The Ohio Bureau of Workers Compensation recently announced the sentence handed down to the owner of a janitorial service for failure to pay workers compensation insurance premiums. Workers' compensation fraud of this type is not rare and is a threat to workers everywhere who might become victims of personal injuries at work. When discussing fraud and workers' compensation, media and commentators often focus on workers who fake injuries, but those occurrences do not compare to the massive amounts of money that employers cost Ohio taxpayers by failing to pay premiums, under-reporting payroll numbers, misclassifying workers, and otherwise failing to comply with the law.
In this case, the business owner was sentenced to 18 months of community control and ordered to pay restitution for continuing to operate his business without workers' compensation insurance coverage. The prosecution only came after prior efforts to resolve the situation did not yield results. When it was discovered that the business had under-reported payroll and fallen behind on insurance premiums, the owner was allowed to correct the payroll report and start a reinstatement plan to catch up. When the reinstatement plan was not followed, the legal action against the owner was begun.