North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S635 Compare Versions

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Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 635
	3	+	S D
	4	+	SENATE BILL DRS55017-LR-147B
	5	+
5	6
6	7
7	8		Short Title: Healthy Families & Workplaces/Paid Sick Leave. (Public)
8	9		Sponsors: Senators Bradley, Chitlik, and Salvador (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 26, 2025~~
11		-	~~S635 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS55017 -LR-147B
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT PROVIDING FOR HEALTHY FAMILIES AND HEALTHY WORKPLACES BY 2
14	15		ENSURING THAT ALL WORKERS HAVE EARNED PAID SICK DAYS TO ADDRESS 3
15	16		THEIR OWN HEALTH NEEDS AND THE HEALTH NEEDS OF THEIR FAMILIES. 4
16	17		Whereas, nearly every worker in North Carolina is likely to need, during any given 5
17	18		year, time off to attend to his or her own illness or that of an immediate family member or for 6
18	19		routine medical care; and 7
19	20		Whereas, paid sick days have been shown to slow the spread of COVID-19, saving 8
20	21		lives and reducing the strain on North Carolina's medical system; and 9
21	22		Whereas, paid sick days are a first line of defense in any contagious disease outbreak; 10
22	23		and 11
23	24		Whereas, many high-contact industries where contagious illnesses are most likely to 12
24	25		spread are also those with the lowest paid sick days access rates in North Carolina, including the 13
25	26		child care, home- and facility-based senior care, and food and drink sectors; and 14
26	27		Whereas, North Carolinians working in low-wage industries are both least likely to 15
27	28		have access to paid sick days and least able to afford to take time off for illness without pay; and 16
28	29		Whereas, working North Carolinians who are Black and Latino are less likely to have 17
29	30		access to employer-provided paid sick days; and 18
30	31		Whereas, the lack of paid sick days contributes to workforce attrition and detachment 19
31	32		for women; and 20
32	33		Whereas, when parents are available to care for their children who become sick, the 21
33	34		children's recovery is faster, more serious illnesses are prevented, and the children's overall health 22
34	35		is improved; and 23
35	36		Whereas, parents who cannot afford to miss work must send children with a 24
36	37		contagious illness to child care or school, contributing to the high rate of infections in child care 25
37	38		centers and schools; and 26
38	39		Whereas, over 62,967 North Carolinians reported physical abuse or sexual assault 27
39	40		between July 2017 and June 2018, and there were 1,036 domestic violence-related homicides in 28
40	41		North Carolina between 2004 and 2018; and 29
41	42		Whereas, victims of domestic violence and sexual assault need time off to care for 30
42	43		their health or to seek solutions, such as a restraining order or housing, to avoid or prevent abuse, 31
43	44		and are forced to lose days of paid employment; and 32
44	45		Whereas, 38% or over 1.6 million private-sector workers in North Carolina are not 33
45	46		entitled to any earned paid sick days to care for their own health needs or the health needs of 34
46		-	members of their families; and 35 General Assembly Of North Carolina Session 2025
47		-	Page 2 Senate Bill 635-First Edition
	47	+	members of their families; and 35
	48	+	FILED SENATE
	49	+	Mar 25, 2025
	50	+	S.B. 635
	51	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRS55017-LR-147B
48	53		Whereas, low-income workers are significantly less likely to have earned paid sick 1
49	54		days, with 60% of those earning less than $20,000 per year lacking access to earned paid sick 2
50	55		days; Now, therefore, 3
51	56		The General Assembly of North Carolina enacts: 4
52	57		SECTION 1. Chapter 95 of the General Statutes is amended by adding a new Article 5
53	58		to read: 6
54	59		"Article 3A. 7
55	60		"Healthy Families and Healthy Workplaces Act. 8
56	61		"§ 95-31.1. Short title and legislative purpose. 9
57	62		(a) This Article shall be known and may be cited as the "Healthy Families and Healthy 10
58	63		Workplaces Act." 11
59	64		(b) The public policy of this State is declared as follows: The health and safety needs of 12
60	65		employees and their families and the protection of employees from losing their jobs and pay 13
61	66		while they seek medical care for themselves, and their family members, are subjects of concern 14
62	67		requiring legislation to promote the general welfare of the people of the State without 15
63	68		jeopardizing the competitive position of North Carolina business and industry. The General 16
