North CarolinaSB 10412025-2026 SessionSenateWALLET

AN ACT TO MODERNIZE AND SIMPLIFY THE STATE HUMAN RESOURCES SYSTEM AND TO APPROPRIATE FUNDS FOR THAT PURPOSE.

Sponsored By: Kevin Corbin (Republican), Todd Johnson (Republican), Michael V. Lee (Republican)

Signed by Governor

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Bill Overview

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106 provisions identified: 44 benefits, 17 costs, 45 mixed.

More paid leave and flexible work

Eligible state workers get up to 12 weeks paid parental leave. Part-time staff get a prorated amount. This leave is on top of sick and vacation time, has no cash value at exit, and does not count for retirement. Full-time staff earn at least 120 hours of vacation a year (carry up to 240 hours) and at least 80 hours of sick leave. The State sets rules for flexible work like telework and job sharing. The State may offer pre-tax dependent care and a cafeteria plan; if offered, a TRICARE supplement is also offered.

Pre‑2024 employees keep job and pension

If you worked for the System right before January 1, 2024 and stay in the same role, you keep your State employment rights. If you were in the State Teachers’ and State Employees’ Retirement System before January 1, 2024 and remain a State employee, you keep your retirement membership.

Reemployment rights for pre-2013 exempt staff

If you were hired into an exempt policymaking or managerial job before August 21, 2013 and removed without just cause, you keep special reemployment rights. Based on your prior service, you may get priority for qualified jobs or reassignment at the same grade and salary. You keep across‑the‑board raises in the reassigned role.

Severance or retirement after job cuts

If an agency closes or uses a RIF to save budget and no reemployment is available, you get either severance pay or a discontinued service retirement allowance. The agency head chooses which option after consulting state budget and HR leaders. If you take retirement, you cannot also get severance; severance pay does not include retirement contributions. When a discontinued service retirement is approved, the agency must make a lump‑sum payment: actuary‑determined added liabilities + an admin fee + a deposit to the Retiree Health Benefit Fund (years used × employer contribution rate × the salary used).

Stronger whistleblower rights and damages

If you win a whistleblower case, a court can order reinstatement, back pay, benefits, costs, and attorneys’ fees. For willful violations, the court must award three times your actual damages plus costs and attorneys’ fees. Reports to the State Auditor, the Joint Legislative Commission on Governmental Operations, or a legislative committee are protected.

No State benefits for contractors

Officers, employees, and board members of NCInnovation are not State employees. They cannot get State-funded health or retirement benefits. The same rule applies to officers, workers, and board members of North Carolina nonprofits that contract with the Department. These people must seek other health coverage and retirement options.

Layoffs: early retirement and severance limits

If you lose your job due to budget cuts, you may get a discontinued service retirement. With 20+ years and age 55+, it is unreduced. With 20+ years and age 50–54, it is reduced 0.25% per month before 55, if your agency approves and funds it. If you take severance pay, you cannot contract with most State agencies until severance ends. You may still work for UNC campuses and community colleges.

Recruiters cannot bill state applicants

Private recruiters cannot charge job seekers to land a state job. A licensed service, over one year old, may charge a customary fee only if someone other than the agency pays under a written contract. These services must file monthly reports listing the client, job, and fee. Breaking the rules is a Class 1 misdemeanor.

Death benefit protected during exchanges

If you join an intergovernmental personnel exchange and you qualify, your death benefit still applies during the exchange. This is true even if retirement contributions pause. You cannot receive duplicate death benefits.

Easier hiring and promotion in state jobs

State jobs can be filled based on skills and experience, not just degrees. Agencies can directly hire non‑permanent workers into permanent jobs after 3 months in a similar role with good performance, with approvals; the Director can waive some requirements. Career employees get promotion priority when their qualifications match non‑career applicants. Agencies must follow the set hiring order, including priorities for career employees, those with reemployment or RIF rights, and then veterans and eligible Guard members. Beginning Oct 1, 2026, the State may also test new job titles, qualifications, or pay flexibility in volunteer agencies.

