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North Carolina House Bill H339

North Carolina 2025-2026 Regular Session

North Carolina House Bill H339 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 339
3+H D
4+HOUSE BILL DRH10132-LRfap-14E
5+
56
67
78 Short Title: Economic Security Act. (Public)
8-Sponsors: Representatives Harrison, Logan, Morey, and Dew (Primary Sponsors).
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: Rules, Calendar, and Operations of the House
11-March 11, 2025
12-*H339 -v-1*
9+Sponsors: Representative Harrison.
10+Referred to:
11+
12+*DRH10132 -LRfap -14E*
1313 A BILL TO BE ENTITLED 1
1414 AN ACT ADVANCING ECONOMIC SECURITY FOR ALL IN NORTH CAROLINA BY 2
1515 INCREASING THE STATE MINIMUM WAGE TO TWENTY-TWO DOLLARS PER 3
1616 HOUR, ADJUSTED FOR INFLATION ANNUALLY; MANDATING EQUAL PAY FOR 4
1717 EQUAL WORK; REQUIRING PAID SICK LEAVE , PAID FAMILY MEDICAL LEAVE , 5
1818 AND WORKPLACE SAFETY , EMERGENCY, AND EVACUATION PROTECTIONS; 6
1919 RESTORING UNEMPLOYMENT INSURANCE BENEFITS ADJUSTED FOR 7
2020 INFLATION AND STUDYING UNEMPLOYMENT INSURANCE BENEFITS FOR 8
2121 APP-BASED "GIG ECONOMY" WORKERS; INCREASING THE TIPPED MINIMUM 9
2222 WAGE; ENDING WAGE THEFT; REQUIRING THE FAIR ASSESSMENT OF 10
2323 PERSONS WITH CRIMINAL HISTORIES BY "BANNING THE BOX"; REPEALING 11
2424 PUBLIC EMPLOYEE COLLECTIVE BARGAINING RESTRICTIONS; REENACTING 12
2525 THE EARNED INCOME TAX CREDIT AND TAX CREDITS FOR CHILD AND 13
2626 DEPENDENT CARE EXPENSES; CREATING A REBUTTABLE PRESUMPTION 14
2727 THAT FIRST RESPONDERS, HEALTH CARE WORKERS, AND ESSENTIAL 15
2828 SERVICE WORKERS INFECTED BY THE CORONAVIRUS CONTRACTED THE 16
2929 DISEASE IN THE COURSE OF EMPLOYMENT; AND PROVIDING AND 17
3030 APPROPRIATING FUNDS FOR A COST -OF-LIVING ADJUSTMENT FOR RETIREES 18
3131 OF THE TEACHERS ' AND STATE EMPLOYEES ' RETIREMENT SYSTEM, THE 19
3232 CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, THE LEGISLATIVE 20
3333 RETIREMENT SYSTEM, AND THE LOCAL GOVERNMENTAL EMPLOYEES ' 21
3434 RETIREMENT SYSTEM. 22
3535 The General Assembly of North Carolina enacts: 23
3636 24
3737 LIVING WAGE 25
3838 SECTION 1.1.(a) This act shall be known and may be cited as the "Economic 26
3939 Security Act of 2025." 27
4040 SECTION 1.1.(b) Effective January 1, 2026, G.S. 95-25.3 reads as rewritten: 28
4141 "§ 95-25.3. Minimum wage. 29
4242 (a) Every employer shall pay to each employee who in any workweek performs any work, 30
4343 wages of at least six dollars and fifteen cents ($6.15) twenty-two dollars ($22.00) per hour or the 31
4444 minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 32
4545 206(a)(1), as that wage may change from time to time, whichever is higher, except as otherwise 33
46-provided in this section. 34 General Assembly Of North Carolina Session 2025
47-Page 2 House Bill 339-First Edition
48-(a1) Beginning September 30, 2026, and on each September 30 thereafter, the 1
49-Commissioner of Labor shall calculate an adjusted minimum wage rate using the Consumer Price 2
50-Index (All Urban Consumers, U.S. City Average for All Items), CPI-I, or its successor index, as 3
51-calculated by the U.S. Department of Labor for the 12-month period preceding the previous 4
52-September 1. Each adjusted minimum wage rate calculated shall be published on September 30 5
53-and take effect on the following January 1. 6
54-…." 7
55-SECTION 1.1.(c) This section is effective when this act becomes law. 8
56- 9
57-EQUAL PAY FOR EQUAL WORK 10
58-SECTION 1.2.(a) Chapter 95 of the General Statutes is amended by adding a new 11
59-Article to read: 12
60-"Article 2B. 13
61-"Equal Pay Act. 14
62-"§ 95-25.26. Definitions. 15
63-The following definitions apply in this Article: 16
64-(1) Employee. – Every person in receipt of or entitled to compensation for labor 17
65-performed for another. 18
66-(2) Employer. – Includes (i) this State and any local political subdivision of the 19
67-State and (ii) every person having control or direction of any person employed 20
68-at any labor, or responsible directly or indirectly for the wages of another, who 21
69-employs more than five employees. 22
70-(3) Person. – As defined by G.S. 95-25.2(11). 23
71-(4) Wage or wages. – Any compensation for labor measured by time, piece, or 24
72-otherwise. 25
73-"§ 95-25.27. Equal wage rates. 26
74-(a) No employer may pay any person in the employer's employ at wage rates less than 27
75-the rates paid to employees of the opposite sex in the same establishment for the same quantity 28
76-and quality of the same classification of work. Any employer who violates this section is liable 29
77-to the employee affected in the amount of the wages that the employee is deprived by reason of 30
78-the violation. 31
79-(b) Notwithstanding the provisions of subsection (a) of this section, nothing in this 32
80-section prohibits a variation of rates of pay for employees engaged in the same classification of 33
81-work based upon seniority, a difference in length of service, ability, skill, difference in duties or 34
82-services performed, whether regularly or occasionally, difference in the shift or time of day 35
83-worked, hours of work, or restrictions or prohibitions on lifting or moving objects in excess of 36
84-specified weight, or other reasonable differentiation, or factor or factors other than sex, when 37
85-exercised in good faith. 38
86-(c) An employer that is in violation of this section may not reduce the pay of any 39
87-employee in order to bring the employer into compliance with this Article. 40
88-(d) An employer shall not retaliate against any employee who seeks redress pursuant to 41
89-this Article or who participates in the investigation of a complaint under this Article. 42
90-"§ 95-25.28. Complaints; enforcement; civil actions. 43
91-(a) An affected employee may file with the Department of Labor a complaint that the 44
92-wages paid to the employee are less than the wages to which the employee is entitled under this 45
93-Article. The Department of Labor shall investigate the complaint and notify the employer and 46
94-employee of the results of the investigation. 47
95-(b) An employee receiving less than the wage to which the employee is entitled under 48
96-this section may recover in a civil action the balance of such wages, together with the costs and 49
97-attorneys' fees, notwithstanding any agreement to work for a lesser wage. The employee is not 50
98-required to exhaust administrative remedies before filing the civil action. 51 General Assembly Of North Carolina Session 2025
99-House Bill 339-First Edition Page 3
100-(c) A civil action pursuant to this section shall be instituted within two years after the 1
101-date that the alleged violation is discovered by the affected employee." 2
102-SECTION 1.2.(b) This section is effective when this act becomes law. 3
103- 4
104-HEALTHY FAMILIES & WORKPLACES/REQUIRE PAID LEAVE/WORKPLACE 5
105-HEAT SAFETY PROTECTIONS 6
106-SECTION 1.3.(a) Chapter 95 of the General Statutes is amended by adding a new 7
107-Article to read: 8
108-"Article 3A. 9
109-"Healthy Families and Healthy Workplaces Act. 10
110-"§ 95-31.1. Short title and legislative purpose. 11
111-(a) This Article shall be known and may be cited as the "Healthy Families and Healthy 12
112-Workplaces Act." 13
113-(b) The public policy of this State is declared as follows: The health and safety needs of 14
114-employees and their families and the protection of employees from losing their jobs and pay 15
115-while they seek medical care for themselves and their family members are subjects of concern 16
116-requiring legislation to promote the general welfare of the people of the State without 17
117-jeopardizing the competitive position of North Carolina business and industry. The General 18
118-Assembly declares that the general welfare of the State requires the enactment of this law under 19
119-the police power of the State. 20
120-"§ 95-31.2. Definitions. 21
121-(a) The following definitions apply in this Article: 22
122-(1) Child. – A biological, adopted, or foster child, stepchild, legal ward, or child 23
123-of a parent standing in loco parentis. 24
124-(2) Domestic violence. – As defined in G.S. 50B-1. 25
125-(3) Employ. – As defined by G.S. 95-25.2(3). 26
126-(4) Employee. – As defined by G.S. 95-25.2(4). 27
127-(5) Employer. – As defined by G.S. 95-25.2(5). 28
128-(6) Health care provider. – 29
129-a. A doctor of medicine or osteopathy licensed to practice medicine 30
130-under federal law, any state law, or the laws of another country 31
131-wherein the person practices. 32
132-b. A physician assistant licensed in this State licensed to practice under 33
133-federal law, any state law, or the laws of another country wherein the 34
134-person practices. 35
135-c. A family nurse practitioner or certified nurse midwife licensed to 36
136-practice under federal law, any state law, or the laws of another 37
137-country wherein the person practices. 38
138-(7) Immediate family member. – A child, grandchild, sibling, spouse, domestic 39
139-partner, civil union partner, parent, or grandparent of an employee, or a 40
140-spouse, domestic partner, or civil union partner of a parent or grandparent of 41
141-the employee, or a sibling of a spouse, domestic partner, or civil union partner 42
142-of the employee, or any other individual related by blood to the employee or 43
143-whose close association with the employee is the equivalent of a family 44
144-relationship. 45
145-(8) Paid sick time or paid sick days. – Time that is (i) compensated at the same 46
146-hourly rate and with the same benefits, including health care benefits, as the 47
147-employee normally earns during hours worked and (ii) provided by an 48
148-employer to an employee for the purposes described in G.S. 95-31.4(b) of this 49
149-Article. 50 General Assembly Of North Carolina Session 2025
150-Page 4 House Bill 339-First Edition
151-(9) Parent. – A biological, foster, step, or adoptive parent of an employee or an 1
152-employee's spouse, or other person who stood in loco parentis during the 2
153-childhood of an employee or employee's spouse. 3
154-(10) Sexual assault. – As defined in Chapter 14 of the General Statutes. 4
155-(11) Small business. – An employer who employs 10 or fewer employees during 5
156-20 or more calendar workweeks in the current or preceding calendar year. 6
157-(12) Stalking. – As defined in Chapter 14 of the General Statutes. 7
158-"§ 95-31.3. Exemptions. 8
159-(a) The provisions of this section do not apply to any bona fide volunteers in any 9
160-organization where an employer-employee relationship does not exist. 10
161-(b) The provisions of this section do not apply to any person exempted from the Wage 11
162-and Hour Act under G.S. 95-25.14(a)(2) through (a)(8), 95-25.14(b), 95-25.14(b1), 95-25.14(c), 12
163-and 95-25.14(e), except that domestic workers are exempted only if they are employed in the 13
164-place of residence of their employer. 14
165-"§ 95-31.4. Accrual of paid sick time. 15
166-(a) Except as provided by G.S. 95-31.3, any employee who works in this State and who 16
167-must be absent from work for the reasons set forth in G.S. 95-31.5(a) shall be entitled to paid 17
168-sick time. 18
169-(b) Paid sick time as provided in this section shall begin to accrue at the commencement 19
170-of employment. Paid sick time shall accrue at the rate of one hour of pay for every 30 hours 20
171-worked. Paid sick time may be used as accrued or be loaned by the employer at its discretion to 21
172-the employee in advance of accrual. Unless the employer and employee agree to designate 22
173-otherwise, for periods of paid sick time that are less than a normal workday, the time shall be 23
