Workers' CompensationSalary continuance is an employer-funded arrangement that keeps an employee on payroll for a defined period, typically 4 to 26 weeks. Employers use salary continuance to provide regular pay during short-term disability leave or to structure severance payments in installments instead of a lump sum after termination.
As a North Carolina State employee navigating a workers’ comp claim, you might be eligible for salary continuation benefits.
Salary continuation lets an injured worker’s employer pay full wages and benefits after a job-related injury, instead of receiving temporary total compensation from the BWC.
This program can provide your pre-injury wage if you were injured in a qualifying event.
However, salary continuation only applies to specific state employees, such as certain law enforcement officers, teachers, and other specialized roles within the state’s workforce.
Understanding wage continuation pay is crucial if you think you might be eligible.
Read on to learn more about salary continuation benefits in a workers’ compensation claim context, including eligibility criteria, benefit period, and other details.
If you have questions or think your government employer wrongfully denied your salary continuation, please contact the experienced lawyers at Mehta & McConnell, PLLC for a free, no-obligation consultation.
Key Takeaways
- Salary continuation benefits allow certain injured state employees to receive 100% of their pre-injury wages, instead of the reduced wage payments typically provided through workers’ compensation.
- Eligibility is limited to specific groups, primarily qualifying state law enforcement officers and full-time public school teachers injured under defined circumstances.
- Salary continuation is temporary, lasting up to one year or until the employee returns to work or the disability ends, after which standard workers’ compensation benefits may apply.
- Receiving salary continuation does not eliminate other workers’ comp benefits, as injured employees may still qualify for medical care and additional benefits beyond wage replacement.
- Determining eligibility and protecting your rights can be complex, making it important to consult an experienced North Carolina workers’ compensation attorney if benefits are delayed or denied.
What Is a Salary Continuation Benefit?
Salary continuance (or wage continuation) is an arrangement where an employer keeps an employee on regular payroll at 100% of their normal salary during an approved leave, severance period, or medical recovery, rather than transitioning them immediately onto disability insurance.
Example:
An employee undergoes spinal surgery and is expected to be off work for eight weeks. The employer continues paying full salary under its salary continuance policy.
Characteristics:
- Usually 100% of normal salary.
- Often available to salaried employees or executives.
- May require ongoing medical certification.
- May end after a specified period, after which STD or long-term disability (LTD) benefits begin.
Salary continuation compensates injured employees for lost wages due to compensable injuries.
These payments can replace or exceed temporary disability indemnity. Employers must follow the necessary notice requirements associated with temporary disability benefits.
In North Carolina, salary continuation, or wage continuation pay, aims to offer 100% of your pre-injury wage if you’re eligible and on workers’ comp.
While standard workers’ compensation temporary wage payments usually cover only two-thirds of your salary, salary continuation covers your full salary.
However, there may be a waiting period, and only certain government workers will be eligible.
Who Can Receive Salary Continuation Benefits in North Carolina?
Two main categories of workers can receive salary continuation benefits — certain law enforcement officers and full-time teachers.
Law Enforcement Officers
North Carolina law strictly regulates eligibility for benefits in relation to workers’ compensation claims.
Law enforcement officers governed by the Criminal Justice Training and Standards Act can qualify for up to two years if the injury occurred under specific conditions.
Conditions include episodes of violence, resistance, or other hazardous situations encountered during official police duties.
Examples of state law enforcement officers who can receive wage continuation pay include parole and probation officers, correctional officers, and Highway Patrol.
State Bureau of Investigation (SBI) and Alcohol Law Enforcement (ALE) agents are also eligible. Law enforcement at a local level does not qualify to receive wage continuation.
You can see the complete list of qualifying law enforcement positions here.
Public Teachers
North Carolina public school teachers also have similar eligibility criteria if injured due to an “episode of violence.”
Additionally, full-time employees at state-level educational institutions might qualify. Part-time teachers and substitute teachers are not eligible for benefits under the plan.
If you fall under one of the eligible categories, you can receive benefits for the shortest of these periods:
- One year,
- Continuation of your disability, or
- Lost time from work due to your injuries.