Easier skills-based hiring for state jobs

The State makes it easier to apply and get hired. Agencies may use skills-based tests and reduce degree requirements when not needed. You can upload a resume or profile, and agencies can directly hire from a prior most‑qualified pool. Agencies may hire into paid on‑the‑job training for up to four years, even if qualified applicants exist. You can opt in to a central pool for future openings. Agencies must verify work authorization and credentials. The Commission sets rules for postings, promotions, and how salaries, raises, and bonuses work.

Equal hiring and pay rules

Executive agencies and local governments must give equal opportunity in hiring and pay, regardless of race, religion, color, origin, sex, age, disability, or genetic information. Each year by March 1, major state entities and UNC must file an Equal Employment Opportunity plan with goals. The Director provides training, technical help, oversight, and reporting to carry out the plans.

Higher pay allowed for area directors

An area director may be paid above the usual salary range when comparable local salaries support it. The board must include the proposed amount and market documentation. The OSHR Director must approve any amount above the normal range.

Higher pay flexibility for key staff

The Treasurer may give market-based pay and bonuses to specialized investment staff. The Treasurer’s own salary follows the state budget and includes longevity pay like other employees. If Senate Bill 257 becomes law, agencies can pay exempt policy and managerial jobs up to 30% above the Commission’s salary maximum.

Higher pay for exempt managers

Agencies can set pay anywhere in the range. For exempt policymaking or managerial jobs, agencies can pay up to 10% above the range. The Commission and OSHR still enforce pay rules.

Keep politics out of state hiring

The law bans political influence in hiring. Agencies must choose from the most qualified, not by party or clout. No one may threaten jobs or favors to force political support; that is a Class 2 misdemeanor. Legislators may not use their office to sway or punish HR decisions covered by the state HR law.

Minimum pay floor for state workers

Full-time state employees not on unpaid leave must earn at least $31,200 a year. State-funded local employees are not covered by this floor. If you already earn more, your pay does not change.

More paid leave and holidays

The Commission provides paid parental and bereavement leave for non‑temporary state jobs, and schools and community colleges must adopt similar policies. Teachers at constituent institutions get paid parental leave, with State funds available to support it. Employees get up to 13 paid holidays, including Martin Luther King Jr. Day, Veterans Day, and three days for Christmas. If you move from the courts or legislature to an executive job that offers leave, you keep your earned vacation and sick leave. Workers can share or donate leave across agencies, including to non‑family coworkers.

Paid parental leave help for teachers

Paid parental leave remains in State law for school staff. The education agency can pay for substitute teachers when a teacher uses paid parental leave, but only if money is provided. Charter schools that offer paid parental leave can also get these funds when available.

Pay and benefits during assignments

If you are assigned to another agency, you remain employed by your sending agency and keep the same salary and benefits unless a written agreement says otherwise. While on leave for an interchange, you have the same rights and duties as other employees on leave. If the receiving agency pays employer retirement contributions and withholds your share, you may stay in your retirement system during the assignment.

Pre-tax help for dependent care

The HR Director can offer a dependent care assistance program and a flexible pay plan for eligible state workers. These use salary reductions that can lower your taxes. Employer payroll‑tax savings from the program can be used with the Director’s approval.

Retirement stays during job exchanges

If you take part in an intergovernmental personnel exchange under Part 2, you keep your Retirement System membership and benefits. You also keep death‑benefit eligibility during the exchange even if contributions pause. You cannot receive duplicate benefits.

Stronger appeal rights and legal remedies

Disputes about whether your job is covered follow the State’s contested case process. If you win a case, the Office of Administrative Hearings can order reinstatement, hiring, promotion, transfers, salary fixes, and payment for lost pay. If you win reinstatement, back pay, or a whistleblower grievance, you can also get reasonable attorneys’ fees.

Stronger grievance and appeal rights

If you have a work complaint, you first talk to your supervisor, then follow your agency’s steps. For state agencies, the Office of State Human Resources must review the proposed final decision before it becomes final. The agency and OSHR must finish within 120 days. After a final decision, you have 30 days to file a contested case. The Office of Administrative Hearings aims to decide within 180 days. You can take listed issues like discrimination, retaliation, and just-cause discipline to a hearing. Courts can review OAH fee rulings and award your court costs and a reasonable fee if you win. Agencies must post notices so employees know their rights.

