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Wednesday, February 20, 2013

State Audit Reveals North Carolina Needs To Combat Employer Fraud

North Carolina needs to do more to combat employer fraud according to a recent State of NC audit. Business in NC are just not complying with the law to have workers' compensation insurance coverage. They are placing citizens of NC at risk.

NC Official State Audit
The report concludes that, "....the Commission does not have the complete, accurate, and reliable data necessary to proactively identify noncompliant businesses......the Commission does not follow up on workers’ compensation insurance cancellations and lapses that the Rate Bureau reports to the Commission....the Commission has not strictly enforced penalty assessments and collections on businesses that fail to comply with the Workers’ Compensation Act."
Workers' Compensation insurance is a requirement for companies doing business in NC. Companies can comply by maintaining workers' compensation insurance, self-insuring, or becoming a member of or contributing to a self-insured fund.

Click here to read the complete report: Performance Audit NC Industrial Commission - Workers' Compensation Program - February 2013

Click here to read more about NC and Employer Fraud at the North Carolina Workers' Compensation Journal (Leonard Jernigan member of the NC Bar)