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North Carolina Workers' Compensation Law Requires Employers To Interest On Past Due Benefits

Once there is an Order issued either granting or denying workers' compensation benefits and there is an appeal resulting in an ultimate award to the employee, the employer shall pay interest on the final Award from the date of the initial hearing on the claim until paid. The rate of interest due is 8 percent. This provision of the law was enacted to prevent employers from delaying payment of workers' compensation awards by use of a frivolous appeal. Under this law interest runs at 8 percent not from the final decision on the appeal, but from the date the initial hearing. Notice that interest is due form the date of the initial hearing, even if the employee lost in the initial hearing and appealed from that loss. Interest, of course, will not be paid unless the employee ultimately prevails on this claim and is awarded workers’ compensation benefits.

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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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