Stronger whistleblower and anti-retaliation rules

State employees are protected from retaliation for reporting wrongdoing or refusing an unlawful or dangerous order. Agencies and local governments also cannot punish workers for protesting equal employment opportunity violations. These rules cover pay, duties, work location, and other job conditions.

Sue the State under key work laws

Most State employees can sue the State in State or federal court under the Fair Labor Standards Act, the Age Discrimination in Employment Act, the Family and Medical Leave Act, and the Americans with Disabilities Act. Exempt policy‑making positions named in the law are not covered by this waiver.

Veterans and Guard get hiring edge

The State gives hiring preference to veterans, eligible North Carolina National Guard members, and certain spouses or dependents. The Commission writes the rules and provides appeal rights. Eligibility depends on things like residency, service, and an honorable discharge.

Workplace safety and workers' comp

OSHR runs a statewide safety and health program for executive agencies, including hazard checks, training, reporting, and accident reviews. OSHR keeps a model program, gives technical help, adopts workers’ compensation policies, monitors compliance, and sets up safety committees.

11-month limit for temp workers

OSHR tracks temporary hires in Cabinet and Council of State agencies and those placed through JoinNC. When a temp reaches 11 straight months, OSHR starts separation in HR and payroll within two weeks unless an approved exception applies. Agencies get written warnings at 90, 60, and 30 days before the 11‑month mark.

Fewer protections for temp and trainee roles

Probationary, experiential, time‑limited, and temporary employees lose many standard HR protections listed in the law. This can limit leave, discipline, and grievance rights while in these roles. The OSHR Director may also exempt experiential programs from more rules for good cause or to meet funder requirements.

Lottery Commission runs its own HR

The Lottery Commission Director and all Commission employees are exempt from most State HR Act rules. Articles 15 and 16 still apply. The Commission sets employee salaries, subject to any other required approvals.

Temporary hiring blocked for big unpaid bills

If an agency owes JoinNC over $200,000 and it is more than 90 days late, OSHR can stop new temporary hires. The ban stays until the overdue invoices are paid. The North Carolina National Guard is exempt.

Conditional E-Verify for public employers

If House Bill 1214 becomes law, state agencies, community colleges, and public school units must run post‑hire E‑Verify checks to confirm work authorization. The act also provides $90,000 in recurring funds in FY 2026‑27 to the Department of Labor for one enforcement position.

E‑Verify expands if HB 1214 passes

If House Bill 1214 becomes law, more entities count as "employers" under E‑Verify. This includes those required to use E‑Verify under the new HR law and counties and cities. Those entities must follow Article 2 of Chapter 64.

Area authorities: higher pay with caps

Area authority boards can propose pay above State ranges if regional pay data supports it and OSHR approves. But their salary plans cannot exceed the highest county plan in the area unless the authority and county boards agree.

Bank regulator staff HR exceptions

The Office of the Commissioner of Banks and its employees are exempt from some State HR rules as allowed by law. Classification, pay, leave, and hours can follow different rules where permitted. The Commissioner’s salary is set by the legislature.

Career status and probation rules

Most new employees become career after 12 months of probation. A supervisor can extend probation once for up to six months. Sworn law‑enforcement and some forensic jobs require 24 months. Moving between agencies resets the time count. If your time‑limited job lasts more than three years, it becomes permanent with no probation. Career employees coming from exempt roles keep career status if they stayed continuously employed by the State.

Chancellors can create or cut campus jobs

A special‑responsibility campus chancellor may create or abolish positions if funds cover the full annual cost. For jobs covered by the State HR Act, this works only under a Performance or Decentralization Agreement and follows State HR rules with OSHR postaudit. For exempt jobs, Board of Governors policies apply.

Court employees get rights and remedies

Judicial-branch employers must give equal job and pay opportunity and cannot retaliate. Judicial employees must report law violations, fraud, misuse of State resources, major safety dangers, or gross waste. If the court breaks whistleblower rules, you can sue within one year. Courts can order reinstatement, back pay, benefits, costs, and attorney fees. Willful violations require three times your damages plus costs and fees.