64	69		Assembly declares that the general welfare of the State requires the enactment of this law under 17
65	70		the police power of the State. 18
66	71		"§ 95-31.2. Definitions. 19
67	72		The following definitions apply in this Article: 20
68	73		(1) Child. – A biological, adopted, or foster child, stepchild, legal ward, or child 21
69	74		of a parent standing in loco parentis. 22
70	75		(2) Domestic violence. – As defined in G.S. 50B-1. 23
71	76		(3) Employ. – As defined by G.S. 95-25.2(3). 24
72	77		(4) Employee. – As defined by G.S. 95-25.2(4). 25
73	78		(5) Employer. – As defined by G.S. 95-25.2(5). 26
74	79		(6) Health care provider. – Any of the following: 27
75	80		a. A doctor of medicine or osteopathy licensed to practice medicine 28
76	81		under federal law, any state law, or the laws of another country 29
77	82		wherein the person practices. 30
78	83		b. A physician assistant licensed in this State licensed to practice under 31
79	84		federal law, any state law, or the laws of another country wherein the 32
80	85		person practices. 33
81	86		c. A family nurse practitioner or certified nurse midwife licensed to 34
82	87		practice under federal law, any state law, or the laws of another 35
83	88		country wherein the person practices. 36
84	89		(7) Immediate family member. – A child, grandchild, sibling, spouse, domestic 37
85	90		partner, civil union partner, parent, or grandparent of an employee, or a 38
86	91		spouse, domestic partner, or civil union partner of a parent or grandparent of 39
87	92		the employee, or a sibling of a spouse, domestic partner, or civil union partner 40
88	93		of the employee, or any other individual related by blood to the employee or 41
89	94		whose close association with the employee is the equivalent of a family 42
90	95		relationship. 43
91	96		(8) Paid sick time or paid sick days. – Time that is (i) compensated at the same 44
92	97		hourly rate and with the same benefits, including health care benefits, as the 45
93	98		employee normally earns during hours worked and (ii) provided by an 46
94	99		employer to an employee for the purposes described in G.S. 95-31.4(b). 47
95	100		(9) Parent. – A biological, foster, step, or adoptive parent of an employee or an 48
96	101		employee's spouse, or other person who stood in loco parentis during the 49
97	102		childhood of an employee or employee's spouse. 50
98	103		(10) Sexual assault. – As defined in Chapter 14 of the General Statutes. 51 General Assembly Of North Carolina Session 2025
99		-	~~Senate Bill 635-First Edition~~ Page 3
	104	+	DRS55017-LR-147B Page 3
100	105		(11) Small business. – An employer who employs 10 or fewer employees during 1
101	106		20 or more calendar workweeks in the current or preceding calendar year. 2
102	107		(12) Stalking. – As defined in Chapter 14 of the General Statutes. 3
103	108		"§ 95-31.3. Exemptions. 4
104	109		(a) The provisions of this Article do not apply to any bona fide volunteers in any 5
105	110		organization where an employer-employee relationship does not exist. 6
106	111		(b) The provisions of this Article do not apply to any person exempted from the Wage 7
107	112		and Hour Act under G.S. 95-25.14(a)(2) through (8), 95-25.14(b), 95-25.14(b1), 95-25.14(c), 8
108	113		and 95-25.14(e), except that domestic workers are exempted only if they are employed in the 9
109	114		place of residence of their employer. 10
110	115		"§ 95-31.4. Accrual of paid sick time. 11
111	116		(a) Except as provided by G.S. 95-31.3, any employee who works in this State and who 12
112	117		must be absent from work for the reasons set forth in G.S. 95-31.5(a) shall be entitled to paid 13
113	118		sick time. 14
114	119		(b) Paid sick time as provided in this section shall begin to accrue at the commencement 15
115	120		of employment. Paid sick time shall accrue at the rate of one hour of pay for every 30 hours 16
116	121		worked. Paid sick time may be used as accrued or be loaned by the employer at its discretion to 17
117	122		the employee in advance of accrual. Unless the employer and employee agree to designate 18
118	123		otherwise, for periods of paid sick time that are less than a normal workday, the time shall be 19
119	124		counted on an hourly basis or the smallest increment that the employer's payroll system uses to 20
120	125		account for absences or use of leave. 21
121	126		(c) For employees of small businesses, there shall be a limit of 32 hours of accrued paid 22
122	127		sick time in a calendar year. For employees of other employers, there shall be a limit of 56 hours 23
123	128		of accrued paid sick time in a calendar year. Accrued paid sick time for employees carries over 24
