North Carolina employment law requires that most employers carry workers’ compensation insurance. Although there are exemptions to the rules, the majority of employers are required to be compliant.
The rules under workers’ comp law
North Carolina’s Workers’ Compensation Act requires all businesses with three or more employees to carry workers’ compensation insurance. They do not need this insurance for certain types of employees, such as federal government employees, domestic servants, business partners and other types of workers.
Corporate officers, executive directors and committee members of nonprofit organizations are not considered to be employees and are excluded from coverage. However, independent contractors and subcontractors often need to be covered by workers’ compensation.
Penalties for violations of the law
There are civil and criminal penalties for an employer in North Carolina that does not provide workers’ comp coverage. After an investigation, the Industrial Commission determines whether or not to file a criminal citation and requires the business to show proof of compliance. Employers face heavy fines that exceed $10,000 and criminal charges for a felony. A penalty still applies if no worker files a claim for a workplace injury.
Reviewing the state’s requirements for employers
Most employers take every precaution to prevent workplace accidents and injuries, but a company can still have an accident occur. North Carolina requires nearly all employers to carry workers’ comp insurance so that injured employees can have their medical bills and other losses covered after an unforeseen incident. Even if you don’t think that your business has to be compliant, it’s necessary to review the rules in detail and take measures to protect your workers.