Workers' Compensation

Understanding Salary Continuation

Ella Baker
Reading time 3 Mins
Published on Oct 2
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When an injured employee isn’t able to return to their position immediately, the Ohio Bureau of Workers’ Compensation (BWC) offers multiple programs and claim management strategies to help you control the costs of the claim. One way to control costs and potentially reduce premium increases, salary continuation is a voluntary program whereby the employer continues to pay the injured employee full salary and benefits. Learn more about how salary continuation can be an effective cost containment strategy for your company.

The basics

Salary continuation is a program that allows an injured worker’s employer of record to pay the employee their full wages and benefits after a work-related injury or illness occurs, in lieu of temporary total compensation (TT) paid by the BWC. Unless a collective bargaining contract is in place stating otherwise, injured employees have the option to accept or decline payment of salary continuation. If the claimant rejects salary continuation and their claim is approved, the BWC may begin paying TT. Additionally, the employer or the injured worker may terminate payment at any time, at which point BWC may begin paying TT.

Employee benefits and rights

One of the chief benefits for employees in a salary continuation program is the lack of pay disruption. Since you are required to pay injured workers a full paycheck on the next regularly scheduled pay date following the injury, employees can focus on recovering, rather than stressing about a gap in pay dates.

Additionally, employees participating in salary continuation are not impacted by disruption to seniority or other benefits. Employees do not need to use sick time or any other paid time off to cover any of the injury period unless a collective bargaining contract is in place that states otherwise.

Employer benefits and rights

When participating in salary continuation, you must begin paying injured employees beginning on the next scheduled pay date after the injury, rather than waiting for the BWC to make a determination on the claim. Failing to do so results in disqualification from paying salary continuation in the claim.

When your company chooses to participate in salary continuation, you are allowing your employees to focus on their recovery, rather than worrying about the TT claim and payments. When employees are able to put their mental and physical energy into getting better, they are more likely to be able to return to work sooner. Getting your employees back to work faster lets you meet your production needs while retaining valuable talent within the company.

The BWC has laid out the additional responsibilities of employers in the salary continuation, along with all of the steps necessary for meeting the requirements of the program.

Cost containment and salary continuation

When you enter into a salary continuation agreement with an employee in lieu of the BWC paying TT, you have more control over your future workers’ compensation premiums. These kinds of cost containment strategies not only lead to less stress for you when a claim is filed, but they can also provide significant annual premium cost-savings for your company. Navigating the complicated world of workers’ compensation in Ohio is a little less stressful when you choose a Third-Party Administrator (TPA) to help advocate for you and your business. While the Bureau of Workers’ Compensation looks out for the interests of injured workers, your TPA will help you save money and provide assistance with claims.

Learn more about Workers’ Compensation today by contacting Sheakley’s WC professionals today. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join in the discussion by commenting below.


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