North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S326 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 326
	3	+	S D
	4	+	SENATE BILL DRS45160-LRfap-14G
	5	+
5	6
6	7
7	8		Short Title: Economic Security Act. (Public)
8	9		Sponsors: Senators Murdock, Mayfield, and Grafstein (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 19, 2025~~
11		-	~~S326 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS45160 -LRfap -14G
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT ADVANCING ECONOMIC SECURITY FOR ALL IN NORTH CAROLINA BY 2
14	15		INCREASING THE STATE MINIMUM WAGE TO TWENTY-TWO DOLLARS PER 3
15	16		HOUR, ADJUSTED FOR INFLATION ANNUALLY; MANDATING EQUAL PAY FOR 4
16	17		EQUAL WORK; REQUIRING PAID SICK LEAVE , PAID FAMILY MEDICAL LEAVE , 5
17	18		AND WORKPLACE SAFETY , EMERGENCY, AND EVACUATION PROTECTIONS; 6
18	19		RESTORING UNEMPLOYMENT INSURANCE BENEFITS ADJUSTED FOR 7
19	20		INFLATION AND STUDYING UNEMPLOYMENT INSURANCE BENEFITS FOR 8
20	21		APP-BASED "GIG ECONOMY" WORKERS; INCREASING THE TIPPED MINIMUM 9
21	22		WAGE; ENDING WAGE THEFT; REQUIRING THE FAIR ASSESSMENT OF 10
22	23		PERSONS WITH CRIMINAL HISTORIES BY "BANNING THE BOX"; REPEALING 11
23	24		PUBLIC EMPLOYEE COLLECTIVE BARGAINING RESTRICTIONS; REENACTING 12
24	25		THE EARNED INCOME TAX CREDIT AND TAX CREDITS FOR CHILD AND 13
25	26		DEPENDENT CARE EXPENSES; CREATING A REBUTTABLE PRESUMPTION 14
26	27		THAT FIRST RESPONDERS, HEALTH CARE WORKERS, AND ESSENTIAL 15
27	28		SERVICE WORKERS INFECTED BY THE CORONAVIRUS CONTRACTED THE 16
28	29		DISEASE IN THE COURSE OF EMPLOYMENT; AND PROVIDING AND 17
29	30		APPROPRIATING FUNDS FOR A COST -OF-LIVING ADJUSTMENT FOR RETIREES 18
30	31		OF THE TEACHERS ' AND STATE EMPLOYEES ' RETIREMENT SYSTEM, THE 19
31	32		CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, THE LEGISLATIVE 20
32	33		RETIREMENT SYSTEM, AND THE LOCAL GOVERNMENTAL EMPLOYEES ' 21
33	34		RETIREMENT SYSTEM. 22
34	35		The General Assembly of North Carolina enacts: 23
35	36		24
36	37		LIVING WAGE 25
37	38		SECTION 1.1.(a) This act shall be known and may be cited as the "Economic 26
38	39		Security Act of 2025." 27
39	40		SECTION 1.1.(b) Effective January 1, 2026, G.S. 95-25.3 reads as rewritten: 28
40	41		"§ 95-25.3. Minimum wage. 29
41	42		(a) Every employer shall pay to each employee who in any workweek performs any work, 30
42	43		wages of at least six dollars and fifteen cents ($6.15) twenty-two dollars ($22.00) per hour or the 31
43	44		minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 32
44	45		206(a)(1), as that wage may change from time to time, whichever is higher, except as otherwise 33
45	46		provided in this section. 34
46	47		(a1) Beginning September 30, 2026, and on each September 30 thereafter, the 35
47		-	Commissioner of Labor shall calculate an adjusted minimum wage rate using the Consumer Price 36 General Assembly Of North Carolina Session 2025
48		-	Page 2 Senate Bill 326-First Edition
	48	+	Commissioner of Labor shall calculate an adjusted minimum wage rate using the Consumer Price 36
	49	+	FILED SENATE
	50	+	Mar 18, 2025
	51	+	S.B. 326
	52	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	53	+	Page 2 DRS45160-LRfap-14G
49	54		Index (All Urban Consumers, U.S. City Average for All Items), CPI-I, or its successor index, as 1
50	55		calculated by the U.S. Department of Labor for the 12-month period preceding the previous 2
51	56		September 1. Each adjusted minimum wage rate calculated shall be published on September 30 3
52	57		and take effect on the following January 1. 4
53	58		…." 5
54	59		SECTION 1.1.(c) This section is effective when this act becomes law. 6
55	60		7
56	61		EQUAL PAY FOR EQUAL WORK 8
57	62		SECTION 1.2.(a) Chapter 95 of the General Statutes is amended by adding a new 9
58	63		Article to read: 10
59	64		"Article 2B. 11
60	65		"Equal Pay Act. 12
61	66		"§ 95-25.26. Definitions. 13
62	67		The following definitions apply in this Article: 14
63	68		(1) Employee. – Every person in receipt of or entitled to compensation for labor 15
64	69		performed for another. 16
65	70		(2) Employer. – Includes (i) this State and any local political subdivision of the 17
66	71		State and (ii) every person having control or direction of any person employed 18
67	72		at any labor, or responsible directly or indirectly for the wages of another, who 19
68	73		employs more than five employees. 20
69	74		(3) Person. – As defined by G.S. 95-25.2(11). 21
70	75		(4) Wage or wages. – Any compensation for labor measured by time, piece, or 22
71	76		otherwise. 23
72	77		"§ 95-25.27. Equal wage rates. 24
73	78		(a) No employer may pay any person in the employer's employ at wage rates less than 25
74	79		the rates paid to employees of the opposite sex in the same establishment for the same quantity 26
75	80		and quality of the same classification of work. Any employer who violates this section is liable 27
76	81		to the employee affected in the amount of the wages that the employee is deprived by reason of 28
77	82		the violation. 29
78	83		(b) Notwithstanding the provisions of subsection (a) of this section, nothing in this 30
79	84		section prohibits a variation of rates of pay for employees engaged in the same classification of 31
80	85		work based upon seniority, a difference in length of service, ability, skill, difference in duties or 32
81	86		services performed, whether regularly or occasionally, difference in the shift or time of day 33
82	87		worked, hours of work, or restrictions or prohibitions on lifting or moving objects in excess of 34
83	88		specified weight, or other reasonable differentiation, or factor or factors other than sex, when 35
84	89		exercised in good faith. 36
85	90		(c) An employer that is in violation of this section may not reduce the pay of any 37
86	91		employee in order to bring the employer into compliance with this Article. 38
87	92		(d) An employer shall not retaliate against any employee who seeks redress pursuant to 39
88	93		this Article or who participates in the investigation of a complaint under this Article. 40
89	94		"§ 95-25.28. Complaints; enforcement; civil actions. 41
90	95		(a) An affected employee may file with the Department of Labor a complaint that the 42
91	96		wages paid to the employee are less than the wages to which the employee is entitled under this 43
92	97		Article. The Department of Labor shall investigate the complaint and notify the employer and 44
93	98		employee of the results of the investigation. 45
94	99		(b) An employee receiving less than the wage to which the employee is entitled under 46
95	100		this section may recover in a civil action the balance of such wages, together with the costs and 47
96	101		attorneys' fees, notwithstanding any agreement to work for a lesser wage. The employee is not 48
97	102		required to exhaust administrative remedies before filing the civil action. 49
98	103		(c) A civil action pursuant to this section shall be instituted within two years after the 50
99	104		date that the alleged violation is discovered by the affected employee." 51 General Assembly Of North Carolina Session 2025
100		-	~~Senate Bill 326-First Edition~~ Page 3
	105	+	DRS45160-LRfap-14G Page 3
101	106		SECTION 1.2.(b) This section is effective when this act becomes law. 1
102	107		2
103	108		HEALTHY FAMILIES & WORKPLACES/ REQUIRE PAID LEAVE/WORKPLACE 3
104	109		HEAT SAFETY PROTECTIONS 4
105	110		SECTION 1.3.(a) Chapter 95 of the General Statutes is amended by adding a new 5
106	111		Article to read: 6
107	112		"Article 3A. 7
108	113		"Healthy Families and Healthy Workplaces Act. 8
109	114		"§ 95-31.1. Short title and legislative purpose. 9
110	115		(a) This Article shall be known and may be cited as the "Healthy Families and Healthy 10
111	116		Workplaces Act." 11
112	117		(b) The public policy of this State is declared as follows: The health and safety needs of 12
113	118		employees and their families and the protection of employees from losing their jobs and pay 13
114	119		while they seek medical care for themselves and their family members are subjects of concern 14
115	120		requiring legislation to promote the general welfare of the people of the State without 15
116	121		jeopardizing the competitive position of North Carolina business and industry. The General 16
117	122		Assembly declares that the general welfare of the State requires the enactment of this law under 17
118	123		the police power of the State. 18
119	124		"§ 95-31.2. Definitions. 19
120	125		(a) The following definitions apply in this Article: 20
121	126		(1) Child. – A biological, adopted, or foster child, stepchild, legal ward, or child 21
122	127		of a parent standing in loco parentis. 22
123	128		(2) Domestic violence. – As defined in G.S. 50B-1. 23
124	129		(3) Employ. – As defined by G.S. 95-25.2(3). 24
125	130		(4) Employee. – As defined by G.S. 95-25.2(4). 25
126	131		(5) Employer. – As defined by G.S. 95-25.2(5). 26
127	132		(6) Health care provider. – 27
128	133		a. A doctor of medicine or osteopathy licensed to practice medicine 28
129	134		under federal law, any state law, or the laws of another country 29
130	135		wherein the person practices. 30
131	136		b. A physician assistant licensed in this State licensed to practice under 31
132	137		federal law, any state law, or the laws of another country wherein the 32
133	138		person practices. 33
134	139		c. A family nurse practitioner or certified nurse midwife licensed to 34
135	140		practice under federal law, any state law, or the laws of another 35
136	141		country wherein the person practices. 36