174-counted on an hourly basis or the smallest increment that the employer's payroll system uses to 24
175-account for absences or use of leave. 25
176-(c) For employees of small businesses, there shall be a limit of 32 hours of accrued paid 26
177-sick time in a calendar year. For employees of other employers, there shall be a limit of 56 hours 27
178-of accrued paid sick time in a calendar year. Accrued paid sick time for employees carries over 28
179-from year to year but is limited to the aforementioned limits. 29
180-(d) When there is separation from employment and the employee is rehired within 90 30
181-days of separation by the same employer, previously accrued paid sick time that had not been 31
182-used shall be reinstated. The employee shall be entitled to use accrued paid sick time and accrue 32
183-additional sick time at the recommencement of employment. 33
184-"§ 95-31.5. Use of paid sick time. 34
185-(a) Paid sick time shall be provided to an employee by an employer for any of the 35
186-following reasons: 36
187-(1) To care for the employee's immediate family member who is suffering from a 37
188-physical or mental illness, injury, or medical condition that requires care, 38
189-professional medical diagnosis or care, preventive medical care, or a routine 39
190-medical appointment. 40
191-(2) To care for the employee's own physical or mental illness, injury, or medical 41
192-condition that requires care, professional medical diagnosis or care, preventive 42
193-medical care, or a routine medical appointment. 43
194-(3) Absence necessary due to circumstances resulting from the employee, or a 44
195-family member of the employee, being a victim of stalking or domestic or 45
196-sexual violence, if the leave is to allow the employee to obtain for the 46
197-employee or the family member (i) medical attention needed to recover from 47
198-physical or psychological injury or disability caused by stalking or domestic 48
199-or sexual violence, (ii) services from a designated domestic violence agency 49
200-or other victim services organization, (iii) psychological or other counseling, 50
201-(iv) relocation, or (v) legal services, including obtaining a restraining order or 51 General Assembly Of North Carolina Session 2025
202-House Bill 339-First Edition Page 5
203-preparing for, or participating in, any civil or criminal legal proceeding related 1
204-to the stalking or domestic or sexual violence. 2
205-(b) An employer may require certification of the qualifying illness, injury, health 3
206-condition, or violence when a paid sick time period covers more than three consecutive workdays. 4
207-Any reasonable documentation signed by a health care provider involved in following or treating 5
208-the illness, injury, or health condition and indicating the need for the amount of sick days taken 6
209-shall be deemed acceptable certification. Acceptable certification of domestic violence, sexual 7
210-assault, or stalking may include (i) law enforcement, court, or federal agency records or files, (ii) 8
211-documentation from a domestic violence or sexual assault program, or (iii) documentation from 9
212-a religious, medical, or other professional from whom assistance was sought in dealing with the 10
213-alleged domestic violence, sexual offense, or stalking. 11
214-(1) The employer shall not require certification from a health care provider 12
215-employed by the employer. The employer shall not delay the commencement 13
216-of time taken for purposes of subsection (a) of this section or pay for this 14
217-period on the basis that the employer has not yet received the certification. 15
218-Nothing in this section shall be construed to require an employee to provide 16
219-as certification any information from a health care provider that would be in 17
220-violation of section 1177 of the Social Security Act or the regulations 18
221-promulgated pursuant to section 264(c) of the Health Insurance Portability and 19
222-Accountability Act, 42 U.S.C. § 1320d-2. 20
223-(2) An employer may not require disclosure of details relating to domestic 21
224-violence, sexual assault, or stalking or the details of an employee's medical 22
225-condition as a condition of providing paid sick time under this Article. If an 23
226-employer possesses health information or information pertaining to domestic 24
227-violence, sexual assault, or stalking about an employee or employee's 25
228-immediate family member, such information shall be treated as confidential 26
229-and not disclosed except to the affected employee or with the permission of 27
230-the affected employee. 28
231-(c) When the use of paid sick time is foreseeable, the employee shall make a good-faith 29
232-effort to provide notice of the need for such time to the employer in advance of the use of the 30
233-sick time and shall make a reasonable effort to schedule the use of paid sick time in a manner 31
234-that does not unduly disrupt the operations of the employer. 32
235-(d) An employer may not require, as a condition of providing paid sick time under this 33
236-act, that the employee search for or find a replacement worker to cover the hours during which 34
237-the employee is on paid sick time. 35
238-(e) An employer's absence control policy shall not count paid sick time taken under this 36
239-Article as an absence that may lead to or result in a retaliatory personnel action or any other 37
240-adverse action. 38
241-(f) Nothing in this section shall be construed as requiring financial or other 39
242-reimbursement to an employee from an employer upon the employee's termination, resignation, 40
243-retirement, or other separation from employment for accrued paid sick days that have not been 41
244-used. 42
245-(g) Nothing in this section shall be construed to discourage employers from adopting or 43
246-retaining paid sick time policies more generous than policies that comply with the requirements 44
247-of this section, and nothing in this section shall be construed to diminish the obligation of an 45
248-employer to comply with any contract, collective bargaining agreement, or any employment 46
249-benefit program or plan that provides greater paid sick time leave rights to employees than the 47
250-rights established under this section. 48
251-(h) This act provides minimum requirements pertaining to paid sick time and shall not be 49
252-construed to preempt, limit, or otherwise affect the applicability of any other law, regulation, 50 General Assembly Of North Carolina Session 2025
253-Page 6 House Bill 339-First Edition
254-requirement, policy, agreement, or standard that provides for greater accrual or use by employees 1
255-of sick time, whether paid or unpaid, or that extends other protections to employees. 2
256-(i) Employers who have a paid time-off leave policy shall not be required to modify that 3
257-policy, if that policy offers an employee the option, at the employee's discretion, to take paid sick 4
258-time that is at least equivalent to the amounts and for the same purposes and under the same 5
259-conditions as provided under this section. 6
260-"§ 95-31.6. Notification, posting, and records. 7
261-Employers shall give notice (i) that employees are entitled to paid sick time, (ii) of the amount 8
262-of paid sick time and the terms of its use guaranteed under this section, (iii) that retaliation against 9
263-employees who request or use paid sick time is prohibited, and (iv) that each employee has the 10
264-right to file a complaint with the Commissioner of Labor or in the General Court of Justice if 11
265-paid sick time as required by this Article is denied by the employer or the employee is retaliated 12
266-against for requesting or taking paid sick time. Employers may comply with this section by 13
267-supplying each of their employees with a notice in English and in Spanish that contains the 14
268-information required by this section or by displaying a poster in a conspicuous and accessible 15
269-place in each establishment where the employees are employed that contains in English and in 16
270-Spanish all information required by this section. 17
271-"§ 95-31.7. Enforcement. 18
272-(a) The Commissioner shall enforce and administer the provisions of this Article, and the 19
273-Commissioner or his or her authorized representative is empowered to hold hearings and to 20
274-institute civil proceedings hereunder. 21
275-(b) The Commissioner or the Commissioner's authorized representative shall have power 22
276-to administer oaths and examine witnesses, issue subpoenas, compel the attendance of witnesses 23
277-and the production of papers, books, accounts, records, payrolls, and documents, and take 24
278-depositions and affidavits in any proceeding hereunder. 25
279-(c) Any employer who violates the provisions of this Article shall be liable to the 26
280-employee or employees affected in the amount of their unpaid sick time, as the case may be, plus 27
281-interest at the legal rate set forth in G.S. 24-1 from the date each amount first came due. 28
282-(d) In addition to the amounts awarded pursuant to subsection (c) of this section, the court 29
283-shall award liquidated damages in an amount equal to the amount found to be due as provided in 30
284-subsection (c) of this section, provided that if the employer shows to the satisfaction of the court 31
285-that the act or omission constituting the violation was in good faith and that the employer had 32
286-reasonable grounds for believing that the act or omission was not a violation of this Article, the 33
287-court may, in its discretion, award no liquidated damages or may award any amount of liquidated 34
288-damages not exceeding the amount found due as provided in subsection (c) of this section. 35
289-(e) Action to recover such liability may be maintained in the General Court of Justice by 36
290-any one or more employees. 37
291-(f) The court, in any action brought under this Article, may, in addition to any judgment 38
292-awarded to the plaintiff, order costs and fees of the action and reasonable attorneys' fees to be 39
293-paid by the defendant. The court may order costs and fees of the action and reasonable attorneys' 40
294-fees to be paid by the plaintiff if the court determines that the action was frivolous. 41
295-(g) The Commissioner may determine and supervise the payment of the amounts due 42
296-under this section, including interest at the legal rate set forth in G.S. 24-1 from the date each 43
297-amount first came due, and the agreement to accept such amounts by the employee shall 44
298-constitute a waiver of the employee's right to bring an action under subsection (e) of this section. 45
299-(h) Actions under this Article must be brought within two years pursuant to G.S. 1-53. 46
300-(i) The rights and remedies created by this Article are supplementary to all existing 47
301-common-law and statutory rights and remedies. 48
302-"§ 95-31.8. Rules. 49
303-The Commissioner of Labor shall adopt rules to implement this Article. 50
304-"§ 95-31.9. Severability. 51 General Assembly Of North Carolina Session 2025
305-House Bill 339-First Edition Page 7
46+provided in this section. 34
47+(a1) Beginning September 30, 2026, and on each September 30 thereafter, the 35
48+Commissioner of Labor shall calculate an adjusted minimum wage rate using the Consumer Price 36
49+H.B. 339
50+Mar 6, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH10132-LRfap-14E
53+Index (All Urban Consumers, U.S. City Average for All Items), CPI-I, or its successor index, as 1
54+calculated by the U.S. Department of Labor for the 12-month period preceding the previous 2
55+September 1. Each adjusted minimum wage rate calculated shall be published on September 30 3
56+and take effect on the following January 1. 4