124	129		from year to year but is limited to the aforementioned limits. 25
125	130		(d) When there is separation from employment and the employee is rehired within 90 26
126	131		days of separation by the same employer, previously accrued paid sick time that had not been 27
127	132		used shall be reinstated. The employee shall be entitled to use accrued paid sick time and accrue 28
128	133		additional sick time at the recommencement of employment. 29
129	134		"§ 95-31.5. Use of paid sick time. 30
130	135		(a) Paid sick time shall be provided to an employee by an employer for any of the 31
131	136		following reasons: 32
132	137		(1) To care for the employee's immediate family member who is suffering from a 33
133	138		physical or mental illness, injury, or medical condition that requires care, 34
134	139		professional medical diagnosis or care, preventive medical care, or a routine 35
135	140		medical appointment. 36
136	141		(2) To care for the employee's own physical or mental illness, injury, or medical 37
137	142		condition that requires care, professional medical diagnosis or care, preventive 38
138	143		medical care, or a routine medical appointment. 39
139	144		(3) Absence necessary due to circumstances resulting from the employee, or a 40
140	145		family member of the employee, being a victim of stalking or domestic or 41
141	146		sexual violence, if the leave is to allow the employee to obtain for the 42
142	147		employee or the family member (i) medical attention needed to recover from 43
143	148		physical or psychological injury or disability caused by stalking or domestic 44
144	149		or sexual violence, (ii) services from a designated domestic violence agency 45
145	150		or other victim services organization, (iii) psychological or other counseling, 46
146	151		(iv) relocation, or (v) legal services, including obtaining a restraining order or 47
147	152		preparing for, or participating in, any civil or criminal legal proceeding related 48
148	153		to the stalking or domestic or sexual violence. 49
149	154		(b) An employer may require certification of the qualifying illness, injury, health 50
150	155		condition, or violence when a paid sick time period covers more than three consecutive workdays. 51 General Assembly Of North Carolina Session 2025
151		-	Page 4 ~~Senate Bill 635-First Edition~~
	156	+	Page 4 DRS55017-LR-147B
152	157		Any reasonable documentation signed by a health care provider involved in following or treating 1
153	158		the illness, injury, or health condition and indicating the need for the number of sick days taken 2
154	159		shall be deemed acceptable certification. Acceptable certification of domestic violence, sexual 3
155	160		assault, or stalking may include (i) law enforcement, court, or federal agency records or files, (ii) 4
156	161		documentation from a domestic violence or sexual assault program, or (iii) documentation from 5
157	162		a religious, medical, or other professional from whom assistance was sought in dealing with the 6
158	163		alleged domestic violence, sexual offense, or stalking. 7
159	164		(1) The employer shall not require certification from a health care provider 8
160	165		employed by the employer. The employer shall not delay the commencement 9
161	166		of time taken for purposes of subsection (a) of this section or pay for this 10
162	167		period on the basis that the employer has not yet received the certification. 11
163	168		Nothing in this section shall be construed to require an employee to provide 12
164	169		as certification any information from a health care provider that would be in 13
165	170		violation of section 1177 of the Social Security Act or the regulations 14
166	171		promulgated pursuant to section 264(c) of the Health Insurance Portability and 15
167	172		Accountability Act, 42 U.S.C. § 1320d-2. 16
168	173		(2) An employer may not require disclosure of details relating to domestic 17
169	174		violence, sexual assault, or stalking or the details of an employee's medical 18
170	175		condition as a condition of providing paid sick time under this Article. If an 19
171	176		employer possesses health information or information pertaining to domestic 20
172	177		violence, sexual assault, or stalking about an employee or employee's 21
173	178		immediate family member, such information shall be treated as confidential 22
174	179		and not disclosed except to the affected employee or with the permission of 23
175	180		the affected employee. 24
176	181		(c) When the use of paid sick time is foreseeable, the employee shall make a good-faith 25