Fair discipline and clearer appeals

Career employees can be disciplined only for just cause, with written notice and clear appeal rights. You have 15 days to appeal to the agency head and 30 days to appeal the final decision to the Office of Administrative Hearings. Some suspensions without warning are allowed only for serious cases. The law also limits contested-case hearings to issues the statute specifically allows.

Judicial staff records and file rights

The courts must keep a public record for each judicial employee. It includes name, hire date, job, office, current salary (pay, benefits, bonuses, deferred pay), and past changes like raises, promotions, demotions, suspensions, and disciplinary actions. People can inspect and copy these records; a court can order access if it’s denied. If you believe your personnel file has wrong or misleading material, you can add a statement. If your employer agrees it’s inaccurate, it must fix or remove it; this does not let you appeal a performance review or written discipline.

Layoff notice, severance, and retirement rules

Agencies can offer voluntary separation incentives, with budget approval. If you face a reduction in force, you must get at least 30 days’ notice. If you accept a new State job after a RIF, your pay cannot exceed the new job’s salary range maximum. Severance is based on your last annual salary; if you were promoted in the past 12 months, it uses the prior annual salary (adjusted for across‑the‑board raises). Overtime, shift pay, holiday premiums, and longevity pay do not count for severance. Discontinued‑service retirement uses the retirement system’s average final compensation.

Legislative HR rules, privacy, and checks

The legislative branch runs its own HR system, and its policies control when they conflict with other State laws. The Legislative Services Commission may get criminal‑history reports and run post‑hire E‑Verify checks for staff, volunteers, contractors, and registered lobbyists. Legislative personnel files are not public; after 10 years, some former employees’ files may be open, but not discipline or dismissal papers. The legislature must still publish basic facts for each employee, like name, title, salary, pay changes, and job actions.

Legislative staff pay and HR support

The Legislative Services Commission sets job numbers, titles, classifications, and pay for legislative staff. One state retirement rule does not apply to General Assembly temporary employees’ compensation while temporary. OSHR will coordinate HR programs for legislative employees when asked, including flexible pay options, safety and workers’ compensation programs, hiring help, and training.

Local HR control and staffing changes

Counties and some local entities can file local rules on leave, hours, holidays, and pay plan administration that then replace State policies for covered county employees. County boards can set salary ranges and adjust them to local budgets, while keeping pay within adopted minimums and maximums. Counties and certain mental‑health authorities can run a local HR system if the State approves it as substantially equivalent; OSHR checks these systems at least once a year. Beginning Oct 1, 2026, a board’s approval is not needed to keep or reappoint a near relative who became related after initial hiring. Beginning Oct 1, 2026, each elected sheriff and each elected register of deeds must have at least two deputies, with reasonable county pay; a register must justify the second deputy.

New rules for temporary state jobs

Cabinet agencies hire temporary workers through the State’s JoinNC program. Agencies can hire outside JoinNC only for IT work, DOT Ferry peak‑season needs or specific skillsets, or when the Director grants an exception because JoinNC cannot meet needs and failure would cause severe harm. Full‑time students, retired workers, offenders in work‑release, interns, and externs can work past 11 months. Any Director‑granted extension cannot go past 22 months from the first hire date. National Guard exception requests cannot be denied.

New statewide HR system and job types

The law creates a statewide HR system led by the Governor for executive‑branch workers and some local workers paid with federal funds. It defines permanent, non‑permanent, and exempt appointments, which decide job length, protections, and benefits. Local boards may keep local rules and pay plans when the law allows.

New statewide HR system under Governor

Beginning October 1, 2026, the law replaces the old State personnel law and creates a new system. It creates a State Human Resources Commission and the Office of State Human Resources (OSHR) under the Governor. The Commission sets statewide rules on hiring, pay, benefits, discipline, and records; it meets quarterly, has five members for a quorum, and the Governor names the chair. OSHR runs HR programs, keeps statewide data, can grant policy exceptions, and can correct agency problems by adjusting salaries, changing classifications, or suspending delegated authority. Agencies with job classes unique to them may change those classes after consulting OSHR and reporting the change. The new Chapter 126A controls over conflicting old rules, the Commission must repeal unnecessary rules, existing OSHR agreements continue until changed, and pending cases continue. The old Chapter 126 is repealed.