57+…." 5
58+SECTION 1.1.(c) This section is effective when this act becomes law. 6
59+ 7
60+EQUAL PAY FOR EQUAL WORK 8
61+SECTION 1.2.(a) Chapter 95 of the General Statutes is amended by adding a new 9
62+Article to read: 10
63+"Article 2B. 11
64+"Equal Pay Act. 12
65+"§ 95-25.26. Definitions. 13
66+The following definitions apply in this Article: 14
67+(1) Employee. – Every person in receipt of or entitled to compensation for labor 15
68+performed for another. 16
69+(2) Employer. – Includes (i) this State and any local political subdivision of the 17
70+State and (ii) every person having control or direction of any person employed 18
71+at any labor, or responsible directly or indirectly for the wages of another, who 19
72+employs more than five employees. 20
73+(3) Person. – As defined by G.S. 95-25.2(11). 21
74+(4) Wage or wages. – Any compensation for labor measured by time, piece, or 22
75+otherwise. 23
76+"§ 95-25.27. Equal wage rates. 24
77+(a) No employer may pay any person in the employer's employ at wage rates less than 25
78+the rates paid to employees of the opposite sex in the same establishment for the same quantity 26
79+and quality of the same classification of work. Any employer who violates this section is liable 27
80+to the employee affected in the amount of the wages that the employee is deprived by reason of 28
81+the violation. 29
82+(b) Notwithstanding the provisions of subsection (a) of this section, nothing in this 30
83+section prohibits a variation of rates of pay for employees engaged in the same classification of 31
84+work based upon seniority, a difference in length of service, ability, skill, difference in duties or 32
85+services performed, whether regularly or occasionally, difference in the shift or time of day 33
86+worked, hours of work, or restrictions or prohibitions on lifting or moving objects in excess of 34
87+specified weight, or other reasonable differentiation, or factor or factors other than sex, when 35
88+exercised in good faith. 36
89+(c) An employer that is in violation of this section may not reduce the pay of any 37
90+employee in order to bring the employer into compliance with this Article. 38
91+(d) An employer shall not retaliate against any employee who seeks redress pursuant to 39
92+this Article or who participates in the investigation of a complaint under this Article. 40
93+"§ 95-25.28. Complaints; enforcement; civil actions. 41
94+(a) An affected employee may file with the Department of Labor a complaint that the 42
95+wages paid to the employee are less than the wages to which the employee is entitled under this 43
96+Article. The Department of Labor shall investigate the complaint and notify the employer and 44
97+employee of the results of the investigation. 45
98+(b) An employee receiving less than the wage to which the employee is entitled under 46
99+this section may recover in a civil action the balance of such wages, together with the costs and 47
100+attorneys' fees, notwithstanding any agreement to work for a lesser wage. The employee is not 48
101+required to exhaust administrative remedies before filing the civil action. 49
102+(c) A civil action pursuant to this section shall be instituted within two years after the 50
103+date that the alleged violation is discovered by the affected employee." 51 General Assembly Of North Carolina Session 2025
104+DRH10132-LRfap-14E Page 3
105+SECTION 1.2.(b) This section is effective when this act becomes law. 1
106+ 2
107+HEALTHY FAMILIES & WORKPLACES/ REQUIRE PAID LEAVE/WORKPLACE 3
108+HEAT SAFETY PROTECTIONS 4
109+SECTION 1.3.(a) Chapter 95 of the General Statutes is amended by adding a new 5
110+Article to read: 6
111+"Article 3A. 7
112+"Healthy Families and Healthy Workplaces Act. 8
113+"§ 95-31.1. Short title and legislative purpose. 9
114+(a) This Article shall be known and may be cited as the "Healthy Families and Healthy 10
115+Workplaces Act." 11
116+(b) The public policy of this State is declared as follows: The health and safety needs of 12
117+employees and their families and the protection of employees from losing their jobs and pay 13
118+while they seek medical care for themselves and their family members are subjects of concern 14
119+requiring legislation to promote the general welfare of the people of the State without 15
120+jeopardizing the competitive position of North Carolina business and industry. The General 16
121+Assembly declares that the general welfare of the State requires the enactment of this law under 17
122+the police power of the State. 18
123+"§ 95-31.2. Definitions. 19
124+(a) The following definitions apply in this Article: 20
125+(1) Child. – A biological, adopted, or foster child, stepchild, legal ward, or child 21
126+of a parent standing in loco parentis. 22
127+(2) Domestic violence. – As defined in G.S. 50B-1. 23
128+(3) Employ. – As defined by G.S. 95-25.2(3). 24
129+(4) Employee. – As defined by G.S. 95-25.2(4). 25
130+(5) Employer. – As defined by G.S. 95-25.2(5). 26
131+(6) Health care provider. – 27
132+a. A doctor of medicine or osteopathy licensed to practice medicine 28
133+under federal law, any state law, or the laws of another country 29
134+wherein the person practices. 30
135+b. A physician assistant licensed in this State licensed to practice under 31
136+federal law, any state law, or the laws of another country wherein the 32
137+person practices. 33
138+c. A family nurse practitioner or certified nurse midwife licensed to 34
139+practice under federal law, any state law, or the laws of another 35
140+country wherein the person practices. 36
141+(7) Immediate family member. – A child, grandchild, sibling, spouse, domestic 37
142+partner, civil union partner, parent, or grandparent of an employee, or a 38
143+spouse, domestic partner, or civil union partner of a parent or grandparent of 39
144+the employee, or a sibling of a spouse, domestic partner, or civil union partner 40
145+of the employee, or any other individual related by blood to the employee or 41
146+whose close association with the employee is the equivalent of a family 42
147+relationship. 43
148+(8) Paid sick time or paid sick days. – Time that is (i) compensated at the same 44
149+hourly rate and with the same benefits, including health care benefits, as the 45
150+employee normally earns during hours worked and (ii) provided by an 46
151+employer to an employee for the purposes described in G.S. 95-31.4(b) of this 47
152+Article. 48
153+(9) Parent. – A biological, foster, step, or adoptive parent of an employee or an 49
154+employee's spouse, or other person who stood in loco parentis during the 50
155+childhood of an employee or employee's spouse. 51 General Assembly Of North Carolina Session 2025
156+Page 4 DRH10132-LRfap-14E
157+(10) Sexual assault. – As defined in Chapter 14 of the General Statutes. 1
158+(11) Small business. – An employer who employs 10 or fewer employees during 2
159+20 or more calendar workweeks in the current or preceding calendar year. 3
160+(12) Stalking. – As defined in Chapter 14 of the General Statutes. 4
161+"§ 95-31.3. Exemptions. 5
162+(a) The provisions of this section do not apply to any bona fide volunteers in any 6
163+organization where an employer-employee relationship does not exist. 7
164+(b) The provisions of this section do not apply to any person exempted from the Wage 8
165+and Hour Act under G.S. 95-25.14(a)(2) through (a)(8), 95-25.14(b), 95-25.14(b1), 95-25.14(c), 9
166+and 95-25.14(e), except that domestic workers are exempted only if they are employed in the 10
167+place of residence of their employer. 11
168+"§ 95-31.4. Accrual of paid sick time. 12
169+(a) Except as provided by G.S. 95-31.3, any employee who works in this State and who 13
170+must be absent from work for the reasons set forth in G.S. 95-31.5(a) shall be entitled to paid 14
171+sick time. 15
172+(b) Paid sick time as provided in this section shall begin to accrue at the commencement 16
173+of employment. Paid sick time shall accrue at the rate of one hour of pay for every 30 hours 17
174+worked. Paid sick time may be used as accrued or be loaned by the employer at its discretion to 18
175+the employee in advance of accrual. Unless the employer and employee agree to designate 19
176+otherwise, for periods of paid sick time that are less than a normal workday, the time shall be 20
177+counted on an hourly basis or the smallest increment that the employer's payroll system uses to 21
178+account for absences or use of leave. 22
179+(c) For employees of small businesses, there shall be a limit of 32 hours of accrued paid 23
180+sick time in a calendar year. For employees of other employers, there shall be a limit of 56 hours 24
181+of accrued paid sick time in a calendar year. Accrued paid sick time for employees carries over 25
182+from year to year but is limited to the aforementioned limits. 26
183+(d) When there is separation from employment and the employee is rehired within 90 27
184+days of separation by the same employer, previously accrued paid sick time that had not been 28
185+used shall be reinstated. The employee shall be entitled to use accrued paid sick time and accrue 29
186+additional sick time at the recommencement of employment. 30
187+"§ 95-31.5. Use of paid sick time. 31
188+(a) Paid sick time shall be provided to an employee by an employer for any of the 32
189+following reasons: 33
190+(1) To care for the employee's immediate family member who is suffering from a 34
191+physical or mental illness, injury, or medical condition that requires care, 35
192+professional medical diagnosis or care, preventive medical care, or a routine 36
193+medical appointment. 37
194+(2) To care for the employee's own physical or mental illness, injury, or medical 38
195+condition that requires care, professional medical diagnosis or care, preventive 39
196+medical care, or a routine medical appointment. 40
197+(3) Absence necessary due to circumstances resulting from the employee, or a 41
198+family member of the employee, being a victim of stalking or domestic or 42
199+sexual violence, if the leave is to allow the employee to obtain for the 43
200+employee or the family member (i) medical attention needed to recover from 44
201+physical or psychological injury or disability caused by stalking or domestic 45
202+or sexual violence, (ii) services from a designated domestic violence agency 46
203+or other victim services organization, (iii) psychological or other counseling, 47
204+(iv) relocation, or (v) legal services, including obtaining a restraining order or 48
205+preparing for, or participating in, any civil or criminal legal proceeding related 49
206+to the stalking or domestic or sexual violence. 50 General Assembly Of North Carolina Session 2025
207+DRH10132-LRfap-14E Page 5
208+(b) An employer may require certification of the qualifying illness, injury, health 1
209+condition, or violence when a paid sick time period covers more than three consecutive workdays. 2
210+Any reasonable documentation signed by a health care provider involved in following or treating 3
211+the illness, injury, or health condition and indicating the need for the amount of sick days taken 4
212+shall be deemed acceptable certification. Acceptable certification of domestic violence, sexual 5
213+assault, or stalking may include (i) law enforcement, court, or federal agency records or files, (ii) 6
214+documentation from a domestic violence or sexual assault program, or (iii) documentation from 7
215+a religious, medical, or other professional from whom assistance was sought in dealing with the 8
216+alleged domestic violence, sexual offense, or stalking. 9
217+(1) The employer shall not require certification from a health care provider 10
