HB 1045, known as the Fair Wages in Health Care Act, establishes minimum hourly wages for five specific direct care occupations in North Carolina: home care aides, direct support professionals, certified nursing assistants, psychiatric aides, and licensed practical nurses. The bill sets wage floors ranging from $18 to $24 per hour depending on the role, with protections against employers using different job titles to avoid paying the required rates. To help healthcare providers meet these new costs, the Department of Health and Human Services must adjust reimbursement rates for publicly funded programs and update contracts with managed care organizations. The law takes effect on October 1, 2027, and applies to all employers in the state, regardless of whether they are public or private entities.
This bill aims to improve support for people with intellectual and developmental disabilities in North Carolina through three main changes. It mandates a minimum wage increase of $18 per hour for direct care workers by raising Medicaid reimbursement rates for providers and facilities, with funds appropriated starting in fiscal year 2026-2027. Additionally, the legislation adds at least 1,000 slots to the state's Medicaid waiver program and requires the creation of a ten-year plan to address unmet service needs. Finally, it seeks to remove income and asset limits for the state's Medicaid buy-in program for workers with disabilities, allowing more individuals to qualify for coverage regardless of their earnings or savings.
HB 1059 establishes a new state minimum wage of $15.00 per hour in North Carolina, which will automatically increase each year based on inflation starting in 2027. The bill creates the North Carolina Wage Board to review wage competitiveness and allows local governments to set their own higher minimum wages if they choose. It also introduces a short-time compensation program to help businesses manage layoffs during economic downturns and sets a lower minimum wage of $11.00 for small businesses with annual revenue under $400,000. Additionally, the legislation maintains existing provisions for subminimum wages for students, individuals with disabilities, and seasonal food service workers while clarifying rules around tip credits and pooling.
This North Carolina legislation allows employees who receive tips to deduct those earnings from their state income tax. The bill amends the state tax code to permit taxpayers to subtract tip amounts reported to their employers from their adjusted gross income. This change applies to taxable years beginning on or after January 1, 2026. By adding this specific category to the list of allowable deductions, the measure reduces the taxable income for workers subject to this reporting requirement.
SB 239 increases the hourly wage for Direct Support Professionals (DSPs) serving Medicaid beneficiaries under North Carolina's Innovations waiver program by $5 per hour for the 2025-2026 fiscal year and another $5 per hour for 2026-2027. The law requires providers receiving this funding to use at least 90% of the increased payments to raise DSP wages directly, with verification through payroll documentation. The Department of Health and Human Services (DHB) will adjust payments to managed care organizations (LME/MCOs), which must pass the increase to providers and report quarterly on DSP wage changes. This policy directly affects DSPs working with people with intellectual and developmental disabilities (I/DD) and their employers under the waiver program.
HB 877 establishes a pilot program to create affordable childcare facilities through public-private partnerships using state-owned property. It requires the Legislative Services Office to select a childcare operator by 2026 who must offer rates 25% below market (excluding land/building costs), pay staff 180% of federal minimum wage with health insurance, and reserve 80% of spots for state employees. The program leverages $5 million in state funds to cover facility upfitting and site costs, using state/university land leased at $500/month for 10+ years. This directly affects state employees seeking childcare and aims to lower costs for parents across all North Carolina counties through reduced capital expenses.
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 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.
SB 326, the Economic Security Act, raises North Carolina's minimum wage to $22 per hour starting January 1, 2026, with annual inflation adjustments based on the Consumer Price Index. It requires employers to provide paid sick leave, paid family medical leave, and workplace safety protections, while mandating equal pay for equal work regardless of gender. The bill also increases the tipped minimum wage, ends wage theft, prohibits employers from asking about criminal history on job applications ("ban the box"), and expands unemployment benefits for workers. These provisions directly affect all private and public employers and employees across North Carolina, including gig economy workers and essential workers.
