H.B. 958
GENERAL ASSEMBLY OF NORTH CAROLINA
May 1, 2024
SESSION 2023 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH30422-LRap-130A
Short Title: Workers Rights Act. (Public)
Sponsors: Representative Logan.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT PROTECTING WORKERS RIGHTS IN NORTH CAROLINA AND
3 APPROPRIATING FUNDS FOR THAT PURPOSE.
4 The General Assembly of North Carolina enacts:
5
6 PART I. INDIVIDUAL PROTECTIONS
7
8 AT-WILL EMPLOYMENT ABOLISHED
9 SECTION 1.1. Abolish At-Will Employment. – The General Assembly finds that:
10 (1) The origin of the employment at-will doctrine has been traced back to an 1877
11 treatise that legal scholars have since questioned. The employment at-will
12 doctrine is disfavored by several states and by almost all modern,
13 industrialized nations. The employment at-will doctrine allows an employer
14 to terminate an employee for unfair reasons or for no reason at all, with this
15 imbalance of power created by the employment at-will doctrine adversely
16 affecting personal freedom and economic security.
17 (2) The implied covenant of good faith and fair dealing is an important legal
18 doctrine that underpins the Uniform Commercial Code in Section 1-304. The
19 implied covenant of good faith and fair dealing is recognized by the American
20 Law Institute as Section 205 of the Restatement (Second) of Contracts.
21 (3) Good public policy dictates that acts of bad faith should not be tolerated just
22 because they are committed as part of an employment contract, thus
23 warranting the statutory prohibition of at-will employment contained in this
24 act.
25 SECTION 1.2. Article 3 of Chapter 95 of the General Statutes is amended by adding
26 a new section to read:
27 "§ 95-31.1. Covenant of good faith and fair dealing; at-will employment abolished.
28 (a) The General Assembly finds that every contract for employment, whether the contract
29 is written or oral, consists of both express and implied terms that are legal covenants between the
30 parties to the contract. Further, the General Assembly declares that an implied covenant of good
31 faith and fair dealing is part of every employment contract in this State. Therefore, it is the public
32 policy of this State that the employment at-will doctrine is inconsistent with the implied covenant
33 of good faith and fair dealing that is part of every employment contract in this State.
34 (b) The doctrine of at-will employment is abolished in this State.
35 (c) An employee in this State may only be fired for just cause."
36
*DRH30422-LRap-130A*
 General Assembly Of North Carolina Session 2023
1 MANDATORY PAID WORK BREAKS AND PAID MEAL PERIODS
2 SECTION 1.3. Article 2A of Chapter 95 of the General Statutes is amended by
3 adding a new section to read:
4 "§ 95-25.6A. Paid work break and meal period required.
5 (a) An employee who is to work more than six continuous hours during a 24-hour period
6 shall be provided a paid meal period of 60 minutes and at least one paid work break of 15 minutes.
7 (b) An employee who is to work six continuous hours or less during a 24-hour period
8 shall be provided at least one paid work break of 15 minutes."
9
10 ELIMINATE THE SUBMINIMUM WAGE FOR TIPPED EMPLOYEES
11 SECTION 1.4. Effective January 1, 2025, G.S. 95-25.3(f) reads as rewritten:
12 "(f) Tips earned by a tipped employee may be counted as wages only up to the amount
13 permitted in section 3(m) of the Fair Labor Standards Act, 29 U.S.C. 203(m), if the tipped
14 employee is notified in advance, is permitted to retain all tips and the employer maintains
15 accurate and complete records of tips received by each employee as such tips are certified by the
16 employee monthly or for each pay period. Even if the employee refuses to certify tips accurately,
17 tips may still be counted as wages when the employer complies with the other requirements of
18 this section and can demonstrate by monitoring tips that the employee regularly receives tips in
19 the amount for which the credit is taken. shall not be counted as wages. Tip pooling shall also be
20 permissible among employees who customarily and regularly receive tips; however, no
21 employee's tips may be reduced by more than fifteen percent (15%) under a tip pooling
22 arrangement."
23
24 NO DISCRIMINATION OR RETALIATION FOR DISCLOSING WAGE
25 INFORMATION
26 SECTION 1.5.(a) Article 2A of Chapter 95 of the General Statutes is amended by
27 adding a new section to read:
28 "§ 95-25.6B. Right to disclose and discuss wage information.
