was calculated accurately.” The money can potentially be repaid via a surplus fund estimated at around $8 billion. Still, the BWC plans on appealing the decision, which will drag the case out further.

Earl Stein argues there is no reason to delay paying back a portion of the $860M in overcharges:

“The Court says we were damaged by nearly $860 million dollars. Last week I heard the Bureau’s experts acknowledge $400 million in damages. My message to the Bureau – pay us the $400 million and we can fight over the other $460 million later.”

What do you think about the $860M in overcharges caused by the State of Ohio?