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Workers’ Compensation Not Required for North Carolina Nonprofits

Compensation for nonprofits or volunteersHOA, normally built and classified as non-profit organizations, have never been considered exempt from obtaining workers’ compensation insurance in North Carolina. Even unpaid volunteers were expected to be covered along with officers and directors.

About a year ago, some attorneys expressed their concern with the fact that many of these people failed to obtain coverage for themselves. Many insurance brokers and even the state insurance information were confused as to why these attorneys felt that HOA volunteers would be setting themselves up for litigation, despite being non-paid workers.

As a result of the confusion and ensuing discussions, the North Carolina General Assembly passed House Bill 765. This bill revised the definition of “employee” in the Workers’ Compensation Act. Briefly, anyone who performs voluntary service for a nonprofit and receives nothing more than reasonable reimbursement is excluded from the definition of employee.

If the nonprofit chooses to utilize someone’s services and gives them compensation for those services, then that person must be considered an employee. This does not mean, however, that people who run nonprofits or hire volunteers are prohibited from carrying workers’ compensation insurance, they are simply not required to do so by law.

If you have been injured at work and need an attorney, reach out to our team of attorneys. We are here for you and are ready to review the details of your case at no charge. Call our team of experienced legal professionals today or browse our website for more information about how our firm can assist you.

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