1. Explain whether Jake’s actions are in or out of “his scope of employment.”

Scope of employment refers to a person actively involved in an employment task when an accident occurs and requires a claim for work related injury under Workers Compensation Acts. In order to hold an employer accountable for the accident, it will be necessary to show that the employee was engaged in the scope of employment at the time of the accident.

Rally’s Auto was running a promotion for free oil changes to boost sales while customers are waiting for their vehicle to be serviced. Exhausted from working overtime for the past week, Jake mistook his thumb as a bolt and injured his thumb. Since Jake was working on a customer’s vehicle, during work hours, and in the company garage it would be considered in his scope of employment. This is assuming there were no drugs or alcohol involved and no horseplay was a cause of the accident.

2. Explain whether or not Herman is responsible for Jake’s injury.

Ohio’s workers’ compensation system is a no-fault system. This means that the fault, or negligence of the employee or employer is not an issue in allowance of the claim and the injured employee will be paid compensation and benefits regardless as to any party’s negligence. A few exceptions to the no-fault rule are any injuries resulting from horseplay, self-inflicted injuries, and injuries caused by intoxication of drugs or alcohol is not covered.

Rally Auto has more than one employee and is required by law to carry workers compensation insurance. If Rally Auto is required to carry insurance and fails to do so, they are exposed to cost of severe civil penalties and fines. They would also be liable for the costs of any injuries suffered by an employee injury. Rally Auto would be exposed to civil lawsuits by employees who are injured during work.

If Herman carries workers compensation insurance for Rally Auto then he would not be personally responsible for Jake’s injury. Since Jakes injury happened in the scope of work, Jake would file a workers’ compensation claim to recover any medical bills, benefits, and pay.

3. Explain whether or not Jake should be paid the overtime.

According to the Fair Labor Standards Act (FLSA) any non-exempt employee is eligible for overtime pay. Exempt employees’ job duties must involve managing the business, or managing a customarily recognized department or subdivision of the business (Maginn, 2012). In addition, Jake must supervise at least two full-time employees and have authority to hire or fire other workers or influence those decisions.

FSLA does state that salary employees are entitled to overtime pay of time and a half if they are non-exempt. Assuming that since Jake was promoted to service manager of Rally’s Auto he will have more than two full-time mechanics working under him. If he does not, then Jake has to ask for the employer to compensate him for the hours he has been working overtime.

4. Explain the rights Jake and Herman have individually in this scenario.

Jake injured his thumb while working on the job. Jake was changing the oil on a customers’ vehicle when he accidently used a torque wrench on his thumb instead of a bolt. Jake will need to follow Rally Auto policy on reporting incidents and injuries. Not following the reporting guidelines could result in denial of benefits.

When Jake’s workers compensation claim is approved and he is unable to work for seven days or less, his managed care organization will pay his health care provider for authorized treatments that are directly related to the claim. If Jakes physician determines that his injury will prevent him from working for eight or more consecutive days, then he may be eligible for lost time benefits. If Jake gets temporary total compensation then Jakes wage is paid at 72% for the first 12 weeks of disability and 66 2/3% after the initial 12 weeks (Department of Administrative Services, undefined).

When Jakes claim is approved for lost time benefits, the Bureau of Workers’ Compensation will begin paying benefits on the eighth day if he is off work for eight to fourteen days. Any claims that require an employee to be off work for fifteen or more days will begin paying benefits from the first day. Should Jack require prescription medication due to his work injury, Bureau of Workers Compensation will work with your pharmacy benefit manager to process pharmacy benefits(DAS, undefined).

Generally an Ohio worker has two years from the date of injury to file a claim with the Ohio Bureau of Workers’ Compensation. If there is not enough information to approve Jakes claim, he may be asked for additional information either by his agency or the third party administrator. If any party (Rally Auto or Jake) disagrees with the decision of the Bureau of Workers Compensation on the claim, an appeal may be filed with the Industrial Commission. All appeals must be made in writing and filed within fourteen calendar days of the date of receipt the decision was made by the Bureau of Workers Compensation. If the decision is still unhappy then the case may be brought to Common Pleas Court.

Assuming that Herman and his business carry workers compensation insurance, then Jakes claim would be worked with the insurance company. For example if Herman uses Ohio PEO Workers Compensation Insurance, then PEO is responsible for implementing the workers compensation programs. They will handle all worker compensation audits, file statutory notice of injury reports, implement return to work, conduct post-accident drug testing, and coordinate medical care for Jakes injury (Blue Collar, undefined).

Since Herman employs one or more employees he is required by law to carry insurance. If Rally Auto is required to carry insurance and fails to do so, they are exposed to cost of severe civil penalties and fines. Herman would also be liable for the costs of any injuries suffered by an employee that is injured in the scope of work if no insurance is purchased.

Department of Administrative Services. (undefined). Workers Compensation. In Department of Administrative Services. Retrieved February 9, 2012, from http://das.ohio.gov/Divisions/HumanResources/BenefitsAdministration/WorkersCompensation.aspx#EmployerProvidedBenefits.

Blue Collar. (undefined). Ohio PEO Workers Compensation Insurance. In Ohio Workers Compensation Insurance / OH Workers Comp. Retrieved February 9, 2012, from http://www.workerscompquotes.us/pages/workers_comp/ohio_workerscomp.php.

BURKHAUSER, R. V., SCHMEISER, M. D., & WEATHERS II, R. R. (2012). THE IMPORTANCE OF ANTI-DISCRIMINATION AND WORKERS' COMPENSATION LAWS ON THE PROVISION OF WORKPLACE ACCOMMODATIONS FOLLOWING THE ONSET OF A DISABILITY. Industrial & Labor Relations Review, 65(1), 161-180.

Maginn, M. (2012). Weigh your options: How new options can help Ohio employers reduce their workers' compensation premiums. Smart Business Cincinnati/Northern Kentucky, 7(12), 24.