Ohio court rules that defunct temp agency must pay comp insurance

The Supreme Court of Ohio ruled Wednesday that a temporary-employment agency will have to pay its former workers comp insurer about $3.5 million in unpaid premium it owed after closing up shop but continuing operations under the name of another temp agency it owned.

The ruling names Ryan Mason as the owner of both Daily Services, a temp agency that provides short-term or daily staffing, and I-Force, another temp agency that focuses on long-term staffing. Both are based in Columbus, Ohio, according to documents in State ex rel. Daily Servs., L.L.C. v. Morrison.

“In 2008, I-Force’s workers compensation premium increased to approximately $3.5 million based on its poor claims history. I-Force did not pay its premium for the second half of 2008, which was due by February 28, 2009,” the ruling states. “During an audit of Daily Services conducted in April 2009, the (Ohio Bureau of Workers’ Compensation) learned that I-Force had closed over the weekend of March 21-22, 2009, but that the business appeared to be continuing to operate through Daily Services.”

The bureau, which provides workers compensation programs for state employees, billed Daily Services $3.48 million in June 2009, according to records.

Wednesday’s ruling, which reversed an earlier Court of Appeals ruling vacating the bureau’s position that it is owed money, confirmed “BWC’s decision to declare Daily Services liable for I-Force’s obligations is justified by the BWC’s fiduciary duty to protect the state insurance fund.”