Did You Know? You Can Request Interest on Past Due Workers’ Compensation Payments 

Our Charlotte workers’ compensation attorneys at the Ramsay Law Firm, P.A. know that injured workers may be able to request interest or late payment penalty on past due workers’ compensation payments under certain circumstances. And so can their North Carolina workers’ compensation attorneys if an employer or insurance company fails to make timely payments as required by law or a settlement agreement as part of the injured worker’s legal recourse.

Here are a few scenarios in which the injured employee or their legal representative might seek interest on past-due payments.

When Can You Pursue Interest on Past Due Workers’ Compensation Payments in North Carolina?

The North Carolina Industrial Commission’s workers’ compensation rules provide procedural guidance on handling claims and disputes, including delayed payments. Specific statutes address how penalties and interest are applied when an employer or insurer fails to comply with payment obligations.

That includes:

• Late Disability Payments: If the insurance carrier or employer delays paying temporary total or partial disability benefits, the worker may request late payment penalties on the overdue payments.
• Delayed Lump-Sum Settlements: In cases where a lump-sum settlement has been agreed upon and payment is delayed, late payment penalties can be requested to compensate for the delay.
• Non-Compliance with Orders: The worker may seek penalties and interest if the employer or insurer does not comply with an Industrial Commission order to pay benefits.
• Unpaid Medical Expenses: If the employer fails to cover medical bills approved by the Industrial Commission, interest may accrue on the unpaid amounts the injured worker should not be responsible for paying.

In order to pursue interest on past-due workers’ compensation payments, injured workers often need legal assistance to file the proper motions and present evidence of the delay. Our skilled Charlotte workers’ compensation attorneys can help, starting with a free consultation.

Which North Carolina Workers’ Compensation Legal Statutes Allow Interest Payments?

Specific statutes and regulations in North Carolina govern workers’ compensation payments, including remedies for delayed or overdue payments.

To follow are those that may apply when requesting interest on past-due workers’ compensation payments:

• C. Gen. Stat. § 97-18(e) – Timely Payment of Compensation

This statute requires the employer or insurer to pay workers’ compensation benefits to an injured employee promptly. It establishes that disability benefits must be paid within a specific timeframe after an award from the commission. Delay in disability payments may lead to a 10% penalty being assessed.

Medical expenses must be paid within 60 days of approval by the commission or an additional 10% penalty is owed to the provider.

• C. Gen. Stat. § 97-86.2 – Interest on Awards

This statute allows interest to be assessed on awards if the industrial commission determines benefits are due to the employee, the carrier must pay interest. Specifically, it provides that interest at the legal rate is applicable on final awards made by the North Carolina Industrial Commission, accruing from the date of the initial hearing or decision. If an award is appealed and upheld, interest accrues from the original award date until payment is made.

The statute also awards interest on medical payments made by the injured worker which should have been paid by the workers’ compensation carrier. This is often the most overlooked benefit in contested cases.

• C. Gen. Stat. § 97-88.1 – Penalties for Delayed Payments

This statute allows the North Carolina Industrial Commission to impose penalties for delayed compensation payments when an employer or insurer refuses to pay compensation without reasonable grounds. While this statute specifically discusses penalties, it can be interpreted alongside interest requests in cases with unreasonable delay.

These statutes and rules provide a framework for requesting interest on past-due workers’ compensation payments in North Carolina. Injured workers should consult with an attorney to file appropriate motions or claims for interest based on these statutes. We can help.

Have You Been Injured at Work in North Carolina?

Our dedicated Mecklenburg County workers’ compensation law firm provides free consultations to all employees who have suffered a workplace injury in North Carolina by calling 704-376-1616 or contacting us online.Let us help you understand your legal options and fight for the compensation you need to recover and move forward with your life.

A Voice For The Injured.  Here Every Step of The Way.