Compromise Settlement Agreements in North Carolina Worker’s Compensation Cases

When an employee is injured or suffers an occupational disease, the employer (or carrier or administrator) and the worker can enter into a compromise settlement agreement. Rule 502 of the North Carolina Industrial Commission Rules sets forth the requirements for the compromise settlement agreement:

1. The employee must intentionally and knowingly waive the rights to future workers’ compensation benefits.
2. The costs should be paid by the employer, carrier or administrator.
3. The agreement only applies to the worker’s compensation claim.
4. A statement indicating whether the employee has or has not returned to a similar or better paying job.
5. If the employee has returned to some other job or position other than the pre-injury employment, then there needs to be a description of the particular job or position, the name of the employer, and the average weekly wage earned. This Subparagraph does not apply where the employee has a lawyer. If there is no lawyer, the then it also doesn’t apply if the employee certifies that partial wage loss due to an injury or occupational disease is not being claimed.
6. When the employee has not returned to a job or a position at the same or greater average weekly wage as prior to the injury, then the agreement must set forth the employee’s age, past vocational training, prior work experience, educational level and any emotional, mental or physical impairments that predated the current worker’s condition This section does not apply:

• If it would be an unreasonable burden on the parties
• The employee has legal counsel or
• The employee certifies that total wage loss due to an injury or occupational disease is not being claimed.

The settlement agreement must also:

• Contain the relevant medical, vocational and rehabilitation reports
• Be signed by the parties and the lawyers of record
• Where liability is admitted or established; the employer, carrier, or administrator must agree to pay all the medical expense for the compensable injury up to the date of the settlement agreement.
• Set forth all the known medical expenses (disputed or admitted) up to the date of the agreement.
• Have a list of the known unpaid medical expenses that will be paid by the employer, carrier, or administrator.
• Where one side or the other agrees to pay an unpaid medical bill, notice should be sent to the unpaid health care provider. Otherwise, unpaid health care providers will be notified in writing of the completion of the settlement by the party specified in the settlement agreement. Some additional conditions may apply.

Agreements must be properly filed. Agreements approved by the Commission shall be given to the employee’s attorney of record or directly to the employee if the employee doesn’t have a lawyer.

Attorney fee requests should be submitted to the Commission along with a copy of the fee agreement with the client.

Contact North Carolina Injured Worker Attorney Joe Miller

It’s great to settle your claims when possible. That way you control the money and your life. But settlements only work if all the formalities are met. Settlements of North Carolina worker’s compensation claims have to be done exactly right. Attorney Joe Miller has the experience injured workers need. He’s helped thousands of injured victims for more than 25 years. To make an appointment, Joe Miller Law at 888-694-1671, email me at jmiller@joemillerinjurylaw.com or complete the online form.