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Winning Independence in Tar Heel State

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A coalition of 11 motor carriers who utilize independent contractors has won a two-year legislative battle in North Carolina to have the Tar Heel State recognize those workers as independent contractors and not "per se" employees for workers compensation purposes.

The legislative battle began two years ago, but the genesis for this fight is more than a half-century old. The North Carolina. Supreme Court established the "per se" status in 1947. That decision was based on old Interstate Commerce Commission provisions regarding "sole possession and control" and "assumption of complete responsibility."

"North Carolina was the sole state that wouldn't recognize independent contractors among the motor carriers," said James C. Hardman, an attorney for the Independent Contractors Exemption coalition.

"Because of the 1947 North Carolina Supreme Court decision over exclusive control and possession, there was no possibility that independent contractors could be considered such, and instead were designated employees," said Hardman, former general counsel at Dart Transit Co., Eagan, Minn., a member of the ICE coalition.

North Caroina Gov. Michael F. Easley recently signed the bill making independent contractors under the common law exempt from workers' compensation coverage.

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