How Are Workers’ Compensation Benefits Calculated In North Carolina?

When it comes to questions about workers’ compensation benefits, one of the most common questions from injured employees is understanding how benefits are determined. Workers often ask: How are workers’ compensation benefits calculated in North Carolina?

The amount of compensation that you receive depends on a variety of factors, such as your average weekly wage, the nature and severity of your injury, and whether you can return to work.

Workers’ comp benefits are designed to cover medical expenses and lost wages while you are recovering from an injury, but understanding how those benefits are calculated can be a confusing process.

Hire a Workers’ Compensation Lawyer

At Ayers, Whitlow & Dressler, our attorneys bring decades of combined experience in North Carolina workers’ compensation law. Recognized by Super Lawyers and Expertise.com for excellence, we have built a reputation for providing reliable, knowledgeable representation to injured workers.

Our team understands how benefits are calculated and the challenges employees face during recovery. With a proven record of advocating for clients, we are committed to protecting your rights and ensuring fair treatment under state law.

Understanding Average Weekly Wage

The first step in the workers’ compensation benefits calculation process is establishing your Average Weekly Wage (AWW). The legal definition of “average weekly wages,” according to North Carolina law, involves calculating an employee’s weekly earnings from the same job during the fifty-two weeks leading up to the injury week, while excluding any weeks where the employee missed more than seven days in a row.

In cases where the worker hasn’t been employed for a full 52 weeks, their wages should be averaged over the actual weeks they worked. AWW is used as the baseline for determining most types of compensation rates in North Carolina workers’ compensation cases.

Temporary Total vs. Temporary Partial Disability Benefits

If your injury totally disables you from work, Temporary Total Disability (TTD) benefits amount to two-thirds of your AWW. If you can return to work with restrictions, Temporary Partial Disability (TPD) benefits amount to two-thirds of the difference between your pre-injury AWW and your actual wages you are able to earn.

In either case, TTD or TPD benefits are limited to North Carolina’s maximum weekly benefit amount, which, for injuries that occur on or after January 1, 2025, is $1,380.00. Under North Carolina law, a mandatory 7-day waiting period applies, during which these days remain unpaid unless disability extends beyond 21 days, which enables compensation from day one.

Permanent Disability and Scheduled Injuries

Permanent Disability benefits apply when your injury is lasting and unlikely to improve. For scheduled injuries, such as the total loss of a finger, hand, or leg, North Carolina law assigns a set number of weeks of compensation under § 97-31. If the loss is partial, the benefit is adjusted proportionally.

Unscheduled injuries are addressed based on how much they reduce your ability to earn a wage. In every case, compensation is calculated as two-thirds of your Average Weekly Wage, subject to the state’s statutory limits.

Other Factors That Affect Benefit Calculations

Many elements are considered in determining the value of workers’ compensation benefits. North Carolina sets a minimum compensation of $30 per week, except when your Average Weekly Wage is less. The length and severity of disability, potential to return to work, and medical expenses all factor into the determination.

Scheduled injuries are paid for a set period of time, while an unscheduled injury is calculated according to your decreased earning capacity. Medical records should be clear, accurate, and reported in a timely manner. An insurer and the Industrial Commission heavily rely on these records to ensure you are receiving a fair amount in benefits as prescribed by the state.

FAQs

Do Overtime and Bonuses Count Toward Workers’ Compensation Benefits?

Yes, bonuses and overtime are factored into your North Carolina Average Weekly Wage. According to state law, all types of regular pay should be included when figuring out AWW, rather than just basic hourly or salary wages.

The inclusion of these values helps to provide a more accurate picture of your actual income. When added to your calculation, workers’ comp benefits will more closely replace a percentage of your pre-injury earnings.

Can Seasonal or Part-Time Workers Receive the Same Benefits?

Seasonal or part-time workers may also be covered, but benefit amounts are reduced. Workers’ compensation benefits in North Carolina are calculated based on your AWW. If you only work part of the year or a few hours, it’s factored into the equation. The actual payments may be smaller than for a full-time employee, but seasonal and part-time workers have the same legal protections in the event of a work injury.

How Long Can I Receive Workers’ Compensation Benefits?

The severity of your injury determines how long you will receive benefits. Temporary benefits are paid until you return to work or reach maximum medical improvement. Permanent injuries may be compensated for a set number of weeks according to the state’s schedule, or for longer if you are unable to return to any gainful employment. North Carolina law provides varying timelines based on the nature of your disability.

Are Medical Expenses Included in Workers’ Compensation Benefits?

Yes, workers’ compensation in North Carolina covers more than lost wages. Medical expenses necessary to treat your injury, such as doctor visits, hospital bills, medicine, and rehabilitation, are also covered. In most states, the employer or the employer’s insurance company must pay for these expenses upfront. You shouldn’t be left with large medical bills to manage while you are trying to get better and return to work safely.

Contact a Workers’ Compensation Lawyer

It’s essential to understand how workers’ compensation benefits are calculated in North Carolina. You have rights that should be protected, and the attorneys at Ayers, Whitlow & Dressler have the experience to help you through every step of a claim.

When you hire a workers’ compensation lawyer from our firm, you gain an advocate focused on securing the benefits you deserve. Book a consultation today.