Open postings onboarding and E-Verify

Agencies publicly post most permanent and time‑limited jobs on the State site, unless the agency head limits recruiting under Commission rules. The Commission sets onboarding and reference‑check policies. After hiring, agencies, community colleges, and public schools must verify work authorization using E‑Verify. Employees who knowingly lie about credentials or hide key history can be fired, and agencies must verify credentials within 90 days.

Rules for exempt positions and coverage

The Governor or a Council of State member can request extra exempt positions, and if lawmakers do not act in time, requests are deemed approved after 30 or 90 days. The law expands which employee groups are covered by the related statute on designated and exempt employees. Wardens named as exempt by the agency head must file ethics Statements of Economic Interest. If Senate Bill 257 becomes law, several roles gain or change exemptions starting January 1, 2027.

Universities: HR carve-outs and protections

Most HR Act rules do not apply to UNC‑Chapel Hill Dental Clinical Operations and some other university staff, except Articles 15 and 16. The UNC Board sets job policies for those units. Grandfathered workers in UNC‑CH Dental, ECU Dental, and the Medical Faculty Practice Plan keep their pay and prior discipline rules if they were career employees by the listed dates. Commissioned UNC police officers now get the same employment and retirement benefits as State law enforcement officers.

Who is covered and who is exempt

The State personnel law covers all executive‑branch and certain local employees unless an exception applies. The law also lists many jobs that are exempt from these rules. The UNC Board of Governors can mark positions as exempt without extra review. If your job is exempt, different HR rules can apply to you.

Who is covered by the new HR law

The law updates many statutes to the new Chapter 126A and lists who is in or out. Many public school staff, some community college and other groups are excluded. The Attorney General’s four mental‑health attorneys are covered. The Chief Administrative Law Judge and up to five designated OAH employees are exempt. Workers who mainly run hearings and make legal decisions cannot be made exempt.

School resource officer staffing guaranteed

Each sheriff is entitled to the number of school resource officers needed to meet any signed agreements. This helps ensure SRO positions are filled, and may raise local staffing costs. Effective October 1, 2026.

Caps and rules for exempt jobs

Most Council of State offices can designate up to 25 exempt policymaking and 25 exempt managerial jobs, or 2% of full‑time jobs, whichever is greater. The Superintendent of Public Instruction can designate up to 70 in each category, or 2% if larger; the Labor Commissioner gets three extra attorney policymaking exempt positions. The State Controller is capped at 10 total exempt jobs, and the Elections Director can only exempt seven named titles. By July 1 of a Governor’s oath year, leaders must submit designation letters. The Governor or a Council of State member can later reverse a designation by letter. Beginning Oct 1, 2026, existing exempt designations are automatically moved into matching categories, and agencies must adopt a policy (their own or the Commission’s) on any subject where a position is exempt.

Uniform rules for separations and RIFs

The Commission sets statewide rules for separations, voluntary exit offers, furloughs, and reductions in force. Agencies may use RIFs to reorganize, handle lack of work, or address funding gaps, even without cutting funds or deleting positions. These rules can lead to reassignments or separations.

Codifier of Rules salary set

The Codifier of Rules is paid 90% of the Chief Administrative Law Judge’s salary. The Codifier receives longevity pay instead of merit raises.

Criminal penalties for personnel file snooping

Letting unauthorized people see confidential personnel files, or looking at them yourself without permission, is a Class 3 misdemeanor. A court can fine the violator up to $500 per offense. These penalties apply to both the unauthorized viewer and any official who knowingly allows the access.

Free speech and anti‑retaliation in courts

Judicial‑branch employers cannot force you to affirm certain listed ideas in training or at work. Supervisors and coworkers cannot retaliate if you report wrongdoing or refuse an unlawful or dangerous order. Your employer cannot stop you from speaking with a legislator who asks to talk with you. Contractors may answer questions but must note the employer does not endorse those ideas.

Internal moves and government exchanges

With your consent, an agency may move you into the same job class at equal or higher pay without reposting. Agencies can exchange employees with federal, other state, or local governments for assignments or details. During an exchange, the receiving agency is responsible for travel costs; when North Carolina is the receiver, it may pay under State travel rules.