29 (a) The General Assembly finds that an employee has the right to disclose and discuss
30 information about employee wages.
31 (b) No employer may do any of the following:
32 (1) Require, as a condition of employment, that an employee refrain from
33 disclosing the amount of the employee's wages.
34 (2) Require an employee to sign a waiver or other document that purports to deny
35 the employee the right to disclose the amount of the employee's wages.
36 (3) Discharge, discipline, or otherwise discriminate against an employee for
37 inquiring about, disclosing, comparing, or otherwise discussing the
38 employee's wages or the wages of any other employee."
39 SECTION 1.5.(b) G.S. 95-241(a) reads as rewritten:
40 "(a) No person shall discriminate or take any retaliatory action against an employee
41 because the employee in good faith does or threatens to do any of the following:
42 (1) File a claim or complaint, initiate any inquiry, investigation, inspection,
43 proceeding or other action, or testify or provide information to any person
44 with respect to any of the following:
45 a. Chapter 97 of the General Statutes.
46 b. Article 2A or Article 16 of this Chapter.
47 c. Article 2A of Chapter 74 of the General Statutes.
48 d. G.S. 95-28.1.
49 e. Article 16 of Chapter 127A of the General Statutes.
50 f. G.S. 95-28.1A.
51 g. Article 52 of Chapter 143 of the General Statutes.
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1 h. Article 5F of Chapter 90 of the General Statutes.
2 (2) Cause any of the activities listed in subdivision (1) of this subsection to be
3 initiated on an employee's behalf.
4 (3) Exercise any right on behalf of the employee or any other employee afforded
5 by Article 2A or Article 16 of this Chapter, by Article 2A of Chapter 74 of the
6 General Statutes, or by Article 52 of Chapter 143 of the General Statutes.
7 (4) Comply with the provisions of Article 27 of Chapter 7B of the General
8 Statutes.
9 (5) Exercise rights under Chapter 50B. Actions brought under this subdivision
10 shall be in accordance with the provisions of G.S. 50B-5.5.
11 (6) Exercise rights under G.S. 95-25.6B."
12 SECTION 1.5.(c) This section is effective when it becomes law and applies to
13 employment in this State on or after that date.
14
15 PART II. STATE EMPLOYEE AND CONTRACTOR PROTECTIONS
16
17 REPEAL BAN ON PUBLIC EMPLOYEE COLLECTIVE BARGAINING
18 SECTION 2.1. G.S. 95-98 is repealed.
19
20 OMBUD'S OFFICE CREATED/NO MISTREATMENT OF CONTRACT EMPLOYEES
21 SECTION 2.2.(a) G.S. 126-4 reads as rewritten:
22 "§ 126-4. Powers and duties of State Human Resources Commission.
23 Subject to the approval of the Governor, the State Human Resources Commission shall
24 establish policies and rules governing each of the following:
25 …
26 (20) Delegation of authority to an Ombud's Office charged with providing
27 independent review of State employee workplace complaints and assistance
28 to State employees in resolving workplace issues. In addition, the Ombud's
29 Office shall establish programs to educate State employees about their rights
30 and to train both supervisors and employees in dispute resolution techniques
31 appropriate for the State government workplace.
32 …."
33 SECTION 2.2.(b) Chapter 126 of the General Statutes is amended by adding a new
34 Article to read:
35 "Article 17.
36 "Contract Employee Protection.
37 "§ 126-100. Definitions.
38 The following definitions apply in this Article:
39 (1) Adverse action. – Any of the following actions taken by a private third-party
40 employer or a State government employee against a contract employee:
41 a. Reassignment to less-desired work location.
42 b. A reduction in compensation.
43 c. Failure to give a promised or customary increase in compensation or
44 work status.
45 d. Disciplinary action, including discharge, demotion, or transfer.
46 e. More intensive or critical supervision.
47 f. Withdrawal of previously allowed privileges.
48 g. Assignment to more difficult duties.
49 h. A demand of increased production for a retaliatory purpose.
50 i. Treatment that subjects the contract employee to workplace bullying.
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1 (2) Contract employee. – An employee of a private third-party employer who is
2 assigned to work in a State government workplace or on a State-controlled
3 project.
4 (3) Private third-party employer. – A nongovernmental employer that (i) employs
5 two or more employees and (ii) has a contract with the State to furnish
6 employees to a State agency, department, or institution to perform personal
7 services in a State government workplace or on a State-controlled project.
