What We Do
The Criminal Investigations and Employee Classification Division investigates potential criminal violations of the Workers' Compensation Act, including N.C. Gen. Stat. §§ 97-88.2, 97-93, 97-94, and identifies and investigates businesses that engage in the activities of employee misclassification in violation of the Employee Fair Classification Act.
Employee misclassification is defined in N.C. Gen. Stat. §143-786(5) as avoiding tax liabilities and other obligations imposed by Chapters 95, 96, 97, 105, and/or 143 of the North Carolina General Statutes by misclassifying an employee as an independent contractor.
The Criminal Investigations and Employee Classification Division employs law enforcement officers to conduct its investigations.
Criminal Investigations Division
Criminal Investigations operates as a law enforcement agency and conducts criminal investigations of complaints filed with the Industrial Commission and alerts received by the Industrial Commission, including:
- Employers suspected of failing to either maintain required workers' compensation insurance coverage or qualify as a self-insured employer;
- Parties suspected of workers’ compensation fraud under N.C. Gen. Stat. §97-88.2; and
- Employers suspected of deducting from an employee's pay any portion of the employers workers' compensation premium in violation of N.C. Gen. Stat. §97-21.
Employee Classification Section
The Employee Classification Section was established within the Industrial Commission under the Employee Fair Classification Act (Article 83, N.C. Gen. Stat. § 143-785 through 143-791, Session Law 2017-203, s. 1).
The Employee Classification Section investigates, reports, and coordinates with and assists all relevant state agencies in recovering any back taxes, wages, benefits, penalties, or other monies owed as a result of an employer engaging in employee misclassification.
Required Public Notice Statement Pursuant to N.C. Gen. Stat. 143-788(5)
Employee misclassification is defined in N.C. Gen. Stat. § 143-786(5) as avoiding tax liabilities and other obligations imposed by Chapters 95, 96, 97, 105, or 143 of the North Carolina General Statutes by misclassifying an employee as an independent contractor. Anyone who believes that a North Carolina employee has been misclassified as an independent contractor by that employee’s employer may report the suspected misclassification to the Industrial Commission’s Employee Classification Section.