North Carolina May Cap Workers' Compensation for Retirees

Margaret Embry

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As of May 11, 2009, the North Carolina House Insurance Committee advanced a measure that would limit workers' compensation payments to injured workers about six years after they become eligible for Social Security. House Bill 1022, according to Insurance Journal

would curtail workers' compensation payments 300 weeks after a worker turns 65 or otherwise becomes eligible for Social Security retirement benefits, unless the worker wins an appeal before a state board.

While opponents argue that the bill would negatively impact senior citizens, supporters of the bill believe the measure would cut costs for employers and make North Carolina more competitive.

The bill has been sent to the House Judiciary Committee by the insurance panel for further review. A companion bill, Senate Bill 975, was filed on March 25, 2009 and is currently before the Senate Commerce Committee.

North Carolina is not the first state to debate this issue. The Utah Supreme Court recently declared a state law that limited workers' compensation payments for people over age 65 who can also collect Social Security retirement benefits unconstitutional.