The Short Answer
A Form 31 is an Application for Lump Sum Award used in North Carolina workers' compensation cases. If you've been receiving weekly workers' comp payments for at least six weeks, you may be eligible to request a lump sum payment instead. The NC Industrial Commission will approve the request if it determines the lump sum is in your best interest or the best interest of your dependents — or in some cases, to prevent undue hardship on the employer or insurer. The lump sum can cover all or part of your award, but it cannot exceed the total amount you've already been awarded.
Workers’ compensation payments are normally paid out on a weekly basis. Occasionally life throws us curveballs (family illness, loss of a spouse’s job, house or vehicle problems) and we need more than the weekly benefit that you are regularly receiving. So when that happens, can you get a lump sum payment for your workers’ compensation benefits?
In some cases, yes. As long as your payment is continued for six weeks or more, you can fill out Form 31 (Application for Lump Sum Award). In some cases, if the Industrial Commission deems it in your best interest or in the best interest of your dependents to get a lump sum reward; this lump sum can be in whole or in part but it cannot exceed the total amount you have been awarded. There are also cases in which the Commission will approve a lump sum payment to prevent an undue hardship on the employer or his insurance carrier; this is done without prejudice to the employee or their dependents.
Should you wish to use your lump sum to buy property of any kind, you must specify that in your request and provide three estimates of the value of the property and add that to your Form 31 as an attachment. When filling out your Form 31, you will be asked to name all of your dependents, any outstanding bills and the amounts owed, along with a detailed reason stating the purpose of your request. Upon filling out the form, you will serve this form to the insurance carrier and a copy to the Industrial Commission.
Key Takeaways
- Form 31 is the official NC Industrial Commission form used to request a lump sum workers' compensation payment instead of weekly benefits.
- You must have been receiving weekly payments for at least six weeks before you are eligible to apply for a lump sum award.
- Your Form 31 must list all dependents, outstanding debts and balances owed, and a detailed explanation of why you need the lump sum.
- If you plan to use the lump sum to purchase property, you must attach three independent value estimates to your Form 31 application.
- Once completed, you must serve the form to the insurance carrier and submit a copy to the NC Industrial Commission.
- The Commission can also approve a lump sum to relieve hardship on the employer or insurer, without any prejudice to you or your dependents.
Attorney Insight
The mistake I see most often with Form 31 requests is that people submit them without enough documentation — the Commission wants to see a real financial picture, not just a general statement of hardship. A vague reason like "need extra money" is far less persuasive than a specific breakdown of overdue bills, account balances, and what the lump sum will directly address. If you're requesting the funds to purchase property, skipping those three value estimates isn't a technicality — it can get your application denied outright. Taking the time to build a complete, well-documented Form 31 is the difference between approval and starting over.