Legislative jobs: leave credit and equal opportunity

If you move from an executive or judicial job to a legislative job that offers leave, your vacation and sick leave carry over. The General Assembly must provide equal job and pay opportunity without discrimination and cannot retaliate when employees complain.

More privacy for some personnel files

Current judicial employees’ personnel files are not open to the public. Files for former workers 10+ years after separation can be open, but demotions and dismissal papers stay private. ABC Commission personnel records must follow the State’s Article 16 confidentiality and disclosure rules.

New human resources rules for court employees

The Courts’ Director sets HR policies, including post‑hire work‑authorization checks. The Director sets vacation, sick, parental, and other leave. Leave earned in executive or legislative jobs carries over when you move into a court job that offers leave. On request, the State HR office provides help with flexible pay options, safety, workers’ comp, recruiting, training, temporary staffing, and performance systems. The courts must post notices of employee rights.

No politics on state job applications

State job applications cannot ask you to state or endorse views on current political or social issues. You can still share voluntarily. Required legal oaths, license questions, and normal resume content are still allowed.

Old HR cases use prior rules

If your contested case or grievance started before the law takes effect, the old Chapter 126 rules still apply. Claims from actions before the effective date and career status vested by September 30, 2026 also keep the old rules. This protects pending rights tied to events before the change.

Paid leave for HR Commission members

If you serve on the State Human Resources Commission and are a state or local government employee covered by this law, you get administrative leave with full pay for Commission business.

UNC exempt staff choose career status

UNC employees who were exempt from wage and overtime and had career status before September 1, 2023 can choose to keep a career appointment if they stay in the same job held on August 31, 2023. Or they can waive the career appointment and remain exempt. The University must give a written explanation, and the employee must sign within 60 days.

UNC‑Chapel Hill pay plans reviewed

UNC‑Chapel Hill’s Board of Trustees must send new job classification and pay plans, and later changes, to the State HR office for review. OSHR’s comments go to the chancellor and the UNC President. This adds oversight to promote fair and consistent pay practices.

No political coercion in state business

Public servants cannot threaten your license, contract, or regulation to force political support. Violations are a Class 2 misdemeanor. This protects people and businesses that deal with State offices.

Recruit help for state health facilities

The State may hire contractors to help find and recruit health workers for listed state facilities. These recruiting contracts are allowed even with other HR limits. Quality-assurance rules at these facilities cannot cancel the HR law’s requirements.

Appeals favor career workers and ADR

In discipline cases against career employees, the agency must prove just cause. For other cases, the employee or applicant has the burden of proof. The Commission can set alternative dispute resolution options for issues that are not contested cases.

New State Human Resources Commission

The law creates a nine‑member State Human Resources Commission. Seats include attorneys, private HR leaders, state and local employees, and a public member, as the law specifies. Members serve four‑year terms with a two‑term limit. Vacancies are filled following state appointment rules.

Stronger ethics complaint process

The Ethics Commission follows updated rules for personnel-related complaints. Sworn complaints must list facts that show a legal violation. The Commission may open an inquiry after certain referrals or reports.

Study and report on state pay

OSHR must review the job and pay system, consult with agencies and experts, and recommend fixes. By October 1, 2027, it reports findings to legislative committees. Agencies also report hard‑to‑fill jobs when asked, and OSHR adds trends and recommended laws to the annual workforce report.

Claims limited to Article 21 remedies

Any claim under Article 21 of Chapter 95 must use only that Article’s process and remedies. You cannot seek extra relief under other laws for the same claim.

Limits on employee interchange programs

Interchange assignments, details, or leaves cannot last more than two years. Elected officials cannot take part in interchange programs.

Limits on temporary state jobs

Temporary workers cannot serve more than 11 straight months unless a listed exception applies. After 11 months, you must be separated for at least 31 days before returning to the same job. Agencies must notify OSHR before a temp crosses the 11‑month mark.

More at-will control for noncareer staff

Agency heads keep broad control over noncareer staff. They may transfer, demote, or separate a noncareer employee when they decide it helps the agency. Commission policies cannot limit this discretion.

