Labor & Employment (Minimum Wage)

SB 525, the Living Wage Guarantee Act, would raise North Carolina’s minimum wage to $15 per hour for most employers starting January 1, 2026, directly affecting low-wage workers and businesses statewide. Small businesses (with fewer than 10 employees) would phase in the increase over three years, starting at $12/hour in 2026 and reaching $15/hour by 2028. The bill includes automatic annual wage adjustments tied to the cost-of-living index starting in 2028 to maintain purchasing power. It also establishes a $10 million state fund to support small businesses during the transition and strengthens enforcement by allowing workers to seek back pay and protecting them from retaliation.

SB 434, the School Workers Fair Pay Act, requires North Carolina public schools to pay all noncertified employees (such as cafeteria workers, custodians, and administrative staff) a minimum hourly wage of $17.00, effective July 1, 2025. The bill mandates the State Board of Education to adjust salary schedules to meet this rate and allocates $144.7 million from the General Fund to the Department of Public Instruction for the 2025-2026 fiscal year to support this change. Funds must supplement existing salaries without replacing current state or local funding. This policy directly affects thousands of non-teaching school staff across all North Carolina public school districts.

SB 708, the "Working Families Act," directly affects low- and middle-income North Carolina families by reducing child care costs, increasing tax credits, raising wages, and providing housing assistance. It cuts parent copayments for subsidized child care to 7% of gross income (down from 10%), reenacts a refundable child tax credit with income-based payments up to $250 per child, and raises the statewide minimum wage to $15 per hour starting September 1, 2025 - while allowing cities to set higher local rates. The bill also increases income limits for property tax relief and creates a homebuyers' program offering assistance to first-time public servant homebuyers (including teachers, firefighters, police, and EMTs). These changes aim to reduce living costs and support working families through concrete financial adjustments.

SB 732 requires North Carolina's Department of Commerce to measure economic well-being using specific, publicly reported metrics like poverty rates, living wage job access, housing/childcare costs relative to income, and concentrated poverty areas. The bill appropriates $200,000 annually (2025-2027) to conduct bi-annual analyses and submit reports to the General Assembly by January 31 each odd-numbered year. These reports must include data on hardship, cost burdens, education costs, and neighborhood conditions across all counties. The law directly affects how state policymakers assess economic progress, shifting focus from market metrics alone to people's lived experiences. It does not change existing laws but establishes a framework for measuring policy impacts on residents' economic security.

HB 786, the "Working Families Act," reduces child care costs for low-income families by lowering parent copayments from 10% to 7% of income (effective 2025), reinstates a refundable state child tax credit with income-based payments (effective 2025), and phases up North Carolina’s minimum wage to $15/hour by 2030 with annual inflation adjustments. It also increases income limits for property tax relief, creates a homebuyers’ assistance program for public servants (like firefighters and EMTs) as first-time buyers, and establishes a paid family leave insurance program funded through an employer grant program. The bill directly affects working families, hourly workers, public-sector employees, and households using subsidized child care or property tax relief. Key mechanisms include phased wage increases, income-tiered tax credits, and targeted housing support, all designed to reduce financial strain on low-to-moderate-income households.