Employees under both categories who receive salary continuation benefits will still be eligible for workers’ compensation benefits other than temporary total weekly wage pay.
How Salary Continuance Works for Employees?
How Salary Continuance Works During Medical Leave or Injury?
Salary continuance keeps you on your employer’s regular payroll while you are medically unable to work. You receive your normal paycheck on your usual paydays instead of waiting for disability insurance or state benefits. If you receive partial disability or paid family leave benefits, the employer may supplement those payments so your total income equals your regular base salary, subject to the terms of the employer’s plan. Because you remain on payroll, health insurance, retirement contributions, seniority, and other employee benefits often continue.
How Salary Continuance Works During Severance?
Salary continuance may also be used to pay severance through regular payroll instead of a lump-sum payment. The employer issues payments on the normal payroll schedule, and you remain on the payroll until the continuance period ends. Some severance agreements reduce or terminate remaining salary continuance payments if you accept new employment before the payment period expires.
What Happens After the Salary Continuation Period?
If you are still disabled after your wage continuation pay expires, you transition to the standard workers’ compensation payments. These are the payments that typically cover two-thirds of your salary.
You still accrue time toward various benefits while on salary continuation benefits, such as sick leave and vacation time.
However, some benefits might temporarily stop while on workers’ compensation.
One example is your retirement service credit. Employees must purchase credits for the time they missed while on workers’ compensation.
Other Benefits for Injured State Workers
If you don’t qualify for salary continuation, you might have other government-sponsored programs that can provide some assistance after a work-related injury.
Some examples include:
- Police separation allowance,
- LGERS disability income and retirement plans (local government employees),
- State Employee Health Care Plan (SEHP), and
- Firefighter and rescue squad benefits.
If you are a North Carolina government employee and suffered an injury on the job, inquire about all possible benefits you’re entitled to.
Salary continuation is just one option that applies to a select group of North Carolina government employees.
Is Salary Continuance Taxable In NC?
Salary continuance is generally taxable in North Carolina. Payments treated as regular wages are subject to federal and North Carolina income taxes and applicable payroll tax withholding. The tax treatment may differ if payments are made under a disability insurance policy rather than as employer-paid salary continuance.
Is Salary Continuation the same as Short Term Disability?
Salary continuance and short-term disability both replace income during a medical absence, but they are not the same. Salary continuance is an employer-funded benefit that continues paying your regular salary while you remain on payroll. Short-term disability is an insurance benefit that typically replaces 50% to 70% of your pre-disability income after a waiting period. The main differences are the funding source, plan administration, eligibility requirements, and the amount of income replaced.
Understanding workers’ comp salary continuation benefits is often complex, requiring a legal advocate with extensive experience in government employee workers’ compensation claims.
If you believe you qualify for salary continuation benefits, you must contact your plan administrator and human resources manager to verify eligibility.
Contact a North Carolina Workers’ Compensation Lawyer
If you’re receiving workers’ compensation benefits and believe you’re being unfairly denied wage continuation pay, the skilled legal team at Mehta & McConnell, PLLC can help.
We only handle work injury and personal injury matters and have over three decades of combined legal experience. Mehta & McConnell is entirely devoted to helping individuals seek justice for their injuries.
Workers’ comp and salary continuation benefits are complicated legal topics. However, you don’t have to try to understand them on your own.
If you have questions about how this program applies to your specific situation, don’t hesitate to contact Mehta & McConnell for a free consultation.
Your financial well-being after a work-related injury shouldn’t be an added burden. With proper guidance and our legal counsel, you can focus on what matters the most—your recovery.
Viral Mehta
Viral Mehta is a Managing Attorney at Mehta & McConnell Injury Lawyers in Charlotte, NC, and one of fewer than 1% of North Carolina attorneys holding a North Carolina State Bar Board Certification in Workers’ Compensation law. He spent the first decade of his career defending employers and insurance companies in workers’ comp claims before switching sides to represent injured workers. A North Carolina Super Lawyer (2024, 2025) and five-time Rising Star, Viral was also a contributing author of the 2017 North Carolina Workers’ Compensation LexisNexis Practice Guide and is certified by the North Carolina Dispute Resolution Commission as a Superior Court mediator.