Did You Receive A Penalty Assessment Order From The Attorney General and the NC Industrial Commission?
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It is probably the last thing you wanted to get in the mail. You may be wondering if it is a scam. But the letter and penalty order you received from the North Carolina Industrial Commission is no scam. Below are answers to some commonly asked questions about North Carolina Industrial Commission uninsured fines.
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Why did I get a Penalty Assessment Order?
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Employers with three (3) or more employees are required to have workers’ compensation insurance in North Carolina. Businesses can be penalized per N.C. Gen. Stat. Sections 97-93 and 97-94 for failure to have workers’ compensation insurance. Specifically, businesses can be fined “no less than $20.00 nor more than $100.00” for each day they are found to have been without workers’ compensation insurance.
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The Industrial Commission has a large database of employers and they check it to make sure any employer with at least three employees has insurance. If you received a penalty order, the Industrial Commission believes your business has three or more employees and does not have the required insurance.
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What should I do?
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If you have three or more employees (including business owners), you need to call your insurance agent and get a workers’ compensation policy immediately. If you believe you can prove you do not have three or more employees, then you can seek to have the penalty rescinded.
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In either case, you should strongly consider calling an attorney that is familiar with Industrial Commission fines and the process for having those fines reduced or eliminated. Zack Bolen has years of experience handling matters before the N.C. Industrial Commission and can help you with your penalty assessment order.
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Can I handle the Industrial Commission fine myself?
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Yes, legal representation is not required to respond to the Industrial Commission. However, just because you “can” does not mean you “should.” The Industrial Commission follows a specific process when it comes to having penalties reduced or rescinded and it is often helpful to have an attorney experienced in contesting Industrial Commission fines on your side.
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What if no one told me I need to have workers’ compensation insurance?
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It may seem unfair, but it does not matter that you didn’t intend to violate the law. The Industrial Commission and Attorney General's office does not care if you did not know you needed to have insurance.
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Can I get my NC Industrial Commission penalty reduced?
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If this is your first time being fined for failure to carry workers’ compensation insurance, you can usually have your fine reduced, and often significantly reduced. The Industrial Commission requires employers to provide a list of documents (copies of insurance policy, premium information, employee wage information, etc.) before determining if your penalty will be reduced. The process may take several weeks or months before it is completely resolved.
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If you have been fined before, it is much more difficult to get any meaningful reduction in your penalty. Still, there may be arguments to be made that could reduce what you owe.