When Are You Required to Carry Workers' Compensation Insurance in North Carolina?

Who Must Carry Workers' Compensation in North Carolina?

In North Carolina, employers are required to carry workers' compensation insurance if they have at least one employee who works for them for a minimum of 30 days in a 12‑month period, or if they are a sole proprietor with employees. The law applies to all businesses except for certain small‑scale or specific‑type exemptions (see below).

Key Definitions

Employee vs. Independent Contractor

Employees are individuals who perform work under the employer's direction and control, receive a regular wage, and are subject to the employer's schedule. Independent contractors are self‑employed and are not covered by workers' comp.

Covered Work

All on‑site work, travel for work, and any job duties performed under the employer's authority count toward the 30‑day threshold.

Legal Thresholds and Exemptions

• One employee for 30+ days in a 12‑month span – required.
• Zero employees or less than 30 days – not required.
• Certain small businesses with less than five employees and no history of workplace injury may be exempt under the "small‑employer" provision, but they must still register and pay a nominal fee.

Coverage Requirements

Workers' compensation in NC covers medical expenses, lost wages, and disability benefits. Employers must provide:

• Medical treatment for work‑related injuries.
• Temporary total disability (TTD) payments.
• Permanent partial or total disability benefits.
• Rehabilitation and vocational training if needed.

How to Verify Your Requirement

Use the NC Department of Labor's Online Tool

Enter your business size and employee count to confirm whether you must purchase insurance.

Check Your Business License

Many local licensing offices list workers' comp status; contacting them can provide confirmation.

Consequences of Non‑Compliance

Failure to carry required coverage can result in fines, civil penalties, and potential civil liability for workplace injuries. In extreme cases, criminal charges may apply.

How to Obtain Workers' Compensation Insurance

Employers can purchase through licensed carriers, the NC Workers' Compensation Insurance Fund, or the state's "small‑employer" program. It's advisable to shop for quotes and compare premium rates, which vary by industry risk.

Renewal and Record‑Keeping

Insurance must be renewed annually. Employers must keep proof of coverage, employee injury logs, and claim records for at least five years.

Common Misconceptions

Many business owners think only large firms need coverage. In reality, even a single employee working 30 days triggers the requirement. Also, independent contractors are not covered; hiring them does not obligate the employer to provide workers' comp.

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