Ohio Employer Ordered to Pay Restitution for Workers’ Comp Lapse
October 13, 2025 | JacobiJournal.com — An Ohio business owner has been ordered to pay $15,944 in restitution after investigators found that his company operated without mandatory workers’ compensation insurance. The case underscores how aggressively state authorities pursue coverage lapses that leave workers unprotected. The individual, who owns FloodStar Restoration—a water-removal and restoration service—admitted to operating without coverage for an extended period. A local court imposed the restitution order and a two-year probation term, warning that future noncompliance could trigger harsher penalties. Workers’ Compensation Compliance: More Than a Technicality Ohio law requires employers to maintain continuous workers’ compensation insurance. When coverage lapses, any injury sustained by an employee becomes the employer’s direct financial responsibility. This can lead to restitution penalties, civil lawsuits, and even criminal charges in severe cases. Maintaining compliance helps employers avoid costly restitution and protect their workforce. The FloodStar case demonstrates that even small or midsize businesses are not exempt from scrutiny. Lapses caused by unpaid premiums, administrative oversights, or misclassification of workers are treated as violations rather than mistakes. The Real Cost of Letting Coverage Expire Allowing coverage to lapse may seem minor, but the financial and reputational fallout can be substantial: Ohio regulators have continued to emphasize compliance enforcement as a public safety measure, ensuring that injured workers have guaranteed access to benefits and medical care. Compliance Tips for Employers Monitor premium schedules. Late or missed payments can trigger a lapse. Employers are encouraged to review their current policies regularly and seek guidance from certified insurance professionals to prevent lapses. Visit the Ohio Bureau of Workers’ Compensation for official guidance, employer tools, and compliance assistance. FAQs: Ohio Workers’ Compensation Lapse What happens when an Ohio employer’s workers’ compensation coverage lapses? The employer becomes personally responsible for any workplace injury costs and may face restitution orders or criminal penalties. Can coverage be reinstated retroactively? No. Once a lapse occurs, reinstatement only applies from the date the employer becomes compliant again. Are small businesses treated differently under Ohio law? No. All employers, regardless of size, must maintain continuous coverage if they employ one or more workers. What should an employer do after receiving a noncompliance notice? They should immediately contact the state’s workers’ compensation agency, settle outstanding payments, and submit proof of compliance to avoid prosecution. Stay informed on cases like this by subscribing to JacobiJournal.com for weekly updates on workers’ compensation enforcement, compliance trends, and employer risk management insights. 🔎 Read More from JacobiJournal.com: