NC Restaurant Workers' Comp: Rules, Codes & Penalties

Restaurants in North Carolina must carry workers’ compensation once they regularly employ three or more employees in the same business (G.S. 97-2). Coverage is bought from private carriers or through approved self-insurance, with the NC Workers Compensation Insurance Plan as the assigned-risk backstop. The North Carolina Rate Bureau classifies restaurants under codes 9082 (Restaurant NOC) and 9083 (Restaurant: Fast Food).

This page is for owners and managers of North Carolina restaurants, bars, cafes, caterers, food trucks and other food-service businesses who want to understand the comp rules and keep claim costs under control. Kitchens are hard on people, and comp is usually the policy restaurants use most.

Who must carry workers’ comp in North Carolina

The requirement applies where three or more employees are regularly employed in the same business (G.S. 97-2). Part-time workers count if they are regularly employed. Corporate executive officers count as employees but may be specifically excluded from the policy. Sole proprietors, partners and LLC members are not automatically covered but may elect coverage if they are actively engaged in the business.

A few exclusions exist, including agricultural employers with fewer than 10 full-time nonseasonal workers and casual employment. Very few restaurants qualify for those, and a crew that works regular shifts is not casual. The program is administered by the North Carolina Industrial Commission, which handles compliance and disputed claims.

Private carriers, self-insurance and the assigned-risk plan

North Carolina is not a monopolistic state-fund state. Restaurants buy comp from private insurance carriers, and larger employers may qualify to self-insure. Businesses that cannot find coverage in the voluntary market can obtain it through the NC Workers Compensation Insurance Plan, the residual (assigned-risk) market administered by the North Carolina Rate Bureau. Assigned-risk placement is a fallback; newer restaurants and those with prior claims often find voluntary-market options when an agency shops multiple carriers.

Rate Bureau classifications for restaurants

North Carolina uses its own rating bureau rather than NCCI. The North Carolina Rate Bureau (NCRB), an independent statutory bureau under G.S. Chapter 58, Article 36, files workers’ compensation classifications and assigned-risk rates. Its Basic Manual lists 9082 for Restaurant NOC (full-service and most sit-down restaurants) and 9083 for Restaurant: Fast Food. The classification assigned to your payroll affects premium, so describe your operation accurately and review the class on every policy and audit.

Penalties for going without coverage

Under G.S. 97-94, an employer that fails to secure required coverage faces a civil penalty of $1 per employee per day of noncompliance, with a minimum of $20 and a maximum of $100 per day. Willful failure to secure coverage is a Class H felony, and negligent failure is a Class 1 misdemeanor. The employer may also be responsible for an injured worker’s medical and wage-loss benefits. Here is what happens if a restaurant has no workers’ comp.

The injuries behind restaurant comp claims

Burns — fryer oil splashes, steam from dish machines, hot sheet pans and plate edges from salamanders.
Cuts and lacerations — knives, slicers, mandolines, broken glassware and can lids.
Slips, trips and falls — greasy kitchen floors, wet dish areas, walk-in thresholds and ice near bar wells.
Lifting and strain injuries — produce cases, kegs, stock pots and repetitive motion on the line.
Workplace violence — robbery at closing, disputes with intoxicated guests and parking-lot incidents.
Driving injuries — employees hurt while delivering or running errands for the business.

See our article on whether workers’ comp covers kitchen burns for more on how these claims are handled.

How your comp premium is figured

Premium starts with your estimated payroll in each classification. That payroll is multiplied by the carrier’s rate for the class, then adjusted by your experience modification factor if you qualify for one, which compares your past claims with those expected for similar businesses. Carriers may also apply schedule credits or debits based on your safety practices. At the end of the policy term, an audit compares actual payroll with the estimate, and the premium is adjusted up or down.

Ways to control restaurant comp costs

Report every injury promptly so the claim is managed early and an employee can return to modified duty sooner. Require non-slip footwear, mat the dish pit and line, use fryer splash guards and cut-resistant gloves for slicer and prep work, train new hires on lifting and hot-oil handling, and keep cash-handling and closing procedures that reduce robbery risk. Classify payroll correctly, separate clerical payroll where the manual allows, and review your audit before signing it.

Comp quotes from multiple carriers

Provident Financial Group compares restaurant workers’ comp from multiple carriers through one application, alongside your liability and property coverage. Our sister site USA Workers Comp covers workers’ compensation for other industries. Call (866) 964-6660.

Frequently asked questions

Do part-time servers count toward the three-employee rule?

Yes, if they are regularly employed in your business. Count every regular employee on payroll, not just full-time staff.

Can I exclude myself from my restaurant’s comp policy?

Corporate officers may be specifically excluded. Sole proprietors, partners and LLC members are not automatically covered but can elect coverage if they are active in the business.

Does North Carolina use NCCI class codes?

North Carolina classifications and assigned-risk rates are filed by the North Carolina Rate Bureau, which lists 9082 for Restaurant NOC and 9083 for fast food.

What if no carrier will write my restaurant?

The NC Workers Compensation Insurance Plan provides assigned-risk coverage. Shopping multiple voluntary-market carriers first often finds a better fit.

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Restaurant Workers’ Compensation in North Carolina