137	142		(7) Immediate family member. – A child, grandchild, sibling, spouse, domestic 37
138	143		partner, civil union partner, parent, or grandparent of an employee, or a 38
139	144		spouse, domestic partner, or civil union partner of a parent or grandparent of 39
140	145		the employee, or a sibling of a spouse, domestic partner, or civil union partner 40
141	146		of the employee, or any other individual related by blood to the employee or 41
142	147		whose close association with the employee is the equivalent of a family 42
143	148		relationship. 43
144	149		(8) Paid sick time or paid sick days. – Time that is (i) compensated at the same 44
145	150		hourly rate and with the same benefits, including health care benefits, as the 45
146	151		employee normally earns during hours worked and (ii) provided by an 46
147	152		employer to an employee for the purposes described in G.S. 95-31.4(b) of this 47
148	153		Article. 48
149	154		(9) Parent. – A biological, foster, step, or adoptive parent of an employee or an 49
150	155		employee's spouse, or other person who stood in loco parentis during the 50
151	156		childhood of an employee or employee's spouse. 51 General Assembly Of North Carolina Session 2025
152		-	Page 4 ~~Senate Bill 326-First Edition~~
	157	+	Page 4 DRS45160-LRfap-14G
153	158		(10) Sexual assault. – As defined in Chapter 14 of the General Statutes. 1
154	159		(11) Small business. – An employer who employs 10 or fewer employees during 2
155	160		20 or more calendar workweeks in the current or preceding calendar year. 3
156	161		(12) Stalking. – As defined in Chapter 14 of the General Statutes. 4
157	162		"§ 95-31.3. Exemptions. 5
158	163		(a) The provisions of this section do not apply to any bona fide volunteers in any 6
159	164		organization where an employer-employee relationship does not exist. 7
160	165		(b) The provisions of this section do not apply to any person exempted from the Wage 8
161	166		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
162	167		and 95-25.14(e), except that domestic workers are exempted only if they are employed in the 10
163	168		place of residence of their employer. 11
164	169		"§ 95-31.4. Accrual of paid sick time. 12
165	170		(a) Except as provided by G.S. 95-31.3, any employee who works in this State and who 13
166	171		must be absent from work for the reasons set forth in G.S. 95-31.5(a) shall be entitled to paid 14
167	172		sick time. 15
168	173		(b) Paid sick time as provided in this section shall begin to accrue at the commencement 16
169	174		of employment. Paid sick time shall accrue at the rate of one hour of pay for every 30 hours 17
170	175		worked. Paid sick time may be used as accrued or be loaned by the employer at its discretion to 18
171	176		the employee in advance of accrual. Unless the employer and employee agree to designate 19
172	177		otherwise, for periods of paid sick time that are less than a normal workday, the time shall be 20
173	178		counted on an hourly basis or the smallest increment that the employer's payroll system uses to 21
174	179		account for absences or use of leave. 22
175	180		(c) For employees of small businesses, there shall be a limit of 32 hours of accrued paid 23
176	181		sick time in a calendar year. For employees of other employers, there shall be a limit of 56 hours 24
177	182		of accrued paid sick time in a calendar year. Accrued paid sick time for employees carries over 25
178	183		from year to year but is limited to the aforementioned limits. 26
179	184		(d) When there is separation from employment and the employee is rehired within 90 27
180	185		days of separation by the same employer, previously accrued paid sick time that had not been 28
181	186		used shall be reinstated. The employee shall be entitled to use accrued paid sick time and accrue 29
182	187		additional sick time at the recommencement of employment. 30
183	188		"§ 95-31.5. Use of paid sick time. 31
184	189		(a) Paid sick time shall be provided to an employee by an employer for any of the 32
185	190		following reasons: 33
186	191		(1) To care for the employee's immediate family member who is suffering from a 34
187	192		physical or mental illness, injury, or medical condition that requires care, 35
188	193		professional medical diagnosis or care, preventive medical care, or a routine 36
189	194		medical appointment. 37
190	195		(2) To care for the employee's own physical or mental illness, injury, or medical 38
191	196		condition that requires care, professional medical diagnosis or care, preventive 39
192	197		medical care, or a routine medical appointment. 40
193	198		(3) Absence necessary due to circumstances resulting from the employee, or a 41
194	199		family member of the employee, being a victim of stalking or domestic or 42
195	200		sexual violence, if the leave is to allow the employee to obtain for the 43
196	201		employee or the family member (i) medical attention needed to recover from 44
197	202		physical or psychological injury or disability caused by stalking or domestic 45
198	203		or sexual violence, (ii) services from a designated domestic violence agency 46
199	204		or other victim services organization, (iii) psychological or other counseling, 47
200	205		(iv) relocation, or (v) legal services, including obtaining a restraining order or 48
201	206		preparing for, or participating in, any civil or criminal legal proceeding related 49
202	207		to the stalking or domestic or sexual violence. 50 General Assembly Of North Carolina Session 2025
203		-	~~Senate Bill 326-First Edition~~ Page 5
	208	+	DRS45160-LRfap-14G Page 5
204	209		(b) An employer may require certification of the qualifying illness, injury, health 1
205	210		condition, or violence when a paid sick time period covers more than three consecutive workdays. 2
206	211		Any reasonable documentation signed by a health care provider involved in following or treating 3
207	212		the illness, injury, or health condition and indicating the need for the amount of sick days taken 4
208	213		shall be deemed acceptable certification. Acceptable certification of domestic violence, sexual 5
209	214		assault, or stalking may include (i) law enforcement, court, or federal agency records or files, (ii) 6
210	215		documentation from a domestic violence or sexual assault program, or (iii) documentation from 7
211	216		a religious, medical, or other professional from whom assistance was sought in dealing with the 8
212	217		alleged domestic violence, sexual offense, or stalking. 9
213	218		(1) The employer shall not require certification from a health care provider 10
214	219		employed by the employer. The employer shall not delay the commencement 11
215	220		of time taken for purposes of subsection (a) of this section or pay for this 12
216	221		period on the basis that the employer has not yet received the certification. 13
217	222		Nothing in this section shall be construed to require an employee to provide 14
218	223		as certification any information from a health care provider that would be in 15
219	224		violation of section 1177 of the Social Security Act or the regulations 16
220	225		promulgated pursuant to section 264(c) of the Health Insurance Portability and 17
221	226		Accountability Act, 42 U.S.C. § 1320d-2. 18
222	227		(2) An employer may not require disclosure of details relating to domestic 19
223	228		violence, sexual assault, or stalking or the details of an employee's medical 20
224	229		condition as a condition of providing paid sick time under this Article. If an 21
225	230		employer possesses health information or information pertaining to domestic 22
226	231		violence, sexual assault, or stalking about an employee or employee's 23
227	232		immediate family member, such information shall be treated as confidential 24
228	233		and not disclosed except to the affected employee or with the permission of 25
229	234		the affected employee. 26
230	235		(c) When the use of paid sick time is foreseeable, the employee shall make a good-faith 27
231	236		effort to provide notice of the need for such time to the employer in advance of the use of the 28
232	237		sick time and shall make a reasonable effort to schedule the use of paid sick time in a manner 29
233	238		that does not unduly disrupt the operations of the employer. 30
234	239		(d) An employer may not require, as a condition of providing paid sick time under this 31
235	240		act, that the employee search for or find a replacement worker to cover the hours during which 32
236	241		the employee is on paid sick time. 33
237	242		(e) An employer's absence control policy shall not count paid sick time taken under this 34
238	243		Article as an absence that may lead to or result in a retaliatory personnel action or any other 35
239	244		adverse action. 36
240	245		(f) Nothing in this section shall be construed as requiring financial or other 37
241	246		reimbursement to an employee from an employer upon the employee's termination, resignation, 38
242	247		retirement, or other separation from employment for accrued paid sick days that have not been 39
243	248		used. 40
244	249		(g) Nothing in this section shall be construed to discourage employers from adopting or 41
245	250		retaining paid sick time policies more generous than policies that comply with the requirements 42
246	251		of this section, and nothing in this section shall be construed to diminish the obligation of an 43
247	252		employer to comply with any contract, collective bargaining agreement, or any employment 44
248	253		benefit program or plan that provides greater paid sick time leave rights to employees than the 45
