HB 177 requires North Carolina's State Human Resources Commission (SHRC) to review job requirements across state agencies and identify positions where a four-year college degree is unnecessary. The bill directs the SHRC to replace degree requirements with alternative qualifications like military service, apprenticeships, or trade school training where appropriate, and to remove unnecessary degree language from job postings. This policy change directly affects state job applicants who may qualify through non-degree pathways. The SHRC must report annually starting October 2025 on progress toward reducing these barriers.
HB 179 would allow North Carolina taxpayers to deduct labor union membership dues from their state income tax starting in 2026. The bill creates a new tax deduction for dues, fees, assessments, or other payments required to maintain membership in a labor organization, as defined by state law. This applies specifically to individuals who pay such costs as a condition of union participation. The policy change takes effect for tax years beginning January 1, 2026.
HB 269, the "Workforce Freedom and Protection Act," bans non-compete agreements for most North Carolina workers earning under $75,000 annually, prohibiting employers from restricting job mobility after termination or requiring such agreements as a condition of employment. It also directs the Legislative Research Commission to study occupational licensing requirements in key industries like construction, cosmetology, and healthcare to identify unnecessary barriers that may raise costs for consumers or limit job access. The study will evaluate licensing rules based on public safety justification, economic impact, and comparison to national standards, with recommendations for potential reforms. The bill does not immediately change existing licensing but sets a process for reviewing requirements that may disproportionately affect low- and moderate-income workers. The non-compete ban takes effect July 1, 2025.
HB 353, the Fair Minimum Wage Act, raises North Carolina's state minimum wage in staged increases, starting at $10 per hour on January 1, 2026, and reaching $18 per hour by January 1, 2030. After 2030, the wage will automatically adjust annually based on inflation using the Consumer Price Index. The bill directly affects hourly workers and employers across North Carolina, requiring higher pay for all covered employees. It also adds provisions allowing workers to recover unpaid wages plus interest, attorney fees, and court costs if employers fail to pay correctly.
HB 351 establishes North Carolina's Recovery-Friendly Workplace Program, which helps employers support employees in addiction recovery. Employers (both public and private) can become "participants" or earn "certified" status by completing training, adopting inclusive policies (like flexible leave and confidential treatment access), and implementing evidence-based practices. The program, funded with $300,000 from the Opioid Settlement Fund, provides employers with advisors, model policies, and annual reviews to maintain certification. It directly affects all North Carolina employers covered by workers' compensation and their employees seeking recovery support. The program becomes effective July 1, 2025.
HB 339, the Economic Security Act, raises North Carolina's minimum wage to $22 per hour effective January 2026, with annual inflation adjustments based on the Consumer Price Index. It mandates equal pay for equal work, requires paid sick leave and family medical leave for all employees, and strengthens workplace safety protections. The bill also restores inflation-adjusted unemployment benefits, ends wage theft, removes criminal history questions from job applications ("banning the box"), and expands tax credits for childcare and low-income workers. Additionally, it creates a presumption that essential workers infected with COVID-19 contracted it on the job and appropriates funds for cost-of-living adjustments for public retirees.
HB 403, the "Workers' Rights Act," fundamentally changes employment protections for all North Carolina workers. It abolishes at-will employment (meaning employers can only terminate workers for "just cause"), mandates paid 15-minute breaks for all employees working over 6 hours and a 60-minute paid meal break for longer shifts, and eliminates the subminimum wage for tipped workers by requiring employers to count tips only up to federal limits. The bill also prohibits employers from retaliating against workers who discuss wages or file complaints, and repeals the ban on public employee collective bargaining while creating an Ombuds Office to handle state employee workplace issues. These provisions directly affect every worker in North Carolina and state employees.
HB 398, the "KinCare Act," allows North Carolina employees to use accrued sick leave to care for family members, directly affecting employers and workers in the state. The bill expands existing sick leave provisions to permit up to five consecutive days per year for caring for defined family members - including children, parents, spouses, domestic partners, or others with close family-like relationships - without requiring the employee’s own illness. Employers must permit this use under the same conditions applied to personal sick leave, while clarifying it does not alter federal Family and Medical Leave Act coverage or apply to certain benefits like workers’ compensation. The law takes effect October 1, 2025.
This bill reinstates North Carolina's Earned Income Tax Credit (EITC) program, which provides a state tax credit to low-income workers who qualify for the federal EITC. It sets the state credit at 5% of the federal credit amount (down from 4.5% in 2013), making it refundable so eligible taxpayers receive cash even if they owe no state tax. The credit applies to tax years beginning January 1, 2025, and continues a program that expired after 2013. The bill does not change eligibility rules or create new benefits - it simply reenacts the prior policy structure.
HB 438 requires North Carolina employers to provide employees working six-hour shifts or longer with at least one 20-minute paid rest break, scheduled near the middle of the workday. The bill directly affects workers in North Carolina covered by the Wage and Hour Act, mandating employers offer this break (though employees may decline it). Employers who fail to comply face civil penalties of up to $100 for a first violation and $500 for subsequent violations, with penalties adjusted for business size and violation severity. The law takes effect upon enactment and applies to all employment in North Carolina on or after that date.
