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Employer Compliance

   

 

 

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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.

 

 Investigations

Employer Compliance has eight Investigators located throughout the state. The Investigators work with employers to ensure that the statutory requirement to carry workers’ compensation insurance is met.

 

 Legal Action

When an employer is unwilling to cooperate with a Compliance Investigator the case is referred to the Attorney General’s office. The Commission has two full-time Deputy Attorneys General that work on these cases. The attorneys make every effort to bring the employer into compliance voluntary, but not all employers are amicable . The attorneys will file a lawsuit when an employer fails to obtain insurance.

 

 

 

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