H.B. 850
GENERAL ASSEMBLY OF NORTH CAROLINA
May 4, 2021
SESSION 2021 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH30379-LRxfa-21B
Short Title: Economic Security for All. (Public)
Sponsors: Representative Harrison.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ADVANCE ECONOMIC SECURITY FOR ALL IN NORTH CAROLINA BY
3 INCREASING THE STATE MINIMUM WAGE IN PHASES TO FIFTEEN DOLLARS
4 PER HOUR OVER FIVE YEARS; MANDATING EQUAL PAY FOR EQUAL WORK;
5 REQUIRING PAID SICK LEAVE AND FAMILY MEDICAL LEAVE; INCREASING
6 THE TIPPED MINIMUM WAGE; ENDING WAGE THEFT; REQUIRING THE FAIR
7 ASSESSMENT OF PERSONS WITH CRIMINAL HISTORIES BY "BANNING THE
8 BOX"; REPEALING PUBLIC EMPLOYEE COLLECTIVE BARGAINING
9 RESTRICTIONS; REENACTING THE EARNED INCOME TAX CREDIT AND TAX
10 CREDITS FOR CHILD AND DEPENDENT CARE EXPENSES; ELIMINATING
11 IMMUNITY FROM LIABILITY RELATING TO THE CORONAVIRUS PANDEMIC;
12 CREATING A REBUTTABLE PRESUMPTION THAT FIRST RESPONDERS, HEALTH
13 CARE WORKERS, AND ESSENTIAL SERVICE WORKERS INFECTED BY THE
14 CORONAVIRUS CONTRACTED THE DISEASE IN THE COURSE OF
15 EMPLOYMENT; REQUIRING THAT LOCAL GOVERNMENT EMPLOYERS CREDIT
16 FIRST RESPONDERS AND HEALTH CARE WORKERS FOR LEAVE TAKEN WHILE
17 QUARANTINED DURING THE CORONAVIRUS PANDEMIC; MANDATING
18 HAZARD PAY FOR ESSENTIAL STATE EMPLOYEES FIGHTING THE PANDEMIC
19 AND APPROPRIATING FUNDS FOR THAT PURPOSE; DIRECTING THE
20 LEGISLATIVE RESEARCH COMMISSION TO STUDY THE PROVISION OF
21 HAZARD PAY TO PRIVATE AND LOCAL GOVERNMENTAL EMPLOYEES; AND
22 APPROPRIATING FUNDS TO SETTLE PANDEMIC-RELATED STATE EMPLOYEE
23 WORKERS' COMPENSATION CLAIMS.
24 The General Assembly of North Carolina enacts:
25
26 LIVING WAGE
27 SECTION 1.1.(a) This act shall be known and may be cited as the "Economic
28 Security Act of 2021."
29 SECTION 1.1.(b) G.S. 95-25.3(a) reads as rewritten:
30 "§ 95-25.3. Minimum wage.
31 (a) Every employer shall pay to each employee who in any workweek performs any work,
32 wages of at least six dollars and fifteen cents ($6.15) per hour or the minimum wage set forth in
33 paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 206(a)(1), as that wage
34 may change from time to time, whichever is higher, except as otherwise provided in this
35 section.the following amounts:
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1 (1) Effective on Labor Day, September 6, 2021, eight dollars ($8.00) per hour or
2 the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor
3 Standards Act, 29 U.S.C. § 206(a)(1), as that wage may change from time to
4 time, whichever is higher, except as otherwise provided in this section.
5 (2) Effective on Labor Day, September 5, 2022, nine dollars and fifty cents
6 ($9.50) per hour or the minimum wage set forth in paragraph 1 of section 6(a)
7 of the Fair Labor Standards Act, 29 U.S.C. § 206(a)(1), as that wage may
8 change from time to time, whichever is higher, except as otherwise provided
9 in this section.
10 (3) Effective on Labor Day, September 4, 2023, eleven dollars ($11.00) per hour
11 or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor
12 Standards Act, 29 U.S.C. § 206(a)(1), as that wage may change from time to
13 time, whichever is higher, except as otherwise provided in this section.
14 (4) Effective on Labor Day, September 2, 2024, thirteen dollars ($13.00) per hour
15 or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor
16 Standards Act, 29 U.S.C. § 206(a)(1), as that wage may change from time to
17 time, whichever is higher, except as otherwise provided in this section.
18 (5) Effective on Labor Day, September 1, 2025, fifteen dollars ($15.00) per hour
19 or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor
20 Standards Act, 29 U.S.C. § 206(a)(1), as that wage may change from time to
21 time, whichever is higher, except as otherwise provided in this section."