249	254		rights established under this section. 46
250	255		(h) This act provides minimum requirements pertaining to paid sick time and shall not be 47
251	256		construed to preempt, limit, or otherwise affect the applicability of any other law, regulation, 48
252	257		requirement, policy, agreement, or standard that provides for greater accrual or use by employees 49
253	258		of sick time, whether paid or unpaid, or that extends other protections to employees. 50 General Assembly Of North Carolina Session 2025
254		-	Page 6 ~~Senate Bill 326-First Edition~~
	259	+	Page 6 DRS45160-LRfap-14G
255	260		(i) Employers who have a paid time-off leave policy shall not be required to modify that 1
256	261		policy, if that policy offers an employee the option, at the employee's discretion, to take paid sick 2
257	262		time that is at least equivalent to the amounts and for the same purposes and under the same 3
258	263		conditions as provided under this section. 4
259	264		"§ 95-31.6. Notification, posting, and records. 5
260	265		Employers shall give notice (i) that employees are entitled to paid sick time, (ii) of the amount 6
261	266		of paid sick time and the terms of its use guaranteed under this section, (iii) that retaliation against 7
262	267		employees who request or use paid sick time is prohibited, and (iv) that each employee has the 8
263	268		right to file a complaint with the Commissioner of Labor or in the General Court of Justice if 9
264	269		paid sick time as required by this Article is denied by the employer or the employee is retaliated 10
265	270		against for requesting or taking paid sick time. Employers may comply with this section by 11
266	271		supplying each of their employees with a notice in English and in Spanish that contains the 12
267	272		information required by this section or by displaying a poster in a conspicuous and accessible 13
268	273		place in each establishment where the employees are employed that contains in English and in 14
269	274		Spanish all information required by this section. 15
270	275		"§ 95-31.7. Enforcement. 16
271	276		(a) The Commissioner shall enforce and administer the provisions of this Article, and the 17
272	277		Commissioner or his or her authorized representative is empowered to hold hearings and to 18
273	278		institute civil proceedings hereunder. 19
274	279		(b) The Commissioner or the Commissioner's authorized representative shall have power 20
275	280		to administer oaths and examine witnesses, issue subpoenas, compel the attendance of witnesses 21
276	281		and the production of papers, books, accounts, records, payrolls, and documents, and take 22
277	282		depositions and affidavits in any proceeding hereunder. 23
278	283		(c) Any employer who violates the provisions of this Article shall be liable to the 24
279	284		employee or employees affected in the amount of their unpaid sick time, as the case may be, plus 25
280	285		interest at the legal rate set forth in G.S. 24-1 from the date each amount first came due. 26
281	286		(d) In addition to the amounts awarded pursuant to subsection (c) of this section, the court 27
282	287		shall award liquidated damages in an amount equal to the amount found to be due as provided in 28
283	288		subsection (c) of this section, provided that if the employer shows to the satisfaction of the court 29
284	289		that the act or omission constituting the violation was in good faith and that the employer had 30
285	290		reasonable grounds for believing that the act or omission was not a violation of this Article, the 31
286	291		court may, in its discretion, award no liquidated damages or may award any amount of liquidated 32
287	292		damages not exceeding the amount found due as provided in subsection (c) of this section. 33
288	293		(e) Action to recover such liability may be maintained in the General Court of Justice by 34
289	294		any one or more employees. 35
290	295		(f) The court, in any action brought under this Article, may, in addition to any judgment 36
291	296		awarded to the plaintiff, order costs and fees of the action and reasonable attorneys' fees to be 37
292	297		paid by the defendant. The court may order costs and fees of the action and reasonable attorneys' 38
293	298		fees to be paid by the plaintiff if the court determines that the action was frivolous. 39
294	299		(g) The Commissioner may determine and supervise the payment of the amounts due 40
295	300		under this section, including interest at the legal rate set forth in G.S. 24-1 from the date each 41
296	301		amount first came due, and the agreement to accept such amounts by the employee shall 42
297	302		constitute a waiver of the employee's right to bring an action under subsection (e) of this section. 43
298	303		(h) Actions under this Article must be brought within two years pursuant to G.S. 1-53. 44
299	304		(i) The rights and remedies created by this Article are supplementary to all existing 45
300	305		common-law and statutory rights and remedies. 46
301	306		"§ 95-31.8. Rules. 47
302	307		The Commissioner of Labor shall adopt rules to implement this Article. 48
303	308		"§ 95-31.9. Severability. 49 General Assembly Of North Carolina Session 2025
304		-	~~Senate Bill 326-First Edition~~ Page 7
	309	+	DRS45160-LRfap-14G Page 7
305	310		The provisions of this Article shall be severable, and if any phrase, clause, sentence, or 1
306	311		provision is declared to be invalid or is preempted by federal law or regulation, the validity of 2
307	312		the remainder of this Article shall not be affected thereby." 3
308	313		SECTION 1.3.(b) G.S. 95-241(a) reads as rewritten: 4
309	314		"(a) No person shall discriminate or take any retaliatory action against an employee 5
310	315		because the employee in good faith does or threatens to do any of the following: 6
311	316		(1) File a claim or complaint, initiate any inquiry, investigation, inspection, 7
312	317		proceeding or other action, or testify or provide information to any person 8
313	318		with respect to any of the following: 9
314	319		a. Chapter 97 of the General Statutes. 10
315	320		b. Article 2A Article 2A, Article 3A, or Article 16 of this Chapter. 11
316	321		c. Article 2A of Chapter 74 of the General Statutes. 12
317	322		d. G.S. 95-28.1. 13
318	323		e. Article 16 of Chapter 127A of the General Statutes. 14
319	324		f. G.S. 95-28.1A. 15
320	325		g. Article 52 of Chapter 143 of the General Statutes. 16
321	326		h. Article 5F of Chapter 90 of the General Statutes. 17
322	327		(2) Cause any of the activities listed in subdivision (1) of this subsection to be 18
323	328		initiated on an employee's behalf. 19
324	329		(3) Exercise any right on behalf of the employee or any other employee afforded 20
325	330		by Article 2A Article 2A, Article 3A, or Article 16 of this Chapter, by Article 21
326	331		2A of Chapter 74 of the General Statutes, or by Article 52 of Chapter 143 of 22
327	332		the General Statutes. 23
328	333		(4) Comply with the provisions of Article 27 of Chapter 7B of the General 24
329	334		Statutes. 25
330	335		(5) Exercise rights under Chapter 50B. Actions brought under this subdivision 26
331	336		shall be in accordance with the provisions of G.S. 50B-5.5." 27
332	337		SECTION 1.3.(c) This section becomes effective January 1, 2026, and applies only 28
333	338		to covered employment on or after that date. With respect to employees covered by a valid 29
334	339		collective bargaining agreement in effect on January 1, 2026, this section shall not apply until 30
335	340		the stated expiration date in the collective bargaining agreement; however, this section shall apply 31
336	341		upon any such agreement's renewal, extension, amendment, or modification in any respect after 32
337	342		January 1, 2026. 33
338	343		SECTION 1.4. Article 16 of Chapter 95 of the General Statutes is amended by 34
339	344		adding two new sections to read: 35
340	345		"§ 95-158. Workplace safety requirements. 36
341	346		(a) Heat Exposure Safety. – Each employer shall adopt a heat safety plan for employees 37
342	347		that, at a minimum, does all of the following: 38
343	348		(1) Provide workers with readily accessible drinking water. 39
344	349		(2) Establish and maintain shaded or climate-controlled rest areas. 40
345	350		(3) Implement mandatory rest periods during high-heat conditions. 41
346	351		(4) Develop and implement written heat illness prevention procedures. 42
347	352		(5) Provide heat safety training to workers and supervisors. 43
348	353		(6) Maintain records of heat-related incidents and prevention measures. 44
349	354		(7) Implement an acclimatization schedule for new workers and workers 45
350	355		returning after 30 or more consecutive days away. 46
351	356		When temperatures exceed 90 degrees Fahrenheit for more than 15 minutes during a 47
352	357		60-minute period, or where employees are performing a heavy workload or are required to wear 48
353	358		double-layer woven clothing, employers shall modify work schedules to minimize heat exposure, 49
354	359		increase rest frequency, establish a mandatory buddy system, and maintain communication 50
355	360		systems for heat-related emergency response. 51 General Assembly Of North Carolina Session 2025
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357	362		(b) Natural Disaster and Evacuation Safety. – Each employer shall adopt a safety plan in 1
358	363		the event of natural disaster or evacuation to provide for employee readiness, health, and safety. 2
