Labor & Employment (Unemployment)

This bill, titled the Keep NC Working Act, creates a new Short-Time Compensation Program in North Carolina to help employers avoid layoffs by reducing employee work hours instead. Starting in October 2026, eligible employers can submit a plan to the state Division of Unemployment Insurance to reduce employee hours by between 10% and 60% for up to one year. In exchange for these reduced hours, employees will receive additional unemployment benefits, while employers must ensure that health and retirement benefits continue as if the workers were still working full time. The program requires employers to maintain a clean record with the state regarding unemployment taxes and must have the agreement of any collective bargaining units involved.

HB 48 raises North Carolina's maximum weekly unemployment benefit from $350 to $400 for claimants filing on or after March 2, 2025, directly affecting unemployed workers. It also creates a 2025 tax credit for employers, allowing them to offset unemployment insurance taxes paid on 2024 fourth-quarter wages against their 2025 tax liability. The credit applies only to contributions remitted by January 31, 2025, and must be claimed via a specific report. The bill ratifies a governor's temporary disaster-related unemployment expansion but focuses on permanent changes to benefit levels and employer tax treatment.

HB 960 would temporarily increase North Carolina's unemployment insurance weekly benefits to $600 during declared disasters, directly affecting unemployed workers in areas impacted by disaster declarations under state emergency management law. It requires the state to set aside specific funds in the unemployment insurance fund for these enhanced benefits and mandates certification that sufficient funds are available before implementation. The benefit increase applies only for the duration of an official disaster declaration and ends when the declaration expires. The bill takes effect July 1, 2025.