North Carolina HB 403: Workers' Rights Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 403

Short Title: Workers' Rights Act. (Public)
Sponsors: Representatives Logan, Greenfield, Harrison, and Roberson (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 17, 2025
*H403-v-1*
A BILL TO BE ENTITLED 1
AN ACT PROTECTING WORKERS' RIGHTS IN NORTH CAROLINA AND 2
APPROPRIATING FUNDS FOR THAT PURPOSE. 3
The General Assembly of North Carolina enacts: 4
5
PART I. INDIVIDUAL PROTECTIONS 6
7
AT-WILL EMPLOYMENT ABOLISHED 8
SECTION 1.1. Abolish At-Will Employment. – The General Assembly finds that: 9
(1) The origin of the employment at-will doctrine has been traced back to an 1877 10
treatise that legal scholars have since questioned. The employment at-will 11
doctrine is disfavored by several states and by almost all modern, 12
industrialized nations. The employment at-will doctrine allows an employer 13
to terminate an employee for unfair reasons or for no reason at all, with this 14
imbalance of power created by the employment at-will doctrine adversely 15
affecting personal freedom and economic security. 16
(2) The implied covenant of good faith and fair dealing is an important legal 17
doctrine that underpins the Uniform Commercial Code in section 1-304. The 18
implied covenant of good faith and fair dealing is recognized by the American 19
Law Institute as section 205 of the Restatement (Second) of Contracts. 20
(3) Good public policy dictates that acts of bad faith should not be tolerated just 21
because they are committed as part of an employment contract, thus 22
warranting the statutory prohibition of at-will employment contained in this 23
act. 24
SECTION 1.2. Article 3 of Chapter 95 of the General Statutes is amended by adding 25
a new section to read: 26
"§ 95-31.1. Covenant of good faith and fair dealing; at-will employment abolished. 27
(a) The General Assembly finds that every contract for employment, whether the contract 28
is written or oral, consists of both express and implied terms that are legal covenants between the 29
parties to the contract. Further, the General Assembly declares that an implied covenant of good 30
faith and fair dealing is part of every employment contract in this State. Therefore, it is the public 31
policy of this State that the employment at-will doctrine is inconsistent with the implied covenant 32
of good faith and fair dealing that is part of every employment contract in this State. 33
(b) The doctrine of at-will employment is abolished in this State. 34
(c) An employee in this State may only be fired for just cause." 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 403-First Edition
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MANDATORY PAID WORK BREAKS AND PAID MEAL PERIODS 2
SECTION 1.3. Article 2A of Chapter 95 of the General Statutes is amended by 3
adding a new section to read: 4
"§ 95-25.6A. Paid work break and meal period required. 5
(a) An employee who is to work more than six continuous hours during a 24-hour period 6
shall be provided a paid meal period of 60 minutes and at least one paid work break of 15 minutes. 7
(b) An employee who is to work six continuous hours or less during a 24-hour period 8
shall be provided at least one paid work break of 15 minutes." 9
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ELIMINATE THE SUBMINIMUM WAGE FOR TIPPED EMPLOYEES 11
SECTION 1.4. Effective January 1, 2026, G.S. 95-25.3(f) reads as rewritten: 12
"(f) Tips earned by a tipped employee may be counted as wages only up to the amount 13
permitted in section 3(m) of the Fair Labor Standards Act, 29 U.S.C. 203(m), if the tipped 14
employee is notified in advance, is permitted to retain all tips and the employer maintains 15
accurate and complete records of tips received by each employee as such tips are certified by the 16
employee monthly or for each pay period. Even if the employee refuses to certify tips accurately, 17
tips may still be counted as wages when the employer complies with the other requirements of 18
this section and can demonstrate by monitoring tips that the employee regularly receives tips in 19
the amount for which the credit is taken. shall not be counted as wages. Tip pooling shall also be 20
permissible among employees who customarily and regularly receive tips; however, no 21
employee's tips may be reduced by more than fifteen percent (15%) under a tip pooling 22
arrangement." 23
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NO DISCRIMINATION OR RETALIATION FOR DISCLOSING WAGE 25
INFORMATION 26
SECTION 1.5.(a) Article 2A of Chapter 95 of the General Statutes is amended by 27
adding a new section to read: 28
"§ 95-25.6B. Right to disclose and discuss wage information. 29
(a) The General Assembly finds that an employee has the right to disclose and discuss 30
information about employee wages. 31
(b) No employer may do any of the following: 32
(1) Require, as a condition of employment, that an employee refrain from 33
disclosing the amount of the employee's wages. 34
(