218+employed by the employer. The employer shall not delay the commencement 11
219+of time taken for purposes of subsection (a) of this section or pay for this 12
220+period on the basis that the employer has not yet received the certification. 13
221+Nothing in this section shall be construed to require an employee to provide 14
222+as certification any information from a health care provider that would be in 15
223+violation of section 1177 of the Social Security Act or the regulations 16
224+promulgated pursuant to section 264(c) of the Health Insurance Portability and 17
225+Accountability Act, 42 U.S.C. § 1320d-2. 18
226+(2) An employer may not require disclosure of details relating to domestic 19
227+violence, sexual assault, or stalking or the details of an employee's medical 20
228+condition as a condition of providing paid sick time under this Article. If an 21
229+employer possesses health information or information pertaining to domestic 22
230+violence, sexual assault, or stalking about an employee or employee's 23
231+immediate family member, such information shall be treated as confidential 24
232+and not disclosed except to the affected employee or with the permission of 25
233+the affected employee. 26
234+(c) When the use of paid sick time is foreseeable, the employee shall make a good-faith 27
235+effort to provide notice of the need for such time to the employer in advance of the use of the 28
236+sick time and shall make a reasonable effort to schedule the use of paid sick time in a manner 29
237+that does not unduly disrupt the operations of the employer. 30
238+(d) An employer may not require, as a condition of providing paid sick time under this 31
239+act, that the employee search for or find a replacement worker to cover the hours during which 32
240+the employee is on paid sick time. 33
241+(e) An employer's absence control policy shall not count paid sick time taken under this 34
242+Article as an absence that may lead to or result in a retaliatory personnel action or any other 35
243+adverse action. 36
244+(f) Nothing in this section shall be construed as requiring financial or other 37
245+reimbursement to an employee from an employer upon the employee's termination, resignation, 38
246+retirement, or other separation from employment for accrued paid sick days that have not been 39
247+used. 40
248+(g) Nothing in this section shall be construed to discourage employers from adopting or 41
249+retaining paid sick time policies more generous than policies that comply with the requirements 42
250+of this section, and nothing in this section shall be construed to diminish the obligation of an 43
251+employer to comply with any contract, collective bargaining agreement, or any employment 44
252+benefit program or plan that provides greater paid sick time leave rights to employees than the 45
253+rights established under this section. 46
254+(h) This act provides minimum requirements pertaining to paid sick time and shall not be 47
255+construed to preempt, limit, or otherwise affect the applicability of any other law, regulation, 48
256+requirement, policy, agreement, or standard that provides for greater accrual or use by employees 49
257+of sick time, whether paid or unpaid, or that extends other protections to employees. 50 General Assembly Of North Carolina Session 2025
258+Page 6 DRH10132-LRfap-14E
259+(i) Employers who have a paid time-off leave policy shall not be required to modify that 1
260+policy, if that policy offers an employee the option, at the employee's discretion, to take paid sick 2
261+time that is at least equivalent to the amounts and for the same purposes and under the same 3
262+conditions as provided under this section. 4
263+"§ 95-31.6. Notification, posting, and records. 5
264+Employers shall give notice (i) that employees are entitled to paid sick time, (ii) of the amount 6
265+of paid sick time and the terms of its use guaranteed under this section, (iii) that retaliation against 7
266+employees who request or use paid sick time is prohibited, and (iv) that each employee has the 8
267+right to file a complaint with the Commissioner of Labor or in the General Court of Justice if 9
268+paid sick time as required by this Article is denied by the employer or the employee is retaliated 10
269+against for requesting or taking paid sick time. Employers may comply with this section by 11
270+supplying each of their employees with a notice in English and in Spanish that contains the 12
271+information required by this section or by displaying a poster in a conspicuous and accessible 13
272+place in each establishment where the employees are employed that contains in English and in 14
273+Spanish all information required by this section. 15
274+"§ 95-31.7. Enforcement. 16
275+(a) The Commissioner shall enforce and administer the provisions of this Article, and the 17
276+Commissioner or his or her authorized representative is empowered to hold hearings and to 18
277+institute civil proceedings hereunder. 19
278+(b) The Commissioner or the Commissioner's authorized representative shall have power 20
279+to administer oaths and examine witnesses, issue subpoenas, compel the attendance of witnesses 21
280+and the production of papers, books, accounts, records, payrolls, and documents, and take 22
281+depositions and affidavits in any proceeding hereunder. 23
282+(c) Any employer who violates the provisions of this Article shall be liable to the 24
283+employee or employees affected in the amount of their unpaid sick time, as the case may be, plus 25
284+interest at the legal rate set forth in G.S. 24-1 from the date each amount first came due. 26
285+(d) In addition to the amounts awarded pursuant to subsection (c) of this section, the court 27
286+shall award liquidated damages in an amount equal to the amount found to be due as provided in 28
287+subsection (c) of this section, provided that if the employer shows to the satisfaction of the court 29
288+that the act or omission constituting the violation was in good faith and that the employer had 30
289+reasonable grounds for believing that the act or omission was not a violation of this Article, the 31
290+court may, in its discretion, award no liquidated damages or may award any amount of liquidated 32
291+damages not exceeding the amount found due as provided in subsection (c) of this section. 33
292+(e) Action to recover such liability may be maintained in the General Court of Justice by 34
293+any one or more employees. 35
294+(f) The court, in any action brought under this Article, may, in addition to any judgment 36
295+awarded to the plaintiff, order costs and fees of the action and reasonable attorneys' fees to be 37
296+paid by the defendant. The court may order costs and fees of the action and reasonable attorneys' 38
297+fees to be paid by the plaintiff if the court determines that the action was frivolous. 39
298+(g) The Commissioner may determine and supervise the payment of the amounts due 40
299+under this section, including interest at the legal rate set forth in G.S. 24-1 from the date each 41
300+amount first came due, and the agreement to accept such amounts by the employee shall 42
301+constitute a waiver of the employee's right to bring an action under subsection (e) of this section. 43
302+(h) Actions under this Article must be brought within two years pursuant to G.S. 1-53. 44
303+(i) The rights and remedies created by this Article are supplementary to all existing 45
304+common-law and statutory rights and remedies. 46
305+"§ 95-31.8. Rules. 47
306+The Commissioner of Labor shall adopt rules to implement this Article. 48
307+"§ 95-31.9. Severability. 49 General Assembly Of North Carolina Session 2025
308+DRH10132-LRfap-14E Page 7
306309 The provisions of this Article shall be severable, and if any phrase, clause, sentence, or 1
307310 provision is declared to be invalid or is preempted by federal law or regulation, the validity of 2
308311 the remainder of this Article shall not be affected thereby." 3
309312 SECTION 1.3.(b) G.S. 95-241(a) reads as rewritten: 4
310313 "(a) No person shall discriminate or take any retaliatory action against an employee 5
311314 because the employee in good faith does or threatens to do any of the following: 6
312315 (1) File a claim or complaint, initiate any inquiry, investigation, inspection, 7
313316 proceeding or other action, or testify or provide information to any person 8
314317 with respect to any of the following: 9
315318 a. Chapter 97 of the General Statutes. 10
316319 b. Article 2A Article 2A, Article 3A, or Article 16 of this Chapter. 11
317320 c. Article 2A of Chapter 74 of the General Statutes. 12
318321 d. G.S. 95-28.1. 13
319322 e. Article 16 of Chapter 127A of the General Statutes. 14
320323 f. G.S. 95-28.1A. 15
321324 g. Article 52 of Chapter 143 of the General Statutes. 16
322325 h. Article 5F of Chapter 90 of the General Statutes. 17
323326 (2) Cause any of the activities listed in subdivision (1) of this subsection to be 18
324327 initiated on an employee's behalf. 19
325328 (3) Exercise any right on behalf of the employee or any other employee afforded 20
326329 by Article 2A Article 2A, Article 3A, or Article 16 of this Chapter, by Article 21
327330 2A of Chapter 74 of the General Statutes, or by Article 52 of Chapter 143 of 22
328331 the General Statutes. 23
329332 (4) Comply with the provisions of Article 27 of Chapter 7B of the General 24
330333 Statutes. 25
331334 (5) Exercise rights under Chapter 50B. Actions brought under this subdivision 26
332335 shall be in accordance with the provisions of G.S. 50B-5.5." 27
333336 SECTION 1.3.(c) This section becomes effective January 1, 2026, and applies only 28
334337 to covered employment on or after that date. With respect to employees covered by a valid 29
335338 collective bargaining agreement in effect on January 1, 2026, this section shall not apply until 30
336339 the stated expiration date in the collective bargaining agreement; however, this section shall apply 31
337340 upon any such agreement's renewal, extension, amendment, or modification in any respect after 32
338341 January 1, 2026. 33
339342 SECTION 1.4. Article 16 of Chapter 95 of the General Statutes is amended by 34
340343 adding two new sections to read: 35
341344 "§ 95-158. Workplace safety requirements. 36
342345 (a) Heat Exposure Safety. – Each employer shall adopt a heat safety plan for employees 37
343346 that, at a minimum, does all of the following: 38
344347 (1) Provide workers with readily accessible drinking water. 39
345348 (2) Establish and maintain shaded or climate-controlled rest areas. 40
346349 (3) Implement mandatory rest periods during high-heat conditions. 41
347350 (4) Develop and implement written heat illness prevention procedures. 42
348351 (5) Provide heat safety training to workers and supervisors. 43
349352 (6) Maintain records of heat-related incidents and prevention measures. 44
350353 (7) Implement an acclimatization schedule for new workers and workers 45
351354 returning after 30 or more consecutive days away. 46
352355 When temperatures exceed 90 degrees Fahrenheit for more than 15 minutes during a 47
353356 60-minute period, or where employees are performing a heavy workload or are required to wear 48
354357 double-layer woven clothing, employers shall modify work schedules to minimize heat exposure, 49
355358 increase rest frequency, establish a mandatory buddy system, and maintain communication 50
356359 systems for heat-related emergency response. 51 General Assembly Of North Carolina Session 2025
357-Page 8 House Bill 339-First Edition
360+Page 8 DRH10132-LRfap-14E
358361 (b) Natural Disaster and Evacuation Safety. – Each employer shall adopt a safety plan in 1
