Labor & Employment

This bill creates a voluntary program allowing businesses in North Carolina to contribute to portable benefit accounts for their independent contractors. The plan enables hiring parties to fund benefits such as health insurance, retirement, and disability through a third-party administrator, which helps contractors maintain coverage when moving between jobs. To encourage participation, the legislation allows businesses to deduct contributions as business expenses and permits contractors to exclude those amounts from their taxable income. Additionally, the bill includes a $100,000 appropriation to fund public education about the program, which will take effect on July 1, 2026.

HB 171 prohibits North Carolina state agencies from implementing diversity, equity, and inclusion (DEI) programs, including in hiring, employment practices, or training. It defines DEI broadly as any initiative influencing hiring or benefits based on protected characteristics (like race or gender) beyond merit-based processes. The bill mandates state auditor compliance audits, imposes civil penalties up to $5,000 per violation, and allows employees to file lawsuits after submitting a grievance to their agency. It explicitly excludes compliance with existing anti-discrimination laws (such as Title IX and the ADA) and protects First Amendment rights.