8 (4) Workplace bullying. – A persistent pattern of mistreatment from others in the
9 workplace that causes physical, emotional, or financial harm, including, but
10 not limited to, verbal, nonverbal, psychological, or physical abuse and
11 interference with an employee's work or career advancement.
12 "§ 126-101. Mistreatment of contract employees prohibited.
13 (a) It is against the public policy of this State for any State employee to mistreat a contract
14 employee in the State government workplace or in connection with a State-controlled project. It
15 is the duty of each supervisor in a State government workplace to take all reasonable steps to
16 prevent mistreatment of contract employees.
17 (b) No State employee shall take or cause a private third-party employer to initiate an
18 adverse action against a contract employee in retaliation for the contract employee doing any of
19 the following:
20 (1) Making a complaint or providing information, in good faith, to the North
21 Carolina Department of Labor or the United States Department of Labor about
22 a possible labor law violation by the private third-party employer or by the
23 State agency, department, or institution.
24 (2) Testifying in any investigation made or other proceeding held under State,
25 local, or federal law relating to a State government workplace or
26 State-controlled project.
27 (3) Exercising any employee rights that are protected under State, local, or federal
28 law.
29 (4) Complaining about workplace bullying in a State government workplace or in
30 connection with a State-controlled project.
31 Any State employee who violates this subsection shall be subject to disciplinary action up to
32 and including termination from State government employment.
33 (c) A private third-party employer shall not take adverse action against a contract
34 employee in retaliation for the contract employee doing any of the following:
35 (1) Making a complaint or providing information, in good faith, to the North
36 Carolina Department of Labor or the United States Department of Labor about
37 a possible labor law violation by the private third-party employer or by the
38 State agency, department, or institution.
39 (2) Testifying in any investigation made or other proceeding held under State,
40 local, or federal law relating to a State government workplace or
41 State-controlled project.
42 (3) Exercising any employee rights that are protected under State, local, or federal
43 law.
44 (4) Complaining about workplace bullying in the State government workplace or
45 in connection with a State-controlled project.
46 (d) The North Carolina Department of Labor shall investigate alleged violations of this
47 section and may assess a civil penalty against a private third-party employer in an amount from
48 one thousand dollars ($1,000) to twenty thousand dollars ($20,000) for each violation of this
49 section. A private third-party employer who is found by the North Carolina Department of Labor
50 to have violated this section shall be ineligible to enter into contracts with any State agency,
51 department, or institution for a period of five years.
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1 (e) The contract employee may bring a civil action against a private third-party employer
2 for a violation of this subsection in the superior court of the county where the violation occurred
3 or where the contract employee lives within two years of the date of the alleged adverse action.
4 If the contract employee is the prevailing party in an action under this subsection, the court may
5 order reinstatement, back pay, and other appropriate relief and shall order payment of the
6 prevailing party's attorneys' fees and litigation costs by the losing party.
7 (f) The Department of Labor and the State Human Resources Commission shall jointly
8 develop, publish, and distribute educational and training materials about contract employee rights
9 under this section, including physical posters to be placed conspicuously in the workplace and
10 online materials made available over the internet.
11 "§ 126-102. Applicability; notices; rules.
12 (a) This Article applies to all State employees, including those subject to, and those
13 exempt from, provisions of this Chapter.
14 (b) This Article does not apply to a contract in which the federal government is a party.
15 (c) It is the duty of both the private third-party employer and the State employer to post
16 notice in accordance with G.S. 95-9 or use other appropriate means to keep all employees
17 informed of their protections and obligations under this Article.
18 (d) This section provides rights, obligations, procedures, and relief in addition to, and not
19 in lieu of, what is provided under Article 14 of this Chapter and Article 21 of Chapter 95 of the
20 General Statutes.
21 (e) The North Carolina Department of Labor and the State Human Resources
22 Commission shall collaborate, and each shall adopt the appropriate rules, to carry out the
23 provisions of this Article."
24
25 OMBUD'S OFFICE FUNDING
26 SECTION 2.3.(a) There is appropriated from the General Fund to the Department
27 of Administration, State Human Resources Commission, the sum of one hundred eighty thousand
28 dollars ($180,000) in recurring funds for the 2024-2025 fiscal year for two new personnel
29 positions to support establishment of the Ombud's Office created by this act.
30 SECTION 2.3.(b) There is appropriated from the General Fund to the Department
31 of Administration, Sta