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North Carolina Workman's Compensation Law Imposes a Penalty For Late Payment

North Carolina law requires prompt payment of workers' compensation benefits. If any installment of compensation is not paid within 14 days after it becomes due there shall be added to such unpaid installment an amount equal to 10 percent which shall be paid at the same time as, but in addition to, the regular workers' compensation payment.

One of the most frequent reports we receive regularly in our office is that the workers' compensation insurance company is late in making weekly workers' compensation payments.

Injured workers and their families depend upon these weekly workers' compensation payments to help replace the wages that have been lost by the injured worker's inability to return to work. If these payments are late it puts the worker and his family in financial distress.

There is not much that can be done for the worker, however, until the payment is 14 days late. After that time, a 10 percent penalty can be collected.

In extreme cases, where the insurance carrier fails to make any payment at all, the worker can ask that the Industrial Commission hold the employer in contempt of the orders of the North Carolina Industrial Commission. The contempt powers of the Industrial Commission are a very effective tool to enforce payments.

In order to avoid a 10 percent penalty for being more than 14 days late in making workers' compensation payments, the employer would have to show that the failure to pay was due to conditions over which they had no control. The Industrial Commission rarely excuses the employer from paying the 10 percent penalty for late payments.

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Brent Adams & Associates
Raleigh, Fayetteville & Dunn, NC

Toll Free: 800-849-5931
Phone: 910.892.8177
Fax: 910.892.0652

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