A new North Carolina law allows lawmakers to potentially incarcerate employers for failure to provide workers’ compensation! State lawmakers’ have approved HB 237 which requires the state Industrial Commission to capture all information from the North Carolina Rate Bureau, which records insurance information on employers. The Industrial Commission insures that employers have coverage and resolves workers’ claims. The new bill allows non-compliant employers to be pursued and may even allow penalties for non-compliance to include incarceration.
The bill has been passed after recent criticism over lax efforts by the state to insure employers provide insurance, medical care and lost wage benefits to injured workers.
Employers are currently required to inform the Industrial Commission about their insurance coverage. The Rate Bureau collects the information. They do not, however, monitor cancellations and employers are therefore able to conduct business without coverage.
“This will give the Industrial Commission the power and information it needs to track people who are not providing coverage to their employees,” said Rep. Dale Folwell, R-Forsyth.
A provision of the bill creates a Joint Legislative Committee on Workers’ Compensation Insurance Coverage and Compliance and Fraud Prevention. It will outline how non-compliant employers should be treated. Non-compliance fines can be $100 per day and cost of benefits and medical costs. Employers may also be found in contempt and may be sent to jail!
Are you in compliance? If you have questions or concerns about your employee benefits, pay or other HR concerns call the experts at DirectPay Payroll at 704-921-2730 or go to their website at www.directpaypayroll.com today. Don’t take a chance. Get compliant today!