177	182		effort to provide notice of the need for such time to the employer in advance of the use of the 26
178	183		sick time and shall make a reasonable effort to schedule the use of paid sick time in a manner 27
179	184		that does not unduly disrupt the operations of the employer. 28
180	185		(d) An employer may not require, as a condition of providing paid sick time under this 29
181	186		act, that the employee search for or find a replacement worker to cover the hours during which 30
182	187		the employee is on paid sick time. 31
183	188		(e) An employer's absence control policy shall not count paid sick time taken under this 32
184	189		Article as an absence that may lead to or result in a retaliatory personnel action or any other 33
185	190		adverse action. 34
186	191		(f) Nothing in this section shall be construed as requiring financial or other 35
187	192		reimbursement to an employee from an employer upon the employee's termination, resignation, 36
188	193		retirement, or other separation from employment for accrued paid sick days that have not been 37
189	194		used. 38
190	195		(g) Nothing in this section shall be construed to discourage employers from adopting or 39
191	196		retaining paid sick time policies more generous than policies that comply with the requirements 40
192	197		of this section, and nothing in this section shall be construed to diminish the obligation of an 41
193	198		employer to comply with any contract, collective bargaining agreement, or any employment 42
194	199		benefit program or plan that provides greater paid sick time leave rights to employees than the 43
195	200		rights established under this section. 44
196	201		(h) This act provides minimum requirements pertaining to paid sick time and shall not be 45
197	202		construed to preempt, limit, or otherwise affect the applicability of any other law, regulation, 46
198	203		requirement, policy, agreement, or standard that provides for greater accrual or use by employees 47
199	204		of sick time, whether paid or unpaid, or that extends other protections to employees. 48
200	205		(i) Employers who have a paid time-off leave policy shall not be required to modify that 49
201	206		policy, if that policy offers an employee the option, at the employee's discretion, to take paid sick 50 General Assembly Of North Carolina Session 2025
202		-	~~Senate Bill 635-First Edition~~ Page 5
	207	+	DRS55017-LR-147B Page 5
203	208		time that is at least equivalent to the amounts and for the same purposes and under the same 1
204	209		conditions as provided under this section. 2
205	210		"§ 95-31.6. Notification, posting, and records. 3
206	211		Employers shall give notice (i) that employees are entitled to paid sick time, (ii) of the amount 4
207	212		of paid sick time and the terms of its use guaranteed under this section, (iii) that retaliation against 5
208	213		employees who request or use paid sick time is prohibited, and (iv) that each employee has the 6
209	214		right to file a complaint with the Commissioner of Labor or in the General Court of Justice if 7
210	215		paid sick time as required by this Article is denied by the employer or the employee is retaliated 8
211	216		against for requesting or taking paid sick time. Employers may comply with this section by 9
212	217		supplying each of their employees with a notice in English and in Spanish that contains the 10
213	218		information required by this section or by displaying a poster in a conspicuous and accessible 11
214	219		place in each establishment where the employees are employed that contains in English and in 12
215	220		Spanish all information required by this section. 13
216	221		"§ 95-31.7. Enforcement. 14
217	222		(a) The Commissioner shall enforce and administer the provisions of this Article, and the 15
218	223		Commissioner or his or her authorized representative is empowered to hold hearings and to 16
219	224		institute civil proceedings hereunder. 17
220	225		(b) The Commissioner or the Commissioner's authorized representative shall have power 18
221	226		to administer oaths and examine witnesses, issue subpoenas, compel the attendance of witnesses 19
222	227		and the production of papers, books, accounts, records, payrolls, and documents, and take 20
223	228		depositions and affidavits in any proceeding hereunder. 21
224	229		(c) Any employer who violates the provisions of this Article shall be liable to the 22
225	230		employee or employees affected in the amount of their unpaid sick time as the case may be, plus 23
226	231		interest at the legal rate set forth in G.S. 24-1 from the date each amount first came due. 24
227	232		(d) In addition to the amounts awarded pursuant to subsection (c) of this section, the court 25
