Whether a North Carolina remote or out-of-state worker needs workers compensation depends on where the job is based, not just where your office is. North Carolina reaches an injury if the worker's main place of work is in the state, if the employer's main place of business is in the state, or if the hire was made in the state.
Who this is for: North Carolina employers with remote staff, and out-of-state employers with workers based in North Carolina.
The short version
- Location of the work drives it. A worker whose main place of work is in North Carolina generally falls under the state Act.
- Three still triggers the mandate. Coverage is required at three or more regular employees (G.S. 97-2).
- Remote workers count. A North Carolina home-based employee counts toward the three like any other.
- Out-of-state employers can be pulled in. If your worker is based in North Carolina, you likely need the state listed on your policy.
- Multi-state work needs the right policy setup. Where employees sit in more than one state, the policy must name each state properly.
How North Carolina decides coverage for remote work
Under G.S. 97-36, a North Carolina claim can exist for an injury even outside the state if the contract of hire was made here, the employer's principal place of business is here, or the employee's principal place of employment is here. The practical read: a remote employee who works mainly from a North Carolina home is covered by the state Act, and an out-of-state company with a worker based here should list North Carolina on its policy.
| Worker | North Carolina Act applies? |
|---|---|
| Remote employee working from a North Carolina home | Generally yes |
| North Carolina employer, worker temporarily in another state | Often yes, if hired here or based here |
| Out-of-state employer, worker based in North Carolina | Usually yes, list the state on the policy |
| Purely transient, incidental presence in the state | Not automatically |
Getting the policy right for multi-state teams
If your team spans states, the fix is not a separate mystery policy; it is naming the right states on the one you have. Workers based in North Carolina should be covered under the North Carolina part of the policy, and a broker can confirm your carrier writes here. The count that triggers the mandate still uses your regular employees, wherever they sit, once North Carolina applies.
A remote-team example
Illustrative, not a quote. A software company headquartered in another state hires four full-time employees who work from their homes across North Carolina. Because those workers' main place of work is in North Carolina, the company should carry North Carolina coverage for them, and with four employees it is over the three-employee trigger. The right move is to list North Carolina on the policy before anyone gets hurt. See our technology workers comp page.
Real questions North Carolina owners ask
Do remote workers need workers comp in North Carolina?
A worker whose main place of work is a North Carolina home generally falls under the state Act and counts toward the three-employee trigger.
I am an out-of-state employer with a North Carolina worker. Do I need coverage?
Usually yes. If the worker is based in North Carolina, you likely need the state listed on your policy.
How does North Carolina decide which state applies?
By the statute: a claim can exist if the hire was made here, the employer's main place of business is here, or the worker's main place of work is here.
What about a worker temporarily in another state?
A North Carolina employer often still has coverage duties if the worker was hired here or is based here, subject to the other state's rules.
Do remote employees count toward the three?
Yes. A North Carolina home-based employee counts toward the three-employee trigger like any other worker.
How do I cover a multi-state team?
Name each state properly on your policy so workers based in North Carolina are covered here. A broker can confirm your carrier writes in the state.
Why North Carolina owners choose Morrow
- We shop the right market for you. In North Carolina you buy workers comp on the open market from any private insurer licensed in the state, because North Carolina has no state fund, and if no carrier will take you the North Carolina Rate Bureau runs a guaranteed fallback plan, so we can shop your rate freely and still have a backstop for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related North Carolina guides
Every North Carolina business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in North Carolina (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What workers comp does not cover
- Workers comp vs employers liability
- North Carolina technology workers comp
This guide is general information, not legal advice. North Carolina rules and penalty amounts can change, so verify current requirements with North Carolina Industrial Commission or a licensed advisor before you rely on them. Last updated: July 2026.