359	364		(c) Rules. – The Commissioner of Labor shall adopt rules to implement this section. 3
360	365		"§ 95-159. Employee rights in an emergency. 4
361	366		(a) The following definitions apply in this section: 5
362	367		(1) Emergency condition. – The existence of either of the following: 6
363	368		a. Conditions of disaster or extreme peril to the safety of persons or 7
364	369		property at the workplace or worksite caused by natural forces or a 8
365	370		criminal act. 9
366	371		b. An order to evacuate a workplace, a worksite, a worker's home, or the 10
367	372		school of a worker's child due to natural disaster or a criminal act. 11
368	373		The term does not include a health pandemic. 12
369	374		(2) A reasonable belief that the workplace or worksite is unsafe. – When a 13
370	375		reasonable person, under the circumstances known to the employee at the 14
371	376		time, would conclude there is a real danger of death or serious injury if that 15
372	377		person enters or remains on the premises. The existence of any health and 16
373	378		safety regulations specific to the emergency condition and an employer's 17
374	379		compliance or noncompliance with those regulations shall be a relevant factor 18
375	380		if this information is known to the employee at the time of the emergency 19
376	381		condition or the employee received training on the health and safety 20
377	382		regulations mandated by law specific to the emergency condition. 21
378	383		(b) In the event of an emergency condition, an employer shall not: 22
379	384		(1) Take or threaten adverse action against any employee for refusing to report to, 23
380	385		or leaving, a workplace or worksite within the affected area because the 24
381	386		employee has a reasonable belief that the workplace or worksite is unsafe; or 25
382	387		(2) Prevent any employee from accessing the employee's mobile device or other 26
383	388		communications device for seeking emergency assistance, assessing the 27
384	389		safety of the situation, or communicating with a person to verify their safety. 28
385	390		(c) The provisions of subsection (b) of this section do not apply to any of the following: 29
386	391		(1) A first responder, disaster service worker, or any employee required by law to 30
387	392		render aid or remain on the premises in case of an emergency. 31
388	393		(2) An employee or contractor of a health care facility who provides direct patient 32
389	394		care, provides services supporting patient care operations during an 33
390	395		emergency, or is required by law or policy to participate in emergency 34
391	396		response or evacuation. 35
392	397		(3) An employee of a private entity that contracts with the State or a local political 36
393	398		subdivision of the State for purposes of providing or aiding in emergency 37
394	399		services. 38
395	400		(4) An employee working on a military base or in the defense industrial base 39
396	401		sector. 40
397	402		(5) An employee performing essential work on nuclear reactors or nuclear 41
398	403		materials or waste. 42
399	404		(6) An employee of a company providing utility, communications, energy, or 43
400	405		roadside assistance while the employee is actively engaged in or is being 44
401	406		called upon to aid in emergency response, including maintaining public access 45
402	407		to services such as energy and water during the emergency. 46
403	408		(7) An employee of a licensed residential care facility. 47
404	409		(8) An employee of a depository institution or any company within any of the 48
405	410		definitions of "insured depository institution" set forth in 12 U.S.C. § 1813(c). 49
406	411		(9) A transportation employee participating directly in emergency evacuations 50
407	412		during an active evacuation. 51 General Assembly Of North Carolina Session 2025
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409	414		(10) An employee of a privately contracted private fire prevention resource. 1
410	415		(11) An employee whose primary duties include assisting members of the public 2
411	416		to evacuate in case of an emergency. 3
412	417		(12) An employee of any correctional facility. 4
413	418		(d) When feasible, an employee shall notify the employer of the emergency condition 5
414	419		requiring the employee to leave or refuse to report to the workplace or worksite prior to leaving 6
415	420		or refusing to report. When prior notice is not feasible, the employee shall notify the employer 7
416	421		of the emergency condition that required the employee to leave or refuse to report to the 8
417	422		workplace or worksite after leaving or refusing to report as soon as possible. 9
418	423		(e) This section does not to apply when emergency conditions that pose an imminent and 10
419	424		ongoing risk of harm to the workplace, the worksite, the worker, or the worker's home have 11
420	425		ceased. 12
421	426		(f) The Commissioner of Labor may bring an enforcement action under this section upon 13
422	427		a complaint by a current or former employee. 14
423	428		(g) The employee has a private right of action against an employer who violates this 15
424	429		section when the violation results in actual harm to the employee. The employer shall have the 16
425	430		right to cure alleged violations before any action by a current or former employee may be brought 17
426	431		under this section." 18
427	432		19
428	433		INCREASE TIPPED MINIMUM WAGE 20
429	434		SECTION 1.5.(a) Effective until December 31, 2025, G.S. 95-25.3(f) reads as 21
430	435		rewritten: 22
431	436		"(f) Tips earned by a tipped employee may be counted as wages only up to the amount 23
432	437		permitted in section 3(m) of the Fair Labor Standards Act, 29 U.S.C. 203(m), if the tipped 24
433	438		employee is notified in advance, is permitted to retain all tips and the employer maintains 25
434	439		accurate and complete records of tips received by each employee as such tips are certified by the 26
435	440		employee monthly or for each pay period. Even if the employee refuses to certify tips accurately, 27
436	441		tips may still be counted as wages when the employer complies with the other requirements of 28
437	442		this section and can demonstrate by monitoring tips that the employee regularly receives tips in 29
438	443		the amount for which the credit is taken. of five dollars ($5.00) per hour. Tip pooling shall also 30
439	444		be is permissible among employees who customarily and regularly receive tips; however, no 31
440	445		employee's tips may be reduced by more than fifteen percent (15%) under a tip pooling 32
441	446		arrangement." 33
442	447		SECTION 1.5.(b) Effective January 1, 2026, G.S. 95-25.3(f), as amended by 34
443	448		subsection (a) of this section, reads as rewritten: 35
444	449		"(f) Tips earned by a tipped employee may be counted as wages only up to the amount of 36
445	450		five dollars ($5.00) per hour. shall not be counted as wages. Tip pooling is permissible among 37
446	451		employees who customarily and regularly receive tips; however, no employee's tips may be 38
447	452		reduced by more than fifteen percent (15%) under a tip pooling arrangement." 39
448	453		SECTION 1.5.(c) Except as otherwise provided, this section is effective when this 40
449	454		act becomes law. 41
450	455		42
451	456		WAGE THEFT 43
452	457		SECTION 1.6.(a) G.S. 95-25.2 reads as rewritten: 44
453	458		"§ 95-25.2. Definitions. 45
454	459		In this Article, unless the context otherwise requires:The following definitions apply in this 46
455	460		Article: 47
456	461		(1) "Agriculture" includes farming Agriculture. – Farming in all its branches 48
457	462		performed by a farmer or on a farm as an incident to or in conjunction with 49
458	463		farming operations. 50
459	464		(2) "Commissioner" means the Commissioner. – The Commissioner of Labor. 51 General Assembly Of North Carolina Session 2025
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461	466		(3) "Employ" means to Employ. – To suffer or permit to work. 1
462	467		(4) "Employee" includes any Employee. – Any individual employed by an 2
463	468		employer. 3
464	469		(5) "Employer" includes any Employer. – Any person acting directly or indirectly 4
465	470		in the interest of an employer in relation to an employee. 5
466	471		(5a) Employment status. – The status of an individual, under the usual 6
467	472		common-law rules applicable in determining the employee-employer 7
468	473		relationship, as an employee or as an independent contractor (or another 8
469	474		individual who is not an employee). 9
470	475		(5b) Enterprise. – The related activities performed either through unified 10
471	476		operations or common control by any person or persons for a common 11
472	477		business purpose and includes all such activities whether performed in one or 12
473	478		more establishments or by one or more corporate units but shall not include 13
474	479		the related activities performed for such enterprise by an independent 14
475	480		contractor or franchisee. 15
476	481		(6) "Establishment" means a Establishment. – A physical location where business 16
477	482		is conducted. 17
478	483		(7) "The Fair Labor Standards Act" means the Fair Labor Standards Act. – The 18
479	484		Fair Labor Standards Act of 1938, as amended and as the same may be 19
480	485		amended from time to time by the United States Congress. 20
481	486		(8) "Hours worked" includes all Hours worked. – All time an employee is 21
482	487		employed. 22
483	488		(8a) Intentional. – The employer consciously committed the act which violated the 23
