Compare versions

--- version:Edition 1
+++ version:Filed
@@ -1,16 +1,15 @@
 GENERAL ASSEMBLY OF NORTH CAROLINA
 SESSION 2025
-H 1
-HOUSE BILL 521
+H D
+HOUSE BILL DRH40306-LR-147C
 
 Short Title: Healthy Families & Workplaces/Paid Sick Leave. (Public)
-Sponsors: Representatives T. Brown, Baker, von Haefen, and Pittman (Primary Sponsors).
-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
-Referred to: Rules, Calendar, and Operations of the House
-March 27, 2025
-*H521-v-1*
+Sponsors: Representative T. Brown.
+Referred to:
+
+*DRH40306-LR-147C*
 A BILL TO BE ENTITLED 1
-AN ACT PROVIDING FOR  HEALTHY FAMILIES AN D HEALTHY WORKPLACES  BY 2
+AN ACT PROVIDING FOR HEALTHY FAMILIES AND HEALTHY WORKPLACES BY 2
 ENSURING THAT ALL WORKERS HAVE EARNED PAID SICK DAYS TO ADDRESS 3
 THEIR OWN HEALTH NEEDS AND THE HEALTH NEEDS OF THEIR FAMILIES. 4
 Whereas, nearly every worker in North Carolina is likely to need, during any given 5
@@ -35,19 +34,22 @@
 Whereas, parents who cannot afford to miss work must send children with a 24
 contagious illness to child care or school, contributing to the high rate of infections in child care 25
 centers and schools; and 26
-Whereas, over 62,967 North Carolinians re ported physical abuse or sexual assault 27
+Whereas, over 62,967 North Carolinians reported physical abuse or sexual assault 27
 between July 2017 and June 2018, and there were 1,036 domestic violence-related homicides in 28
 North Carolina between 2004 and 2018; and 29
-Whereas, victims of domestic violence and sexual assault need time off to care fo r 30
+Whereas, victims of domestic violence and sexual assault need time off to care for 30
 their health or to seek solutions, such as a restraining order or housing, to avoid or prevent abuse, 31
 and are forced to lose days of paid employment; and 32
 Whereas, 38% or over 1.6 million private -sector workers in North Carolina are not 33
-entitled to any ea rned paid sick days to care for their own health needs or the health needs of 34
+entitled to any earned paid sick days to care for their own health needs or the health needs of 34
 members of their families; and 35
-General Assembly Of North Carolina Session 2025
-Page 2  House Bill 521-First Edition
+H.B. 521
+Mar 26, 2025
+HOUSE PRINCIPAL CLERK
+General Assembly Of North Carolina Session 2025
+Page 2  DRH40306-LR-147C
 Whereas, low-income workers are significantly less likely to have earned paid sick 1
-days, with 60% of those earning less than $20,000 per year lacki ng access to earned paid sick 2
+days, with 60% of those earning less than $20,000 per year lacking access to earned paid sick 2
 days; Now, therefore, 3
 The General Assembly of North Carolina enacts: 4
 SECTION 1.  Chapter 95 of the General Statutes is amended by adding a new Article 5
@@ -58,9 +60,9 @@
 (a) This Article shall be known and may be cited as the "Healthy Families and Healthy 10
 Workplaces Act." 11
 (b) The public policy of this State is declared as follows: The health and safety needs of 12
-employees and thei r families and the protection of employees from losing their jobs and pay 13
+employees and their families and the protection of employees from losing their jobs and pay 13
 while they seek medical care for themselves, and their family members, are subjects of concern 14
-requiring legislation to promote the general welfare of the people of the State without  15
+requiring legislation to promote the general welfare of the people of the State without 15
 jeopardizing the competitive position of North Carolina business and industry. The General 16
 Assembly declares that the general welfare of the State requires the enactment of this law under 17
 the police power of the State. 18
@@ -83,22 +85,22 @@
 practice under federal law, any state law, or the laws of another 35
 country wherein the person practices. 36
 (7) Immediate family member. – A child, grandchild, sibling, spouse, domestic 37
-partner, civil union partner, paren t, or grandparent of an employee, or a 38
+partner, civil union partner, parent, or grandparent of an employee, or a 38
 spouse, domestic partner, or civil union partner of a parent or grandparent of 39
 the employee, or a sibling of a spouse, domestic partner, or civil union partner 40
-of the employee, or any other individual related by blood  to the employee or 41
+of the employee, or any other individual related by blood to the employee or 41
 whose close association with the employee is the equivalent of a family 42
 relationship. 43
 (8) Paid sick time or paid sick days. – Time that is (i) compensated at the same 44
-hourly rate and with the same benefits, including health care benefit s, as the 45
+hourly rate and with the same benefits, including health care benefits, as the 45
 employee normally earns during hours worked and (ii) provided by an 46
 employer to an employee for the purposes described in G.S. 95-31.4(b). 47
