North Carolina Workers Compensation

Workers compensation coverage helps businesses in North Carolina meet legal requirements and facilitate care to treat work-related injuries. From understanding insurance coverage responsibilities to navigating reporting and benefits, employers need to stay informed. Find out how workers compensation coverage applies in NC, from employee benefits to employer responsibilities.

Understanding workers compensation in North Carolina

North Carolina is a state of choice to settle in for many formally Southeast and Northeast U.S. citizens. With a temperate climate, mountain peaks and beaches all within a days’ drive, there’s a lot to enjoy. Some of the nations’ largest banks, headquartered in the city of Charlotte, seem to love NC’s central location as well. Financial institutions and most other businesses, regardless of size, need workers compensation coverage to help maintain sustainable daily operations. The right insurance provider can be important for effective business strategies and employee care.

Who is required to carry workers compensation insurance in North Carolina?

If an employer has three or more employees, generally they are required to obtain workers compensation coverage.

Agricultural employers with fewer than 10 employees, certain sawmill and logging operations, and all domestics working for household employers are exempt from workers compensation insurance.

If an employer has one or more employees whose work involves the use or presence of radiation, they are required to obtain workers compensation coverage.

Who can receive workers compensation benefits in North Carolina?

Injured employees are generally eligible to receive workers compensation benefits. Some individuals are automatically included in or excluded from workers compensation in North Carolina.

Corporations: Officers of for-profit corporations or officers of non-profit corporations who receive renumeration are included in coverage and may elect to be excluded from coverage. Officers of non-profit corporations who receive no remuneration are excluded from coverage and may elect to be included in coverage. 
Partnerships: Partners are excluded from coverage and may elect to be included in coverage.
Sole Proprietorships: Sole proprietors are excluded from coverage and may elect to be included in coverage.
Limited Liability Companies (LLCs): Members are excluded from coverage and may elect to be included in coverage only if they are actively engaged in the operation of the business.

North Carolina requirements to consider

North Carolina requires workers compensation coverage for certain trucking owner/operators, even in cases where the operator is deemed to be an independent contractor.

Overview of workers compensation requirements in North Carolina

Understanding North Carolina workers compensation is essential for employers. Being aware of state requirements helps employers comply with the law and support employees. This is an overview of the fundamentals of employer responsibilities and the benefits employees may receive under NC workers compensation law.

North Carolina workers compensation employer responsibilities overview

Compensable injuries

Generally, injuries arising out of and in the course of employment, regardless of whose fault it is, have potential for workers compensation benefits. This includes occupational diseases and cumulative trauma injuries.

Occupational diseases and cumulative trauma injuries are conditions that develop over time in the workplace.

For those not enumerated in NC statutes, the employee must show that the employment caused the condition and placed the employee at an increased risk of developing as compared to the general public.
Claims must be supported by medical evidence linking the condition to work-related duties.

Posting notices

Employers are required to post “North Carolina’s Workers’ Compensation Notice to Injured Workers and Employers” in both English (Form 17) and Spanish (Forma 17) that states the name of the insurer, policy number and dates of coverage. The notice must be displayed in a conspicuous place at the worksite informing employees of their rights and responsibilities under the Workers' Compensation Act.

Providing medical treatment 

Employers or their insurance carriers are responsible for providing medical treatment reasonably required to cure or give relief from work-related injuries at no cost to the employee.

Employers and their carriers have the right to select the medical providers in all workers compensation claims. Injured employees may request a change of physician by petitioning the NCIC (North Carolina Industrial Commission), but payment for the treatment (provided by a new physician) may not be approved.

Providing lost wages (indemnity) 

Employers can be responsible for lost wages, including decrease in pay due to modified job responsibilities. The employee benefits section gives a more in-depth explanation of the types of wage benefits employers may be responsible for.

Prompt reporting and forms

Employers should encourage employees to promptly notify them of any accident or injury. Once aware of a work-related injury, the employer should make sure the injured employee understands they can seek medical treatment if needed. The employer should notify their insurer right away of any work accident or injury so that their insurer can timely report to the North Carolina Industrial Commission.

Employers or their insurer may need to report claim information throughout the claim process.

Prompt reporting is essential to avoid penalties and provide timely benefits for injured employees.

Record keeping

Employers should maintain thorough documentation, including details about what happened, when, where, and witnesses involved. Accurate record keeping and prompt reporting to their workers compensation insurer can play a key role in a timely and complete investigation and handling of the claim.

The employer should continue to maintain and provide necessary information to their insurer throughout the claim process as it is vital for efficient claim handling and compliance with the workers compensation law.

Penalties

Employers who fail to maintain required insurance may face legal and financial penalties, including liability for compensation and medical costs.

North Carolina workers compensation employee benefits overview

Calculating Average Weekly Wage (AWW) in North Carolina

An employee’s Average Weekly Wage (AWW) is a set calculation based on state requirements. It is used to help determine workers compensation wage benefits. Correct benefit amounts can be determined after an employee’s AWW is calculated.

