Does an out-of-state PEO have to establish coverage in Ohio, and if so why?
12A. Per the Ohio Revised Code workers compensation coverage is required once an employer has an employee within the state of Ohio. When a PEO enters into an agreement with a client, in which the PEO will report the payroll and claims under its policy, coverage is required. The contractual liability essentially makes those individuals the PEOs employees. This active coverage also allows BWC to move the clients payroll/claims history to the PEOs policy to calculate an accurate rate for the employees exposures. PEOs are required to follow the same guidelines as any employer in the state of Ohio when they have contracted to take over the employees of their clients.
