North Carolina SB 1041: Public Workforce Modernization Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2026-40
SENATE BILL 1041

*S1041-v-6*
AN ACT TO MODERNIZE AND SIMPLIFY THE STATE HUMAN RESOURCES SYSTEM.

The General Assembly of North Carolina enacts:

PART I. MODERNIZED STATE HUMAN RESOURCES
SECTION 1. The General Statutes are amended by adding a new Chapter to read:
"Chapter 126A.
"North Carolina Human Resources Act.
"Article 1.
"State Human Resources System.
"Part 1. Goals, Definitions.
"§ 126A-1. Purpose of Chapter.
(a) It is the intent and purpose of this Chapter to establish a decentralized human
resources system, where appropriate, without additional cost to the State, under the direction of
the Governor, based on modern principles of personnel administration, that applies the best
methods evolved through government and industry. It is also the purpose of this Chapter to apply
the human resources system to the employees of the executive branch and to local employees
paid entirely or in part from federal funds, except to the extent that local governing boards are
authorized by this Chapter to establish local rules, local pay plans, and local personnel systems.
Agency heads shall be responsible and accountable for execution of Commission policies and
rules for their employees.
(b) To ensure that State government continuously serves the best interests of the people
of North Carolina, the human resources system established by this Chapter shall be governed by
the following core principles:
(1) Public service employment should be based on equal opportunity and free of
discrimination on any basis prohibited by federal or State law.
(2) The value of public service should be bolstered by fair compensation and
benefits, stable career paths, employment protections, opportunities for
engagement and development, and an ability to make a positive impact for the
people of North Carolina.
(3) Accountability to the public and within agencies should be maintained by
establishing clear roles, measurable goals, and transparent reporting to ensure
compliance with law and policy.
"§ 126A-2. Definitions.
(1) Agency. – An executive branch agency or a local agency.
(2) Agency head. – The head of an agency, such as a member of the Council of
State, a cabinet Secretary, the President of The University of North Carolina,
or an executive director of a commission.
(3) Cabinet agency. – An executive branch agency that is under the control of the
Governor.
(4) Career employee. – An employee in a career appointment as provided in Part
2 of this Article.

Page 2 Session Law 2026-40 Senate Bill 1041
(5) Commission. – The State Human Resources Commission.
(6) Council of State agency. – An executive branch agency under the control of a
member of the Council of State.
(7) Director. – The Director of the Office of State Human Resources.
(8) Employee. – An individual hired to carry out assigned tasks in return for
payment operating under the guidance and supervision of an employing
agency. This term does not include independent contractors.
(9) Employing agency. – The agency that hired an employee and has the power
to separate the employee from a position.
(10) Executive branch agency. – Any department, commission, division, board,
bureau, council, or institution of the State within the executive branch of
government, including The University of North Carolina.
(11) Exempt managerial employee. – An employee designated as an exempt
managerial position as provided in Part 3 of this Article.
(12) Exempt policymaking employee. – An employee designated as an exempt
policymaking position as provided in Part 3 of this Article.
(13) Experiential program. – A program for both employment and educational or
training purposes, such as a registered apprenticeship, informal
apprenticeship, fellowship, or other work-based learning program.
(14) Local agency. – One of the following:
a. Area mental health, developmental disabilities, and substance abuse
authorities, except as otherwise provided in Chapter 122C of the
General Statutes. A consolidated county human services agency
created pursuant to G.S. 153A-77(b) is not considered a local agency
under this subdivision.
b. Local social services departments.
c. County health departments and district health departments.
d. Local emergency management agencies that receive federal
grant-in-aid funds.
(15) Local employee. – An employee of a local agency and any other county
employee as designated by a board of county commissioners.
(16) OSHR. – The Office of State Human Resources.
(17) Personnel professional. – Any employee whose primary job duties involve
administrative personnel and human resources functions.
(18) Policy. – A policy, rule, standard, practice, procedure, criteria, or regulation
established by the Commission, subject to the approval of the Governor.
(19) Qualifications. – Training, education, years of experience, or other skills,
knowledge, and abilities that bear a reasonable functional relationship to the
abilities and skills req