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North Carolina Workers Compensation Laws
Workers compensation policy information for the State of North Carolina
- State: North Carolina
- Authority/Rating Bureau: North Carolina Rate Bureau. Contact them at:
- North Carolina Rate Bureau
- 5401 Six Forks Road
- Raleigh, NC 27609
- Phone: (919) 582-1056
- http://www.ncrb.org/ncrb/
- Compulsory: Yes
- Private Insurance: Allowed
- Self-Insurance: Allowed
- State Fund: None
- Assigned Risk: Managed by the North Carolina Rate Bureau. Contact them at:
- North Carolina Rate Bureau
- 5401 Six Forks Road
- Raleigh, NC 27609
- Phone: (919) 582-1056
- http://www.ncrb.org/ncrb/
- Numerical Exceptions: If you are a sole proprietorship, partnership, LLC, estate, or trust, you are required by law to carry coverage once you have three (3) employees who are regularly employed, in addition to the sole proprietor, partners, formulators of the LLC, executor of the estate, and bearer of the trust. It does not matter if these employees are full time, part time, regular seasonal or family members.
If you are incorporated, including all forms of corporations and those which have non-profit status, you are required by law to carry coverage once you have a total of three (3) people in the corporation. Everyone is included in the headcount, including corporate officers.
Businesses with radiation are required by law to carry coverage when they have one (1) employee. An agricultural operation must carry coverage when there are ten (10) or more regular, non-seasonal employees. Any other business entity not mentioned above would use the three (3) or more employees rule.
- Individual Waivers Allowed: No (not allowed since 1995)
- Sole Proprietor: Excluded from coverage/may elect to be included
- Partners: Excluded from coverage/may elect to be included
- Corporate Officers: Included in coverage/may elect to be exempt
- LLC Members: Excluded from coverage/may elect to be included
- Contractors:
- Q: I am a general contractor. Do I have to have workers’ compensation insurance?
- A: Yes, if you have three (3) or more employees. However, you may want to contact the builder’s permit licensing department to see if you must carry coverage regardless of the number of employees you have in order to obtain a builder’s permit.
- Q: As a general contractor, am I responsible for covering my subcontractors?
- A: If the subcontractor has one or two employees, there is liability on the part of the principal contractor for those employees but not that of the subcontractor. Waivers are no longer necessary since N.C. Gen. Stat. §97-19 declared that principal contractors are not responsible for subcontractors, only their one or two employees.
Any principal contractor, intermediate contractor, or subcontractor who sublets any contract to a subcontractor without first obtaining documentation that the subcontractor is in compliance with the N.C. Workers’ Compensation Act is liable for payment of compensation and other benefits if any employee of the subcontractor is injured or dies due to an accident arising out of and in the course of the performance of the work covered by such subcontract. If the principal contractor, intermediate contractor, or subcontractor obtains proper documentation at the time of subletting the contract to a subcontractor, he will not be held liable to any of the subcontractor’s employees for compensation or other benefits. The principal contractor, intermediate contractor, or subcontractor may require documentation of workers’ compensation coverage regardless of whether the subcontractor regularly employs fewer than three employees.
- Q: I am a subcontractor. Do I have to carry coverage if I have no employees?
A: Not if the general contractor who hires you does not require coverage as a condition of employment of affording you the opportunity to work. If so, you would either need to produce a certificate of insurance for the general contractor or allow the general contractor to deduct workers’ compensation from what he pays you to do the work.
Also keep in mind, just because you "1099" for IRS purposes does not mean that those people would be considered independent contractors under the N.C. Workers’ Compensation Act. If you as the employer exercise "right to control" over those individuals by governing the manner and method in the way in which they do their job, then they may be considered employees under the N.C. Workers’ Compensation Act. (See N.C. Gen. Stat. §97-2 Case Notes - Independent Contractors.)
- Special Notes: North Carolina calculates its own in state experience modification factors through the North Carolina Rate Bureau. They also report this information to NCCI, which is used in calculating interstate modification factors.
- Regulated By:
- North Carolina Industrial Commission
- 430 N Salisbury St.
- Raleigh, NC 27603-5926
- Phone: (919) 807-2500
- Fax: (919) 715-0282
- http://www.comp.state.nc.us/
- The Industrial Commission rules can be found at:
- http://www.comp.state.nc.us/ncic/pages/comprule.htm
Workers Compensation Statute:
- http://www.comp.state.nc.us/ncic/pages/statute.htm
- Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.
- Authority/Rating Bureau: North Carolina Rate Bureau. Contact them at:
WORKERS COMPENSATION CONSULTANT
Voice: (573) 999-6948
Fax: (573) 447-4998
email: rks@workcompconsultant.com
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