Sherrills Ford-Terrell Fire and Rescue was fined over the June death of firefighter Bradley Long.
Long, 28, was part of a dive team that was searching for a missing swimmer on Lake Norman on June 6. The autopsy showed that Long died from an embolism.
The North Carolina Department of Labor issued the $5,600 fine to the fire department, according to WSCOTV.com.
Their report indicated that Long's air supply was not properly monitored, there was a rope entanglement, there was no back-up air supply and a diver failed to conduct a safety check on equipment.
After being underwater for 14 minutes, the crew on the surface signaled for Long and another diver to resurface due to air usage.
One diver resurfaced, but Long did not.
The department has 15 days to contest the fine.