North Carolina businesses with three or more employees are required to have workers compensation insurance coverage under NCGS 97-93. Failure to secure the required policy can result in civil fines and criminal penalties against noninsured employers under the companion statute, NCGS 97-94. The policy behind the law is understandable - in the event of a workplace injury, insurance should be in place in order to cover any medical bills, lost wages, and permanent disability suffered by a worker injured on the job.
Businesses both large and small face a multitude of requirements and challenges. While each industry in North Carolina is different, the number of regulations, licensing requirements, and tax and payroll compliance impose a seemingly never ending maze of confusion. Even with the highest level of diligence, things can slip through the cracks. Whether its missed premium payments, failure to secure required licenses, or financial mix-ups, mistakes can have unfortunate consequences.
If you are an employer who recently received a Penalty Assessment Order from the North Carolina Industrial Commission, you have likely been caught by surprise and have questions. Financially crippling penalties along with the threat of criminal charges is a situation more and more NC companies are facing since the Industrial Commission has stepped up non-insurance enforcement and compliance efforts.