359362 the event of natural disaster or evacuation to provide for employee readiness, health, and safety. 2
360363 (c) Rules. – The Commissioner of Labor shall adopt rules to implement this section. 3
361364 "§ 95-159. Employee rights in an emergency. 4
362365 (a) The following definitions apply in this section: 5
363366 (1) Emergency condition. – The existence of either of the following: 6
364367 a. Conditions of disaster or extreme peril to the safety of persons or 7
365368 property at the workplace or worksite caused by natural forces or a 8
366369 criminal act. 9
367370 b. An order to evacuate a workplace, a worksite, a worker's home, or the 10
368371 school of a worker's child due to natural disaster or a criminal act. 11
369372 The term does not include a health pandemic. 12
370373 (2) A reasonable belief that the workplace or worksite is unsafe. – When a 13
371374 reasonable person, under the circumstances known to the employee at the 14
372375 time, would conclude there is a real danger of death or serious injury if that 15
373376 person enters or remains on the premises. The existence of any health and 16
374377 safety regulations specific to the emergency condition and an employer's 17
375378 compliance or noncompliance with those regulations shall be a relevant factor 18
376379 if this information is known to the employee at the time of the emergency 19
377380 condition or the employee received training on the health and safety 20
378381 regulations mandated by law specific to the emergency condition. 21
379382 (b) In the event of an emergency condition, an employer shall not: 22
380383 (1) Take or threaten adverse action against any employee for refusing to report to, 23
381384 or leaving, a workplace or worksite within the affected area because the 24
382385 employee has a reasonable belief that the workplace or worksite is unsafe; or 25
383386 (2) Prevent any employee from accessing the employee's mobile device or other 26
384387 communications device for seeking emergency assistance, assessing the 27
385388 safety of the situation, or communicating with a person to verify their safety. 28
386389 (c) The provisions of subsection (b) of this section do not apply to any of the following: 29
387390 (1) A first responder, disaster service worker, or any employee required by law to 30
388391 render aid or remain on the premises in case of an emergency. 31
389392 (2) An employee or contractor of a health care facility who provides direct patient 32
390393 care, provides services supporting patient care operations during an 33
391394 emergency, or is required by law or policy to participate in emergency 34
392395 response or evacuation. 35
393396 (3) An employee of a private entity that contracts with the State or a local political 36
394397 subdivision of the State for purposes of providing or aiding in emergency 37
395398 services. 38
396399 (4) An employee working on a military base or in the defense industrial base 39
397400 sector. 40
398401 (5) An employee performing essential work on nuclear reactors or nuclear 41
399402 materials or waste. 42
400403 (6) An employee of a company providing utility, communications, energy, or 43
401404 roadside assistance while the employee is actively engaged in or is being 44
402405 called upon to aid in emergency response, including maintaining public access 45
403406 to services such as energy and water during the emergency. 46
404407 (7) An employee of a licensed residential care facility. 47
405408 (8) An employee of a depository institution or any company within any of the 48
406409 definitions of "insured depository institution" set forth in 12 U.S.C. § 1813(c). 49
407410 (9) A transportation employee participating directly in emergency evacuations 50
408411 during an active evacuation. 51 General Assembly Of North Carolina Session 2025
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412+DRH10132-LRfap-14E Page 9
410413 (10) An employee of a privately contracted private fire prevention resource. 1
411414 (11) An employee whose primary duties include assisting members of the public 2
412415 to evacuate in case of an emergency. 3
413416 (12) An employee of any correctional facility. 4
414417 (d) When feasible, an employee shall notify the employer of the emergency condition 5
415418 requiring the employee to leave or refuse to report to the workplace or worksite prior to leaving 6
416419 or refusing to report. When prior notice is not feasible, the employee shall notify the employer 7
417420 of the emergency condition that required the employee to leave or refuse to report to the 8
418421 workplace or worksite after leaving or refusing to report as soon as possible. 9
419422 (e) This section does not to apply when emergency conditions that pose an imminent and 10
420423 ongoing risk of harm to the workplace, the worksite, the worker, or the worker's home have 11
421424 ceased. 12
422425 (f) The Commissioner of Labor may bring an enforcement action under this section upon 13
423426 a complaint by a current or former employee. 14
424427 (g) The employee has a private right of action against an employer who violates this 15
425428 section when the violation results in actual harm to the employee. The employer shall have the 16
426429 right to cure alleged violations before any action by a current or former employee may be brought 17
427430 under this section." 18
428431 19
429432 INCREASE TIPPED MINIMUM WAGE 20
430433 SECTION 1.5.(a) Effective until December 31, 2025, G.S. 95-25.3(f) reads as 21
431434 rewritten: 22
432435 "(f) Tips earned by a tipped employee may be counted as wages only up to the amount 23
433436 permitted in section 3(m) of the Fair Labor Standards Act, 29 U.S.C. 203(m), if the tipped 24
434437 employee is notified in advance, is permitted to retain all tips and the employer maintains 25
435438 accurate and complete records of tips received by each employee as such tips are certified by the 26
436439 employee monthly or for each pay period. Even if the employee refuses to certify tips accurately, 27
437440 tips may still be counted as wages when the employer complies with the other requirements of 28
438441 this section and can demonstrate by monitoring tips that the employee regularly receives tips in 29
439442 the amount for which the credit is taken. of five dollars ($5.00) per hour. Tip pooling shall also 30
440443 be is permissible among employees who customarily and regularly receive tips; however, no 31
441444 employee's tips may be reduced by more than fifteen percent (15%) under a tip pooling 32
442445 arrangement." 33
443446 SECTION 1.5.(b) Effective January 1, 2026, G.S. 95-25.3(f), as amended by 34
444447 subsection (a) of this section, reads as rewritten: 35
445448 "(f) Tips earned by a tipped employee may be counted as wages only up to the amount of 36
446449 five dollars ($5.00) per hour. shall not be counted as wages. Tip pooling is permissible among 37
447450 employees who customarily and regularly receive tips; however, no employee's tips may be 38
448451 reduced by more than fifteen percent (15%) under a tip pooling arrangement." 39
449452 SECTION 1.5.(c) Except as otherwise provided, this section is effective when this 40
450453 act becomes law. 41
451454 42
452455 WAGE THEFT 43
453456 SECTION 1.6.(a) G.S. 95-25.2 reads as rewritten: 44
454457 "§ 95-25.2. Definitions. 45
455458 In this Article, unless the context otherwise requires:The following definitions apply in this 46
456459 Article: 47
457460 (1) "Agriculture" includes farming Agriculture. – Farming in all its branches 48
458461 performed by a farmer or on a farm as an incident to or in conjunction with 49
459462 farming operations. 50
460463 (2) "Commissioner" means the Commissioner. – The Commissioner of Labor. 51 General Assembly Of North Carolina Session 2025
461-Page 10 House Bill 339-First Edition
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462465 (3) "Employ" means to Employ. – To suffer or permit to work. 1
463466 (4) "Employee" includes any Employee. – Any individual employed by an 2
464467 employer. 3
465468 (5) "Employer" includes any Employer. – Any person acting directly or indirectly 4
466469 in the interest of an employer in relation to an employee. 5
467470 (5a) Employment status. – The status of an individual, under the usual 6
468471 common-law rules applicable in determining the employee-employer 7
469472 relationship, as an employee or as an independent contractor (or another 8
470473 individual who is not an employee). 9
471474 (5b) Enterprise. – The related activities performed either through unified 10
472475 operations or common control by any person or persons for a common 11
473476 business purpose and includes all such activities whether performed in one or 12
474477 more establishments or by one or more corporate units but shall not include 13
475478 the related activities performed for such enterprise by an independent 14
476479 contractor or franchisee. 15
477480 (6) "Establishment" means a Establishment. – A physical location where business 16
478481 is conducted. 17
479482 (7) "The Fair Labor Standards Act" means the Fair Labor Standards Act. – The 18
480483 Fair Labor Standards Act of 1938, as amended and as the same may be 19
481484 amended from time to time by the United States Congress. 20
482485 (8) "Hours worked" includes all Hours worked. – All time an employee is 21
483486 employed. 22
484487 (8a) Intentional. – The employer consciously committed the act which violated the 23
485488 statute. 24
486489 (9) "Payday" means that Payday. – That day designated for payment of wages due 25
487490 by virtue of the employment relationship. 26
488491 (10) "Pay periods" may Pay periods. – May be daily, weekly, biweekly, 27
489492 semimonthly, or monthly. 28
490493 (11) "Person" means an Person. – An individual, partnership, association, 29
491494 corporation, business trust, legal representative, or any organized group of 30
492495 persons. For the purposes of G.S. 95-25.2, G.S. 95-25.3, G.S. 95-25.14, and 31
493496 G.S. 95-25.20, it also means the State of North Carolina, any city, town, 32
494497 county, or municipality, or any State or local agency or instrumentality of 33
495498 government. The Government of the United States and any agency of the 34
496499 United States (including the United States Postal Service and Postal Rate 35
497500 Commission) are not included as persons for any purpose under this Article. 36
498501 (12) "Seasonal food service establishment" means a Seasonal food service 37
499502 establishment. – A restaurant, food and drink stand or other establishment 38
500503 generally recognized as a commercial food service establishment, preparing 39
501504 and serving food to the public but operating 180 days or less per year. 40
502505 (13) "Seasonal religious or nonprofit educational conference center or a seasonal 41
503506 amusement or recreational establishment" means an Seasonal religious or 42
504507 nonprofit educational conference center or a seasonal amusement or 43
505508 recreational establishment. – An establishment which does not operate for 44
506509 more than seven months in any calendar year, or during the preceding calendar 45
507510 year had average receipts for any six months of such year of not more than 46
508511 thirty-three and one-third percent (33 1/3%) of its average receipts for the 47
509512 other six months of that year. 48
510513 (14) "Tipped employee" means any Tipped employee. – Any employee who 49
511514 customarily receives more than twenty dollars ($20.00) a month in tips. 50 General Assembly Of North Carolina Session 2025
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515+DRH10132-LRfap-14E Page 11
513516 (15) "Tip" shall mean any Tip. – Any money or part thereof over and above the 1
