The current workers compensation system in the state of North Carolina is viewed by many as flawed. The current House and Senate have several bills that they are working to that will help reform the current workers compensation system.
Reform is likely going to happen this year. There is one bill that looks like it is going to pass that will help with workers compensation reform. This will bill will hold more employers accountable in regards to workers compensation compliance.
The Labor Department, Revenue Department and Unemployment Tax division have teamed up to aggressively pursue businesses owners that do not follow the laws. An audit was performed last year by investigators from the Division of Employment Security. The audit showed that of 2,637 businesses required to pay unemployment taxes, only 1% did and that 40% had incorrectly classified their workers. In the past, very little has been done to catch violators of workers compensation and unemployment benefit laws.
The 3 departments are working together to help educate and enforce the laws. Since currently there has been no real focus on this issue, they will punish those businesses that choose not to follow the laws.
Even with employers that have been in compliance with the state laws, workers compensation costs are still on the rise. Workers compensation claims have been risen steadily not just industry wide, but more for North Carolina. According to the New Observer “Critics of the current system complain it’s rife with abuse and gives injured workers an incentive to stay at home. They cite a study by the nonprofit Workers Compensation Research Institute that found that total costs per claim in North Carolina averaged more than $42,000, 44 percent above the median of 16 states studied.” (Read more here:http://www.newsobserver.com/2011/04/10/1116636/workers-compensation-is-back-on.html#storylink=cpy)
Employers trying to get back into compliance or shop North Carolina workers comp coverage because of rising costs, would be wise to contact an independent agency like The Insurance Shop who have access to more than 30 insurance carriers.