22 SECTION 1.1.(c) This section is effective when this act becomes law.
23
24 EQUAL PAY FOR EQUAL WORK
25 SECTION 1.2.(a) Chapter 95 of the General Statutes is amended by adding a new
26 Article to read:
27 "Article 2B.
28 "Equal Pay Act.
29 "§ 95-25.26. Definitions.
30 The following definitions apply in this Article:
31 (1) Employee. – Every person in receipt of or entitled to compensation for labor
32 performed for another.
33 (2) Employer. – Includes (i) this State and any local political subdivision of the
34 State and (ii) every person having control or direction of any person employed
35 at any labor, or responsible directly or indirectly for the wages of another, who
36 employs more than five employees.
37 (3) Person. – As defined by G.S. 95-25.2(11).
38 (4) Wage or wages. – Any compensation for labor measured by time, piece, or
39 otherwise.
40 "§ 95-25.27. Equal wage rates.
41 (a) No employer may pay any person in the employer's employ at wage rates less than
42 the rates paid to employees of the opposite sex in the same establishment for the same quantity
43 and quality of the same classification of work. Any employer who violates this section is liable
44 to the employee affected in the amount of the wages that the employee is deprived by reason of
45 the violation.
46 (b) Notwithstanding the provisions of subsection (a) of this section, nothing in this
47 section prohibits a variation of rates of pay for employees engaged in the same classification of
48 work based upon seniority, a difference in length of service, ability, skill, difference in duties or
49 services performed, whether regularly or occasionally, difference in the shift or time of day
50 worked, hours of work, or restrictions or prohibitions on lifting or moving objects in excess of
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1 specified weight, or other reasonable differentiation, or factor or factors other than sex, when
2 exercised in good faith.
3 (c) An employer that is in violation of this section may not reduce the pay of any
4 employee in order to bring the employer into compliance with this Article.
5 (d) An employer shall not retaliate against any employee who seeks redress pursuant to
6 this Article or who participates in the investigation of a complaint under this Article.
7 "§ 95-25.28. Complaints; enforcement; civil actions.
8 (a) An affected employee may file with the Department of Labor a complaint that the
9 wages paid to the employee are less than the wages to which the employee is entitled under this
10 Article. The Department of Labor shall investigate the complaint and notify the employer and
11 employee of the results of the investigation.
12 (b) An employee receiving less than the wage to which the employee is entitled under
13 this section may recover in a civil action the balance of such wages, together with the costs and
14 attorneys' fees, notwithstanding any agreement to work for a lesser wage. The employee is not
15 required to exhaust administrative remedies before filing the civil action.
16 (c) A civil action pursuant to this section shall be instituted within two years after the
17 date that the alleged violation is discovered by the affected employee."
18 SECTION 1.2.(b) This section is effective when this act becomes law.
19
20 SICK AND FAMILY MEDICAL LEAVE
21 SECTION 1.3.(a) Chapter 95 of the General Statutes is amended by adding a new
22 Article to read:
23 "Article 3A.
24 "Healthy Families and Healthy Workplaces Act.
25 "§ 95-31.1. Short title and legislative purpose.
26 (a) This Article shall be known and may be cited as the "Healthy Families and Healthy
27 Workplaces Act."
28 (b) The public policy of this State is declared as follows:
29 (1) The health and safety needs of employees and their families and the protection
30 of employees from losing their jobs and pay while they seek medical care for
31 themselves and their family members are subjects of concern requiring
32 legislation to promote the general welfare of the people of the State without
33 jeopardizing the competitive position of North Carolina business and industry.
34 (2) The general welfare of the State requires the enactment of this law under the
35 police power of the State.
36 "§ 95-31.2. Definitions.
37 The following definitions apply in this Article:
38 (1) Child. – A biological, adopted, or foster child, stepchild, legal ward, or child
39 of a parent standing in loco parentis who is under 18 years of age, or 18 years
40 of age or older but incapable of earning wages because of a mental or physical
41 incapacity.
42 (2) Commissioner. – The Commissioner of Labor.
43 (3) Domestic violence. – As defined in G.S. 50B-1.
44 (4) Employ. – As defined by G.S. 95-25.2(3).
45 (5) Employee. – As defined by G.S. 95-25.2(4).
46 (6) Employer. – As defined by G.S. 95-25.2(5).
47 (7) Federal act. – The Family and Medical Leave Act of 1993, 29 U.S.C. §§ 2601
48 to 2654 inclusive, as it may be amended.
49 (8) Health care provider. –
50 a. A Doctor of Medicine or Osteopathy licensed to practice medicine in
51 this State.
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1 b. A physician assistant licensed in this State.
2 c. A family nurse practitioner licensed in this State.