514517 actual amount due a business for goods, food, drink, services or articles sold 2
515518 which is paid in cash or by credit card, or is given to or left for an employee 3
516519 by a patron or patrons of the business where the employee is employed. 4
517520 (16) "Wage" Wage. – Wage paid to an employee means compensation for labor or 5
518521 services rendered by an employee whether determined on a time, task, piece, 6
519522 job, day, commission, or other basis of calculation, and the reasonable cost as 7
520523 determined by the Commissioner of furnishing employees with board, 8
521524 lodging, or other facilities. For the purposes of G.S. 95-25.6 through 9
522525 G.S. 95-25.13 "wage" includes sick pay, vacation pay, severance pay, 10
523526 commissions, bonuses, and other amounts promised when the employer has a 11
524527 policy or a practice of making such payments. 12
525528 (16a) Willful. – The employer knew or showed reckless disregard for the issue of 13
526529 whether the employer's conduct was prohibited. 14
527530 (17) "Workweek" means any Workweek. – Any period of 168 consecutive hours. 15
528531 (18) "Enterprise" means the related activities performed either through unified 16
529532 operations or common control by any person or persons for a common 17
530533 business purpose and includes all such activities whether performed in one or 18
531534 more establishments or by one or more corporate units but shall not include 19
532535 the related activities performed for such enterprise by an independent 20
533536 contractor or franchisee." 21
534537 SECTION 1.6.(b) G.S. 95-25.13 reads as rewritten: 22
535538 "§ 95-25.13. Notification, posting, and records. 23
536539 Every employer shall do all of the following: 24
537540 (1) Notify its employees, in writing at the time of hiring, and upon any material 25
538541 change, of the following information: 26
539542 a. The amount of the promised wages and the day and place for 27
540543 payment.basis upon which the promised wages will be calculated (for 28
541544 example, per hour or per piece). 29
542545 b. The method, day, and place for payment of wages. 30
543546 c. The full name, mailing address, and telephone number of the employer 31
544547 and the federal and State tax identification number of each employer 32
545548 who is not a natural person. 33
546549 d. The employment status of the employee. Such notification or 34
547550 classification by the employer is not determinative of the employee's 35
548551 actual employment status. 36
549552 (2) Make available to its employees, in writing or through a posted notice 37
550553 maintained in a place accessible to its employees, employment practices and 38
551554 policies with regard to promised wages. 39
552555 (3) Notify employees, in writing, at least one pay period prior to any changes in 40
553556 promised wages. Wages may be retroactively increased without the prior 41
554557 notice required by this subsection. 42
555558 (4) Furnish each employee with an itemized statement of deductions made from 43
556559 that employee's wages under G.S. 95-25.8 and with the information required 44
557560 by 13 NCAC 12 .0801(6) and 13 NCAC 12 .0801(8) through (13) for each 45
558561 pay period such deductions are made.period." 46
559562 SECTION 1.6.(c) G.S. 95-25.22 reads as rewritten: 47
560563 "§ 95-25.22. Recovery of unpaid wages. 48
561564 (a) Any employer who violates the provisions of G.S. 95-25.3 (Minimum Wage), 49
562565 G.S. 95-25.4 (Overtime), or G.S. 95-25.6 through 95-25.12 (Wage Payment) shall be liable to 50
563566 the employee or employees affected in the amount of their unpaid minimum wages, their unpaid 51 General Assembly Of North Carolina Session 2025
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565568 overtime compensation, or their unpaid amounts due under G.S. 95-25.6 through G.S. 95-25.12, 1
566569 as the case may be, plus interest at the legal rate set forth in G.S. 24-1, from the date each amount 2
567570 first came due. 3
568571 (a1) In addition to the amounts awarded pursuant to subsection (a) of this section, the court 4
569572 shall award liquidated damages in an amount equal to twice the amount found to be due as 5
570573 provided in subsection (a) of this section, provided that if the employer shows to the satisfaction 6
571574 of the court that the act or omission constituting the violation was in good faith and that the 7
572575 employer had reasonable grounds for believing that the act or omission was not a violation of 8
573576 this Article, the court may, in its discretion, award no liquidated damages or may award any 9
574577 amount of liquidated damages not exceeding twice the amount found due as provided in 10
575578 subsection (a) of this section. 11
576579 (a2) Any employer who violates the provisions of G.S. 95-25.13 or any rule adopted under 12
577580 that section shall be liable to the employee or employees affected in the amount of their actual 13
578581 damages, including, but not limited to, lost wages and benefits plus interest. 14
579582 (a3) In addition to the amounts awarded pursuant to subsections (a), (a1), and (a2) of this 15
580583 section, if the court finds that the employer has intentionally violated any provision of this Article 16
581584 or any regulation issued pursuant to this Article, the court shall award statutory damages of up to 17
582585 five hundred dollars ($500.00) per employee per violation. Factors to be considered in setting the 18
583586 number of statutory damages include the nature and persistence of the violations and the extent 19
584587 of the employer's culpability. 20
585588 (b) Action to recover such liability may be maintained in the General Court of Justice by 21
586589 any one or more employees. 22
587590 (c) Action to recover such liability may also be maintained in the General Court of Justice 23
588591 by the Commissioner at the request of the employees affected. Any sums thus recovered by the 24
589592 Commissioner on behalf of an employee shall be held in a special deposit account and shall be 25
590593 paid directly to the employee or employees affected. 26
591594 (d) The court, in any action brought under this Article may, shall, in addition to any 27
592595 judgment awarded plaintiff, order costs and fees of the action and reasonable attorneys' fees to 28
593596 be paid by the defendant. In an action brought by the Commissioner in which a default judgment 29
594597 is entered, the clerk shall order attorneys' fees of three hundred dollars ($300.00) to be paid by 30
595598 the defendant. 31
596599 The court may order costs and fees of the action and reasonable attorneys' fees to be paid by 32
597600 the plaintiff if the court determines that the action was frivolous. 33
598601 (e) The Commissioner is authorized to determine and supervise the payment of the 34
599602 amounts due under this section, including interest at the legal rate set forth in G.S. 24-1, from the 35
600603 date each amount first came due, and the agreement to accept such amounts by the employee 36
601604 shall constitute a waiver of the employee's right to bring an action under subsection (b) of this 37
602605 section. 38
603606 (f) Actions under this section must be brought within two years pursuant to 39
604607 G.S. 1-53.G.S. 1-53, except that an action arising out of a willful violation may be brought within 40
605608 three years. Actions may also be brought within one year after notification to the employee of 41
606609 final disposition by the State of a complaint for the same violation. 42
607610 (g) Prior to initiating any action under this section, the Commissioner shall exhaust all 43
608611 administrative remedies, including giving the employer the opportunity to be heard on the matters 44
609612 at issue and giving the employer notice of the pending action." 45
610613 SECTION 1.6.(d) G.S. 95-25.23 reads as rewritten: 46
611614 "§ 95-25.23. Violation of provisions on minimum wage, overtime, wage payment, 47
612615 withholding of wages, notification, and youth employment; civil penalty. 48
613616 (a) Any employer who violates the provisions of G.S. 95-25.5 G.S. 95-25.3 (Minimum 49
614617 Wage), 95-25.4 (Overtime), 95-25.5 (Youth Employment) Employment), 95-25.6 (Wage 50
615618 Payment), or 95-25.13 (Notification), or any regulation issued thereunder, shall be subject to a 51 General Assembly Of North Carolina Session 2025
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617620 civil penalty not to exceed five hundred dollars ($500.00) for the first violation and not to exceed 1
618621 one thousand dollars ($1,000) for each subsequent violation. In determining the amount of such 2
619622 penalty, the appropriateness of such penalty to the size of the business of the person charged and 3
620623 the gravity of the violation shall be considered. The determination by the Commissioner shall be 4
621624 final, unless within 15 days after receipt of notice thereof by certified mail with return receipt, 5
622625 by signature confirmation as provided by the U.S. Postal Service, by a designated delivery service 6
623626 authorized pursuant to 26 U.S.C. § 7502(f)(2) with delivery receipt, or via hand delivery, the 7
624627 person charged with the violation takes exception to the determination, in which event final 8
625628 determination of the penalty shall be made in an administrative proceeding pursuant to Article 3 9
626629 of Chapter 150B and in a judicial proceeding pursuant to Article 4 of Chapter 150B. 10
627630 (b) The amount of such penalty when finally determined may be recovered in the manner 11
628631 set forth in G.S. 95-25.23B. 12
629632 (c) The clear proceeds of civil penalties provided for in this section shall be remitted to 13
630633 the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 14
631634 (d) Assessment of penalties under this section shall be subject to a two-year three-year 15
632635 statute of limitations commencing at the time of the occurrence of the violation." 16
633636 SECTION 1.6.(e) Article 2A of Chapter 95 of the General Statutes is amended by 17
634637 adding a new section to read: 18
635638 "§ 95-25.23D. Wage claims; liens; collections. 19
636639 (a) For the purposes of wage claims and collections under this Article, an employee is 20
637640 entitled to a lien upon: 21
638641 (1) All property of the employer, real or personal, located in this State; and 22
639642 (2) All property upon which the employee has performed work at the insistence 23
640643 of the owner or of any person acting by the employer's authority or under the 24
641644 owner as contractor or otherwise, for the full amount of the wages and any 25
642645 statutory penalties owed. 26
643646 (b) Both a wage claim and an action to enforce a lien under this section may be brought 27
644647 by the employee individually or by the Commissioner, or any representative of the employee on 28
645648 behalf of the employee, including collective bargaining representatives. 29
646649 (c) If no lien has been recorded at the time the employee files the complaint with the 30
647650 Commissioner, the Commissioner shall record and provide notice of the lien on behalf of the 31
648651 employee. 32
649652 (d) Any number of wage claims or wage deficiencies against the same employer may be 33
650653 joined in a single proceeding, but the court may order separate trials or hearings. If the proceeds 34
651654 of the sale of the property subject to a lien are insufficient to pay all the claimants, whether or 35
652655 not such claims have been joined together, the court shall order the claimants to be paid in 36
653656 proportion to the amount due each claimant. 37
