Last month we wrote about the many businesses in North Carolina that were not carrying workers' compensation insurance despite the state's law requiring that they do so. Companies throughout the state have been getting away without workers' compensation insurance to the detriment of their employees, because the state did not take any action to stop the practice. According to an article published in the News & Observer, the number of businesses doing so was in the tens of thousands.
In the past few weeks the situation has apparently changed a bit. Earlier this month, many owners of businesses found themselves at the state Industrial Commission's headquarters facing officials from the commission. The officials were seeking payment on workers' compensation opinions previously rendered in favor of workers who were injured on the job.
A total of 50 cases were addressed in commissions' first round through old claims. It is expected that similar hearings will continue over the course of the next few months. At least one of the claims the deputy commissioner was seeking to collect on was six years old.
The goal of the commissions' action is to recover at least some of the money owed to injured workers and hopefully get a plan in place to provide the remaining amount. In an effort to obtain payments owed, the officials fell back on the possibility that business owners who failed to comply could potentially be thrown in jail.
How well the state Industrial Commission's actions will work remains to be seen. We will provide relevant updates as they become available.
Source: Chicago Tribune, "Uninsured N.C. business owners get the hammer: Pay injured workers or go to jail." Mandy Locke, May 4, 2012
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