North Carolina Industrial Commisson Annual Report
By Lindsay Underwood, Group Chair, Skidmore Law Group
The North Carolina Industrial Commission has now released its annual 2024 report. The annual report reflects helpful data points, compliance information, and various proposed legislative changes which remain important for the continued practice of workers’ compensation.
The trend over recent years has been a continued reduction in the number of workers’ compensation claims filed from year to year. The report for the 2023-24 fiscal year was no exception. The report shows 48,001 cases opened with the Commission during the 2023-24 fiscal year compared to 52,703 during the 2022-23 fiscal year and 57,616 during the 2021-22 fiscal year. The annual report itself does not discuss proposed explanations for the reduction.
Based on the recent trends and observations, the reason for fewer filings is likely multifold. First, we have seen a much high percentage of work from home employees. Though a work from home employee can certainly still have a valid claim, Defendants contend those claims will be much more difficult to prove and create many new questions when it comes to compensability, credibility, and causation. In recent years we have also seen a strong dedication to employee training, on-site occupational health, risk mitigation, and wellness programs, all of which help to reduce injury and make claimants less prone to injury overall. There are also likely economic reasons contributing to fewer claim filings, as more and more employees are fearful of losing their jobs, and understand that a claim resolution may come with a resignation from the employment down the line. Though there is no single clear reason for the reduction in claims, it is evident that there are numerous factors contributing to the phenomenon.
Outside of the decrease in claims, there were other data points worth noting. There were 611 Deputy Commissioner Section Hearings held, and 345 appeals to the Full Commission. The Commission issued 10,676 Orders on Compromise Settlement Agreements. There was a reported 71% overall settlement rate for mediated cases (a small reduction from 2022-23, which showed a 74% settlement rate).The Commission collected $1,572,999 in non-insured penalties. There were 16,312 fraud cases reported. Lastly, the forms compliance summary showed that out of 15,486 Form 18s filed during the fiscal year, there are still 3,755 Form 18s with no Forms 60, 61, or 63 processed. Additionally, only 8,890 claims complied with the Commission’s 30 day filing period.
You can read the complete report here for more information including additional data points, reports from each section, as well as a letter from Chair Philip A. Baddour, III.