654657 (e) An employee's lien upon personal property shall be limited to such property as can be 38
655658 made subject to a security interest under the Commercial Code by the filing of a financing 39
656659 statement. 40
657660 (f) In order to enforce a lien under this section upon real property, a claim of lien must 41
658661 be recorded with the county recorder in the county where the property is located, as follows: 42
659662 (1) The claim shall include all of the applicable information set forth under 43
660663 G.S. 44A-12. 44
661664 (2) The notice of lien shall be served on the property owner in the manner 45
662665 prescribed by G.S. 44A-11. 46
663666 A lien under this section is perfected as soon as notice is provided as required by this 47
664667 subsection. 48
665668 (g) In order to enforce a lien under this section upon personal property, the 49
666669 Commissioner, employee representative, or employee shall file the notice of the lien in the office 50
667670 of the Secretary of State and serve a copy of the notice by personal service to the employer in the 51 General Assembly Of North Carolina Session 2025
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669672 same manner as a summons or by mail. The office of the Secretary of State shall place the notice 1
670673 of the lien in the same file as the financing statements pursuant to G.S. 25-9-310. The notice shall 2
671674 specify the nature and amount of the claim, describe the property on which the lien is made, and 3
672675 state that the person filing the notice claims a lien on that property. 4
673676 (h) The lien may be filed at any time prior to the expiration of the statute of limitations 5
674677 for a wage claim on the same wages pursuant to G.S. 95-25.22(f). 6
675678 (i) Mistakes or errors in the claimed amount owed shall not invalidate the lien unless 7
676679 made with the intent to defraud. 8
677680 (j) If a lien is recorded pursuant to subsection (f) of this section and an action to recover 9
678681 unpaid wages has been filed, then that action shall also be deemed an action to foreclose upon 10
679682 any property subject to the recorded lien. In the judgment resulting from such an action, the court 11
680683 may order the sale at sheriff's auction or the transfer to the plaintiff of title or possession of any 12
681684 property subject to the lien. Whether or not the court makes such an order as part of the judgment, 13
682685 a writ of sale may be issued for any property subject to the lien at any point after a judgment for 14
683686 unpaid wages is issued. 15
684687 (k) If judgment is entered in favor of the employer in an action for unpaid wages or if the 16
685688 case is dismissed with prejudice, the lien shall be extinguished upon expiration of the applicable 17
686689 appeals period if no appeal is filed. If an appeal is filed, the lien shall continue in force until all 18
687690 issues on appeal have been decided. 19
688691 (l) If an action to recover the wages is not brought within one year of the filing of the 20
689692 lien, the lien created by this section shall be extinguished. 21
690693 (m) A lien recorded pursuant to subsection (f) of this section takes precedence over all 22
691694 other debts, judgments, decrees, liens, or mortgages against the employer, regardless as to 23
692695 whether these debts, judgments, decrees, liens, or mortgages originate before or after the wage 24
693696 lien, and regardless of whether these debts, judgments, decrees, liens, or mortgages were 25
694697 perfected prior to the wage lien. An employee's lien is effective against the employer, the estate 26
695698 of the employer, or a subsequent bona fide purchaser of the property subject to the employee's 27
696699 lien. 28
697700 (n) The employee, the Commissioner, or the employee's representative, as assignee of the 29
698701 employee, is entitled to court costs and reasonable attorneys' fees for filing a successful action to 30
699702 foreclose a lien pursuant to this section." 31
700703 SECTION 1.6.(f) This section is effective when this act becomes law and applies to 32
701704 employers and employees on or after that date. 33
702705 34
703706 "BAN THE BOX" 35
704707 SECTION 1.7.(a) Chapter 126 of the General Statutes is amended by adding a new 36
705708 Article to read: 37
706709 "Article 17. 38
707710 "Fair Assessment of Persons with Criminal Histories. 39
708711 "§ 126-100. Definitions. 40
709712 The following definitions apply in this Article: 41
710713 (1) Criminal history. – A State or federal history of conviction of a crime, whether 42
711714 a misdemeanor or felony, that bears upon an applicant's fitness for public 43
712715 employment. The term does not include a record of arrest not resulting in 44
713716 conviction. 45
714717 (2) Hiring authority. – The agent responsible by law for the hiring of persons for 46
715718 public employment. 47
716719 (3) Public employment. – Any job, work for pay, or employment, including 48
717720 temporary or seasonal work, where the employer is the State of North Carolina 49
718721 or any local political subdivision of the State. 50
719722 "§ 126-101. Consideration of applicant criminal history. 51 General Assembly Of North Carolina Session 2025
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721724 A hiring authority may not inquire into or consider the criminal history of an applicant for 1
722725 public employment, or include any such inquiry on any initial employment application form, 2
723726 until the hiring authority has made a conditional offer of employment to the applicant. This 3
724727 Article is not applicable to positions for which a hiring authority is otherwise required by law to 4
725728 consider the criminal record; however, nothing in this Article shall be construed to preclude any 5
726729 hiring authority in its discretion from adopting the provisions of this Article. 6
727730 "§ 126-102. Criteria for disqualification. 7
728731 (a) Except as otherwise required by law, no person shall be disqualified from public 8
729732 employment solely or in part because of a prior conviction, unless the conviction is determined 9
730733 to be substantially related to the qualifications, functions, or duties of the position after 10
731734 consideration of all of the following factors: 11
732735 (1) The level and seriousness of the crime. 12
733736 (2) The date of the crime. 13
734737 (3) The age of the person at the time of the conviction. 14
735738 (4) The circumstances surrounding the commission of the crime, if known. 15
736739 (5) The nexus between the criminal conduct and the duties of the position. 16
737740 (6) The prison, jail, probation, parole, rehabilitation, and employment records of 17
738741 the person since the date the crime was committed. 18
739742 (7) The subsequent commission of a crime by the person. 19
740743 (b) A record of arrest not resulting in conviction may not be the basis for disqualification 20
741744 from public employment. 21
742745 "§ 126-103. Opportunity to provide evidence of inaccuracy. 22
743746 The hiring authority must inform the individual of the potential adverse employment decision 23
744747 based on the background check report prior to a final decision and must provide an opportunity 24
745748 to demonstrate that the individual was not correctly identified in the background check report or 25
746749 that the report is otherwise inaccurate. 26
747750 "§ 126-104. Data collection. 27
748751 The State Human Resources Commission shall do the following: 28
749752 (1) Record and log the positions that are statutorily required to conduct 29
750753 background checks prior to a conditional offer of employment. 30
751754 (2) Conduct quarterly reviews to determine compliance with this Article and 31
752755 make a report on all such reviews to the General Assembly annually. 32
753756 (3) Collect, and make available to the public, data on: 33
754757 a. The number of applicants for public employment with criminal 34
755758 histories given conditional offers of employment. 35
756759 b. The number of applicants for public employment with criminal 36
757760 histories who are subsequently employed. 37
758761 c. The retention rate of public employees with criminal histories. 38
759762 "§ 126-105. Applicability. 39
760763 The provisions of this Article apply to all applicants for public employment." 40
761764 SECTION 1.7.(b) G.S. 126-5 is amended by adding a new subsection to read: 41
762765 "(c19) Notwithstanding any other provision of law, the provisions of Article 17 of this 42
763766 Chapter apply as to applicants for employment with the State or any local political subdivision 43
764767 of the State." 44
765768 SECTION 1.7.(c) This section is effective when this act becomes law and applies to 45
766769 applications for employment made on or after that date. 46
767770 47
768771 REPEAL OF PUBLIC EMPLOYEE COLLECTIVE BARGAINING RESTRICTION 48
769772 SECTION 1.8.(a) G.S. 95-98 reads as rewritten: 49
770773 "§ 95-98. Contracts between units of government and labor unions, trade unions or labor 50
771774 organizations concerning public employees declared to be illegal. 51 General Assembly Of North Carolina Session 2025
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773776 Any agreement, or contract, between the governing authority of any city, town, county, or 1
774777 other municipality, or between any agency, unit, or instrumentality thereof, or between any 2
775778 agency, instrumentality, or institution of the State of North Carolina, and any labor union, trade 3
776779 union, or labor organization, as bargaining agent for any public employees of such city, town, 4
777780 county or other municipality, or agency or instrumentality of government, is hereby declared to 5
778781 be against the public policy of the State, illegal, unlawful, void and of no effect." 6
779782 SECTION 1.8.(b) This section is effective when this act becomes law. 7
780783 8
781784 EARNED INCOME TAX CREDIT 9
782785 SECTION 1.9.(a) G.S. 105-151.31 is reenacted as it existed immediately before its 10
783786 expiration and reads as rewritten: 11
784787 "§ 105-151.31. Earned income tax credit. 12
785788 (a) Credit. – An individual who claims for the taxable year an earned income tax credit 13
786789 under section 32 of the Code is allowed a credit against the tax imposed by this Part equal to a 14
787790 percentage five percent (5%) of the amount of credit the individual qualified for under section 15
788791 32 of the Code. A nonresident or part-year resident who claims the credit allowed by this section 16
789792 must reduce the amount of the credit by multiplying it by the fraction calculated under 17
790793 G.S. 105-134.5(b) or (c), as appropriate. The percentage is as follows: 18
791794 (1) For taxable year 2013, four and one-half percent (4.5%). 19
792795 (2) For all other taxable years, five percent (5%). 20
793796 (b) Credit Refundable. – If the credit allowed by this section exceeds the amount of tax 21
794797 imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary 22
795798 must refund the excess to the taxpayer. The refundable excess is governed by the provisions 23
796799 governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. Section 24
797800 3507 of the Code, Advance Payment of Earned Income Credit, does not apply to the credit 25
798801 allowed by this section. In computing the amount of tax against which multiple credits are 26
799802 allowed, nonrefundable credits are subtracted before refundable credits. 27
800803 (c) Sunset. – This section is repealed effective for taxable years beginning on or after 28
801804 January 1, 2014." 29
802805 SECTION 1.9.(b) This section is effective for taxable years beginning on or after 30
803806 January 1, 2025. 31
804807 32
