Workman's compensation (also called workers' compensation) laws help business owners protect their employees while minimizing the risk of costly lawsuits. Under workers' compensation programs, workers who are injured on the job can receive the medical care and wage replacement they need, and business owners generally cannot be sued by the employee for contributing to the injury. North Carolina's workers' compensation program is administered by the state's Industrial Commission.
Mandatory Coverage
North Carolina law requires business owners with three or more employees working in the same business to carry workers' compensation insurance. If a business owner has at least one worker whose work involves radiation, he must carry the insurance. If the business owner provides domestic or agricultural services, he must have coverage if he employs at least 10 workers. If a business owner required to have coverage fails to provide that coverage, North Carolina law imposes a penalty of $1 per employee for each day the business owner failed to provide the required coverage. The business owner also may be subject to criminal penalties and could be held financially responsible for the benefits the injured worker would have received under the workers' compensation program.
Injured Workers
Business owners have responsibilities under North Carolina law when a worker is injured on the job. After a worker informs the business owner of an injury, the business owner must immediately report it to her workers' compensation insurance company. Business owners also must inform the Industrial Commission of the injury within five days after learning about it if the injury causes the worker to miss more than one day of work or if the worker's medical expenses will be more than $2,000.
Medical Care
When a worker is injured on the job, he is entitled to medical care to be paid by the workers' compensation insurance company. In some states, the worker has the right to choose his own doctor. In North Carolina, the business owner chooses the doctor that will treat the injured worker. If a worker would prefer to be treated by a different doctor, the worker must get approval from the business owner, insurance company or the Industrial Commission before seeing the doctor. If the worker does not receive approval, the worker may be responsible for paying some or all of the medical bills related to the injury.
Claim Denials
If a business owner disagrees with an injured worker about whether the injury should be covered under workers' compensation, the business owner may refuse to submit the claim to her insurance company and deny the claim. Under North Carolina law, an injury that occurs at work as a result of the worker's intoxication or drug use is not covered under workers' compensation. A worker who intentionally causes his own injuries also can expect to have his claim denied.