3 (9) Immediate family member. – An employee's spouse, mother, father, brother,
4 sister, son, daughter, grandmother, grandfather, grandson, or granddaughter,
5 whether the relationship is a biological, foster, adoptive, step, half, or in-law
6 relationship.
7 (10) Paid sick time or paid sick days. – Time that is (i) compensated at the same
8 hourly rate and with the same benefits, including health care benefits, as the
9 employee normally earns during hours worked and (ii) provided by an
10 employer to an employee for the purposes described in G.S. 95-31.4(b) of this
11 Article.
12 (11) Parent. – A biological, foster, step, or adoptive parent of an employee or an
13 employee's spouse, or other person who stood in loco parentis during the
14 childhood of an employee or employee's spouse.
15 (12) Sexual assault. – As defined in Chapter 14 of the General Statutes.
16 (13) Small business. – An employer who employs 10 or fewer employees during
17 20 or more calendar workweeks in the current or preceding calendar year.
18 (14) Stalking. – As defined in Chapter 14 of the General Statutes.
19 "§ 95-31.3. Exemptions.
20 (a) The provisions of this section do not apply to any bona fide volunteers in any
21 organization where an employer-employee relationship does not exist.
22 (b) The provisions of this section do not apply to any person exempted from the Wage
23 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),
24 and 95-25.14(e), except that domestic workers are exempted only if they are employed in the
25 place of residence of their employer.
26 "§ 95-31.4. Accrual of paid sick time.
27 (a) Except as provided by G.S. 95-31.3, any employee who works in this State and who
28 must be absent from work for the reasons set forth in G.S. 95-31.5(a) shall be entitled to paid
29 sick time.
30 (b) Paid sick time as provided in this section shall begin to accrue at the commencement
31 of employment. Paid sick time shall accrue at the rate of one hour of pay for every 30 hours
32 worked. Paid sick time may be used as accrued, or be loaned by the employer at its discretion, to
33 the employee in advance of accrual. Unless the employer and employee agree to designate
34 otherwise, for periods of paid sick time that are less than a normal workday, the time shall be
35 counted on an hourly basis or the smallest increment that the employer's payroll system uses to
36 account for absences or use of leave.
37 (c) For employees of small businesses, there shall be a limit of 32 hours of accrued paid
38 time in a calendar year. For employees of other employers, there shall be a limit of 56 hours of
39 accrued paid sick time in a calendar year. Accrued paid sick time for employees carries over from
40 year to year but is limited as provided in this subsection.
41 (d) When there is separation from employment and the employee is rehired within 90
42 days of separation by the same employer, any previously accrued paid sick time that had not been
43 used shall be reinstated. The employee shall be entitled to use accrued paid sick time and accrue
44 additional sick time at the recommencement of employment.
45 "§ 95-31.5. Use of paid sick time.
46 (a) Paid sick time shall be provided to an employee by an employer for any of the
47 following reasons:
48 (1) To care for the employee's immediate family member who is suffering from a
49 physical or mental illness, injury, or medical condition that requires home
50 care, professional medical diagnosis or care, preventative medical care, or a
51 routine medical appointment, unless the care is covered under federal law.
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1 (2) To care for the employee's own physical or mental illness, injury, or medical
2 condition that requires home care, professional medical diagnosis or care,
3 preventative medical care, or a routine medical appointment, unless the care
4 is covered under federal law.
5 (3) To allow an employee to address the psychological, physical, or legal effects
6 on himself or herself or an immediate family member of domestic violence,
7 sexual assault, or stalking.
8 (b) An employer may require certification of the qualifying illness, injury, health
9 condition, or violence when a paid sick time period covers more than three consecutive workdays.
10 Any reasonable documentation signed by a health care provider involved in following or treating
11 the illness, injury, or health condition and indicating the need for the amount of sick days taken
12 shall be deemed acceptable certification. Acceptable certification of domestic violence, sexual
13 assault, or stalking may include (i) law enforcement, court, or federal agency records or files, (ii)
14 documentation from a domestic violence or sexual assault program, or (iii) documentation from
15 a religious, medical, or other professional from whom assistance was sought in dealing with the
16 alleged domestic violence, sexual offense, or stalking.
17 (1) The employer shall not require certification from a health care provider
18 employed by the employer. The employer shall not delay the commencement
19 of time taken for purposes of subsection (a) of this section or pay for this
20 period on the basis that the employer has not yet received the certification.
21 Nothing in this section shall be construed to require an employee to provide
22 as certification any information from a health care provider that would be in
23 violation of section 1177 of the Social Security Act or the regulations
24 promulgated pursuant to section 264(c) of the Health Insurance Portability and
25 Accountability Act, 42 U.S.C. § 1320d-2.
26 (2) An employer may not require disclosure of details relating to domestic
27 violence, sexual assault, or stalking or