Anyone involved in workers’ compensation law—whether as a defense attorney, plaintiff’s attorney, adjuster, or injured worker—is familiar with the various fees collected by the North Carolina Industrial Commission. As we settle into 2025, it’s important to stay aware of deadlines and potential consequences for late payments.

Recently, the Industrial Commission issued updated guidance on the payment of the $200 Report of Mediator Fee:

“Pursuant to Rule 11 NCAC 23E .0203(a)(2), an employer or their insurance carrier is required to pay the $200 Report of Mediator fee in full upon receipt of an invoice from the Industrial Commission. Ensuring timely payment of Report of Mediator fees is an important element of the mediation process and is essential to the Commission’s ability to fund its operations.

To provide clarity on the payment due date while giving employers and carriers adequate time to pay the invoiced fee, effective February 8, 2025, the Industrial Commission will allow employers and carriers 30 days from the invoice date to pay the invoice and avoid a statutory late payment penalty and interest. (Previously, the Commission had set the payment due date as 7 days from the deadline for completing mediation or 7 days from the date mediation was completed, whichever was earlier. However, the Commission has determined that pairing the payment due date with a future event that could be rescheduled is not optimal for the Commission or its stakeholders).

As a reminder, the Industrial Commission emails Report of Mediator fee invoices at the time the mediator is appointed. The Report of Mediator invoice is sent to defense counsel by email shortly after the Appointment of Mediator Order is emailed. Upon receipt of the Report of Mediator invoice, the $200 fee can be paid online via credit card (MasterCard or Visa) or e-Check. A link for online payment is provided in the email. The $200 fee also may be paid by paper check mailed to the Commission, but parties are strongly encouraged to pay online via credit card or e-Check.”

What You Need to Know

• New Payment Deadline: The Report of Mediator Fee must be paid within 30 days of the invoice date. This is a shift from previous deadlines that may have been more flexible.
• Late Penalties and Interest: If the fee is not paid within 30 days, statutory late penalties and interest will automatically be added to the original $200 fee.
• Strict Enforcement: The Commission actively collects unpaid fees—often at the time a settlement agreement (clincher) is submitted for approval. Unpaid fees can delay settlement approvals.

What Happens if You Miss the Deadline?

Failure to pay on time can have financial and procedural consequences, including:

• Automatic late penalties and interest applied to the unpaid fee.
• Collection of unpaid fees and penalties at the time of settlement approval.
• Possible delays in the approval of clincher agreements.

As a practice pointer, defense attorneys and adjusters should take all necessary steps to pay the Report of Mediator’s Fee as soon as it is received. There is little or no flexibility with late penalties and interest; if you try to pay an overdue Report of Mediator’s Fee by issuing only a $200 check, the Commission will collect the balance of late penalties and interest via separate invoice. Don’t Rely on Settlement Approval to Clear the Fee – Even if a clincher is approved, the Commission will continue to pursue collection of any unpaid Report of Mediator Fees, penalties, and interest. A claim cannot be fully closed until the fee is settled.

As we move forward in 2025, staying proactive about fee deadlines can help avoid unnecessary costs and settlement delays. Here’s to a smooth and penalty-free year!