North Carolina workers’ compensation law allows qualified employees to recover lost income to aid their recovery based on their average weekly wages. Accidents occur in any employment setting, so it is important to understand which workplace injuries are compensable and how your pay is calculated.
How Much Does Workers’ Compensation Pay?
In most cases, compensation is based on a percentage of your average weekly wage (AWW). NC workers’ compensation law entitles employees to 66 2/3% (.6667) of their average weekly wages. Once calculated, this value is paid weekly. Your average weekly wage is not adjusted if your pay increases while you are out of work or for the cost of living. Be advised that North Carolina workers’ compensation laws observe a maximum weekly benefit. While this number is adjusted annually, the maximum compensation is calculated by the date of your injury.
Rules for Calculating Average Weekly Wages
A workplace injury can happen to an employee during their first week or their 10th year, and the length of employment can affect how much workers’ compensation pays. Under North Carolina Law, there are four factors the courts use to determine your average weekly wage:
- If you have been on the job for more than a year, the average weekly wages for your workers’ compensation is the total amount of money earned during the 52 weeks prior to the injury divided by the number of weeks worked. If you have missed 7 or more calendar days during the 52 weeks these are deducted when from your AWW calculations.
- If you’ve worked fewer less than 52 weeks, the average weekly wage is the total amount of money earned during the employment divided by the number of weeks worked.
- If the individual’s employment is so short that it is not fair to apply the second method, then orkers’ compensation can use the average weekly wages of a similar employee.
- If none of the prior methods would be fair, then the average weekly wage is the amount of money that would most closely approximate your earnings if you weren’t injured.
Average weekly wage calculations for workers’ compensation claims should include all overtime and bonuses, as well as non-wage allowances such as per-diems and housing. Employers may neglect some earnings, so it is important you confirm their calculations or ask a workplace injury attorney to review your compensation.
When Wage Compensation Begins and Ends
These benefits are subject to a 7-day waiting period, meaning, that you will not be compensated for the first 7 days you are out of work. Once you’ve been out for 7 days, the proverbial clock begins to tick. However, if you are unable to work for more than 21 days, you will be compensated for the initial 7 days.
Workers’ compensation benefits cease when you are physically able to return to work, even if you choose not to. Reaching ‘Maximum Medical Improvement’ may also affect workers’ compensation benefits in North Carolina.
Many factors can change how much workers’ compensation pays and when your benefits start. If you have questions concerning your rights in a workers’ compensation claim, contact Miller Law Group for a free consultation.