 (9) Parent. – A biological, foster, step, or adoptive parent of an employee or an 48
-employee's spouse, or oth er person who stood in loco parentis during the 49
+employee's spouse, or other person who stood in loco parentis during the 49
 childhood of an employee or employee's spouse. 50
 (10) Sexual assault. – As defined in Chapter 14 of the General Statutes. 51
 General Assembly Of North Carolina Session 2025
-House Bill 521-First Edition  Page 3
+DRH40306-LR-147C  Page 3
 (11) Small business. – An employer who employs 10 or fewer employees during 1
 20 or more calendar workweeks in the current or preceding calendar year. 2
 (12) Stalking. – As defined in Chapter 14 of the General Statutes. 3
@@ -106,7 +108,7 @@
 (a) The provisions of this Article do not apply to any bona fide volunteers in any 5
 organization where an employer-employee relationship does not exist. 6
 (b) The provisions of this Article do not apply to any person exempted from the Wage 7
-and Hour Act under G.S. 95-25.14(a)(2) through (8), 9 5-25.14(b), 95 -25.14(b1), 95-25.14(c), 8
+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), 8
 and 95-25.14(e), except that domestic workers are exempted only if they are employed in the 9
 place of residence of their employer. 10
 "§ 95-31.4.  Accrual of paid sick time. 11
@@ -114,7 +116,7 @@
 must be absent from work for the reasons set forth in G.S. 95-31.5(a) shall be entitled to paid 13
 sick time. 14
 (b) Paid sick time as provided in this section shall begin to accrue at the commencement 15
-of employment. Paid si ck time shall accrue at the rate of one hour of pay for every 30 hours 16
+of employment. Paid sick time shall accrue at the rate of one hour of pay for every 30 hours 16
 worked. Paid sick time may be used as accrued or be loaned by the employer at its discretion to 17
 the employee in advance of accrual. Unless the employer and employee agree to designate 18
 otherwise, for periods of paid sick time that are less than a normal workday, the time shall be 19
@@ -122,14 +124,14 @@
 account for absences or use of leave. 21
 (c) For employees of small businesses, there shall be a limit of 32 hours of accrued paid 22
 sick time in a calendar year. For employees of other employers, there shall be a limit of 56 hours 23
-of accrued paid sick time in a calendar year. Accrued paid sick time for employees carries ove r 24
+of accrued paid sick time in a calendar year. Accrued paid sick time for employees carries over 24
 from year to year but is limited to the aforementioned limits. 25
 (d) When there is separation from employment and the employee is rehired within 90 26
 days of separation by the same employer, previously accrued paid sick time that had not been 27
 used shall be reinstated. The employee shall be entitled to use accrued paid sick time and accrue 28
 additional sick time at the recommencement of employment. 29
 "§ 95-31.5.  Use of paid sick time. 30
-(a) Paid sick time shall be provided to an employee by an employer for any of t he 31
+(a) Paid sick time shall be provided to an employee by an employer for any of the 31
 following reasons: 32
 (1) To care for the employee's immediate family member who is suffering from a 33
 physical or mental illness, injury, or medical condition that requires care, 34
@@ -148,10 +150,10 @@
 (iv) relocation, or (v) legal services, including obtaining a restraining order or 47
 preparing for, or participating in, any civil or criminal legal proceeding related 48
 to the stalking or domestic or sexual violence. 49
-(b) An employer may require certification o f the qualifying illness, injury, health 50
+(b) An employer may require certification of the qualifying illness, injury, health 50
 condition, or violence when a paid sick time period covers more than three consecutive workdays. 51
 General Assembly Of North Carolina Session 2025
-Page 4  House Bill 521-First Edition
+Page 4  DRH40306-LR-147C
 Any reasonable documentation signed by a health care provider involved in following or treating 1
 the illness, injury, or health condition and indicating the need for the number of sick days taken 2
 shall be deemed acceptable certification. Acceptable certification of domestic violence, sexual 3
@@ -162,21 +164,21 @@
 (1) The employer shall not require certification from a health care provider 8
 employed by the employer. The employer shall not delay the commencement 9
 of time taken for purposes of subsection (a) of this section or pay for this 10
-period on the basis t hat the employer has not yet received the certification. 11
+period on the basis that the employer has not yet received the certification. 11
 Nothing in this section shall be construed to require an employee to provide 12
 as certification any information from a health care provider that would be in 13
-violation of section 1177 of the Social Secu rity Act or the regulations 14
+violation of section 1177 of the Social Security Act or the regulations 14
