North Carolina Workers’ Compensation Check Rules 2024 Explained

Workers’ compensation is designed to provide financial support to injured employees by covering medical expenses and wage loss due to time away from work. That’s why understanding the North Carolina workers’ compensation check rules is essential for employees who have reported their injuries and are about to start receiving benefits.

In North Carolina, the regulations and procedures governing workers’ comp checks are specific, so knowing the basics can help workers understand what to expect in terms of payment frequency, amount, and eligibility.

What Workers’ Compensation Covers

Workers’ compensation in North Carolina provides wage replacement, medical benefits, and—sometimes—vocational rehabilitation for employees who are injured while performing their duties. If the injury is severe enough to prevent an employee from working, temporarily or permanently, they may be entitled to receive regular checks for lost wages.

This system is intended to prevent financial strain during recovery and enable employees to continue supporting themselves.

Eligibility for Workers’ Compensation Checks

Eligibility for workers’ compensation payments hinges on the worker’s ability to demonstrate that their injury occurred within the scope of their employment. North Carolina law mandates that nearly all employers carry workers’ compensation insurance, covering injuries caused by accidents or exposure to hazardous conditions on the job. Eligibility depends on a few factors:

• Work-related injury. The injury or illness must be directly related to work duties.
• Timely reporting. Employees must report injuries to their employer as soon as possible, ideally within 30 days.
• Medical documentation. Workers should obtain official documentation from a medical provider to validate their injuries.

Employees who meet these criteria may be eligible to receive wage replacement benefits and medical coverage for treatment.

How Workers’ Compensation Checks Are Paid in North Carolina

North Carolina workers’ compensation benefits are paid on a weekly basis, though some cases may allow for bi-weekly payments, depending on the circumstances and agreements with the insurance provider. Payments are generally processed directly through the employer’s insurance carrier.

Once an employee qualifies for compensation, their checks are supposed to arrive consistently throughout their period of disability. However, any interruptions in medical treatment or complications with documentation could potentially delay payments.

The amount of the check is determined by calculating the worker’s average weekly wage (AWW). Generally, the payment is set at two-thirds of the worker’s AWW before the injury. There is a cap on the maximum benefit amount, which is updated annually based on the state’s wage rates.

Types of Workers’ Compensation Checks

The type of compensation you will receive is determined by your level of disability:

1. Permanent Partial Disability (PPD): PPD benefits apply if a worker reaches maximum medical improvement (MMI) but still suffers a partial disability.
2. Permanent Total Disability (PTD): For workers who sustain injuries resulting in total and permanent disability, such as paralysis or loss of limbs, PTD payments provide long-term support.
3. Temporary Total Disability (TTD): This benefit applies to workers who are temporarily unable to return to any type of work.
4. Temporary Partial Disability (TPD): These benefits are for employees who could return to work but in a restricted capacity, earning less than their pre-injury wages.

What Happens If a Check Is Delayed or Missed?

Although workers’ compensation checks are required to be consistent, it is not uncommon for delays to occur. Reasons for missed or delayed checks can vary from administrative errors to disputes between the employee, employer, and insurance provider. Some common causes of delayed checks include:

• Disputes over claim validity. Employers or insurers may challenge the claim if they believe the injury was not work-related.
• Insufficient medical documentation. Incomplete or inaccurate medical records can cause the insurer to delay processing.
• Compliance issues. If the employee fails to attend medical appointments or follow recommended treatments, payments may be paused.

In cases of missed or delayed payments, employees have the right to file a complaint with the North Carolina Industrial Commission (NCIC). The NCIC oversees workers’ compensation claims and enforces state laws regarding workers’ comp benefits.

Returning to Work and Adjustments to Workers’ Compensation Benefits

When an injured worker is ready to return to work, the benefits they receive may be reduced or adjusted. Workers who can perform limited tasks but at a lower pay rate than before their injury may qualify for Temporary Partial Disability (TPD) benefits, which cover a portion of the wage difference.

For those unable to return to their former job but are capable of other employment, the state’s vocational rehabilitation program can assist in training or job placement. These programs aim to help injured employees re-enter the workforce while still providing compensation as needed.

If the injury leaves a permanent impairment, the employee may receive additional benefits based on the severity of the disability. Workers should seek a professional evaluation to understand the specific payments they are eligible for under North Carolina law.

FAQs

Q: Can Workers’ Compensation Checks Be Garnished for Child Support?

A: Yes. Workers’ compensation benefits can be garnished to pay for child support because child support is considered a priority debt under federal law, meaning it legally takes precedence over other financial obligations. If you owe back child support, the court may order a portion of your workers’ compensation benefits to go directly toward these unpaid obligations.

Q: Do I Need to Report Workers’ Comp Checks as Income on My Tax Return?

A: No. Your workers’ comp checks are exempt from federal income tax. The payments you receive are typically non-taxable and do not have to be reported on your federal tax return. The Internal Revenue Code (IRC) Section 104(a)(1) specifies that workers’ compensation benefits are tax-free, provided they’re received under a workers’ comp program or similar statute.

Q: What Should I Do If My Workers’ Comp Check Suddenly Stops Without Notice?

A: Contact a lawyer immediately. Reasons why your checks could stop without notice include:

• A dispute over your condition
• Missed medical appointments or assessments
• A change in work status
• An administrative or clerical error
• A suspension due to a fraud investigation

If your check stops without notice, something is wrong, which is why seeking legal counsel is advised.

Q: Can I Receive Workers’ Comp Checks While Working a Modified or Part-Time Job?

A: If you are receiving partial or temporary benefits and you are cleared to return to work on a part-time or limited capacity, you could still receive workers’ comp checks that make up the difference in wage. However, if you are medically required to remain out of work to receive your benefits, and you get a part-time job elsewhere while receiving your checks, that is considered fraud.

Contact the Skilled Attorneys at Ayers, Whitlow & Dressler

If you are seeking workers’ compensation benefits after a work-related injury, the team at Ayers, Whitlow & Dressler is prepared to advocate for your rights and make sure you obtain everything you deserve.

Schedule a consultation with our firm today.