When most people hear the term "workers' compensation fraud," they usually think of employee's gaming the system. However, employer fraud has become a serious problem in North Carolina.
Fortunately, the state Industrial Commission, which oversees North Carolina's workers' comp system, understands that this problem exists. The Commission held a meeting in late October to discuss employer fraud and possible ways of addressing it.
According to the Commission, employer fraud has a few forms, including:
- A failure to carry the workers' comp insurance required by the state
- Designating employees as "independent contractors"
The Commission would like to see a few changes to North Carolina's workers' compensation law, including:
- Clarification on which employees can be classified as contractors
- Giving the commission the ability to hold parties in contempt of court
- The issuing of stop-work orders for companies operating without workers' compensation insurance
It is gratifying to see the Industrial Commission take this problem seriously. At White & Stradley, PLLC, we have seen how employers try and escape their obligations, an approach which often leaves workers out in the cold.
If you're a North Carolina resident and you need an attorney skilled in workers' compensation law, please contact White & Stradley, PLLC today for a free consultation.