Workers' Compensation Rules
of the N.C. Industrial Commission
Effective 1 June 2000
ARTICLE V. AGREEMENTS
Compromise Settlement Agreements
- All compromise settlement agreements must be submitted to the Industrial Commission for
approval. Only those agreements deemed fair and just and in the best interest of all
parties will be approved.
- No compromise agreement will be approved unless it contains the following language or
- Where liability is admitted, that the employer or carrier/ administrator undertakes to
pay all medical expenses to the date of the agreement.
- Where liability is denied, that the employer or carrier/ administrator undertakes to pay
all unpaid medical expenses to the date of the agreement. However, this requirement may be
waived in the discretion of the Industrial Commission. When submitting an agreement for
approval, the employee or employees attorney, if any, shall advise the Commission in
writing of the amount of the unpaid medical expenses.
- That the employee knowingly and intentionally waives the right to further benefits under
the Workers Compensation Act for the injury which is the subject of this agreement.
- That the employer or carrier/administrator will pay all costs incurred.
- That no rights other than those arising under the provisions of the Workers
Compensation Act are compromised or released.
- That the employee has, or has not, returned to a job or position at the same or a
greater average weekly wage as was being earned prior to the injury or occupational
- Where the employee has not returned to a job or position at the same or a greater wage
as was being earned prior to the injury or occupational disease, that the employee has, or
has not, returned to some other job or position, and, if so, the description of the
particular job or position, the name of the employer and the average weekly wage earned.
This subsection of the Rule shall not apply where the employee is represented by counsel
or, even if the employee is not represented by counsel, where the employee certifies that
partial wage loss due to an injury or occupational disease is not being claimed.
- Where the employee has not returned to a job or position at the same or a greater
average weekly wage as was being earned prior to the injury or occupational disease, the
agreement shall summarize the employees age, educational level, past vocational
training, past work experience, and any impairment, emotional, mental or physical, which
predates the current injury or occupational disease. The parties will be relieved of this
duty only upon a showing that providing such information creates an unreasonable burden
upon them. This subsection of the Rule shall not apply where employee is represented by
counsel or, even if the employee is not represented by counsel, where the employee
certifies that total wage loss due to an injury or occupational disease is not being
- No compromise agreement will be considered unless the following additional requirements
- All medical, vocational, and rehabilitation reports known to exist, including but not
limited to those pertinent to the employees future earning capacity, must be
submitted with the agreement to the Industrial Commission by the employer, the
carrier/administrator, or the attorney for the employer.
- Parties and all attorneys of record must have signed the agreement.
- When a settlement has been reached, the written agreement must be submitted to the
Industrial Commission within a reasonable time. All compromise settlement agreements which
are currently calendared for hearing before a Commissioner or Deputy Commissioner shall be
sent directly to that Commissioner or Deputy Commissioner at the Industrial Commission.
Before a case is calendared, or once a case has been continued, or removed, or after the
filing of an Opinion and Award, all compromise settlement agreements shall be directed to
the Executive Secretary of the Industrial Commission.
- Once a compromise settlement agreement has been approved by the Industrial Commission,
the employer or carrier/administrator shall furnish an executed copy of said agreement to
the employee or his attorney of record, if any.
- An attorney seeking fees in connection with a Compromise Settlement Agreement shall
submit to the Commission a copy of the fee agreement with the client.
Go to Workers'
Compensation Rules Page
N.C. Industrial Commission ·
4340 Mail Service Center ·
Raleigh, NC 27699-4340
Main Telephone: (919) 807-2500 ·
Fax: (919) 715-0282
NCIC Home Page: http://www.ic.nc.gov/