Interest on Past-Due NC Workers' Comp Benefits

Once an order is issued granting North Carolina workers' compensation benefits after an appeal, 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%.

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% not from the final decision on the appeal, but from the date of 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.