North Carolina Workers Compensation-Workman's Compensation

Yes, any employer who employs three or more employees must provide workers compensation insurance. If you are a Sole Proprietor, Partnership, LLC, estate or trust, you are required to carry workers compensation insurance once you have three (3) employees. If you are incorporated, including all forms of corporations and those which have non-profit status, you are also required to carry workers compensation insurance. Everyone is included in the headcount, including corporate officers. Businesses dealing with radiation are required by law to possess coverage when they have one (1) employee. Agricultural operations must carry coverage when there are ten (10) or more regular, non-seasonal employees.

There are no longer any exemptions for worker compensation insurance in North Carolina, and there has not been since October 1995.

General contractors with three (3) or more employees are required to carry workers' compensation insurance. If a general contractor enlists the services of a sub-contractor who has one or two employees, there is liability on the part of the principal contractor for those employees but not that of the subcontractor. The principle contractor may request documentation of workers compensation coverage from the sub-contractor prior to subletting any contract. If the principal contractor obtains this proper documentation, he will not be held liable to any of the subcontractor's employees for compensation or other benefits.

Filing "1099" does not automatically qualify workers as independent contractors. If an employer exercises "right to control" over these workers, then they may be considered employees. (See N.C. Gen. Stat. §97-2 Case Notes - Independent Contractors)

Employers that are not in compliance in North Carolina may be subject to accessed penalties between $50.00 to $100.00 for each day of non-compliance until coverage is obtained and proven. (See N.C. Gen. Stat. §97-94(b))

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North Carolina

Does my North Carolina business need workers compensation insurance?

In North Carolina who can exempt themselves from workers compensation insurance?

Does North Carolina workers compensation law have specific requirements for sub-contractors/contractors and sole proprietors?

I am an employer and file "1099’s" on an independent contractor do I need workers compensation?

What happens if I fail to carry North Carolina workers compensation insurance coverage?

North Carolina Workers
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Information for State Workers Compensation Insurance