Tuesday, August 5, 2014

North Carolina Industrial Commission's New Fraud Alerting Tool Results in Criminal Charges Against Employers for Failure to Have Insurance

RALEIGH, N.C., Aug. 4 -- The North Carolina Department of Commerce issued the following news release:

A new fraud alerting tool recently installed by the North Carolina Industrial Commission has led to criminal charges being filed against North Carolina employers who failed to maintain workers' compensation insurance. The Noncompliant Employer Targeting System (NETS) uses data from various state agencies and produces a list of potentially noncompliant employers ranked in terms of priority. NETS went online April 14, 2014.

As part of a proactive enforcement operation in Guilford County using NETS,The North Carolina Industrial Commission identified five employers who have failed to maintain Workers' Compensation Insurance. The North Carolina Workers' Compensation Act requires that all businesses which employ three or more employees, including those operating as corporations, sole proprietorships, limited liability companies and partnerships, obtain workers' compensation insurance or qualify as self-insured employers for purposes of paying workers' compensation benefits to their employees. The Guilford County operation took place on July 21 and 22.