805808 TAX CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES 33
806809 SECTION 1.10.(a) Article 4 of Chapter 105 of the General Statutes is amended by 34
807810 adding a new section to read: 35
808811 "§ 105-151.34. Credit for qualified child and dependent care expenses. 36
809812 (a) Credit. – A person who is allowed a credit against federal income tax for a percentage 37
810813 of employment-related expenses under section 21 of the Code shall be allowed as a credit against 38
811814 the tax imposed by this Part an amount equal to one hundred percent (100%) of the amount of 39
812815 the credit provided for in section 21 of the Code which is claimed and allowed pursuant to the 40
813816 Internal Revenue Code. To claim the credit allowed by this section, the taxpayer must provide 41
814817 with the tax return the information required by the Secretary of Revenue. 42
815818 (b) Phaseout. – The credit allowed by this section shall be reduced by a percentage listed 43
816819 below, rounded to the nearest percentage point, based on the taxpayer's adjusted gross income as 44
817820 calculated under the Code: 45
818821 46
819822 Filing Status For AGI Exceeding Percentage Reduction 47
820823 Married, filing jointly $75,000 The lesser of 100% or 48
821824 [(Taxpayer's AGI – $75,000)/$125,000] 49
822825 Head of Household $56,250 The lesser of 100% or 50
823826 [(Taxpayer's AGI – $56,250)/$93,750] 51 General Assembly Of North Carolina Session 2025
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825828 Single $37,500 The lesser of 100% or 1
826829 [(Taxpayer's AGI – $37,500)/$62,500] 2
827830 3
828831 (c) Limitations. – A nonresident or part-year resident who claims the credit allowed by 4
829832 this section shall reduce the amount of the credit by multiplying it by the fraction calculated under 5
830833 G.S. 105-153.4(b) or (c), as appropriate. The credit allowed by this section may not exceed the 6
831834 amount of tax imposed by this Part for the taxable year reduced by the sum of all credits 7
832835 allowable, except for payments of tax made by or on behalf of the taxpayer." 8
833836 SECTION 1.10.(b) Subsection (a) of this section is effective for taxable years 9
834837 beginning on or after January 1, 2025. 10
835838 11
836839 UNEMPLOYMENT INSURANCE BENEFITS INCREASES 12
837840 SECTION 2.1.(a) G.S. 96-14.2(a) reads as rewritten: 13
838841 "(a) Weekly Benefit Amount. – The weekly benefit amount for an individual who is totally 14
839842 unemployed is an amount equal to the wages paid to the individual in the last two completed 15
840843 quarters highest paid quarter of the individual's base period divided by 52 and rounded to the 16
841844 next lower whole dollar. If this amount is less than fifteen dollars ($15.00), the individual is not 17
842845 eligible for benefits. The weekly benefit amount may not exceed three hundred fifty dollars 18
843846 ($350.00).six hundred eighty dollars ($680.00)." 19
844847 SECTION 2.1.(b) This section is effective for benefit weeks beginning on or after 20
845848 April 1, 2025. 21
846849 SECTION 2.2. G.S. 96-14.3 reads as rewritten: 22
847850 "§ 96-14.3. Duration of benefits. 23
848851 (a) Duration. – The number of weeks an individual is allowed to receive unemployment 24
849852 benefits depends on the seasonal adjusted statewide unemployment rate that applies to the 25
850853 six-month base period in which the claim is filed. One six-month base period begins on January 26
851854 1 and one six-month base period begins on July 1. For the base period that begins January 1, the 27
852855 average of the seasonal adjusted unemployment rates for the State for the preceding months of 28
853856 July, August, and September applies. For the base period that begins July 1, the average of the 29
854857 seasonal adjusted unemployment rates for the State for the preceding months of January, 30
855858 February, and March applies. The Division must use the most recent seasonal adjusted 31
856859 unemployment rate determined by the U.S. Department of Labor, Bureau of Labor Statistics, and 32
857860 not the rate as revised in the annual benchmark. 33
858861 Seasonal Adjusted Number 34
859862 Unemployment Rate of Weeks 35
860863 Less than or equal to 5.5% 12 36
861864 Greater than 5.5% up to 6% 13 37
862865 Greater than 6% up to 6.5% 14 38
863866 Greater than 6.5% up to 7% 15 39
864867 Greater than 7% up to 7.5% 16 40
865868 Greater than 7.5% up to 8% 17 41
866869 Greater than 8% up to 8.5% 18 42
867870 Greater than 8.5% up to 9% 19 43
868871 Greater than 9% 20 44
869872 (a1) Maximum Duration. – An eligible individual is entitled to receive unemployment 45
870873 benefits for a maximum period of 26 weeks, unless the benefit period is extended expressly by 46
871874 State or federal law. 47
872875 (b) Total Benefits. – The total benefits paid to an individual equals the individual's 48
873876 weekly benefit amount allowed under G.S. 96-14.2 multiplied by the number of weeks allowed 49
874877 under subsection (a) of this section.26." 50 General Assembly Of North Carolina Session 2025
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876879 SECTION 2.3. The Legislative Research Commission (LRC) shall study expanding 1
877880 the State's employment security system to cover self-employed workers who are laid off or have 2
878881 hours reduced due to an economic downturn. For the purposes of this review, the term 3
879882 "self-employed worker" means an individual who has a contract or arrangement to perform work 4
880883 or services. The term includes, but is not limited to, app-based ride-share and food delivery 5
881884 drivers, freelancers, and other similar "gig economy" workers. 6
882885 The LRC shall report its findings and any legislative proposals to the 2026 Session of 7
883886 the 2025 General Assembly. 8
884887 9
885888 PANDEMIC/OCCUPATIONAL DISEASE PRESUMPTION 10
886889 SECTION 3.1.(a) G.S. 97-53 reads as rewritten: 11
887890 "§ 97-53. Occupational diseases enumerated; when due to exposure to chemicals.and 12
888891 conditions enumerated. 13
889892 The following diseases and conditions only shall be deemed to be occupational diseases 14
890893 within the meaning of this Article: 15
891894 … 16
892895 (30) Pandemic infection contracted by a covered person. – A pandemic infection 17
893896 contracted by a covered person shall be presumed to be due to exposure in the 18
894897 course of the covered person's employment. The presumption may only be 19
895898 rebutted by clear and convincing evidence. The following definitions apply in 20
896899 determining eligibility for compensation under this subdivision: 21
897900 a. Covered person. – Means (i) a law enforcement officer, jailer, prison 22
898901 guard, firefighter, or an emergency medical technician or paramedic 23
899902 employed by a State or local governmental employer, including a 24
900903 volunteer firefighter meeting the requirements of G.S. 58-84-5(3a), 25
901904 (ii) a health care worker, or (iii) an employee required to work during 26
902905 a pandemic for a business declared essential by executive order of the 27
903906 Governor or by order of a local governmental authority, including food 28
904907 service, retail, and other essential personnel. 29
905908 b. Pandemic. – An outbreak of an emerging disease prevalent in the 30
906909 United States or the whole world. 31
907910 …." 32
908911 SECTION 3.1.(b) This section is effective when this act becomes law and applies 33
909912 to claims for workers' compensation benefits filed on or after that date. 34
910913 35
911914 COST-OF-LIVING ADJUSTMENT FOR RETIREES OF THE TEACHERS ' AND 36
912915 STATE EMPLOYEES ' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL 37
913916 RETIREMENT SYSTEM, THE LEGISLATIVE RETIREMENT SYSTEM, AND THE 38
914917 LOCAL GOVERNMENTAL EMPLOYEES ' RETIREMENT SYSTEM 39
915918 SECTION 4.1.(a) G.S. 135-5 is amended by adding a new subsection to read: 40
916919 "(aaaa) Effective July 1, 2025, the retirement allowance payable to, or on account of, 41
917920 beneficiaries whose retirement commenced on or before July 1, 2024, is increased by three 42
918921 percent (3%) of the allowance payable on June 1, 2024, in accordance with subsection (o) of this 43
919922 section. Effective July 1, 2025, the retirement allowance payable to, or on account of, 44
920923 beneficiaries whose retirement commenced after July 1, 2024, but before June 30, 2025, is 45
921924 increased by a prorated amount of three percent (3%), as determined by the Board of Trustees 46
922925 based upon the number of months that a retirement allowance was paid between July 1, 2024, 47
923926 and June 30, 2025." 48
924927 SECTION 4.1.(b) G.S. 135-65 is amended by adding a new subsection to read: 49
925928 "(ll) Effective July 1, 2025, the retirement allowance payable to, or on account of, 50
926929 beneficiaries whose retirement commenced on or before July 1, 2024, is increased by three 51 General Assembly Of North Carolina Session 2025
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928931 percent (3%) of the allowance payable on June 1, 2024. Effective July 1, 2025, the retirement 1
929932 allowance payable to, or on account of, beneficiaries whose retirement commenced after July 1, 2
930933 2024, but before June 30, 2025, is increased by a prorated amount of three percent (3%), as 3
931934 determined by the Board of Trustees based upon the number of months that a retirement 4
932935 allowance was paid between July 1, 2024, and June 30, 2025." 5
933936 SECTION 4.1.(c) G.S. 120-4.22A is amended by adding a new subsection to read: 6
934937 "(ff) In accordance with subsection (a) of this section, effective July 1, 2025, the retirement 7
935938 allowance payable to, or on account of, beneficiaries whose retirement commenced on or before 8
936939 January 1, 2025, is increased by three percent (3%) of the allowance payable on June 1, 2025. 9
937940 Effective July 1, 2025, the retirement allowance payable to, or on account of, beneficiaries whose 10
938941 retirement commenced after January 1, 2025, but before June 30, 2025, is increased by a prorated 11
939942 amount of three percent (3%), as determined by the Board of Trustees based upon the number of 12
940943 months that a retirement allowance was paid between January 1, 2025, and June 30, 2025." 13
941944 SECTION 4.1.(d) G.S. 128-27 is amended by adding a new subsection to read: 14
942945 "(hhh) Effective July 1, 2025, the retirement allowance payable to, or on account of, 15
943946 beneficiaries whose retirement commenced on or before July 1, 2024, is increased by three 16
944947 percent (3%) of the allowance payable on June 1, 2025, in accordance with subsection (k) of this 17
945948 section. Effective July 1, 2025, the retirement allowance payable to, or on account of, 18
946949 beneficiaries whose retirement commenced after July 1, 2024, but before June 30, 2025, is 19
947950 increased by a prorated amount of three percent (3%), as determined by the Board of Trustees 20
948951 based upon the number of months that a retirement allowance was paid between July 1, 2024, 21
949952 and June 30, 2025." 22
950953 SECTION 4.1.(e) This section becomes effective July 1, 2025. 23
951954 24
952955 APPROPRIATION 25
953956 SECTION 5.1.(a) There is appropriated from the General Fund to the Reserve for 26
954957 Retiree Cost-of-Living Adjustments the sum of two hundred fifty million dollars ($250,000,000) 27
955958 in recurring funds for the 2025-2026 fiscal year to fund the cost-of-living adjustment provided 28
956959 by this act. 29
957960 SECTION 5.1.(b) This section becomes effective July 1, 2025. 30
958961 31
959962 EFFECTIVE DATE 32
960963 SECTION 6.1. Except as otherwise provided, this act is effective when it becomes 33
961964 law. 34