No interest penalty after resolving workers’ comp dispute — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

No interest penalty after resolving workers’ comp dispute

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Sometimes, it’s unclear whether an employee’s medical bills are related to a workplace injury.

Now there’s a bit of good news if you wind up having to cover those bills. If a third party paid in the interim, you’ll have to provide reimbursement—but you won’t have to pay additional interest penalties.

Recent case: Donnie Sprinkle’s initial workers’ comp claim was denied. His wife’s health insurance company paid the medical bills. When it turned out Sprinkle was in fact eligible for workers’ compensation, his employer’s workers’ comp carrier repaid the insurance company. Sprinkle demanded interest and penalties, but the court refused, reasoning that the delay hadn’t hurt him personally. (Sprinkle v. Lilly Industries, No. A08-279, Court of Appeals of North Carolina, 2008)

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