The North Carolina Industrial Commission has levied fines against Phil Parsons and Randy Humphrey, owners of HP Racing, now Phil Parsons Racing, for failing to provide workers’ compensation insurance for most of the 2011 NASCAR Sprint Cup Series season. Parsons, who also works as a television analyst for SPEED, and Humphrey were also ordered to pay medical bills and wages to an HP Racing employee who suffered a work related injury last summer.

The North Carolina Industrial Commission, the state agency that handles disputed workers’ compensation claims when people get hurt on the job, determined that Parsons and Humphrey failed to have the proper workers’ compensation insurance from February 11, 2011 – October 27, 2011. Workers’ compensation insurance was obtained by HP Racing just five days before the claim was initially set to be heard before the Deputy Commissioner of the Industrial Commission. The Commission also determined that the HP Racing employee had sustained a compensable injury by accident during the non-insured period. The North Carolina Assistant Attorney General’s Office, Fraud Unit was also involved in the claim against HP Racing, Parsons and Humphrey.

Michael McDowell in the Parsons-owned Ford
Michael McDowell in the Parsons-owned Ford

Photo by: Eric Gilbert

HP Racing competed in the NASCAR Sprint Cup Series in 2011, entering driver Michael McDowell in 32 events and earning over $2.4 million in race winnings. The team changed names in 2012, becoming Phil Parsons Racing, a joint effort between Parsons, Whitney Motorsports and new partner Mike Curb, owner of Curb Records. Humphrey formed his own team for 2012, joining forces with Mark Smith to form Humphrey Smith Racing, fielding cars in the NASCAR Sprint Cup Series for driver Mike Bliss.

The Workers’ Compensation Act requires any employer who employs three or more employees to provide workers’ compensation coverage. The North Carolina Industrial Commission has begun cracking down on business owners like Parsons and Humphrey, who fail to provide proper workers’ compensation coverage. Roughly 100 employers who failed to provide workers' compensation insurance to their employees were recently told by the Commission to pay as ordered or face the possibility of jail.

The injured HP Racing employee is still awaiting approval from Parsons and Humphrey for necessary medical treatment, as well as payment of his wages and related medical expenses as ordered by the Industrial Commission. The employee has been unable to work since his accident last summer - and is ineligible for unemployment compensation - due to his injury and physician’s orders preventing him from returning to work or seeking employment.