NC H707

Allows truck drivers in interstate or intrastate carrier industries to be classified as either employees or independent contractors based on common law employment status tests.

Exempts principal contractors, intermediate contractors, or subcontractors from workers' compensation liability for independent contractors if three conditions are met: the contractor is DOT-licensed and owns/leases the vehicle, the contractor operates or hires personnel to operate the vehicle, and the contractor has occupational accident insurance coverage.

Permits contractors to include reimbursement agreements in contracts requiring independent contractors to pay for coverage under the contractor's workers' compensation insurance policy.

Allows motor carriers and independent contractors to mutually agree in writing that the contractor and their employees be covered by the motor carrier's workers' compensation policy or self-insurance, with the contractor deemed an employee for workers' compensation purposes only.

Defines occupational accident insurance as coverage including temporary total disability wage replacement, permanent disability or impairment benefits, medical expense payments, and death benefits, and requires all such policies be purchased from insurers with an AM Best "A" rating.