North Carolina § 97-19 - 1. Truck, tractor, or truck tractor trailer driver's status as employee or independent contractor.

§ 97-19. 1. Truck, tractor, or truck tractor trailer driver's status as employee or independent contractor.

An individual in the interstate or intrastate carrier industry who operates a truck, tractor, or truck tractor trailer licensed by a governmental motor vehicle regulatory agency may be an employee or an independent contractor under this Article dependent upon the application of the common law test for determining employment status. Notwithstanding subsection (a) of this section, a principal contractor, intermediate contractor, or subcontractor shall not be liable as an employer under this Article for the payment of compensation on account of the injury or death of the independent contractor if the principal contractor, intermediate contractor, or subcontractor (i) contracts with an independent contractor who is an individual licensed by the United States Department of Transportation and (ii) the independent contractor personally is operating the vehicle solely pursuant to that license. The principal contractor, intermediate contractor, or subcontractor may insure any and all of his independent contractors and their employees or subcontractors in a blanket policy, and when insured, the independent contractors, subcontractors, and employees will be entitled to compensation benefits under the blanket policy. Any principal contractor, intermediate contractor, or subcontractor, irrespective of whether such contractor regularly employs three or more employees, who contracts with an individual in the interstate or intrastate carrier industry who operates a truck, tractor, or truck tractor trailer licensed by the United States Department of Transportation and who has not secured the payment of compensation in the manner provided for employers set forth in G.S. 97-93 for himself personally and for his employees and subcontractors, if any, shall be liable as an employer under this Article for the payment of compensation and other benefits on account of the injury or death of the independent contractor and his employees or subcontractors due to an accident arising out of and in the course of the performance of the work covered by such contract. A principal contractor, intermediate contractor, or subcontractor may include in the governing contract with an independent contractor in the interstate or intrastate carrier industry who operates a truck, tractor, or truck tractor trailer licensed by a governmental motor vehicle regulatory agency an agreement for the independent contractor to reimburse the cost of covering that independent contractor under the principal contractor's, intermediate contractor's, or subcontractor's coverage of his business. History (2003-235, s. 1; 2006-26, s. 1; 2006-259, s. 19.) Effect of Amendments. - Session Laws 2006-26, s. 1, effective June 26, 2006, added the subsection designations and added present subsection (b). Session Laws 2006-259, s. 19, effective August 23, 2006, substituted "the United States Department of Transportation" for "a governmental motor vehicle regulatory agency" in the second paragraph of subsection (a); and in subsection (b), substituted "contractor who is an individual licensed by the United States Department of Transportation" for "contractor that is licensed by a governmental motor vehicle regulatory agency" in clause (i) and inserted "personally" and "solely" in clause (ii).