More exempt policymaker roles, with a cap

Agency heads may label certain policymaking staff as exempt, including up to three confidential assistants per agency head and one per chief deputy. Exempt policymaking, designated employees, managers, and wardens lose listed HR protections. The Governor can designate up to 425 exempt policymaking and managerial positions across named departments.

Special HR exemptions for Treasurer and university staff

Specialized Treasurer’s Office staff and university health and police employees are exempt from many standard HR rules listed in the law. This can change pay, leave, discipline, and grievance processes for these groups.

Special rules for teachers and other exempt roles

Jobs paid by an experience‑based pay schedule in the appropriations act are not under Article 4 pay rules. Limited‑exception and statutorily exempt employees, and state employees paid as teachers, lose many listed HR protections. Some local employees also lose listed leave and related protections.

Agencies fund assigned DOJ lawyers

The Attorney General assigns full-time DOJ lawyers to certain commissions. Agencies that receive an assigned lawyer must repay DOJ for the lawyer’s pay and support costs. An assigned lawyer at UNC Hospitals is paid from hospital funds.

OSHR may charge training and admin fees

OSHR may charge fees for required services and training, for running the temporary‑work program (JoinNC), and for local‑government training or consulting on request. Agencies and local governments may need to budget for these costs.

Tighter prison access to staff records

People in state prisons or local jails cannot get public personnel files unless a court orders it. For court employees’ files, a court order is also required. Lawyers probing staff misconduct may receive an employee’s name, job, and dates of work, but cannot share copies with offenders without a court order. The law also says recordings are not public or personnel records.

New executive director at a commission

A State commission must hire an Executive Director, who is exempt from the Human Resources Act. The Director can train and hire contractors to issue licenses, collect fees, and enforce rules, and may run background checks.

Agency heads accountable for HR rules

Agency heads must carry out State Human Resources Commission policies. They are the main officials responsible for HR rule compliance in their agencies.

Background checks at DHHS schools

DHHS schools can request a criminal record check on workers, applicants, and volunteers who consent. DHHS must keep the results confidential under State HR privacy rules.

Court employee records: privacy and disclosure

Most non‑public court personnel records stay confidential. The law lists who can see them, like the employee or agent, supervisors, a potential supervisor for limited documents, lawmakers, parties with a court order, certain officials for judicial work or safety, and HR staff for HR duties. Medical records can go only to a licensed doctor named in writing by the employee. A court employer can disclose personnel actions when needed for integrity or service quality, but must keep a public memo explaining the disclosure.

Equal employment training and penalties

Agencies must enroll each new supervisor or manager in equal‑employment training within one year, using training the State HR office offers or approves. Breaking the Article, including the training‑content ban, can lead to discipline. Repeated or deliberate violations can result in dismissal or removal from office.

Local public health HR rules updated

Local health departments hire and dismiss staff under the new State HR law. Employees supervised by a public health authority director are treated as authority employees and are exempt from the State HR law unless this Part says otherwise.

New state employee discipline policy

OSHR must propose a revised discipline policy by December 1, 2026. If the Governor approves, the Commission adopts the new policy by April 1, 2027. This changes how agencies manage performance and conduct, which may tighten some processes and improve clarity for employees.

Off-duty political rights and penalties

Supervisors cannot stop you from political activity when you are off duty. If you are on 24‑hour duty, you may do political activity except during your regular work hours. A willful violation by a supervisor is a Class 1 misdemeanor. Employees who falsely accuse someone of coerced political contributions without probable cause can be disciplined and may face criminal or civil liability.

Optional IT track without longevity pay

Some Information Technology employees may choose a limited‑exemption track. They must give up longevity pay and any claim to career status. The State CIO and the OSHR Director must approve.

Paid reassignment during criminal charges

If criminal charges are filed against you, your agency can move you to different duties without your agreement. Your pay cannot be cut because of the move. The reassignment ends if charges are dropped or you are found not guilty. The agency can still take discipline if there is just cause.