484	489		statute. 24
485	490		(9) "Payday" means that Payday. – That day designated for payment of wages due 25
486	491		by virtue of the employment relationship. 26
487	492		(10) "Pay periods" may Pay periods. – May be daily, weekly, biweekly, 27
488	493		semimonthly, or monthly. 28
489	494		(11) "Person" means an Person. – An individual, partnership, association, 29
490	495		corporation, business trust, legal representative, or any organized group of 30
491	496		persons. For the purposes of G.S. 95-25.2, G.S. 95-25.3, G.S. 95-25.14, and 31
492	497		G.S. 95-25.20, it also means the State of North Carolina, any city, town, 32
493	498		county, or municipality, or any State or local agency or instrumentality of 33
494	499		government. The Government of the United States and any agency of the 34
495	500		United States (including the United States Postal Service and Postal Rate 35
496	501		Commission) are not included as persons for any purpose under this Article. 36
497	502		(12) "Seasonal food service establishment" means a Seasonal food service 37
498	503		establishment. – A restaurant, food and drink stand or other establishment 38
499	504		generally recognized as a commercial food service establishment, preparing 39
500	505		and serving food to the public but operating 180 days or less per year. 40
501	506		(13) "Seasonal religious or nonprofit educational conference center or a seasonal 41
502	507		amusement or recreational establishment" means an Seasonal religious or 42
503	508		nonprofit educational conference center or a seasonal amusement or 43
504	509		recreational establishment. – An establishment which does not operate for 44
505	510		more than seven months in any calendar year, or during the preceding calendar 45
506	511		year had average receipts for any six months of such year of not more than 46
507	512		thirty-three and one-third percent (33 1/3%) of its average receipts for the 47
508	513		other six months of that year. 48
509	514		(14) "Tipped employee" means any Tipped employee. – Any employee who 49
510	515		customarily receives more than twenty dollars ($20.00) a month in tips. 50 General Assembly Of North Carolina Session 2025
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512	517		(15) "Tip" shall mean any Tip. – Any money or part thereof over and above the 1
513	518		actual amount due a business for goods, food, drink, services or articles sold 2
514	519		which is paid in cash or by credit card, or is given to or left for an employee 3
515	520		by a patron or patrons of the business where the employee is employed. 4
516	521		(16) "Wage" Wage. – Wage paid to an employee means compensation for labor or 5
517	522		services rendered by an employee whether determined on a time, task, piece, 6
518	523		job, day, commission, or other basis of calculation, and the reasonable cost as 7
519	524		determined by the Commissioner of furnishing employees with board, 8
520	525		lodging, or other facilities. For the purposes of G.S. 95-25.6 through 9
521	526		G.S. 95-25.13 "wage" includes sick pay, vacation pay, severance pay, 10
522	527		commissions, bonuses, and other amounts promised when the employer has a 11
523	528		policy or a practice of making such payments. 12
524	529		(16a) Willful. – The employer knew or showed reckless disregard for the issue of 13
525	530		whether the employer's conduct was prohibited. 14
526	531		(17) "Workweek" means any Workweek. – Any period of 168 consecutive hours. 15
527	532		(18) "Enterprise" means the related activities performed either through unified 16
528	533		operations or common control by any person or persons for a common 17
529	534		business purpose and includes all such activities whether performed in one or 18
530	535		more establishments or by one or more corporate units but shall not include 19
531	536		the related activities performed for such enterprise by an independent 20
532	537		contractor or franchisee." 21
533	538		SECTION 1.6.(b) G.S. 95-25.13 reads as rewritten: 22
534	539		"§ 95-25.13. Notification, posting, and records. 23
535	540		Every employer shall do all of the following: 24
536	541		(1) Notify its employees, in writing at the time of hiring, and upon any material 25
537	542		change, of the following information: 26
538	543		a. The amount of the promised wages and the day and place for 27
539	544		payment.basis upon which the promised wages will be calculated (for 28
540	545		example, per hour or per piece). 29
541	546		b. The method, day, and place for payment of wages. 30
542	547		c. The full name, mailing address, and telephone number of the employer 31
543	548		and the federal and State tax identification number of each employer 32
544	549		who is not a natural person. 33
545	550		d. The employment status of the employee. Such notification or 34
546	551		classification by the employer is not determinative of the employee's 35
547	552		actual employment status. 36
548	553		(2) Make available to its employees, in writing or through a posted notice 37
549	554		maintained in a place accessible to its employees, employment practices and 38
550	555		policies with regard to promised wages. 39
551	556		(3) Notify employees, in writing, at least one pay period prior to any changes in 40
552	557		promised wages. Wages may be retroactively increased without the prior 41
553	558		notice required by this subsection. 42
554	559		(4) Furnish each employee with an itemized statement of deductions made from 43
555	560		that employee's wages under G.S. 95-25.8 and with the information required 44
556	561		by 13 NCAC 12 .0801(6) and 13 NCAC 12 .0801(8) through (13) for each 45
557	562		pay period such deductions are made.period." 46
558	563		SECTION 1.6.(c) G.S. 95-25.22 reads as rewritten: 47
559	564		"§ 95-25.22. Recovery of unpaid wages. 48
560	565		(a) Any employer who violates the provisions of G.S. 95-25.3 (Minimum Wage), 49
561	566		G.S. 95-25.4 (Overtime), or G.S. 95-25.6 through 95-25.12 (Wage Payment) shall be liable to 50
562	567		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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564	569		overtime compensation, or their unpaid amounts due under G.S. 95-25.6 through G.S. 95-25.12, 1
565	570		as the case may be, plus interest at the legal rate set forth in G.S. 24-1, from the date each amount 2
566	571		first came due. 3
567	572		(a1) In addition to the amounts awarded pursuant to subsection (a) of this section, the court 4
568	573		shall award liquidated damages in an amount equal to twice the amount found to be due as 5
569	574		provided in subsection (a) of this section, provided that if the employer shows to the satisfaction 6
570	575		of the court that the act or omission constituting the violation was in good faith and that the 7
571	576		employer had reasonable grounds for believing that the act or omission was not a violation of 8
572	577		this Article, the court may, in its discretion, award no liquidated damages or may award any 9
573	578		amount of liquidated damages not exceeding twice the amount found due as provided in 10
574	579		subsection (a) of this section. 11
575	580		(a2) Any employer who violates the provisions of G.S. 95-25.13 or any rule adopted under 12
576	581		that section shall be liable to the employee or employees affected in the amount of their actual 13
577	582		damages, including, but not limited to, lost wages and benefits plus interest. 14
578	583		(a3) In addition to the amounts awarded pursuant to subsections (a), (a1), and (a2) of this 15
579	584		section, if the court finds that the employer has intentionally violated any provision of this Article 16
580	585		or any regulation issued pursuant to this Article, the court shall award statutory damages of up to 17
581	586		five hundred dollars ($500.00) per employee per violation. Factors to be considered in setting the 18
582	587		number of statutory damages include the nature and persistence of the violations and the extent 19
583	588		of the employer's culpability. 20
584	589		(b) Action to recover such liability may be maintained in the General Court of Justice by 21
585	590		any one or more employees. 22
586	591		(c) Action to recover such liability may also be maintained in the General Court of Justice 23
587	592		by the Commissioner at the request of the employees affected. Any sums thus recovered by the 24
588	593		Commissioner on behalf of an employee shall be held in a special deposit account and shall be 25
589	594		paid directly to the employee or employees affected. 26
590	595		(d) The court, in any action brought under this Article may, shall, in addition to any 27
591	596		judgment awarded plaintiff, order costs and fees of the action and reasonable attorneys' fees to 28
592	597		be paid by the defendant. In an action brought by the Commissioner in which a default judgment 29
593	598		is entered, the clerk shall order attorneys' fees of three hundred dollars ($300.00) to be paid by 30
594	599		the defendant. 31
595	600		The court may order costs and fees of the action and reasonable attorneys' fees to be paid by 32
596	601		the plaintiff if the court determines that the action was frivolous. 33
597	602		(e) The Commissioner is authorized to determine and supervise the payment of the 34
598	603		amounts due under this section, including interest at the legal rate set forth in G.S. 24-1, from the 35
599	604		date each amount first came due, and the agreement to accept such amounts by the employee 36
600	605		shall constitute a waiver of the employee's right to bring an action under subsection (b) of this 37
