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.
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.
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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