 promulgated pursuant to section 264(c) of the Health Insurance Portability and 15
 Accountability Act, 42 U.S.C. § 1320d-2. 16
 (2) An employer may not require disclosure of details relating to domestic 17
-violence, sexual assault, or stal king or the details of an employee 's medical 18
+violence, sexual assault, or stalking or the details of an employee 's medical 18
 condition as a condition of providing paid sick time under this Article. If an 19
 employer possesses health information or information pertaining to domestic 20
 violence, sexual assault, or stalking about an employee or employee 's 21
 immediate family member, such information shall be treated as confidential 22
 and not disclosed except to the affected employee or with the permission of 23
 the affected employee. 24
-(c) When the use of paid sick time is foreseeable, the employee shal l make a good-faith 25
+(c) When the use of paid sick time is foreseeable, the employee shall make a good -faith 25
 effort to provide notice of the need for such time to the employer in advance of the use of the 26
 sick time and shall make a reasonable effort to schedule the use of paid sick time in a manner 27
 that does not unduly disrupt the operations of the employer. 28
@@ -186,11 +188,11 @@
 (e) An employer's absence control policy shall not count paid sick time taken under this 32
 Article as an absence that may lead to or result in a retaliatory personnel action or any other 33
 adverse action. 34
-(f) Nothing in this section shall be construed as requiring financial or other  35
+(f) Nothing in this section shall be construed as requiring financial or other 35
 reimbursement to an employee from an employer upon the employee's termination, resignation, 36
 retirement, or other separation from employment for accrued paid sick days that have not been 37
 used. 38
-(g) Nothing in this section shall be construed to discourage em ployers from adopting or 39
+(g) Nothing in this section shall be construed to discourage employers from adopting or 39
 retaining paid sick time policies more generous than policies that comply with the requirements 40
 of this section, and nothing in this section shall be construed to diminish the obligation of an 41
 employer to comply with any contract, collective bargaining agreement, or any employment 42
@@ -203,27 +205,27 @@
 (i) Employers who have a paid time-off leave policy shall not be required to modify that 49
 policy, if that policy offers an employee the option, at the employee's discretion, to take paid sick 50
 General Assembly Of North Carolina Session 2025
-House Bill 521-First Edition  Page 5
-time that is at least  equivalent to the amounts and for the same purposes and under the same 1
+DRH40306-LR-147C  Page 5
+time that is at least equivalent to the amounts and for the same purposes and under the same 1
 conditions as provided under this section. 2
 "§ 95-31.6.  Notification, posting, and records. 3
 Employers shall give notice (i) that employees are entitled to paid sick time, (ii) of the amount 4
 of paid sick time and the terms of its use guaranteed under this section, (iii) that retaliation against 5
 employees who request or use paid sick time is prohibited, and (iv) that each employee has the 6
-right to file a complaint with the Commissioner o f Labor or in the General Court of Justice if 7
+right to file a complaint with the Commissioner of Labor or in the General Court of Justice if 7
 paid sick time as required by this Article is denied by the employer or the employee is retaliated 8
 against for requesting or taking paid sick time. Employers may comply with this section by 9
-supplying each of th eir employees with a notice in English and in Spanish that contains the 10
+supplying each of their employees with a notice in English and in Spanish that contains the 10
 information required by this section or by displaying a poster in a conspicuous and accessible 11
-place in each establishment where the employees are employed that contains in English and  in 12
+place in each establishment where the employees are employed that contains in English and in 12
 Spanish all information required by this section. 13
 "§ 95-31.7.  Enforcement. 14
 (a) The Commissioner shall enforce and administer the provisions of this Article, and the 15
-Commissioner or his or her authorized representative is empowered to hold hearings and  to 16
+Commissioner or his or her authorized representative is empowered to hold hearings and to 16
 institute civil proceedings hereunder. 17
 (b) The Commissioner or the Commissioner's authorized representative shall have power 18
 to administer oaths and examine witnesses, issue subpoenas, compel the attendance of witnesses 19
-and the production of papers, bo oks, accounts, records, payrolls, and documents, and take 20
+and the production of papers, books, accounts, records, payrolls, and documents, and take 20
