Compliance Division

What We Do

The Compliance Division identifies and investigates cases involving employers who are operating as non-insured employers in violation of N.C. Gen. Stat. §97-93 and N.C. Gen. Stat. §97-94.

An employer is non-insured if the employer is subject to the North Carolina Workers’ Compensation Act but does not carry workers’ compensation insurance and does not obtain a license from the Commissioner of Insurance as a self-insured employer.

The Compliance Division investigates referrals to determine whether an employer is subject to the Workers’ Compensation Act and, if so, whether the employer is compliant in terms of insurance requirements.

An administrative penalty can be assessed for a period during which the employer was subject to the Act but not compliant with insurance requirements.

The Compliance Division also assists the North Carolina Department of Justice with the enforcement and collection of penalty assessments and facilitates adjudication of contested penalty cases and settlements.

N.C. Gen. Stat. § 97-94(b)(2) Alternate Penalty Information

Documentation Needed to Request Alternate Penalty

If you have not previously been assessed a penalty for failure to maintain workers’ compensation insurance and you have a current workers’ compensation policy covering your employees, you will need to submit the documents listed below to the Industrial Commission to be considered for assessment of a N.C. Gen. Stat. §97-94(b)(2) alternate penalty:

A complete copy of your current workers’ compensation policy.
NOTE: If your current workers’ compensation policy does not show the number of employees covered under the policy, you must also submit your application for the current policy. If the application does not indicate the number of employees, you may submit an employee payroll transaction report beginning as of the date of your current policy and continuing through the date of your most recent payroll run.
A weekly, bi-weekly, monthly, or annual employee payroll report during the period of your non-compliance. The period of your non-compliance is stated in the first paragraph of page one (1) of your Penalty Assessment Order.
NOTE: Multi-year payroll reports will not be accepted. Please make sure to redact all but the last four (4) digits of social security numbers that appear on your employee payroll report.

Please include the: (a) Industrial Commission File Number; (b) Business name, mailing address, and phone number; and (c) Business owner’s name, email address, and phone number with your alternative penalty request.

How to Submit Alternate Penalty Request and Supporting Documentation

You may email your alternate penalty request and supporting documentation to penalty.docs@ic.nc.gov. In the alternative, you may mail your alternate penalty request and supporting documentation to:

Industrial Commission
Clerk's Office
1236 Mail Service Center
Raleigh, NC 27699-1236.