North Carolina Industrial Commission Releases FY 2025 Annual Report: Key Insights into Workers’ Compensation Activity

The North Carolina Industrial Commission (NCIC) has published its Annual Report for Fiscal Year 2025 (covering July 1, 2024 – June 30, 2025). The 29-page report provides a detailed overview of the Commission’s work administering the state’s Workers’ Compensation Act, along with the State Tort Claims Act and other programs.

The NCIC plays a critical role in North Carolina by ensuring injured workers receive benefits, facilitating fair dispute resolution, combating fraud, and enforcing employer compliance with insurance requirements.

Mission and Core Responsibilities

Established in 1929, the NCIC’s mission is to deliver excellent customer service through efficient claims administration, impartial adjudication, prompt dispute resolution, and responsive stakeholder support. In addition to workers’ compensation, the agency handles:

• State Tort Claims
• Public Safety Employees’ Death Benefits
• Childhood Vaccine-Related Injury Compensation
• Compensation for persons erroneously convicted of felonies

At-a-Glance: Major Statistics for FY 2025

Here are the headline numbers from the report:

• Workers’ Compensation Cases Opened: 56,921 (7,032 via Form 18; 49,889 via Form 19)
• Hearings Held (excluding penalty/contempt): 613
• Penalty and Contempt Matters Docketed: 955
• Appeals to the Full Commission: 300
• Cases Referred to Mediation: 8,620 → 70% settlement rate
• Orders on Compromise Settlement Agreements: 10,872
• Forms 26A (permanent partial disability agreements) received: 5,087 (4,828 approved)
• Medical Motions Orders Issued: 1,437
• Medical Bills Processed: 434
• Cases Handled by Medical Rehabilitation Nurses: 28
• Fraud Cases Reported: 21,432 (20,948 closed)
• Non-Insured Penalties Collected: $1,327,862
• Non-Insured Employers Brought into Compliance: 519
• Death Claims Filed: 258
• State Tort Claims Filed: 79

Additional activity included processing 16,204 Forms 18, 91,085 Forms 19, and nearly 48,138 Forms 60/61/63 (employer admissions or denials of compensability). The agency also answered over 17,594 calls in Claims Administration and 6,395 calls through Information Specialists (including Spanish-language support).

Strong Focus on Mediation and Dispute Resolution

The NCIC continued to emphasize mediation as an efficient way to resolve disputes without full hearings. With 8,620 cases referred and a 70% settlement rate, the program helped reduce the burden on the hearing docket and appeals process. This approach benefits both injured workers and employers by speeding up resolutions and lowering costs.

Fraud Investigation and Employer Compliance

Fraud prevention remained a priority:

• 21,432 fraud cases were reported, with the vast majority (over 21,000) involving employers.
• Investigators resolved thousands of employee misclassification reports.
• 519 previously non-insured employers were brought into compliance.
• Criminal charges were filed in numerous cases, particularly in high-volume industries such as Accommodation & Food Services, Health Care, Retail, and Construction.

The Commission used tools like the Noncompliant Employer Tracking System (NETS) and Employee Classification Application (ECA) to identify violators and misclassified workers.

Key Initiatives and Improvements

• Electronic Filing Mandate: Most documents are now filed electronically, supporting the agency’s move toward a paperless environment.
• Training: 314 rehabilitation professionals received training.
• Technology: Continued enhancements to case management systems.
• Legislative Recommendations: The report suggests removing term limits for Deputy Commissioners and granting full law enforcement authority to investigators to strengthen enforcement efforts.

Financial Highlights

The NCIC is primarily receipt-funded. Revenues included:

• $4,056,301 from Compromise Settlement Agreement fees
• $1,677,573 from Report of Mediator fees

Penalties collected from non-insured employers totaled $1,327,862 (including a significant portion tied to misclassification enforcement).

What This Means for North Carolina Employers and Workers

The data shows a high volume of claims activity alongside effective efforts to resolve disputes quickly through mediation and to enforce insurance compliance. The strong mediation settlement rate and fraud resolutions demonstrate the Commission’s commitment to efficiency and integrity in the system.

Employers should note the continued focus on compliance—failure to maintain workers’ compensation insurance carries substantial penalties and potential criminal consequences. Workers and their representatives can expect continued emphasis on timely benefits and accessible dispute resolution.

The full report includes detailed breakdowns by section (Claims Administration, Clerk’s Office, Fraud, Compliance, etc.) and is available as a free PDF.

Read the complete FY 2025 Annual Report here:

North Carolina Industrial Commission Annual Report FY 2025

Final Thoughts

North Carolina’s workers’ compensation system handled tens of thousands of claims in FY 2025 while making strides in mediation success, fraud enforcement, and operational efficiency. As the economy and workforce evolve, the NCIC’s focus on technology, training, and compliance will remain vital for protecting injured workers and ensuring a level playing field for employers.

If you’re an employer, HR professional, attorney, or injured worker in North Carolina, staying informed about these trends can help you navigate claims more effectively.

Have questions about how these statistics affect your claim? Feel free to call us today at (336) 470-0177.