| 12 | 13 | | A BILL TO BE ENTITLED 1 |
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| 13 | 14 | | AN ACT TO ESTABLISH A STATE MINIMUM WAGE OF FIFTEEN DOLLARS PER 2 |
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| 14 | 15 | | HOUR, INCORPORATE AUTOMATIC INFLATION ADJUSTMENTS, AND ENSURE 3 |
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| 15 | 16 | | ECONOMIC STABILITY FOR WORKERS IN NORTH CAROLINA. 4 |
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| 16 | 17 | | Whereas, the current minimum wage in North Carolina has remained stagnant at 5 |
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| 17 | 18 | | $7.25 per hour since 2009, failing to keep pace with rising living costs; and 6 |
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| 18 | 19 | | Whereas, increasing the minimum wage to $15 per hour will enhance financial 7 |
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| 19 | 20 | | security for low-income workers, reduce poverty, and boost consumer spending, benefiting the 8 |
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| 20 | 21 | | State's economy; and 9 |
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| 21 | 22 | | Whereas, automatic inflation adjustments will prevent wage stagnation and ensure 10 |
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| 22 | 23 | | that earnings maintain their real value over time; and 11 |
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| 23 | 24 | | Whereas, Article I, Section 1, of the North Carolina Constitution affirms the right of 12 |
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| 24 | 25 | | all citizens to enjoy the fruits of their labor, which includes fair compensation; Now, therefore, 13 |
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| 25 | 26 | | The General Assembly of North Carolina enacts: 14 |
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| 26 | 27 | | SECTION 1. This act shall be known and may be cited as the "Living Wage 15 |
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| 27 | 28 | | Guarantee Act." 16 |
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| 28 | 29 | | SECTION 2.(a) G.S. 95-25.3 reads as rewritten: 17 |
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| 29 | 30 | | "§ 95-25.3. Minimum wage.wages; automatic cost-of-living adjustments. 18 |
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| 30 | 31 | | (a) Every employer employer, except a small business covered under subsection (a1) of 19 |
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| 31 | 32 | | this section, shall pay to each employee who in any workweek performs any work, wages of at 20 |
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| 32 | 33 | | least six dollars and fifteen cents ($6.15) per hour or the minimum wage the amount set forth in 21 |
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| 33 | 34 | | paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 206(a)(1), as that wage 22 |
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| 34 | 35 | | may change from time to time, whichever is higher, except as otherwise provided in this 23 |
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| 35 | 36 | | section.or wages of at least fifteen dollars ($15.00) per hour, whichever is higher, effective 24 |
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| 36 | 37 | | January 1, 2026. 25 |
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| 37 | 38 | | (a1) A small business shall pay to each employee who in any workweek performs any 26 |
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| 38 | 39 | | work, wages of at least the amount set forth in paragraph 1 of section 6(a) of the Fair Labor 27 |
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| 39 | 40 | | Standards Act, 29 U.S.C. § 206(a)(1), as that wage may change from time to time, or the wage 28 |
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| 40 | 41 | | set forth in this subsection, whichever is higher: 29 |
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| 41 | 42 | | (1) Effective January 1, 2026, wages of at least twelve dollars ($12.00) per hour. 30 |
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| 42 | 43 | | (2) Effective January 1, 2027, wages of at least thirteen dollars and fifty cents 31 |
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| 43 | 44 | | ($13.50) per hour. 32 |
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| 44 | 45 | | (3) Effective January 1, 2028, wages of at least fifteen dollars ($15.00) per hour. 33 |
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| 45 | 46 | | (4) Effective January 1, 2028, and annually thereafter, the amount determined by 34 |
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| 48 | 53 | | For the purposes of this section, a "small business" is defined as a person doing business in 1 |
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| 49 | 54 | | this State having fewer than 10 employees. 2 |
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| 50 | 55 | | (a2) Beginning October 1, 2028, and on each October 1 thereafter, the Commissioner of 3 |
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| 51 | 56 | | Labor shall calculate an adjusted minimum wage rate indexed to the percentage increase in the 4 |
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| 52 | 57 | | Consumer Price Index (All 29 Urban Consumers), CPI-U, or its successor index, as calculated 5 |
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| 53 | 58 | | by the U.S. Department of Labor for the 12-month period preceding the previous October 1. Each 6 |
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| 54 | 59 | | adjusted minimum wage rate calculated shall be published on October 1 and take effect on the 7 |
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| 55 | 60 | | following January 1. 8 |
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| 56 | 61 | | …." 9 |
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| 57 | 62 | | SECTION 2.(b) G.S. 95-25.22 is amended by adding new subsections to read: 10 |
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| 58 | 63 | | "(a2) Any employer who violates the provisions of G.S. 95-25.13 or any rule adopted under 11 |
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| 59 | 64 | | that section shall be: 12 |
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| 60 | 65 | | (1) Liable to the employee or employees affected in the amount of their actual 13 |
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| 61 | 66 | | damages, including, but not limited to, back pay and benefits plus interest and 14 |
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| 62 | 67 | | reasonable attorneys' fees and costs. 15 |
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| 63 | 68 | | (2) Subject to fines and other remedies as determined by the North Carolina 16 |
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| 64 | 69 | | Department of Labor. 17 |
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| 65 | 70 | | (a3) Employees shall have the right to file complaints with the Department of Labor 18 |
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| 66 | 71 | | regarding noncompliance. Employers shall not retaliate against employees who assert their rights 19 |
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| 67 | 72 | | under this section." 20 |
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| 68 | 73 | | SECTION 3. Effective July 1, 2025, there is appropriated from the General Fund to 21 |
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| 69 | 74 | | the Department of Labor the sum of ten million dollars ($10,000,000) to establish a State-funded 22 |
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| 70 | 75 | | Small Business Assistance Program (Program). The Program shall: (i) provide temporary 23 |
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| 71 | 76 | | financial support to small businesses transitioning to the new wage requirements and (ii) engage 24 |
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| 72 | 77 | | in outreach about the new minimum wage law. Federal workforce development funds may also 25 |
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| 73 | 78 | | be used for this purpose. Financial support through the Program shall be made available for 26 |
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| 74 | 79 | | businesses with 20 or fewer employees for a period of up to two years. The Department of Labor 27 |
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| 75 | 80 | | shall develop rules for the administration of the Program. 28 |
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| 76 | 81 | | SECTION 4. Except as otherwise provided, this act is effective when it becomes 29 |
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| 77 | 82 | | law. 30 |
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