228	233		shall award liquidated damages in an amount equal to the amount found to be due as provided in 26
229	234		subsection (c) of this section, provided that if the employer shows to the satisfaction of the court 27
230	235		that the act or omission constituting the violation was in good faith and that the employer had 28
231	236		reasonable grounds for believing that the act or omission was not a violation of this Article, the 29
232	237		court may, in its discretion, award no liquidated damages or may award any amount of liquidated 30
233	238		damages not exceeding the amount found due as provided in subsection (c) of this section. 31
234	239		(e) Action to recover such liability may be maintained in the General Court of Justice by 32
235	240		any one or more employees. 33
236	241		(f) The court, in any action brought under this Article, may, in addition to any judgment 34
237	242		awarded to the plaintiff, order costs and fees of the action and reasonable attorneys' fees to be 35
238	243		paid by the defendant. The court may order costs and fees of the action and reasonable attorneys' 36
239	244		fees to be paid by the plaintiff if the court determines that the action was frivolous. 37
240	245		(g) The Commissioner may determine and supervise the payment of the amounts due 38
241	246		under this section, including interest at the legal rate set forth in G.S. 24-1 from the date each 39
242	247		amount first came due, and the agreement to accept such amounts by the employee shall 40
243	248		constitute a waiver of the employee's right to bring an action under subsection (e) of this section. 41
244	249		(h) Actions under this Article must be brought within two years pursuant to G.S. 1-53. 42
245	250		(i) The rights and remedies created by this Article are supplementary to all existing 43
246	251		common-law and statutory rights and remedies. 44
247	252		"§ 95-31.8. Rules. 45
248	253		The Commissioner of Labor shall adopt rules to implement this Article. 46
249	254		"§ 95-31.9. Severability. 47
250	255		The provisions of this Article shall be severable, and if any phrase, clause, sentence, or 48
251	256		provision is declared to be invalid or is preempted by federal law or regulation, the validity of 49
252	257		the remainder of this Article shall not be affected thereby." 50
253	258		SECTION 2. G.S. 95-241(a) reads as rewritten: 51 General Assembly Of North Carolina Session 2025
254		-	Page 6 ~~Senate Bill 635-First Edition~~
	259	+	Page 6 DRS55017-LR-147B
255	260		"(a) No person shall discriminate or take any retaliatory action against an employee 1
256	261		because the employee in good faith does or threatens to do any of the following: 2
257	262		(1) File a claim or complaint, initiate any inquiry, investigation, inspection, 3
258	263		proceeding or other action, or testify or provide information to any person 4
259	264		with respect to any of the following: 5
260	265		a. Chapter 97 of the General Statutes. 6
261	266		b. Article 2A Article 2A, Article 3A, or Article 16 of this Chapter. 7
262	267		c. Article 2A of Chapter 74 of the General Statutes. 8
263	268		d. G.S. 95-28.1. 9
264	269		e. Article 16 of Chapter 127A of the General Statutes. 10
265	270		f. G.S. 95-28.1A. 11
266	271		g. Article 52 of Chapter 143 of the General Statutes. 12
267	272		h. Article 5F of Chapter 90 of the General Statutes. 13
268	273		(2) Cause any of the activities listed in subdivision (1) of this subsection to be 14
269	274		initiated on an employee's behalf. 15
270	275		(3) Exercise any right on behalf of the employee or any other employee afforded 16
271	276		by Article 2A Article 2A, Article 3A, or Article 16 of this Chapter, by Article 17
272	277		2A of Chapter 74 of the General Statutes, or by Article 52 of Chapter 143 of 18
273	278		the General Statutes. 19
274	279		(4) Comply with the provisions of Article 27 of Chapter 7B of the General 20
275	280		Statutes. 21
276	281		(5) Exercise rights under Chapter 50B. Actions brought under this subdivision 22
277	282		shall be in accordance with the provisions of G.S. 50B-5.5." 23
278	283		SECTION 3. This act becomes effective January 1, 2026, and applies only to 24
279	284		covered employment on or after that date. With respect to employees covered by a valid 25
280	285		collective bargaining agreement in effect on January 1, 2026, this act shall not apply until the 26
281	286		stated expiration date in the collective bargaining agreement; however, this act shall apply upon 27
282	287		any such agreement's renewal, extension, amendment, or modification in any respect after 28
283	288		January 1, 2026. 29