The Bollinger Law Firm, P.C.

Employers abuse loopholes in North Carolina's workers' comp law

Providing workers' compensation insurance is every North Carolina employer's duty. Unfortunately, as previously mentioned on this Charlotte NC Workers' Compensation Law Blog, many employers are failing to provide their workers with insurance, and others are putting workers at risk by inaccurately classifying them as 'independent contractors' instead of 'employees.'

In fact, a News Observer editorial has charged that employers are skirting workers' compensation laws to the detriment of their employees. Using what have become known as "ghost" policies, employers are cutting corners and leaving their workers unprotected by underinsuring employees under the independent contractor classification.

As a result, workers do not always receive adequate compensation after suffering an injury on-the-job. The case of one 39-year-old construction worker, who was involved in a workplace accident in 2009 that left him in a wheelchair, highlights the problem with the state's laws.

The man's employer, a construction company, had purchased a ghost policy, and as a result the worker is now left with a quarter of a million dollars in medical debt.

Many employers use this tactic to avoid paying for adequate workers' compensation insurance. However, by not covering employees, the employer itself takes a risk--if no one is injured, it is possible that no one will learn of the employer's fraud. But if an uninsured or underinsured worker is injured, the employer may face criminal charges and lose his or her business.

Abusing workers' compensation policies is not an acceptable practice. When North Carolina workers sustain injuries and have trouble receiving workers' compensation benefits, they are often wise to discuss the matter with an experienced attorney. In some cases, strategies may be available to recover compensation from even uninsured or underinsured employers.

Source: News Observer, "Ghost Story," Aug. 21, 2012

No Comments

Leave a comment
Comment Information
Board Certified Specialist Super Lawyers AV | Peer Review Rated Avvo
Email Us For a Response

Get A Free Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Our Office Location

The Bollinger Law Firm, P.C.
601 E. 5th St., Suite 250
Charlotte, NC 28202-3095

Toll Free: 866-218-4759
Phone: 704-879-1800
Fax: 704-373-1977
Charlotte Law Office Map