Employer Compliance works to ensure that employers comply
with their statutory obligation, under Chapter 2, Idaho Code, to obtain
appropriate workers’ compensation coverage for affected employees. Ensuring
that the coverage requirement is met provides medical and indemnity coverage
for employees who were unprotected, works to level the economic playing
field for all employers, and adds premium dollars to the workers’
compensation system that were previously missing.
Idaho’s growing population and economy has impacted
Compliance immensely. The fertile economy has also increased the demand for
goods and services. Employers are relocating to the state in record numbers.
The transplanted employers are often unfamiliar with Idaho’s coverage
requirements; necessitating contact from the Industrial Commission. New
employers are also competing with established businesses for customers. The
increase in competition has motivated some employers to reduce costs any way
possible. Regardless of the reason, an employer without a policy is
contacted by Employer Compliance to determine if workers’ compensation
insurance is needed.
This year, Employer Compliance contacted 18,393 employers
regarding a lack of workers’ compensation insurance. This is an increase of
9% from the previous year. The number of contacts made by Compliance will
only continue to increase as Idaho grows. In the last five years alone, the
number of employer contacts made by the department has increased by 34%.
Through its enforcement and investigative effort, in
Fiscal Year 2006, Employer Compliance increased the number of employers
carrying workers’ compensation insurance by over 2,700. The procurement of
insurance by these employers ensured that an additional 21,608 employees
were protected under the Workers’ Compensation Law.
Employers who fail to carry workers’ compensation
insurance for their employees are subject to legal action in district court.
The Commission’s legal team includes two attorneys from the Idaho Attorney
General’s office and two paralegals. During the last fiscal year, 170
judgments were obtained and substantial penalties were collected from
employers without the required workers’ compensation coverage.