601	606		section. 38
602	607		(f) Actions under this section must be brought within two years pursuant to 39
603	608		G.S. 1-53.G.S. 1-53, except that an action arising out of a willful violation may be brought within 40
604	609		three years. Actions may also be brought within one year after notification to the employee of 41
605	610		final disposition by the State of a complaint for the same violation. 42
606	611		(g) Prior to initiating any action under this section, the Commissioner shall exhaust all 43
607	612		administrative remedies, including giving the employer the opportunity to be heard on the matters 44
608	613		at issue and giving the employer notice of the pending action." 45
609	614		SECTION 1.6.(d) G.S. 95-25.23 reads as rewritten: 46
610	615		"§ 95-25.23. Violation of provisions on minimum wage, overtime, wage payment, 47
611	616		withholding of wages, notification, and youth employment; civil penalty. 48
612	617		(a) Any employer who violates the provisions of G.S. 95-25.5 G.S. 95-25.3 (Minimum 49
613	618		Wage), 95-25.4 (Overtime), 95-25.5 (Youth Employment) Employment), 95-25.6 (Wage 50
614	619		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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616	621		civil penalty not to exceed five hundred dollars ($500.00) for the first violation and not to exceed 1
617	622		one thousand dollars ($1,000) for each subsequent violation. In determining the amount of such 2
618	623		penalty, the appropriateness of such penalty to the size of the business of the person charged and 3
619	624		the gravity of the violation shall be considered. The determination by the Commissioner shall be 4
620	625		final, unless within 15 days after receipt of notice thereof by certified mail with return receipt, 5
621	626		by signature confirmation as provided by the U.S. Postal Service, by a designated delivery service 6
622	627		authorized pursuant to 26 U.S.C. § 7502(f)(2) with delivery receipt, or via hand delivery, the 7
623	628		person charged with the violation takes exception to the determination, in which event final 8
624	629		determination of the penalty shall be made in an administrative proceeding pursuant to Article 3 9
625	630		of Chapter 150B and in a judicial proceeding pursuant to Article 4 of Chapter 150B. 10
626	631		(b) The amount of such penalty when finally determined may be recovered in the manner 11
627	632		set forth in G.S. 95-25.23B. 12
628	633		(c) The clear proceeds of civil penalties provided for in this section shall be remitted to 13
629	634		the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 14
630	635		(d) Assessment of penalties under this section shall be subject to a two-year three-year 15
631	636		statute of limitations commencing at the time of the occurrence of the violation." 16
632	637		SECTION 1.6.(e) Article 2A of Chapter 95 of the General Statutes is amended by 17
633	638		adding a new section to read: 18
634	639		"§ 95-25.23D. Wage claims; liens; collections. 19
635	640		(a) For the purposes of wage claims and collections under this Article, an employee is 20
636	641		entitled to a lien upon: 21
637	642		(1) All property of the employer, real or personal, located in this State; and 22
638	643		(2) All property upon which the employee has performed work at the insistence 23
639	644		of the owner or of any person acting by the employer's authority or under the 24
640	645		owner as contractor or otherwise, for the full amount of the wages and any 25
641	646		statutory penalties owed. 26
642	647		(b) Both a wage claim and an action to enforce a lien under this section may be brought 27
643	648		by the employee individually or by the Commissioner, or any representative of the employee on 28
644	649		behalf of the employee, including collective bargaining representatives. 29
645	650		(c) If no lien has been recorded at the time the employee files the complaint with the 30
646	651		Commissioner, the Commissioner shall record and provide notice of the lien on behalf of the 31
647	652		employee. 32
648	653		(d) Any number of wage claims or wage deficiencies against the same employer may be 33
649	654		joined in a single proceeding, but the court may order separate trials or hearings. If the proceeds 34
650	655		of the sale of the property subject to a lien are insufficient to pay all the claimants, whether or 35
651	656		not such claims have been joined together, the court shall order the claimants to be paid in 36
652	657		proportion to the amount due each claimant. 37
653	658		(e) An employee's lien upon personal property shall be limited to such property as can be 38
654	659		made subject to a security interest under the Commercial Code by the filing of a financing 39
655	660		statement. 40
656	661		(f) In order to enforce a lien under this section upon real property, a claim of lien must 41
657	662		be recorded with the county recorder in the county where the property is located, as follows: 42
658	663		(1) The claim shall include all of the applicable information set forth under 43
659	664		G.S. 44A-12. 44
660	665		(2) The notice of lien shall be served on the property owner in the manner 45
661	666		prescribed by G.S. 44A-11. 46
662	667		A lien under this section is perfected as soon as notice is provided as required by this 47
663	668		subsection. 48
664	669		(g) In order to enforce a lien under this section upon personal property, the 49
665	670		Commissioner, employee representative, or employee shall file the notice of the lien in the office 50
666	671		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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668	673		same manner as a summons or by mail. The office of the Secretary of State shall place the notice 1
669	674		of the lien in the same file as the financing statements pursuant to G.S. 25-9-310. The notice shall 2
670	675		specify the nature and amount of the claim, describe the property on which the lien is made, and 3
671	676		state that the person filing the notice claims a lien on that property. 4
672	677		(h) The lien may be filed at any time prior to the expiration of the statute of limitations 5
673	678		for a wage claim on the same wages pursuant to G.S. 95-25.22(f). 6
674	679		(i) Mistakes or errors in the claimed amount owed shall not invalidate the lien unless 7
675	680		made with the intent to defraud. 8
676	681		(j) If a lien is recorded pursuant to subsection (f) of this section and an action to recover 9
677	682		unpaid wages has been filed, then that action shall also be deemed an action to foreclose upon 10
678	683		any property subject to the recorded lien. In the judgment resulting from such an action, the court 11
679	684		may order the sale at sheriff's auction or the transfer to the plaintiff of title or possession of any 12
680	685		property subject to the lien. Whether or not the court makes such an order as part of the judgment, 13
681	686		a writ of sale may be issued for any property subject to the lien at any point after a judgment for 14
682	687		unpaid wages is issued. 15
683	688		(k) If judgment is entered in favor of the employer in an action for unpaid wages or if the 16
684	689		case is dismissed with prejudice, the lien shall be extinguished upon expiration of the applicable 17
685	690		appeals period if no appeal is filed. If an appeal is filed, the lien shall continue in force until all 18
686	691		issues on appeal have been decided. 19
687	692		(l) If an action to recover the wages is not brought within one year of the filing of the 20
688	693		lien, the lien created by this section shall be extinguished. 21
689	694		(m) A lien recorded pursuant to subsection (f) of this section takes precedence over all 22
690	695		other debts, judgments, decrees, liens, or mortgages against the employer, regardless as to 23
691	696		whether these debts, judgments, decrees, liens, or mortgages originate before or after the wage 24
692	697		lien, and regardless of whether these debts, judgments, decrees, liens, or mortgages were 25
693	698		perfected prior to the wage lien. An employee's lien is effective against the employer, the estate 26
694	699		of the employer, or a subsequent bona fide purchaser of the property subject to the employee's 27
695	700		lien. 28
696	701		(n) The employee, the Commissioner, or the employee's representative, as assignee of the 29
697	702		employee, is entitled to court costs and reasonable attorneys' fees for filing a successful action to 30
698	703		foreclose a lien pursuant to this section." 31
699	704		SECTION 1.6.(f) This section is effective when this act becomes law and applies to 32
700	705		employers and employees on or after that date. 33
701	706		34
702	707		"BAN THE BOX" 35
703	708		SECTION 1.7.(a) Chapter 126 of the General Statutes is amended by adding a new 36
704	709		Article to read: 37
705	710		"Article 17. 38
706	711		"Fair Assessment of Persons with Criminal Histories. 39
707	712		"§ 126-100. Definitions. 40
708	713		The following definitions apply in this Article: 41
709	714		(1) Criminal history. – A State or federal history of conviction of a crime, whether 42
710	715		a misdemeanor or felony, that bears upon an applicant's fitness for public 43
711	716		employment. The term does not include a record of arrest not resulting in 44
712	717		conviction. 45
713	718		(2) Hiring authority. – The agent responsible by law for the hiring of persons for 46
714	719		public employment. 47
715	720		(3) Public employment. – Any job, work for pay, or employment, including 48
