Workers' Compensation is the system set up by the State of North Carolina to compensate people who are injured in an on-the-job accident. The workers' compensation system is enacted by the North Carolina General Assembly and administered by the North Carolina Industrial Commission (NCIC). http://www.comp.state.nc.us/.

The workers' compensation system removes workplace injuries from the tort/negligence framework and generally prevents employees from suing their employer directly. An employee may sue their employer directly only if the employer intentionally engages in conduct that is substantially certain to result in serious injury or death, or intentionally injures an employee.

Generally state law includes employers with three or more employees in the workers' compensation system. Subcontractors must provide workers' compensation if they employ one person. Some businesses that are not required to purchase worker' compensation insurance anyway.

Most companies purchase insurance to cover workers' compensation. Some large companies are self-insured and hire outside administrators to manage workers' compensation claims.