Politics and speech rules at work

You cannot manage or promote campaigns on duty or use State resources for politics. No one can force you to donate, change party, or endorse certain training ideas. If a legislator asks to speak with you, your agency cannot block that contact. Contractors answering training questions must say the agency does not endorse the listed ideas.

Report wrongdoing and sue for retaliation

State employees must report evidence of crimes, fraud, misuse of State money, big safety dangers, or gross waste to a supervisor or the right authority. If you are not covered by Article 8 and suffer retaliation, you can sue in superior court. You must file within one year of the event.

Sheriff and register hiring limits

Beginning October 1, 2026, county boards cannot place sheriff’s office employees under the State HR Act. Also starting October 1, 2026, county boards must approve hires by a sheriff or register of deeds who are close relatives or who were convicted of a crime involving moral turpitude.

Some rules apply only to new hires

Two specific sections of the new HR law apply only to employees hired on or after October 1, 2026. If you were hired before that date, earlier rules keep applying for those topics.

State human resources help for local agencies

The State can give local governments training, job‑posting help, HR answers, and salary data. If a local agency plans to hire someone who lacks required qualifications, the State can alert local leaders and health officials. If asked to judge qualifications, the State can share parts of an applicant’s file with DHHS staff. Local agencies may pay bonuses, but they must follow the same rules used for executive‑branch bonuses.

Status changes for select state jobs

Some job statuses change. Nonfaculty instructional and research staff the law defines are exempt from the HR Act. The Plan’s Executive Administrator is exempt, while the Chief Engineer’s pay follows HR Act rules. Roanoke Island Festival Park staff become employees of Natural and Cultural Resources and are paid from the Historic Roanoke Island Fund; their prior HR designations stay the same.

Stronger privacy for personnel files

Most personnel-file information is confidential. Only listed people can see it, like you, your supervisors, HR, legislators, certain officials, and courts. Knowingly allowing or making unauthorized access is a Class 3 misdemeanor with a fine up to $500. For legislative staff, the employer may disclose job actions with a written memo that becomes public. Legislative employees can add a statement to dispute material, and the employer must fix material found to be wrong.

Stronger privacy for personnel records

The State sets rules for how agencies keep and protect personnel files. Most employee files are confidential. Former‑employee files can be inspected after 10 years, but papers on demotions and dismissals stay private. Agencies must keep detailed records and allow inspection and copying as the law allows. Only listed people can see confidential items, and employees can add statements or ask to remove inaccurate material. Knowingly letting unauthorized people access a confidential file is a Class 3 misdemeanor, with a fine up to $500.

Clear rules for exempt positions

Agencies must give 10 working days' written notice before placing a worker into an exempt policymaking or managerial job, and applicants are told in writing when they apply. New leaders must send their exempt designations within 180 days after taking office. They may also designate jobs created or moved after July 1 of the Governor’s oath year within 180 days. If another law sets a different process, that job is exempt from this Chapter only for that conflict.

Extra exemptions if other bills pass

If House Bill 1214 becomes law, the Labor Commissioner can mark three more attorney jobs and one compliance job as exempt policymaking. If House Bill 171 becomes law, UNC and Community College System Office employees are exempt from G.S. 126A‑104.5.

Legislature sets its HR rules

The Legislative Services Commission sets HR policies for the legislative branch. A prior statute on this topic is repealed. Together, these changes centralize rule-making for legislative employees.

Obsolete HR statutes repealed

The law repeals two older HR statutes. Removing them updates and simplifies the legal code for personnel matters.

Sponsors & Cosponsors

Cosponsors

W. Ted Alexander
Republican • Senate
Danny Earl Britt, Jr.
Republican • Senate
Jim Burgin
Republican • Senate
Warren Daniel
Republican • Senate
Carl Ford
Republican • Senate
Ralph Hise
Republican • Senate
Mark Hollo
Republican • Senate
Steve Jarvis
Republican • Senate
Michael A. Lazzara
Republican • Senate
Chris Measmer
Republican • Senate
Timothy D. Moffitt
Republican • Senate
Brad Overcash
Republican • Senate
Norman W. Sanderson
Republican • Senate
Benton G. Sawrey
Republican • Senate
Vickie Sawyer
Republican • Senate
Eddie D. Settle
Republican • Senate