716	721		temporary or seasonal work, where the employer is the State of North Carolina 49
717	722		or any local political subdivision of the State. 50
718	723		"§ 126-101. Consideration of applicant criminal history. 51 General Assembly Of North Carolina Session 2025
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720	725		A hiring authority may not inquire into or consider the criminal history of an applicant for 1
721	726		public employment, or include any such inquiry on any initial employment application form, 2
722	727		until the hiring authority has made a conditional offer of employment to the applicant. This 3
723	728		Article is not applicable to positions for which a hiring authority is otherwise required by law to 4
724	729		consider the criminal record; however, nothing in this Article shall be construed to preclude any 5
725	730		hiring authority in its discretion from adopting the provisions of this Article. 6
726	731		"§ 126-102. Criteria for disqualification. 7
727	732		(a) Except as otherwise required by law, no person shall be disqualified from public 8
728	733		employment solely or in part because of a prior conviction, unless the conviction is determined 9
729	734		to be substantially related to the qualifications, functions, or duties of the position after 10
730	735		consideration of all of the following factors: 11
731	736		(1) The level and seriousness of the crime. 12
732	737		(2) The date of the crime. 13
733	738		(3) The age of the person at the time of the conviction. 14
734	739		(4) The circumstances surrounding the commission of the crime, if known. 15
735	740		(5) The nexus between the criminal conduct and the duties of the position. 16
736	741		(6) The prison, jail, probation, parole, rehabilitation, and employment records of 17
737	742		the person since the date the crime was committed. 18
738	743		(7) The subsequent commission of a crime by the person. 19
739	744		(b) A record of arrest not resulting in conviction may not be the basis for disqualification 20
740	745		from public employment. 21
741	746		"§ 126-103. Opportunity to provide evidence of inaccuracy. 22
742	747		The hiring authority must inform the individual of the potential adverse employment decision 23
743	748		based on the background check report prior to a final decision and must provide an opportunity 24
744	749		to demonstrate that the individual was not correctly identified in the background check report or 25
745	750		that the report is otherwise inaccurate. 26
746	751		"§ 126-104. Data collection. 27
747	752		The State Human Resources Commission shall do the following: 28
748	753		(1) Record and log the positions that are statutorily required to conduct 29
749	754		background checks prior to a conditional offer of employment. 30
750	755		(2) Conduct quarterly reviews to determine compliance with this Article and 31
751	756		make a report on all such reviews to the General Assembly annually. 32
752	757		(3) Collect, and make available to the public, data on: 33
753	758		a. The number of applicants for public employment with criminal 34
754	759		histories given conditional offers of employment. 35
755	760		b. The number of applicants for public employment with criminal 36
756	761		histories who are subsequently employed. 37
757	762		c. The retention rate of public employees with criminal histories. 38
758	763		"§ 126-105. Applicability. 39
759	764		The provisions of this Article apply to all applicants for public employment." 40
760	765		SECTION 1.7.(b) G.S. 126-5 is amended by adding a new subsection to read: 41
761	766		"(c19) Notwithstanding any other provision of law, the provisions of Article 17 of this 42
762	767		Chapter apply as to applicants for employment with the State or any local political subdivision 43
763	768		of the State." 44
764	769		SECTION 1.7.(c) This section is effective when this act becomes law and applies to 45
765	770		applications for employment made on or after that date. 46
766	771		47
767	772		REPEAL OF PUBLIC EMPLOYEE COLLECTIVE BARGAINING RESTRICTION 48
768	773		SECTION 1.8.(a) G.S. 95-98 reads as rewritten: 49
769	774		"§ 95-98. Contracts between units of government and labor unions, trade unions or labor 50
770	775		organizations concerning public employees declared to be illegal. 51 General Assembly Of North Carolina Session 2025
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772	777		Any agreement, or contract, between the governing authority of any city, town, county, or 1
773	778		other municipality, or between any agency, unit, or instrumentality thereof, or between any 2
774	779		agency, instrumentality, or institution of the State of North Carolina, and any labor union, trade 3
775	780		union, or labor organization, as bargaining agent for any public employees of such city, town, 4
776	781		county or other municipality, or agency or instrumentality of government, is hereby declared to 5
777	782		be against the public policy of the State, illegal, unlawful, void and of no effect." 6
778	783		SECTION 1.8.(b) This section is effective when this act becomes law. 7
779	784		8
780	785		EARNED INCOME TAX CREDIT 9
781	786		SECTION 1.9.(a) G.S. 105-151.31 is reenacted as it existed immediately before its 10
782	787		expiration and reads as rewritten: 11
783	788		"§ 105-151.31. Earned income tax credit. 12
784	789		(a) Credit. – An individual who claims for the taxable year an earned income tax credit 13
785	790		under section 32 of the Code is allowed a credit against the tax imposed by this Part equal to a 14
786	791		percentage five percent (5%) of the amount of credit the individual qualified for under section 15
787	792		32 of the Code. A nonresident or part-year resident who claims the credit allowed by this section 16
788	793		must reduce the amount of the credit by multiplying it by the fraction calculated under 17
789	794		G.S. 105-134.5(b) or (c), as appropriate. The percentage is as follows: 18
790	795		(1) For taxable year 2013, four and one-half percent (4.5%). 19
791	796		(2) For all other taxable years, five percent (5%). 20
792	797		(b) Credit Refundable. – If the credit allowed by this section exceeds the amount of tax 21
793	798		imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary 22
794	799		must refund the excess to the taxpayer. The refundable excess is governed by the provisions 23
795	800		governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. Section 24
796	801		3507 of the Code, Advance Payment of Earned Income Credit, does not apply to the credit 25
797	802		allowed by this section. In computing the amount of tax against which multiple credits are 26
798	803		allowed, nonrefundable credits are subtracted before refundable credits. 27
799	804		(c) Sunset. – This section is repealed effective for taxable years beginning on or after 28
800	805		January 1, 2014." 29
801	806		SECTION 1.9.(b) This section is effective for taxable years beginning on or after 30
802	807		January 1, 2025. 31
803	808		32
804	809		TAX CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES 33
805	810		SECTION 1.10.(a) Article 4 of Chapter 105 of the General Statutes is amended by 34
806	811		adding a new section to read: 35
807	812		"§ 105-151.34. Credit for qualified child and dependent care expenses. 36
808	813		(a) Credit. – A person who is allowed a credit against federal income tax for a percentage 37
809	814		of employment-related expenses under section 21 of the Code shall be allowed as a credit against 38
810	815		the tax imposed by this Part an amount equal to one hundred percent (100%) of the amount of 39
811	816		the credit provided for in section 21 of the Code which is claimed and allowed pursuant to the 40
812	817		Internal Revenue Code. To claim the credit allowed by this section, the taxpayer must provide 41
813	818		with the tax return the information required by the Secretary of Revenue. 42
814	819		(b) Phaseout. – The credit allowed by this section shall be reduced by a percentage listed 43
815	820		below, rounded to the nearest percentage point, based on the taxpayer's adjusted gross income as 44
816	821		calculated under the Code: 45
817	822		46
818	823		Filing Status For AGI Exceeding Percentage Reduction 47
819	824		Married, filing jointly $75,000 The lesser of 100% or 48
820	825		[(Taxpayer's AGI – $75,000)/$125,000] 49
821	826		Head of Household $56,250 The lesser of 100% or 50
822	827		[(Taxpayer's AGI – $56,250)/$93,750] 51 General Assembly Of North Carolina Session 2025
823		-	~~Senate Bill 326-First Edition~~ Page 17
	828	+	DRS45160-LRfap-14G Page 17
824	829		Single $37,500 The lesser of 100% or 1
825	830		[(Taxpayer's AGI – $37,500)/$62,500] 2
826	831		3
827	832		(c) Limitations. – A nonresident or part-year resident who claims the credit allowed by 4
828	833		this section shall reduce the amount of the credit by multiplying it by the fraction calculated under 5
829	834		G.S. 105-153.4(b) or (c), as appropriate. The credit allowed by this section may not exceed the 6
830	835		amount of tax imposed by this Part for the taxable year reduced by the sum of all credits 7
831	836		allowable, except for payments of tax made by or on behalf of the taxpayer." 8
832	837		SECTION 1.10.(b) Subsection (a) of this section is effective for taxable years 9
833	838		beginning on or after January 1, 2025. 10
834	839		11
835	840		UNEMPLOYMENT INSURANCE BENEFITS INCREASES 12
836	841		SECTION 2.1.(a) G.S. 96-14.2(a) reads as rewritten: 13
837	842		"(a) Weekly Benefit Amount. – The weekly benefit amount for an individual who is totally 14
