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North Carolina Industrial Commission Prosecutes 70 Employers


North Carolina Industrial Commission Prosecutes 70 Employers

The NC Industrial Commission starts with prosecuting just 70 employers out of thousands.   Governor Bev Perdue had issued an edict that all 30,000 North Carolina employers uninsured for Workers Compensation should be investigated immediately. The Industrial Commission’s response was to start prosecuting the employers that had employees with pending claims, but no Workers Comp insurance.

Graphic of lady justice 70 Employers NC Industrial Commission
(c) 123rf.com

Seventy employers are now being prosecuted with the threat of jail. Judging by this article on Workers Comp prosecutions, some of the employers had said this would be an unfair increase to their cost of doing business. Are you kidding me? Remember, these are the ones with injured employees that had no place to file a claim.

What should North Carolina do about the other 29,930 employers that are “going bare” on Workers Comp? Maryland and West Virginia both cross-referenced other databases to easily found out employers that have no Workers Comp insurance.

In the article (see first link in the article), the NC Rate Bureau reports to the Department of Insurance any employers that did not replace or renew their expiring policies. One has to wonder what happens to this info.

Graphic Of 70 Employers Vector

In North Carolina, if an employer has 3 or more employees, Workers Comp coverage must be purchased and kept in force. Most states require a policy for any company that is not out of business or has an alternative insurance arrangement such as self-insurance.

D&B Services carries a huge database of employers with the number of employees. Could this not be cross-referenced to the NC employers to see which companies with more than three employees do not have insurance?

If one calculates the amount of potential premiums:

29,930 * $15,000 = $448,950,000

The $15,000 was an estimation. I will check with a few info sources about the accuracy of the number. Regardless, this is a huge amount of $$ that is not in the NC Workers Comp system. Could other employers actually be subsidizing the non-payers?

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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