Three companies have filed a class-action suit against the Ohio Bureau of Workers’ Compensation over a system that they say costs employers million of dollars in excessive premiums.
The companies argue that the bureau’s “group rating” system awards unrealistically huge premium discounts for employers who are members of groups designed to minimize risk.
They say the system is unconstitutional because it forces the thousands of companies not part of groups to subsidize the others.
Bureau officials have acknowledged that group rating is flawed and last month cut the maximum discount from 90 percent to 85 percent.
A message seeking comment was left at the bureau.
Linderme Tube, of Cleveland, Timely Advertising Specialty and Corky and Lenny’s, both of Woodmere, filed the lawsuit.
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