838	843		unemployed is an amount equal to the wages paid to the individual in the last two completed 15
839	844		quarters highest paid quarter of the individual's base period divided by 52 and rounded to the 16
840	845		next lower whole dollar. If this amount is less than fifteen dollars ($15.00), the individual is not 17
841	846		eligible for benefits. The weekly benefit amount may not exceed three hundred fifty dollars 18
842	847		($350.00).six hundred eighty dollars ($680.00)." 19
843	848		SECTION 2.1.(b) This section is effective for benefit weeks beginning on or after 20
844	849		April 1, 2025. 21
845	850		SECTION 2.2. G.S. 96-14.3 reads as rewritten: 22
846	851		"§ 96-14.3. Duration of benefits. 23
847	852		(a) Duration. – The number of weeks an individual is allowed to receive unemployment 24
848	853		benefits depends on the seasonal adjusted statewide unemployment rate that applies to the 25
849	854		six-month base period in which the claim is filed. One six-month base period begins on January 26
850	855		1 and one six-month base period begins on July 1. For the base period that begins January 1, the 27
851	856		average of the seasonal adjusted unemployment rates for the State for the preceding months of 28
852	857		July, August, and September applies. For the base period that begins July 1, the average of the 29
853	858		seasonal adjusted unemployment rates for the State for the preceding months of January, 30
854	859		February, and March applies. The Division must use the most recent seasonal adjusted 31
855	860		unemployment rate determined by the U.S. Department of Labor, Bureau of Labor Statistics, and 32
856	861		not the rate as revised in the annual benchmark. 33
857	862		Seasonal Adjusted Number 34
858	863		Unemployment Rate of Weeks 35
859	864		Less than or equal to 5.5% 12 36
860	865		Greater than 5.5% up to 6% 13 37
861	866		Greater than 6% up to 6.5% 14 38
862	867		Greater than 6.5% up to 7% 15 39
863	868		Greater than 7% up to 7.5% 16 40
864	869		Greater than 7.5% up to 8% 17 41
865	870		Greater than 8% up to 8.5% 18 42
866	871		Greater than 8.5% up to 9% 19 43
867	872		Greater than 9% 20 44
868	873		(a1) Maximum Duration. – An eligible individual is entitled to receive unemployment 45
869	874		benefits for a maximum period of 26 weeks, unless the benefit period is extended expressly by 46
870	875		State or federal law. 47
871	876		(b) Total Benefits. – The total benefits paid to an individual equals the individual's 48
872	877		weekly benefit amount allowed under G.S. 96-14.2 multiplied by the number of weeks allowed 49
873	878		under subsection (a) of this section.26." 50 General Assembly Of North Carolina Session 2025
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875	880		SECTION 2.3. The Legislative Research Commission (LRC) shall study expanding 1
876	881		the State's employment security system to cover self-employed workers who are laid off or have 2
877	882		hours reduced due to an economic downturn. For the purposes of this review, the term 3
878	883		"self-employed worker" means an individual who has a contract or arrangement to perform work 4
879	884		or services. The term includes, but is not limited to, app-based ride-share and food delivery 5
880	885		drivers, freelancers, and other similar "gig economy" workers. 6
881	886		The LRC shall report its findings and any legislative proposals to the 2026 Session of 7
882	887		the 2025 General Assembly. 8
883	888		9
884	889		PANDEMIC/OCCUPATIONAL DISEASE PRESUMPTION 10
885	890		SECTION 3.1.(a) G.S. 97-53 reads as rewritten: 11
886	891		"§ 97-53. Occupational diseases enumerated; when due to exposure to chemicals.and 12
887	892		conditions enumerated. 13
888	893		The following diseases and conditions only shall be deemed to be occupational diseases 14
889	894		within the meaning of this Article: 15
890	895		… 16
891	896		(30) Pandemic infection contracted by a covered person. – A pandemic infection 17
892	897		contracted by a covered person shall be presumed to be due to exposure in the 18
893	898		course of the covered person's employment. The presumption may only be 19
894	899		rebutted by clear and convincing evidence. The following definitions apply in 20
895	900		determining eligibility for compensation under this subdivision: 21
896	901		a. Covered person. – Means (i) a law enforcement officer, jailer, prison 22
897	902		guard, firefighter, or an emergency medical technician or paramedic 23
898	903		employed by a State or local governmental employer, including a 24
899	904		volunteer firefighter meeting the requirements of G.S. 58-84-5(3a), 25
900	905		(ii) a health care worker, or (iii) an employee required to work during 26
901	906		a pandemic for a business declared essential by executive order of the 27
902	907		Governor or by order of a local governmental authority, including food 28
903	908		service, retail, and other essential personnel. 29
904	909		b. Pandemic. – An outbreak of an emerging disease prevalent in the 30
905	910		United States or the whole world. 31
906	911		…." 32
907	912		SECTION 3.1.(b) This section is effective when this act becomes law and applies 33
908	913		to claims for workers' compensation benefits filed on or after that date. 34
909	914		35
910	915		COST-OF-LIVING ADJUSTMENT FOR RETIREES OF THE TEACHERS ' AND 36
911	916		STATE EMPLOYEES ' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL 37
912	917		RETIREMENT SYSTEM, THE LEGISLATIVE RETIREMENT SYSTEM, AND THE 38
913	918		LOCAL GOVERNMENTAL EMPLOYEES ' RETIREMENT SYSTEM 39
914	919		SECTION 4.1.(a) G.S. 135-5 is amended by adding a new subsection to read: 40
915	920		"(aaaa) Effective July 1, 2025, the retirement allowance payable to, or on account of, 41
916	921		beneficiaries whose retirement commenced on or before July 1, 2024, is increased by three 42
917	922		percent (3%) of the allowance payable on June 1, 2024, in accordance with subsection (o) of this 43
918	923		section. Effective July 1, 2025, the retirement allowance payable to, or on account of, 44
919	924		beneficiaries whose retirement commenced after July 1, 2024, but before June 30, 2025, is 45
920	925		increased by a prorated amount of three percent (3%), as determined by the Board of Trustees 46
921	926		based upon the number of months that a retirement allowance was paid between July 1, 2024, 47
922	927		and June 30, 2025." 48
923	928		SECTION 4.1.(b) G.S. 135-65 is amended by adding a new subsection to read: 49
924	929		"(ll) Effective July 1, 2025, the retirement allowance payable to, or on account of, 50
925	930		beneficiaries whose retirement commenced on or before July 1, 2024, is increased by three 51 General Assembly Of North Carolina Session 2025
926		-	~~Senate Bill 326-First Edition~~ Page 19
	931	+	DRS45160-LRfap-14G Page 19
927	932		percent (3%) of the allowance payable on June 1, 2024. Effective July 1, 2025, the retirement 1
928	933		allowance payable to, or on account of, beneficiaries whose retirement commenced after July 1, 2
929	934		2024, but before June 30, 2025, is increased by a prorated amount of three percent (3%), as 3
930	935		determined by the Board of Trustees based upon the number of months that a retirement 4
931	936		allowance was paid between July 1, 2024, and June 30, 2025." 5
932	937		SECTION 4.1.(c) G.S. 120-4.22A is amended by adding a new subsection to read: 6
933	938		"(ff) In accordance with subsection (a) of this section, effective July 1, 2025, the retirement 7
934	939		allowance payable to, or on account of, beneficiaries whose retirement commenced on or before 8
935	940		January 1, 2025, is increased by three percent (3%) of the allowance payable on June 1, 2025. 9
936	941		Effective July 1, 2025, the retirement allowance payable to, or on account of, beneficiaries whose 10
937	942		retirement commenced after January 1, 2025, but before June 30, 2025, is increased by a prorated 11
938	943		amount of three percent (3%), as determined by the Board of Trustees based upon the number of 12
939	944		months that a retirement allowance was paid between January 1, 2025, and June 30, 2025." 13
940	945		SECTION 4.1.(d) G.S. 128-27 is amended by adding a new subsection to read: 14
941	946		"(hhh) Effective July 1, 2025, the retirement allowance payable to, or on account of, 15
942	947		beneficiaries whose retirement commenced on or before July 1, 2024, is increased by three 16
943	948		percent (3%) of the allowance payable on June 1, 2025, in accordance with subsection (k) of this 17
944	949		section. Effective July 1, 2025, the retirement allowance payable to, or on account of, 18
945	950		beneficiaries whose retirement commenced after July 1, 2024, but before June 30, 2025, is 19
946	951		increased by a prorated amount of three percent (3%), as determined by the Board of Trustees 20
947	952		based upon the number of months that a retirement allowance was paid between July 1, 2024, 21
948	953		and June 30, 2025." 22
949	954		SECTION 4.1.(e) This section becomes effective July 1, 2025. 23
950	955		24
951	956		APPROPRIATION 25
952	957		SECTION 5.1.(a) There is appropriated from the General Fund to the Reserve for 26
953	958		Retiree Cost-of-Living Adjustments the sum of two hundred fifty million dollars ($250,000,000) 27
954	959		in recurring funds for the 2025-2026 fiscal year to fund the cost-of-living adjustment provided 28
955	960		by this act. 29
956	961		SECTION 5.1.(b) This section becomes effective July 1, 2025. 30
957	962		31
958	963		EFFECTIVE DATE 32
959	964		SECTION 6.1. Except as otherwise provided, this act is effective when it becomes 33
960	965		law. 34