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Last Modified on Aug 11, 2026
When a workplace injury results in permanent limitations, an employee may receive an impairment rating. That rating expresses the permanent loss of use as a percentage for the injured body part. Understanding North Carolina workers’ comp impairment ratings and PPD payouts (permanent partial disability) can help you prepare for what is to come.
Compensation for PPD comes in the form of monetary payments reflecting a portion of the impairment rating. North Carolina provides a statutory schedule assigning a specific number of weeks’ compensation for losses affecting each body part. This makes it possible to estimate most PPD awards.
Charlotte area workers can suffer permanent injuries due to falling at construction sites near Uptown Charlotte, warehouse lifting injuries along I-85, transportation accidents near Charlotte Douglas International Airport, or machinery accidents at industrial parks surrounding I-77. Workers’ comp injuries in North Carolina are subject to state-specific statutory rules established for calculating permanent partial disability.
Understanding Impairment Ratings
An impairment rating describes a physician’s determination of what percentage of impairment exists in an injured body part. As outlined in the North Carolina Industrial Commission’s (IC) Rating Guide, permanent disability applies when an injured worker has received maximum improvement from medical treatment, and there remains some permanent damage or loss of use.
Physicians determine the extent of the impairment as a percentage. Then, the Industrial Commission (IC) multiplies that percentage by the value given to that body part under state law.
The calculation is meant to measure objective conditions such as loss of strength, mobility, and range of motion. Therefore, an impairment rating does not specifically reflect how much pain a worker is experiencing.
However, the IC’s Rating Guide does instruct physicians to take the individual circumstances of injuries into account, and pain is one factor physicians can consider along with weakness, dexterity, and other conditions. When assigning a rating, physicians should exercise independent medical judgment and use their own experience along with a clinical examination.
Consider someone who’s largely recovered from a shoulder injury but finds their arm’s range of motion is still limited, or they have less strength. A doctor may determine the worker has a permanent impairment rating of 10% to the arm. That 10% could become part of a formula to determine how much PPD benefits the worker receives.
When a Worker Receives an Impairment Rating
Impairment ratings come into play after a worker reaches maximum medical improvement (MMI). Maximum medical improvement means the worker’s condition has plateaued, and the worker is not expected to improve significantly with additional medical treatment.
MMI does not mean an employee has fully healed. An employee may have reached MMI while suffering from limitations such as limited mobility, weakness, chronic pain, or another permanent condition. Once an employee has reached MMI, the treating doctor can assess any permanent impairment.
If an employee disagrees with a treating physician’s assessment, North Carolina allows the worker to receive a one-time second opinion rating from a physician of the employee’s choosing at the employer’s cost. When the ratings conflict, either party may request a hearing by filing Form 33. Either party can continue to dispute the impairment percentage, and ultimately, the Industrial Commission decides what percentage of disability the employee suffers.
How North Carolina PPD Payouts Are Calculated
When determining payouts for permanent partial disability compensation, North Carolina refers to statute 97-31. The statute establishes a scheduled list of injuries and assigns each injured body part a specific number of weeks of compensation for the total loss.
For partial impairment, the worker’s impairment rating percentage is applied to the number of weeks associated with that body part. The employee would receive that employee’s weekly compensation rate for the assigned number of weeks. Some examples of scheduled injuries and the number of weeks a worker is eligible for benefits are listed below:
- Arm: 240 weeks
- Hand: 200 weeks
- Leg: 200 weeks
- Foot: 144 weeks
- Eye: 120 weeks
- Back: 300 weeks
- Thumb: 75 weeks
- Index finger: 45 weeks
- Loss of hearing in one ear: 70 weeks
- Loss of hearing in both ears: 150 weeks
The weekly compensation rate is typically two-thirds of an employee’s average weekly wage, though there are maximums and minimums under the statute.
Example of a North Carolina PPD Calculation
To illustrate this calculation, let’s say a worker made an average wage of $900 per week before suffering an injury. Two-thirds of $900 is $600. So, $600 is this worker’s weekly compensation rate. The employee injured his arm and received a 15% impairment rating from his doctor. In North Carolina, the IC assigns 240 weeks to the loss of an arm.
