Workers’ Comp vs. Unemployment Benefits
The North Carolina Workers’ Compensation Act is designed to compensate individuals who are unable to work due to a disability sustained in the course and scope of their employment.
Unemployment benefits, on the other hand, are designed to compensate individuals who are unemployed due to no fault of their own and who are “physically able, available, and actively seeking work.”
But can you actually get workers’ comp and unemployment at the same time in North Carolina? And is it actually legal?
Example: Bob the Warehouse Worker
Take the example of Bob, a warehouse worker who is hurt on the job. Bob files a workers’ compensation claim, which is accepted. He treats with an authorized treating physician assigned to him by the worker’s compensation insurance adjuster for his employer’s insurance company, and he eventually has back surgery. Bob goes through rehab and is finally released by his treating physician at maximum medical improvement. Bob’s doctor assigns him permanent restrictions, including no lifting over 30 pounds. He still needs to take muscle relaxers, but otherwise, he is released from medical care. His doctor says he doesn’t need to come back to him unless his back flares up.
Bob’s employer tells him he cannot return to work because his job requires frequent heavy lifting. Bob knows there are other jobs he could do, so he starts applying, but he cannot find anyone to hire him. When Bob submits his applications, he doesn’t mention his recent back surgery, but he suspects employers might know he has been out collecting workers’ compensation benefits and that they are reluctant to hire him. Of course, no employer actually tells him this because North Carolina is an “at will” employment state, and no one has to give you a reason for not hiring you.
Bob wants to work. He doesn’t like collecting workers’ compensation checks when he knows there are jobs that he could do. Plus, Bob isn’t receiving very much in workers’ compensation checks. Bob had been working in the warehouse for only 5 months before he got hurt, and although he would probably have started getting more hours soon, he was only working around 25 hours a week when he was hurt. So his weekly workers’ compensation checks don’t add up to very much.
Applying for Unemployment While Receiving Workers’ Comp
Bob then goes online to the North Carolina Department of Commerce’s website and clicks on the page for the N.C. Division of Employment Security.
He creates an account and enters his information. The website quickly tells him how much he would get if he started collecting unemployment benefits. Bob learns that if he were collecting unemployment benefits, he would be getting more money than he’s been collecting through workers’ comp. This is because the unemployment system looks back at his earnings from the job Bob had before working at the warehouse. He worked more hours at his last job.
Bob thinks it is unfair that he is getting less money than other people who got laid off. Bob didn’t do anything wrong to get hurt, but he’s getting less money just because of bad luck. He wishes his boss had just laid him off.
Then Bob realized he was actually laid off, in a way. He is not unemployed through his own fault. He can work some jobs, just not in the warehouse. His boss could probably even bring him back in some other positions that don’t require so much lifting, but they probably just don’t want to bring him back because he’s a risk to hurt his back again. Bob realizes that he meets the definition of unemployment on the North Carolina unemployment website. So he applies for unemployment benefits. He uploads a copy of his driver’s license and enters the info on the jobs he has been applying to over the last few weeks.
In a couple of weeks, Bob gets an email. He has been granted unemployment benefits! Money has already been deposited into his checking account for the six weeks he’s been out of work since his doctor released him! The notice tells him he can also apply for Medicaid or a health insurance plan through the Affordable Care Act marketplace. Bob is really excited because he has some other health issues besides his back, and he could really use health insurance.
But then Bob gets really worried. He’s also been collecting workers’ compensation benefits during this time. Did Bob just do something wrong? Does he owe money back? What about his medical care? Workers’ comp is still paying for his prescriptions. Does he have to start paying for those out of his pocket? Is he supposed to get health insurance and start having them pay for his medical care if he needs to go back to the doctor?
Laws Concerning Workers’ Comp and Unemployment in North Carolina
Bob starts reading on the internet and finds N.C.G.S 97-42.1. It talks about credits and how he might have to pay back the money he has been getting through workers’ comp. But it says this only applies to people who are working one job and are receiving temporary total disability. It says this rule does not apply to people who are receiving temporary partial disability or permanent partial disability. Bob has absolutely no idea what those terms mean.
Have You Been Injured on the Job?
If you’ve been injured on the job and are seeking workers’ compensation benefits, or you’re already receiving benefits and have questions about receiving unemployment benefits at the same time, please call our North Carolina workers’ compensation lawyers today. Our attorneys have more than 171+ years of combined legal experience, and we’ve recovered millions of dollars in compensation for victims of workplace injuries since 1985 (see disclaimer below).
I would like to thank Riddle & Riddle for doing such a great job handling my workers’ compensation case.
Gregory S., Riddle & Riddle client
Contact a Personal Injury Lawyer from Riddle & Riddle Injury Lawyers for Help Today
Call (855) 652-2049 and let one of our Board-Certified Specialists in Workers’ Compensation at Riddle & Riddle Injury Lawyers review your workers’ compensation claim today.
We have twelve convenient locations in North Carolina, including Greenville, Raleigh, Goldsboro, Jacksonville, Kinston, Charlotte, Greensboro, Durham, Fayetteville, Wilmington, Winston-Salem & Garner.
