For years, workers’ compensation insurers in North Carolina have been able to enjoy a windfall in some cases that involved temporary workers or those who gigged for a number of employers.

Insurers have often charged premiums based on the worker’s projected annual pay, but have been able to pay benefits based on a fraction of that rate of pay. In at least one case, the indemnity benefits for one highly skilled worker came to no more than $19 a week, attorneys said.

That practice should now come to an end, the North Carolina Supreme Court decided late last week in a closely watched case that could have lasting impacts and lead to larger benefit payments, especially for temp workers. Insurance defense attorneys have said that the ruling will undermine the authority of the state’s Industrial Commission to decide the facts of a comp claim and will ultimately lead to higher workers’ comp premiums for North Carolina businesses.

The decision in Luon Nay vs. Cornerstone Staffing and Starnet Insurance Co. was handed down Feb. 11, affirming an appeals court decision and overturning a ruling by the state’s Industrial Commission.

“Until now, the Industrial Commission felt it did not have to consider reality when deciding what was fair and just,” said Jay Gervasi, the Raleigh attorney who handled the appeal for Nay. “Now, the emperor’s clothing is gone.”

Gervasi said that for years, the Industrial Commission felt that its hands were tied, that it was following long-standing practice...

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