The 2026 North Carolina Appropriations Act (Senate Bill 257) includes significant changes to the governance structure of the North Carolina Industrial Commission (NCIC). While the legislation does not alter the substantive rights and obligations under the Workers’ Compensation Act, it does reshape how Industrial Commission Commissioners are appointed and how the Commission is administered.

A New Appointment Structure

Historically, all six Industrial Commissioners were appointed by the Governor. Under the new legislation, appointment authority will be divided among three appointing entities:

• Two commissioners appointed by the Governor.
• Two commissioners appointed by the Commissioner of Labor.
• One commissioner appointed by the General Assembly upon recommendation of the Speaker of the House.
• One commissioner appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate.

Although appointment authority is changing, the statute preserves the Commission’s longstanding balance between employer and employee interests. The six-member Commission will continue to include three commissioners representing employers and three commissioners representing employees.

Term Limits Remain

The legislation still imposes term limits on Industrial Commissioners. No commissioner may serve more than two terms. A partial term of less than three years will not count toward that limit.

Legislative Confirmation Still Required

Appointments made by the Governor and Commissioner of Labor will require confirmation by the General Assembly through a joint resolution. The legislation also provides procedures for situations in which nominations are not submitted on time or vacancies arise during a term.

Change in Chair and Vice Chair Appointment Authority

Another notable administrative change is the transfer of authority to designate the Commission’s Chair and Vice Chair. Under the amended statute, this authority moves from the Governor to the Commissioner of Labor.

Current Commissioners Will Complete Their Terms

Importantly, the legislation does not remove current commissioners from office. Existing commissioners will continue serving until the expiration of their current terms. As those terms expire, appointments will transition to the new structure on a staggered basis through 2031.

Transition Schedule

As noted above, the legislation does not immediately remove current Commissioners.  Existing commissioners complete their current terms, and future appointments follow the new structure.

The transition schedule is:

What Does This Mean for the Workers’ Compensation Community?

For employers, self-insured entities, carriers, third-party administrators, injured workers, and practitioners, the immediate impact is primarily structural rather than substantive. The legislation does not modify benefit levels, claim procedures, compensability standards, or other core provisions of the North Carolina Workers’ Compensation Act.  Instead, the changes affect who appoints Industrial Commissioners and how the Commission is governed. Over time, those changes may influence the composition of the Commission, but the Commission will remain a six-member body equally divided between employer and employee representatives.