Learn which NC employers aren’t required to provide workers’ comp benefits and how to verify your eligibility after an injury at work
Understanding workers’ compensation exemptions in North Carolina is essential for both employers and employees. While most businesses are required to provide workers’ compensation insurance to cover employees in case of workplace injuries, certain exemptions exist that can leave workers without coverage.
This article will explore which employers are exempt from providing insurance, the penalties for non-compliance, and how workers can verify if their employer has insurance. Additionally, we’ll explain what you can do if you discover your employer does not have the required coverage to ensure your rights are protected in the event of an on-the-job injury.
Have questions or need help getting workers’ comp benefits after an injury at work in North Carolina? Schedule a free consultation with one of our experienced work injury attorneys in Wilmington, Charlotte, or Greensboro today.
How many employees are required for workers’ comp in North Carolina?
In North Carolina, employers are generally required to provide workers’ compensation insurance if they have 3 or more employees.
It’s important to note that employees are eligible for this compensation regardless of whether they work full-time, part-time, or seasonally. Minors and undocumented employees also qualify for coverage.
Who is exempt from workers’ comp in North Carolina?
While most North Carolina businesses with 3 or more employees are required to have workers’ compensation, there are specific exemptions to this requirement under the North Carolina Workers’ Compensation Act.
These exemptions include:
- Certain railroad employees. Employees of certain railroads are not required to be covered by workers’ compensation insurance. These workers are typically covered under the Federal Employers Liability Act (FELA) instead.
- Farm laborers. Farms employing fewer than 10 full-time, non-seasonal farm workers are exempt from the requirement.
- Casual employees. Individuals whose employment is both casual and not directly related to the employer’s trade, business, profession, or occupation are exempt.
- Federal government employees. Employees of the federal government working in North Carolina are not covered under the state’s workers’ compensation requirements. Their injury claims are handled through the U.S. Department of Labor (DOL).
- Domestic servants. Household domestic workers directly employed by a household are not required to be covered.
- Sellers of agricultural products. Individuals selling agricultural products on commission for producers are exempt, provided the products are prepared for sale by the producer.
Please note that businesses that engage in activities involving radiation must have workers’ compensation coverage, regardless of the number of employees.
Additionally, employers who subcontract work to a subcontractor without workers’ compensation insurance may still be liable for any work-related injuries sustained by the subcontractor’s employees, regardless of the number of employees the subcontractor or the primary employer has.
This makes it crucial for businesses to verify the insurance status of any subcontractors they hire.
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Does a sole proprietor need workers’ comp in North Carolina?
A sole proprietor is an individual who owns and operates a business by themselves without forming a corporation or limited liability company. In North Carolina, sole proprietors are not required to carry workers’ compensation insurance for themselves, as they are not considered employees.
However, if a sole proprietor hires 3 or more employees, they must obtain workers’ compensation insurance to cover those employees, even though the sole proprietor themselves is exempt from mandatory coverage.
Additionally, while not required, sole proprietors can choose to purchase workers’ compensation insurance for themselves to protect against personal work-related injuries.
Do independent contractors need workers’ comp in North Carolina?
In North Carolina, independent contractors are generally not required to carry workers’ compensation insurance for themselves, as they are not considered employees under the North Carolina Workers’ Compensation Act. They also generally do not qualify for workers’ compensation benefits through an employer because they are not considered employees.
The distinction between an employee and an independent contractor is important, as it determines eligibility for workers’ compensation. The classification depends on several factors, including:
- Control. The degree of control the business has over how the work is performed.
- Independence. Whether the worker has the autonomy to determine how the tasks are completed.
- Payment method. Whether the worker is paid on a project basis or receives a regular wage or salary.
- Tools and equipment. Whether the worker provides their own tools and equipment.
Employers cannot simply label workers as “independent contractors” to avoid liability under the act. If the North Carolina Industrial Commission determines a worker is actually an employee based on the above factors, they may be eligible for workers’ compensation benefits.
Do trucking companies need workers’ comp insurance in NC?
Yes, trucking companies in North Carolina are required by law to have workers’ compensation insurance in place for certain owner-operators, even if they’re considered independent contractors. If an owner-operator does not have their own workers’ compensation coverage, the motor carrier must provide it.
This requirement applies regardless of whether the contractor regularly employs 3 or more people.
However, North Carolina law specifies that a motor carrier is not liable for workplace injuries of an independent contractor if they are individually licensed by the U.S. Department of Transportation (DOT) and they personally operate the vehicle.
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How can I find out if my employer has workers’ comp insurance in NC?
The easiest way to verify your employer’s workers’ compensation coverage is by contacting the North Carolina Industrial Commission (NCIC). They maintain a database of all employers with workers’ compensation insurance.
There are a couple of ways you can access this information:
- Online verification. You can visit the NCIC website and use their workers’ comp Insurance Coverage Search tool to check if your employer has coverage. You will need the employer’s name or their Federal Employer Identification Number (FEIN) to search.
- Phone or email. If you prefer, you can also call the NCIC at (919) 807-2506 or email them at infospec@ic.nc.gov to confidentially enquire about your employer’s insurance status.
How do I report my employer if they don’t have the required coverage?
If you discover that your employer does not have the required workers’ compensation insurance in North Carolina, you should take the following steps to report the violation and protect your rights:
- Report to the North Carolina Industrial Commission (NCIC). Your first step is to contact the NCIC Criminal Investigations & Employee Classification Division. This division handles reports of employers who fail to provide the necessary workers’ compensation coverage. You can report the lack of coverage by calling the NCIC at (888) 891-4895 or sending a written complaint to their office. Be sure to provide detailed information about your employer and the lack of coverage.
- File a claim if injured. If you’re injured and your employer doesn’t have the required workers’ comp insurance, you should still file a claim with the NCIC using the following forms:
- Form 18. This is the “Notice of Accident to Employer and Claim of Employee, Representative, or Dependent” form. It officially notifies the NCIC and your employer about your work-related injury or illness. It’s important to fill this out as soon as possible after an injury.
- Form 33. This is the “Request that Claim be Assigned for Hearing” form. If your employer does not have the required coverage, filing this form will initiate a formal process to address your claim through the NCIC.
- Gather evidence. In the meantime, be sure to document any evidence that supports your claim that your employer lacks coverage. This can include pay stubs, employment contracts, or any correspondence indicating the absence of insurance.
- Seek legal advice. Consider consulting with a workers’ compensation attorney to understand your rights and options. An attorney can help guide you through the process, ensure that your forms are properly completed, and represent you in hearings if necessary.
By following these steps, you can take the necessary steps to protect your rights and seek compensation after a work injury.
What is the penalty for not having workers’ compensation in North Carolina?
Employers in North Carolina who fail to provide workers’ compensation insurance face severe consequences, including significant financial penalties, misdemeanor or felony charges, and potential imprisonment.
Additionally, they could be required to pay retrospective benefits to injured workers, including medical expenses, lost wages, and other benefits that the workers would have received had the appropriate coverage been in place.
Get help from an experienced Charlotte work injury attorney
If you are an injured worker in North Carolina and are uncertain about your eligibility for workers’ compensation or believe you have been misclassified by your employer, it’s crucial to seek legal assistance from a local attorney with experience in these types of cases.
At Wilder Pantazis Law Group, our knowledgeable Charlotte workers’ compensation attorneys are here to help. With more than 85 years of combined experience, our team is dedicated to protecting your rights and ensuring you receive the benefits you deserve.