 depositions and affidavits in any proceeding hereunder. 21
 (c) Any employer who violates the provisions of this Article shall be liable to the 22
 employee or employees affected in the amount of their unpaid sick time as the case may be, plus 23
@@ -231,36 +233,36 @@
 (d) In addition to the amounts awarded pursuant to subsection (c) of this section, the court 25
 shall award liquidated damages in an amount equal to the amount found to be due as provided in 26
 subsection (c) of this section, provided that if the employer shows to the satisfaction of the court 27
-that the act or omission constituting the violation was in good faith and that the employer h ad 28
+that the act or omission constituting the violation was in good faith and that the employer had 28
 reasonable grounds for believing that the act or omission was not a violation of this Article, the 29
 court may, in its discretion, award no liquidated damages or may award any amount of liquidated 30
 damages not exceeding the amount found due as provided in subsection (c) of this section. 31
 (e) Action to recover such liability may be maintained in the General Court of Justice by 32
 any one or more employees. 33
 (f) The court, in any action brought under this Article, may, in addition to any judgment 34
-awarded to the pl aintiff, order costs and fees of the action and reasonable attorneys ' fees to be 35
+awarded to the plaintiff, order costs and fees of the action and reasonable attorneys ' fees to be 35
 paid by the defendant. The court may order costs and fees of the action and reasonable attorneys' 36
 fees to be paid by the plaintiff if the court determines that the action was frivolous. 37
 (g) The Commissioner may determine and supervise the payment of the amounts due 38
 under this section, including interest at the legal rate set forth in G.S. 24-1 from the date each 39
-amount first came due, and the agreement to accept such amounts by  the employee shall 40
+amount first came due, and the agreement to accept such amounts by the employee shall 40
 constitute a waiver of the employee's right to bring an action under subsection (e) of this section. 41
 (h) Actions under this Article must be brought within two years pursuant to G.S. 1-53. 42
-(i) The rights and remedies created by this Arti cle are supplementary to all existing 43
+(i) The rights and remedies created by this Article are supplementary to all existing 43
 common-law and statutory rights and remedies. 44
 "§ 95-31.8.  Rules. 45
 The Commissioner of Labor shall adopt rules to implement this Article. 46
 "§ 95-31.9.  Severability. 47
-The provisions of this Article shall be severable, and  if any phrase, clause, sentence, or 48
+The provisions of this Article shall be severable, and if any phrase, clause, sentence, or 48
 provision is declared to be invalid or is preempted by federal law or regulation, the validity of 49
 the remainder of this Article shall not be affected thereby." 50
 SECTION 2.  G.S. 95-241(a) reads as rewritten: 51
 General Assembly Of North Carolina Session 2025
-Page 6  House Bill 521-First Edition
+Page 6  DRH40306-LR-147C
 "(a) No person shall discriminate or take any retaliatory action against an employee 1
 because the employee in good faith does or threatens to do any of the following: 2
 (1) File a claim or complaint, initiate any inquiry, investigation, inspection, 3
-proceeding or othe r action, or testify or provide information to any person 4
+proceeding or other action, or testify or provide information to any person 4
 with respect to any of the following: 5
 a. Chapter 97 of the General Statutes. 6
 b. Article 2A Article 2A, Article 3A, or Article 16 of this Chapter. 7
@@ -274,7 +276,7 @@
 initiated on an employee's behalf. 15
 (3) Exercise any right on behalf of the employee or any other employee afforded 16
 by Article 2A Article 2A, Article 3A, or Article 16 of this Chapter, by Article 17
-2A of Chapter 74 of the General Stat utes, or by Article 52 of Chapter 143 of 18
+2A of Chapter 74 of the General Statutes, or by Article 52 of Chapter 143 of 18
 the General Statutes. 19
 (4) Comply with the provisions of Article 27 of Chapter 7B of the General 20
 Statutes. 21
@@ -282,7 +284,7 @@
 shall be in accordance with the provisions of G.S. 50B-5.5." 23
 SECTION 3.   This act becomes effective January 1, 2026, and applies only to 24
 covered employment on or after that date. With respect to employees covered by a valid 25
-collective bargaining agreement in effect on January 1, 2026, t his act shall not apply until the 26
+collective bargaining agreement in effect on January 1, 2026, this act shall not apply until the 26
 stated expiration date in the collective bargaining agreement; however, this act shall apply upon 27
-any such agreement's renewal, extension, amendment, or modification in any respect after 28
+any such agreement 's renewal, extension, amendment, or modification in any respect after 28
 January 1, 2026. 29