SB 582, the Wellness Break Act, establishes a paid sabbatical leave program for North Carolina public employees (state, county, city, school, and community college workers) and provides tax incentives for private sector employers. Public employees with three or more years in the same role can take 4-6 weeks of paid leave (70% of salary) for health, wellness, skill-building, or personal enrichment, provided they return to their position for one year. Private businesses offering similar leave qualify for a tax credit of up to $5,000 per employee to offset costs. The bill requires public employers to report on program usage and outcomes, and the NCWorks Commission will develop model policies and resources to support private sector adoption.
House Bill 663, known as the Living Donor Protection Act, aims to support individuals who donate organs or bone marrow. The bill prohibits insurance companies from discriminating against individuals solely based on their status as a living organ donor in various insurance policies. It also establishes a state income tax credit of up to $5,000 for unreimbursed expenses, such as lost wages and travel, incurred by living donors. Furthermore, the act provides state employees and state-supported personnel with up to 30 days of paid leave for organ donation and seven days for bone marrow donation.
HB 810, effective July 1, 2025, provides North Carolina state employees with paid bereavement leave: up to 40 hours for the death of an immediate family member (spouse, parent, child, sibling, or dependent living with them) and up to 8 hours for the death of a colleague. It applies to all state employees, public school staff, and community college workers, requiring documentation like a death certificate but allowing leave without exhausting sick or vacation time. Employees must use family leave within 180 days of the death and provide funeral attendance proof for colleague leave, with no annual limit on usage. The bill appropriates $2 million annually from the General Fund to cover these leave costs through the 2025-2027 fiscal biennium.
SB 93 allows charter school employees in North Carolina to transfer their accrued sick and vacation leave to a local school district if they move between a charter school and a local school administrative unit. The bill requires the State Board to create rules ensuring transferred leave cannot accrue at a faster rate than the local district’s standard. It directly affects charter school staff and local school districts by enabling this leave portability, which was previously unavailable. The policy change applies to employees hired on or after the bill's effective date.
HB 339, the Economic Security Act, raises North Carolina's minimum wage to $22 per hour effective January 2026, with annual inflation adjustments based on the Consumer Price Index. It mandates equal pay for equal work, requires paid sick leave and family medical leave for all employees, and strengthens workplace safety protections. The bill also restores inflation-adjusted unemployment benefits, ends wage theft, removes criminal history questions from job applications ("banning the box"), and expands tax credits for childcare and low-income workers. Additionally, it creates a presumption that essential workers infected with COVID-19 contracted it on the job and appropriates funds for cost-of-living adjustments for public retirees.
HB 398, the "KinCare Act," allows North Carolina employees to use accrued sick leave to care for family members, directly affecting employers and workers in the state. The bill expands existing sick leave provisions to permit up to five consecutive days per year for caring for defined family members - including children, parents, spouses, domestic partners, or others with close family-like relationships - without requiring the employee’s own illness. Employers must permit this use under the same conditions applied to personal sick leave, while clarifying it does not alter federal Family and Medical Leave Act coverage or apply to certain benefits like workers’ compensation. The law takes effect October 1, 2025.
SB 326, the Economic Security Act, raises North Carolina's minimum wage to $22 per hour starting January 1, 2026, with annual inflation adjustments based on the Consumer Price Index. It requires employers to provide paid sick leave, paid family medical leave, and workplace safety protections, while mandating equal pay for equal work regardless of gender. The bill also increases the tipped minimum wage, ends wage theft, prohibits employers from asking about criminal history on job applications ("ban the box"), and expands unemployment benefits for workers. These provisions directly affect all private and public employers and employees across North Carolina, including gig economy workers and essential workers.
SB 458, the "KinCare Act," expands North Carolina's sick leave policy by allowing employees to use accrued sick leave for the care of family members, not just for their own illness. It defines "family member" broadly to include children, parents, domestic partners, and others with close family-like relationships, and permits up to five consecutive days of sick leave annually for this purpose. Employers must allow this use under the same conditions as sick leave for the employee's own health needs, without extending federal FMLA leave limits. The bill applies to all employers (including state/local governments) but excludes certain benefits like workers' compensation or insurance plans. It takes effect October 1, 2025.
SB 538, the Family Empowerment Act, expands child care assistance to families earning up to 300% of the federal poverty level, prioritizing single parents and workers in nontraditional hours. It creates tax credits for businesses offering paid parental leave (up to $2,500 per employee) and grants for small businesses to offset leave costs, while establishing state-funded financial counseling and home-visiting programs for low-income families. The bill requires child care costs to not exceed 7% of family income and mandates flexible work policies for employers, with "Family-Friendly Workplace" certification. Funded by $75 million annually from 2025-2027, it targets working families, employers, and child care providers across North Carolina.
SB 480 establishes North Carolina's first state-run paid family leave program, effective January 1, 2026. It provides eligible workers - such as employees meeting wage criteria or self-employed individuals who opt in - with up to 26 weeks of paid leave per year to care for a newborn, adoptive child, or family member with a serious health condition, or for military family leave needs. Benefits are capped at 12 weeks for most family-related reasons (like newborn care), 18 weeks for personal serious health conditions, and 26 weeks for military family leave. The program is funded through employee payroll contributions and administered by the Division of Employment Security, with specific eligibility requirements defined in the bill.
