The High Stakes of Injury for Business Owners and Executives in North Carolina

Injuries that end a career do not only stop a paycheck. For business owners, partners, and executives in North Carolina, an injury can threaten company stability, leadership succession, and long-term wealth. North Carolina workers’ compensation can help, but eligibility and benefit calculation are more complex when you own or help run the business.

At Ramsay Law Firm, P.A., our Charlotte workers’ compensation lawyers help business owners and executives understand that addressing these issues early can protect both your recovery and your enterprise.

Why Coverage for Owners and Executives is Complicated

Business owners and executives often wear two hats. You may be both the employer and an employee. Coverage can hinge on how your entity is organized and how your workers’ compensation policy was written.

In North Carolina, most employers with three or more employees must carry coverage. Corporate officers are usually covered unless the corporation has elected to exclude them. Partners and many LLC members are not covered by default unless they are affirmatively added to the policy. If you are unsure, check the policy declarations and endorsements, and confirm with your carrier in writing.

Are You Counted as an Employee Under the Policy?

Your title alone does not answer the question. Eligibility hinges on how you are classified, how you are paid, and whether any officer exclusion or member endorsement was filed. Multi-entity structures add risk. You might be covered while performing duties for one company, but uncovered while helping an affiliate. Travel between locations, site visits, and client meetings can blur lines. A careful review of job duties, payroll records, and corporate documents helps establish that the injury arose out of and in the course of employment for a covered entity.

How Average Weekly Wage Works for Owners and Executives

Workers’ compensation cash benefits depend on your Average Weekly Wage and Compensation Rate. For owners and executives, income may include salary, bonuses, and distributions. North Carolina typically bases wage calculations on taxable wages, not pass-through profits. That means K-1 distributions or owner draws may not count, while bonuses and overtime usually do.

Getting this right requires payroll reports, tax returns, and sometimes expert input from a CPA. When pay fluctuates, alternative calculation methods may produce a fairer result. A correct Average Weekly Wage can dramatically change the value of your claim.

Light Duty, Real Jobs, And Protecting Your Role

Insurers often argue that you can perform “some other job” (link to other blog) at your company. The law requires suitable employment that fits your medical restrictions, training, and experience. Make-work assignments designed to cut off checks can be challenged. Ask your treating provider for specific written limits on lifting, overhead reach, standing, travel, and stress exposure.

Document every proposed duty, the hours, and whether accommodations exist. If a role would jeopardize your recovery or require tasks outside restrictions, gather medical support and push back through the proper procedures.

Safeguarding Ownership and Enterprise Value During Recovery

A serious injury can stall sales, delay projects, and unsettle lenders or investors. While you heal, formalize decision-making authority, delegate signature rights, and schedule board updates that reflect your medical limits. Preserve evidence for the claim, including calendars, travel logs, and communications that show how your injury removed you from revenue-generating work.

Coordinate workers’ compensation with other coverage, such as disability insurance or key person policies. Understand potential offsets and reimbursement rights so that one benefit does not unknowingly reduce another.

Take Practical Next Steps Now

Report the injury promptly, get immediate medical care, and follow all restrictions. Secure your workers’ compensation policy documents, payroll and tax records, and any officer or member endorsements. Ask your physician for detailed work notes. Keep a log of attempted work, proposed duties, and any tasks that conflicted with restrictions. Then speak with a lawyer who understands the intersection of ownership and eligibility.

Ramsay Law Firm, P.A., represents business owners, partners, and executives across North Carolina. We help protect benefits, safeguard companies, and pursue the full compensation the law allows. If your injury has put your leadership and livelihood at risk, we are ready to help.

Contact our Mecklenburg County workers’ compensation attorneys at (704) 376-1616 or online for a free consultation.

A Voice For The Injured.  Here Every Step of The Way.