- 240 weeks x 15% impairment = 36 weeks
As you can see, the employee would be entitled to 36 weeks of scheduled compensation. Now we just need to apply the $600 compensation rate:
- 36 weeks x $600 = $21,600
- PPD payout would equal $21,600
Actual workers’ comp claims can involve disputes related to issues such as average weekly wage calculations, impairment ratings, pre-existing injuries, disagreements about which body part was injured, and whether another type of disability benefit provides the employee better compensation.
PPD Claims Are Common in North Carolina Workers’ Comp
North Carolina Industrial Commission data shows 56,921 workers’ compensation claims were opened system-wide during fiscal year 2024-25. In that same fiscal year, the IC showed 5,087 Form 26A agreements were filed. Form 26As are agreements in which an employer admits the employee is entitled to permanent partial disability benefits.
During fiscal year 2024-25, 8,620 claims were sent to mediation. Of those, 70% resolved through mediation. The data shows how permanent disability agreements and negotiated settlements are a significant portion of North Carolina workers’ compensation claims.
Hire a Workers Comp Lawyer With Experience Handling NC Workers Comp Cases
When an employee disagrees with their employer about issues related to workers comp benefits, they can hire a workers comp lawyer to provide them with professional legal guidance. If you disagree with the impairment rating you received, your compensation rate, the named affected body part in your settlement, or the type of disability benefits you were paid, you could benefit from speaking with a lawyer.
An experienced attorney can review your medical records, analyze the physician’s impairment rating, calculate a scheduled award, and/or identify whether you are entitled to a different type of disability benefit.
A North Carolina workers’ comp attorney may also help secure a second opinion rating if necessary, compare medical opinions, file Form 33 to request a hearing on a rating disagreement, and present medical and wage evidence to the IC. Before accepting a settlement, an attorney can review the agreement and check that it covers future medical care and other unresolved issues.
Why Choose Us?
The North Carolina workers’ comp attorneys at The Sumwalt Group Workers’ Comp and Trial Lawyers have more than four decades of combined experience. We represent injured workers in North Carolina and South Carolina workers’ compensation claims.
Vernon Sumwalt has tried more than 300 workers’ compensation hearings and hundreds of cases without hearings. Christa Sumwalt has tried more than 125 jury trials and spent six years in prosecutors’ offices in both South Carolina and Georgia. The firm provides free and confidential consultations to help workers understand their claims and their legal options under North Carolina workers’ comp laws.
FAQs
Are North Carolina Workers’ Comp PPD Benefits Taxable?
Generally, North Carolina Workers’ Comp PPD benefits are not taxable. PPD payments fall under the umbrella of workers’ compensation benefits that are tax-exempt for federal purposes, provided they’re awarded for an occupational injury or illness. Other forms of settlement or payment may be taxed differently.
Benefits received from Social Security disability may also have implications for workers receiving workers’ comp benefits. Individuals receiving this type of benefit should consult with a tax professional regarding their specific situation.
Can I Get PPD If I Return to My Regular Job?
Yes, you can get PPD even if you are able to return to your regular job. Permanent partial disability benefits for a scheduled injury are designed to provide compensation for your permanent impairment or loss of use. Therefore, it is possible to return to regular work and still receive PPD benefit payments.
Can I Get PPD For More Than One Injured Body Part?
Yes, if multiple body parts have been permanently impaired by a work accident, each may be eligible for compensation. Consider a case where an accident on the job caused an employee to have permanent impairments affecting both a hand and a leg. In that case, both body parts would be evaluated for compensation under the ratings and scheduled periods provided by North Carolina law.
Can a Pre-Existing Condition Affect an Impairment Rating?
Yes, a pre-existing condition can affect an impairment rating, sometimes complicating matters. However, prior medical issues do not always disqualify an individual from receiving workers’ comp benefits. If there is already an injury or condition present before the work accident, it may be necessary to have a medical evaluation establish which aspects of the impairment were caused by the injury covered by workers’ compensation.
Schedule a Free Consultation With a Local North Carolina Workers Comp Attorney
If you are considering having a workers’ comp lawyer look at an impairment rating or proposed PPD offer, The Sumwalt Group Workers’ Comp and Trial Lawyers can help. We can explain how NC workers’ comp laws apply to your specific situation. The first consultation is always free and confidential. Contact us with your questions and to discuss your legal options.
