Judge Awards $860 Million In Overcharges: Ohio Employers Win Case Against Ohio Bureau Of Workers Compensation

Ohio Judge Richard McMonagle ruled in favor of the group of employers who brought an overcharge lawsuit against the Ohio Bureau Of Workers Compensation. The small buisness owners claimed they were being unfairly overcharged for their workmen's compensation insurance.The judge awarded them $860 million in restitution.

The lawsuit began in 2007. The claim was the Ohio Bureau of Workers Compensation gave insurance discounts to companies that joined a group plan. The Bureau would then overcharge companies not belonging to an insurance group in order to make up the difference.

The Ohio Judge ordered $860 million to be paid to 270,000 small businesses covered by the class action suit. Many of the small business owners are unaware they were involved in the lawsuit.

During the hearing, the State of Ohio claimed the businesses and employers did not suffer any damages that entitles them to restitution.

The Judge ruled the Ohio Bureau of Workers Compensation has been overcharging employers for insurance since 2001.

The employers who initially brought the lawsuit forward were originally asking for restitution in the amount of $1.3 billion. The judge asked them to bring that amount down and awarded the complainants the $860 million. 

The Christian Science Monitor reports, "Spokeswoman Melissa Vince said the bureau spent $861 million more in claims costs and expenses for the affected companies during the disputed period than they paid in premiums - even as the fund's net assets shrunk. For every dollar in premiums paid, affected businesses had $1.26 in claims costs, she said."

The winners of the $860 million in the Ohio case are not likely to see their money any time soon. The Ohio Bureau of Workers Compensation plans to appeal the court's decision.