Understanding Workers' Compensation Amounts in North Carolina

How North Carolina Calculates Workers' Compensation Benefits

North Carolina follows a statutory formula that considers an employee's average weekly wage (AWP) and the extent of the injury. The state uses the AWP as the baseline for all benefit calculations, including temporary and permanent disability, medical care, and death benefits.

Temporary Disability Payments

For temporary total disability, employees receive 70% of their AWP, up to a statutory maximum of $1,000 per week. If the injury is temporary partial, the payment is 50% of AWP, capped at $500 per week. These payments continue until the employee is medically cleared or the injury becomes permanent.

Permanent Disability Benefits

Permanent disability is assessed in two categories: permanent partial disability (PPD) and permanent total disability (PTD). PPD benefits range from 25% to 75% of AWP, depending on the degree of functional loss, with a maximum of $1,000 per week. PTD benefits are 70% of AWP, capped at $1,000 weekly.

Medical and Surgical Expenses

Employers cover 80% of all medically necessary treatment. The remaining 20% is billed to the employee, but workers' compensation limits total medical costs to 50% of the employee's AWP per year. If an employee's medical expenses exceed this cap, the excess is not reimbursed under workers' comp.

Death Benefits

When a fatal injury occurs, the employer's workers' comp policy pays 100% of the employee's AWP to the designated beneficiary, up to a maximum of $1,000 per week. The policy also covers funeral expenses up to $10,000.

Key Limits and Caps

North Carolina imposes a lifetime cap on disability benefits of 15 times the employee's AWP. This limit applies to both temporary and permanent payments combined. Additionally, the annual medical expense cap of 50% of AWP ensures that total medical costs do not exceed a set threshold each year.

How to Verify Your Benefits

Employees should review their award notice, which details the AWP, benefit percentages, and any applicable caps. If discrepancies arise, contacting the North Carolina Division of Workers' Compensation or a qualified attorney can clarify entitlements and potential adjustments.

Practical Tips for Employees and Employers

Employers can reduce disputes by maintaining accurate payroll records to calculate AWP correctly. Employees should keep medical records, treatment invoices, and employer correspondence to support claims. Both parties benefit from understanding the statutory limits to avoid overpayment or underpayment issues.