Ohio Workers' Compensation Requirements for Church Employees

Legal Requirement Overview

In Ohio, employers are generally required to carry workers' compensation insurance for any non‑exempt employees, and this includes most staff hired by churches. The state's Workers' Compensation Law does not provide a blanket exemption for religious organizations, so churches must assess whether their employees fall under the standard coverage rules.

Common Exemptions

Ohio law does exempt certain categories of workers, such as volunteers who receive no compensation, clergy performing sacramental duties, and members of religious orders who are not paid for secular work. However, paid administrative staff, custodians, teachers, and any other employees receiving wages are typically covered under the mandatory insurance requirement.

Determining Coverage Needs

Churches should first classify each worker:

• Paid Employees: Must be covered unless a specific statutory exemption applies.
• Volunteers: Not covered if truly unpaid and not performing work that would be classified as employment.
• Clergy: Often exempt for sacramental duties but may need coverage for secular responsibilities like office work.

When in doubt, consult the Ohio Bureau of Workers' Compensation (BWC) or legal counsel to confirm classification.

How to Obtain Coverage

Churches can purchase workers' compensation through the state's self‑insurance program, a private insurer, or a captive insurance arrangement. The BWC offers a standard policy with rates based on payroll and job classifications. Some insurers provide "religious organization" packages that account for typical church roles and may offer reduced premiums.

Compliance Steps

1. Identify all paid staff. List job titles, duties, and payroll amounts.2. Verify exemption status. Check Ohio Revised Code § 4123.01 and related statutes.3. Secure appropriate policy. Obtain a quote, compare options, and ensure the policy lists all covered classifications.4. Maintain records. Keep payroll reports, insurance certificates, and exemption documentation on file for BWC audits.5. Review annually. Update coverage as staff changes or payroll fluctuates.

Potential Penalties for Non‑Compliance

Failure to provide required workers' compensation can result in:

• Fines ranging from $250 to $1,000 per uncovered employee.
• Liability for the full cost of any workplace injury claim.
• Possible civil action from injured workers.

These consequences underscore the importance of accurate classification and timely insurance procurement.

Key Takeaway

Ohio does not automatically exempt churches from workers' compensation; paid employees are generally covered unless a specific exemption applies. Churches should systematically evaluate staff roles, secure appropriate insurance, and maintain compliance to avoid penalties and protect their workforce.