Importance of responding to (and paying) workers’ comp premiums

In North Dakota, like all states, it’s extremely important for employers to properly identify (and classify) their employees and secure proper workers’ compensation insurance coverage. North Dakota’s Workforce Safety and Insurance (WSI) requires employers to identify their employees and submit payroll data so WSI can calculate the premium during that policy period. Failure to submit payroll reports and/or pay premiums can lead to significant penalties under state law. Recently, the North Dakota Supreme Court confirmed that the penalties provided under state law are constitutional and not excessive (even when penalties are several times higher than originally assessed premiums).

Facts

In June 2019, WSI notified the Boechler PC law firm in Fargo of its unpaid premiums and penalties and sent a letter informing the firm that their 2018-2019 payroll report was due the following month. When the firm didn’t submit the required information, WSI issued the firm a $50 dollar fine and informed them an additional $50 penalty would be assessed if the information was not submitted within 10 days. Fifteen days later, WSI informed the firm it had been issued $100 in total penalties for failing to provide the required payroll information in a timely manner.