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Restaurant Workers' Comp in North Carolina

What North Carolina requires of restaurants and bars for workers' compensation — when it kicks in, who's exempt, and what it costs.

Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .

Yes. North Carolina requires workers' compensation insurance once a restaurant regularly employs three or more workers in the same business. Part-time and seasonal staff count. Enforcement is strict: willfully failing to secure coverage is a Class H felony, negligent failure a Class 1 misdemeanor, and the Industrial Commission assesses daily civil penalties.

Required?
Yes
Kicks in at
3 or more employees regularly employed in the same business or establishment.
Restaurant rate
NCCI 9082 (Restaurant NOC / full-service) ~$0.80–$1.20 per $100 payroll and 9083 (fast food) ~$0.75–$1.10 per $100; North Carolina is a competitive, relatively low-cost state (industry national averages ~$1.06 for 9082, ~$1.03 for 9083). Approximate, industry tier.
Market
Competitive private insurance market with no monopolistic state fund; employers purchase from private carriers or qualify to self-insure.

Is workers’ comp required for a restaurant in North Carolina?

North Carolina requires workers' compensation once you reach 3 or more employees regularly employed in the same business or establishment.. Sole proprietors, partners, and LLC members are generally not counted as employees on themselves, and corporate officers may elect to exclude themselves in limited circumstances. Certain domestic/agricultural and casual workers fall outside the Act, but a business with three or more regular employees must cover them.

What restaurant workers’ comp costs in North Carolina

The restaurant class-code rate in North Carolina is NCCI 9082 (Restaurant NOC / full-service) ~$0.80–$1.20 per $100 payroll and 9083 (fast food) ~$0.75–$1.10 per $100; North Carolina is a competitive, relatively low-cost state (industry national averages ~$1.06 for 9082, ~$1.03 for 9083). Approximate, industry tier.. Your premium is that rate applied per $100 of payroll and adjusted by your experience modifier, so it scales with how many people you employ and your claims history. Competitive private insurance market with no monopolistic state fund; employers purchase from private carriers or qualify to self-insure.

What owners in North Carolina miss

  • The threshold under N.C.G.S. § 97-2 turns on three or more employees "regularly employed in the same business or establishment," so a single restaurant location can trigger the requirement on its own.
  • The North Carolina Industrial Commission enforces coverage aggressively; willfully failing to secure compensation is a Class H felony while negligent failure is a Class 1 misdemeanor under N.C.G.S. § 97-94.
  • Civil penalties under § 97-94 accrue daily for each day of non-compliance (a $1-per-employee-per-day formula with statutory minimum and maximum daily amounts), enforced through the Attorney General's office.
  • A non-compliant employer can also be assessed up to 100% of any compensation due to employees injured while coverage was lacking.

Sources

Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.

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