Why Would You Have to Pay Back Workers’ Compensation?

You would have to pay back workers’ compensation if you receive benefits and later recover money from another source, such as a lawsuit or a third-party claim. North Carolina law has rules about reimbursement to prevent double recovery. 

A Raleigh workers’ compensation lawyer from our law firm can review your case and help you handle a repayment demand so that you don’t pay more than you need to.

Why Would You Have to Pay Back Workers’ Comp?

Not everyone has to repay workers’ compensation benefits, but it applies in certain situations, such as:

• You win a lawsuit against a third party: If someone other than your employer caused your injury—such as a negligent driver in a work-related car accident—your workers’ compensation insurer may seek repayment from your settlement.
• You receive a settlement from another insurance policy: If another insurance policy (like uninsured motorist coverage) pays for your injuries, your employer’s insurance company might have a right to reimbursement.
• There was an overpayment of benefits: Mistakes happen, and sometimes workers’ compensation pays more than they should. If this happens, they may ask you to return the extra money.

We can review your situation and advise you on whether you will have to pay back any workers’ compensation money you received.

How Long Do You Have to Repay Workers’ Compensation Benefits?

If you receive a demand letter asking for repayment, you have a limited time to respond. While North Carolina law doesn’t set a strict repayment deadline, ignoring the request could result in:

• The insurance company taking legal action to recover the money
• Increased financial pressure if interest or penalties apply
• Delays in receiving any future workers’ compensation benefits

You should review the demand letter carefully and take action as soon as possible. If you believe the amount is incorrect or unfair, you may be able to negotiate or dispute the repayment. We will meet all deadlines while fighting for the best outcome for you.

What Is Subrogation in a Workers’ Compensation Case?

Subrogation is the legal right of an insurance company to receive reimbursement or repayment when another party compensates you. In North Carolina, this means:

• Your employer’s workers’ comp insurer can recover benefits they paid if you receive money from a third party.
• You only have to pay back a portion of what you received, not the full settlement.
• A judge may reduce the amount you owe based on fairness and legal fees.

You Don’t Have to Repay Workers’ Compensation in Some Situations

Not everyone who receives workers’ compensation benefits has to pay them back. North Carolina laws limit when repayment is required, and in some cases, you may not owe anything at all. 

Here are a few key exceptions:

• Your injury was solely work-related: If your accident happened at work and no one outside your employer was responsible, you usually won’t have to repay benefits. Repayment typically applies only when a third party is involved (such as in a car accident while working).
• Your recovery from another source is less than your benefits: If you receive a settlement or payout from another party, but it doesn’t cover all of your damages, repayment may not be required, or it could be reduced.
• A judge rules that full repayment would be unfair: If paying back the insurance company would leave you without enough to cover your legal fees and other expenses, a judge may reduce or eliminate the repayment amount.

What to Do if You Can’t Afford to Repay Workers’ Compensation

A demand to repay workers’ compensation benefits can be stressful, especially if you’re already facing financial challenges. If you can’t afford to pay, you may have options to reduce or eliminate the repayment:

• Negotiate a lower amount: The insurance company may agree to reduce what you owe, especially if full repayment would be unfair.
• Set up a payment plan: In some cases, insurers may allow monthly payments instead of requiring a lump sum.
• Challenge the demand: If the request for repayment is incorrect or excessive, you can dispute it with the help of a lawyer.
• Request a legal reduction: North Carolina courts can lower repayment amounts based on legal fees, medical costs, or financial hardship.

Before agreeing to repay anything, consult with our workers’ compensation attorney to explore your options and protect your rights.

How We Can Help if You Have to Pay Back a Workers’ Comp Award

If you receive a demand letter asking you to repay workers’ compensation benefits, it’s important to understand your rights before taking action. Insurance companies often seek reimbursement, but that doesn’t mean their claims are always fair. 

Our workers’ compensation lawyers can help by:

• Reviewing your case to determine if the repayment request follows North Carolina law and whether the amount is accurate.
• Explaining North Carolina’s laws regarding workers’ compensation claims (G.S. § 97-10.2) and how it affects your situation.
• Negotiating with the insurance company to reduce the amount you owe, ensuring you don’t pay more than necessary.
• Challenging unfair claims if the insurer demands repayment that exceeds what is legally required.
• Exploring legal options to protect your settlement, including arguing for a reduction based on fairness and legal expenses.

Before you agree to repay any money, we can review your case and fight for the best outcome.

Protect Your Workers’ Compensation Benefits: Call Us Today

If you’re facing a repayment demand, you may be wondering why you would have to pay back workers’ compensation. For over 50 years, Whitley Law Firm has been helping seriously injured individuals across North Carolina navigate their claims and fight for fair outcomes. 

With 120+ years of combined experience, our dedicated team is here to protect your rights and ensure you don’t pay more than necessary. Plus, our Raleigh personal injury lawyers prioritize client communications and aim to return all calls within 24 hours. Call us today for a free consultation.