Who is the fraud in Workers’ Compensation?

Company fraud is the most significant fraud in the workers’ compensation system.  The North Carolina Industrial Commission has been cracking down on companies who violate the law and fail to have workers’ compensation insurance for their workers (see http://www.ic.nc.gov/wcinsrqmt.html ).  The Commission has a fraud alert tool called Noncompliant Employer Targeting System (NETS) which identifies companies who lack proper insurance.

Industrial Commission Chairman Andrew Heath reported that using NETS and investigators in the field have located hundreds of employers in violation of N.C. law.  Since 2014, the Industrial Commission has found more than 800 companies in violation of the law and forced them to obtain proper insurance.  The Commission has collected over $900,000 in penalties, which ultimately is returned to North Carolina schools (see (http://www.ic.nc.gov/070915NCICFraudPressRelease.pdf).

Chairman Heath commented that their investigation results have dispelled the rumor that injured workers are the source of fraud.  Instead, companies who are defrauding the workers and unfairly competing with legitimate companies who are in compliance with the law.  There is a hardcore section of these fraudulent companies who refuse to comply with the law and 100 companies had criminal charges for their failure to provide workers’ compensation coverage.

We can bring attention to these myths and finally begin to help the workers get the help they deserve. Contact our firm today to get started.

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