Generally, the AWW is determined by calculating the injured employee’s gross earnings over the 52 weeks prior to the injury.
Employers are responsible for providing complete wage records to ensure the AWW amount is calculated accurately.
Minimum and maximum rates apply.

Temporary Total Disability (TTD) benefits

Temporary Total Disability (TTD) benefits are paid to injured employees who are completely unable to work for a temporary period. In the state of North Carolina, there is a 7-day waiting period before the benefits begin.

If the injured employee is disabled for more than 21 days, payment for the initial 7-day waiting period will be made retroactively.
TTD benefits are then paid at 66 2/3% of the injured employee’s Average Weekly Wage (AWW).
TTD is capped at 500 weeks. An employee may qualify for extended compensation beyond the 500 weeks if they sustained a total loss of wage-earning capacity.
Minimum and maximum rates apply.

Temporary Partial Disability (TPD) benefits

Temporary Partial Disability (TPD) benefits are provided when an injured employee is capable of returning to work earning less than their pre-injury wages due to injury-related restrictions. The benefit is 66 2/3% of the difference between the pre-injury average weekly wage and current earnings, subject to state-established maximum and minimum limits.

Permanent Partial Disability (PPD) benefits

Permanent Partial Disability (PPD) benefits are provided when an injured employee has a permanent physical impairment listed in the NC statute.

The benefit amount is based on the impairment rating assigned by a physician and the number of weeks listed in the statutory schedule for the affected body part.
Payments are calculated at 66 2/3% of the employee’s average weekly wage for the designated number of weeks, subject to the state-established maximum and minimum limits.
When eligible for Temporary Partial Disability (TPD) and PPD, the employee can choose which to receive as the employee can’t receive both concurrently.

Permanent Total Disability (PTD) benefits

An injured employee may qualify for Permanent Total Disability (PTD) only if the employee has one or more physical or mental limitations listed in the NC statute that result from the injury and is not capable of returning back to suitable employment as defined by NC WC law. When there is loss of both hands, both arms, both feet, both legs, both eyes, or any two thereof, an employee may qualify for PTD for life whether or not the employee has returned to work in any capacity. These benefits equal 66 2/3% of the injured employee’s Average Weekly Wage (AWW), subject to state-established maximum and minimum limits.

Fatality benefits

In the event of a work-related death, the dependents of the deceased employee are entitled to compensation.

Benefits are calculated at 66 2/3% of the deceased employee's Average Weekly Wage (AWW) and are payable for up to 500 weeks to wholly dependent individuals with potential for the widow/widower to receive benefits for life or until remarriage.
When there is no person wholly dependent, partial dependents or next of kin may be eligible for reduced benefits.
Minimum and maximum rates apply.
Burial expenses are covered up to the state-set maximum.

Vocational rehabilitation

An employee may request vocational rehabilitation services when the employee has not returned to work or has returned to work but is earning less than 75% of their Average Weekly Wage (AWW) and is receiving Temporary Partial Disability (TPD) benefits.

Medical benefits

All necessary medical treatment for a work injury is covered, including hospital services, medications, and rehabilitation. Employers or their carriers select the providers.

Injured employees can request a change of physician through the NCIC if needed.
Injured employees are entitled to mileage reimbursement for medically necessary travel of 20 miles or more roundtrip.
Employees are not responsible for any copayments or deductibles.

Legislative updates

Regulations, laws and potential changes that can shift your course

As the nation’s largest writer of workers compensation insurance, Travelers is committed to understanding new and evolving legislation, regulations and trends at the state level. Our employees serve on regional and national associations, boards and committees to advocate on behalf of our customers and the industry. We educate stakeholders on the impact legislation can have on businesses. By taking an active role in the legislative process, we participate in the important dialog around worker safety and advocate for best practices industry-wide so all can benefit from our workers compensation expertise.

Workplace Safety Resources

How to Unlock the Strategic Value of Benchmarking in Workers Compensation

Learn how experience modification rate influences workers compensation premiums and safety benchmarking. Reduce risk with Travelers insights.

Workplace Safety Resources

How Presumption Laws Are Changing Workers Compensation

Presumptions for PTSD, cancer and more are reshaping workers comp. Learn how to adapt your risk strategy.

Workplace Safety Resources

How Does Workers Compensation Apply to Employees Versus Contractors

Understand the difference between contractors, service providers and employees for workers compensation. Learn more with Travelers Insurance.

Workplace Safety Resources

Workers Compensation Coverage for Business Leaders

From LLCs to partnerships, understand how entity structure and state laws could impact workers comp coverage for your business leaders.

Worker comp FAQs

Easy reads and quick finds - answers to workers compensation questions

Choosing workers compensation insurance takes understanding of legal requirements, coverage needs, business strategy, operations and payroll. Travelers workers comp FAQ pages provide support through it all.

Find answers

Why choose Travelers

Care for the employee, confidence for the employer

Employees are at the heart of every business. That's why Travelers is here to help employers keep them safe and support them when accidents happen. Our experienced teams guide both employers and their injured employees through recovery, from getting the right care to returning to work as soon as medically appropriate. In fact, 70% of injured employees return to work within 30 days.

Travelers approach