Tom's Blog
As a business owner, you value your business investment, as well as your employees. After all, your employees are the backbone of your business and shouldn’t they be protected? In North Carolina, if an employee gets injured or sick as a result of work related activities, then that employee is entitled to workers’ compensation benefits, but do you know the N.C. Workers’ Compensation requirements?
Who Qualifies as an Employee?
The Workers’ Compensation Act of N.C. states that if your business employs 3 or more people then you must carry workers’ compensation insurance for your employees, but which people qualify as an “employee?” Below are some of the definitions of “employee”, but not limited to:
- Each person hired to work for your business, whether lawfully or unlawfully
- Full time, part time, or temporary workers
- Minors that are working for you
- Any person working in the field of “radiation”
- Independent contractors*- Even if the employee has filed a 1099, the Industrial Commission may still consider that person an employee based on several considerations.
- Subcontractors’ employees*- If you subcontract work to a subcontractor who does not carry workers’ compensation insurance, then you may be held liable for injuries that person sustains, should he/she become injured during the work being performed.
Keep in mind that while the above considerations make up the definition of “employee”, there are many exceptions to the rule. If you have any questions as to whether you should carry Workers’ Compensation or what your requirements are as a business owner, you should always contact your local N.C. independent insurance agent to inquire.
Penalties for Failing to Carry N.C. Workers’ Compensation Insurance
Failure to respect the North Carolina requirements for carrying Workers’ Compensation, can lead to the following stiff penalties:
- Felony or Misdemeanor Charges
- Imprisonment
- Financial Consequences
Protect the Backbone of Your Business
You have worked hard to build your business and it may be your biggest investment to date, so you must protect the employees that work for you to ensure not only the fulfillment of North Carolina Workers’ Compensation requirements, but also loyalty to your employees. Your business is only as good as the employees that work for you. Contact our office TODAY at 866-869-3335 with any and all questions regarding Workers’ Compensation insurance and/or requirements.
