Who Can Be Excluded From Workers’ Compensation in North Carolina?

Workers and employers benefit from a deeper understanding of workers’ compensation exclusions in North Carolina. While most NC businesses are required to provide workers’ comp insurance for employees who sustain workplace injuries or suffer work-related illnesses, we can discuss a few exemptions that leave employees without coverage. You may be wondering, “Who can be excluded from workers’ compensation in North Carolina?”

Fifty-two thousand seven hundred three workers’ compensation claims were opened during the 2022-2023 fiscal year, according to The North Carolina Industrial Commission (NCIC). It is beneficial to be aware of the penalties for non-compliance with workers’ compensation laws and what to do if you are hurt at work and your company does not have injury coverage. It also can help to learn how a worker can verify whether their specific company maintains workers’ comp insurance.

Which NC Employers Must Have Workers’ Comp Coverage?

Generally, most employers operating in North Carolina are required to maintain workers’ compensation insurance for their employees. Employers with at least three paid employees must maintain workers’ comp coverage, which includes NC corporations, sole proprietorships, limited liability companies (LLCs), and partnerships. However, there are a few exceptions.

Which NC Employers Are Excluded from Workers’ Comp Requirements?

In North Carolina, there are only a few excluded employers who are not required to maintain workers’ comp insurance for their employees. This includes:

• Employers with casual employees
• Household workers, like housekeepers, caregivers, or babysitters
• Agricultural employees/farm laborers (for employers with fewer than 10 non-seasonal, full-time laborers)
• Workers selling agricultural products on commission
• Employers employing workers with irregular hours or workers who routinely leave
• Federal government employees
• Independent contractors (including 1099 employees, subcontractors, freelancers, and gig workers)

Some remote workers are required to be covered by an employer’s workers’ comp coverage. Also, businesses participating in radiation-based activities are required to maintain coverage, no matter how many employees they have.

What Penalties Can NC Companies Face for Non-Compliance?

Employers failing to provide workers’ comp insurance coverage for employee claims can face fines, criminal charges, and more. As a result, employees can pursue claims in NC courts.

While NC employers do not have to provide coverage for any independent contractors, any employers found misclassifying employees (often to avoid paying for workers’ comp) can face serious penalties. Employers might have to pay retrospective benefits, such as medical bills, wage loss, and more, in order to repay the workers for what they would have received if lawful coverage had been in place.

If you believe your employer might not have required coverage, you can report them and protect your employee rights.

How Do I Report My Employer’s Lack of Required Coverage?

If you believe your North Carolina employer does not have workers’ comp insurance as required by law, you can report the violation and protect your rights as an employee:

• Report the issue to the North Carolina Industrial Commission (NCIC) through the Criminal Investigations & Employee Classification Division.
• File a workers’ compensation claim. If you suffered a workplace injury or sustained a work-related illness, it is important to file an NCIC claim – even if your employer doesn’t have workers’ comp insurance coverage. Also, prepare a Request for Hearing form to notify the NCIC you may need help addressing your work-related issue.
• Gather compelling evidence to support your claim.
• Consider consulting a workers’ comp lawyer who can assist throughout the entire process.

While most employers are required to maintain workers’ comp insurance, there are some exceptions. If you are concerned your North Carolina employer might not have to provide you with insurance coverage through workers’ compensation, contact a trusted attorney to discuss your employee rights and legal options.

FAQs

Q: Does a Sole Proprietor in NC Need Workers’ Compensation Coverage?

A: In North Carolina, sole proprietors do not need to carry workers’ comp insurance for themselves since they are not employees. Sole proprietors are individuals who own and operate businesses that are not under an LLC or corporation.

However, if a sole proprietor decides to hire three or more employees, they will need to get workers’ comp coverage for the new employees even though they are exempt themselves. They can choose to get workers’ comp insurance to protect themselves against any on-the-job injuries.

Q: Do Independent Contractors in North Carolina Need Workers’ Comp Insurance?

A: North Carolina independent contractors are not typically required to maintain workers’ comp insurance for themselves. They are not employees under the North Carolina Workers’ Compensation Act, which means they also don’t typically qualify for workers’ comp benefits.

If you have concerns as an independent contractor about workers’ comp coverage or whether you’ll qualify for benefits, contact an experienced attorney.

Q: Do Trucking Companies in North Carolina Need Workers’ Comp Insurance Coverage?

A: Yes, by law, trucking companies operating in North Carolina must maintain workers’ compensation insurance, even if some employees are, in fact, considered independent contractors. This is true regardless of whether the trucking company regularly employs at least three workers or not. If you are a truck driver and were hurt in a work-related incident, it is important to report your injury, file an NCIC claim, and consider consulting an attorney.

Q: How Do I Know If My Employer Has Workers’ Comp Insurance?

A: In order to figure out if your employer maintains workers’ comp insurance, you can access the NCIC website to use a Workers’ Comp Insurance Coverage Search tool. This allows you to check a database to see if your current employer has insurance coverage by searching your employer’s name and/or its Federal Employer Identification Number (FEIN).

Also, you can call the North Carolina Industrial Commission at (919) 807-2501 or email [email protected] to inquire confidentially.

Contact Ayers, Whitlow & Dressler to Discuss Workers’ Compensation

There are often employers who try to avoid paying workers’ compensation insurance by trying to exclude themselves from the mandatory coverage requirements of North Carolina or by misclassifying employees who should be covered. If you need help, call Ayers, Whitlow & Dressler.

Our law firm sits right in the heart of Charlotte, near I-277. Contact our knowledgeable legal team to set up an initial consultation to discuss your workers’ compensation matter.