Lynn v. Conagra Foods, Inc., I.C. NO. W26624.

Plaintiff sustained a June 9, 2009 injury by accident at defendant-employer's Slim Jim plant in Garner, NC.
Employer admitted compensability via Industrial Commission Form 60 and paid salary continuation June 10–Sept 26, 2009.
Plaintiff was medically excused and unable to work from June 10, 2009 through September 26, 2009.
Average weekly wage on injury date was $749.03, yielding a compensation rate of $499.38; actual salary continuation was $582/week.
From Sept 27, 2009, defendant began ongoing total disability benefits at $499.60/week (correct rate $499.38).
Industrial Commission credits and offsets dispute whether salary continuation offsets total disability, and whether penalties apply.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether plaintiff sustained a disability from the compensable injury.	Plaintiff remains totally disabled post-injury.	Disability status is limited by compensation scheme and time frame.	Yes; plaintiff continues to be paid total disability at $499.38/week.
Whether plaintiff is entitled to additional total disability for 6/10–9/26/2009 due to underpayment claim.	Underpayment occurred due to miscalculation of benefits.	Salary continuation compensated during period; no underpayment.	No underpayment; credit applied under §97-29 satisfies obligation.
Whether defendant owes a late payment penalty for alleged underpayment.	Penalties should apply for underpayment during 6/10–9/26/2009.	No underpayment evidenced; penalties not warranted.	No late penalty due to lack of underpayment.
Whether defendant may credit or offset salary continuation against total disability under §97-29 and related statutes.	Salary continuation should be credited against benefits due.	Credits limited; may offset under §97-29 and §97-42 when applicable.	Credit for salary continuation applies; further offset for excess not allowed; overall credits resolved in favor of defendant for period.
Whether attorney's fees sanctions are warranted under §97-88.1.	Sanctions may be appropriate for unreasonable conduct.	Proceedings pursued on reasonable grounds.	Neither party entitled to sanctions.

Evans v. ATT Technologies, 332 N.C. 78 (N.C. 1992) (employer wage-replacement concept for full pay during disability)
Russell v. Lowe's Product Distribution, 108 N.C. App. 762 (N.C. App. 1993) (ongoing total disability rate considerations under §97-29)
Moretz v. Richards Assoc., 74 N.C. App. 72 (N.C. App. 1985) (credit/offset considerations in disability awards)