Elimination of Mandatory Coverage for Volunteer Corporate Officers of Nonprofit Corporations

Change in legislation that will benefit many nonprofit corporations.

Effective Sept. 29, 2015, BWC will no longer consider volunteer corporate officers of nonprofit corporations to be employees for purposes of workers’ compensation. Therefore, BWC will no longer require nonprofits to pay premiums for these volunteers.

Ohio Revised Code Sec. 4123.01(A)(2)(d) specifically states:

(2) “Employee does not mean any of the following: “

….

(d) “An officer of a nonprofit corporation, as defined in section 1702.01 of the Revised Code, who volunteers the person’s services as a [sic] officer.”

Proposed by BWC, this much-needed law change removes an unnecessary financial burden on Ohio’s nonprofits. This change will free up more money for nonprofit organizations to provide services that help local communities throughout the state. On the other hand, if a nonprofit desires coverage for its corporate officers, it need only report some amount of remuneration to the officer who will no longer be considered a volunteer. This employee is then subject to minimum and maximum reporting requirements. 

Send any questions to BWCTPAForum@bwc.state.oh.us, or call 1-800-OHIOBWC.