For the first time since the late 1800’s, both chambers of the North Carolina General Assembly (NCGA) are controlled by the Republicans. This year’s NCGA session ended early, but legislators did reconvene briefly in July to deal with redistricting, vetoes and bills in conference. The NCGA’s new leadership tackled job creation, regulatory reform, tort reform and taxes with their legislative decisions.
To ensure your organization is informed on the recent legal outcomes, as well as stays compliant with the different changes NCGA has imposed, please review summaries of bills affecting wor
kplace issues from the 2011 session:
H709—Protect and Put NC Back to Work: CAI and ECNC (Employers Coalition of North Carolina) have been focusing efforts on workers’ compensation reform since 2003, and this year were part of a large coalition of business advocacy groups who helped draft, lobby and negotiate the final version of the bill. New workers’ compensation claims will now be subject to a cap of 500 weeks on temporary total disability, “suitable employment” criteria has been revised to encourage return to work and employers will have reasonable access to medical information and treating physicians. The NCIC (North Carolina Industrial Commission) will be affected by dramatic changes, including legislative confirmation to gubernatorial appointments and requirements to comply with standards of judicial conduct and rulemaking procedures under the Administrative Procedures Act. To read this bill, go to http://j.mp/h709nc.
Status: Passed the House and Senate with almost unanimous support and was signed by the Governor on June 24, 2011.
S532—ESC/Jobs Reform: CAI and ECNC have taken the lead on reforming North Carolina’s Employment Security Commission (ESC). We made sure that your voices were heard in Raleigh regarding the “head scratching” unemployment decisions that resulted in unwarranted charges to your unemployment accounts. CAI and ECNC worked with House and Senate leadership to design and draft this bill, which not only merges the ESC into the Department of Commerce but also makes important clarifications to unemployment insurance benefit eligibility language such as employee misconduct. To read this bill, go to http://j.mp/s532nc.
Status: Passed the Senate and House but was vetoed by the Governor on June 30, 2011. The Senate overrode the veto on July 13, 2011 and the House overrode the veto on July 26, 2011.
S99—Reform UI Tax Structure/Expedite Analysis: This bill requires the Department of Commerce to hire an independent consultant for assistance in solving North Carolina’s unemployment insurance tax issue and the $2.5 billion owed to the federal government. Within 45 days of the completion of the analysis, the Department of Commerce will report to the Governor and the General Assembly how it intends to solve the problem. However, no specific date for starting the study is given. To read this bill, go to http://j.mp/s99nc.
Status: Passed the Senate and the House, signed by the Governor and ratified on March 29, 2011.
H650—Amend Various Gun Laws/Castle Doctrine: This bill merges two bills: H63—Firearm in Locked Motor Vehicle and H650. H63 is no longer in play. The original bill had a section requiring all employers to allow employees to bring their guns to work if they were kept locked in the employee’s car trunk. ECNC opposed that version of the bill. An amendment on the House floor removed the “guns in trunks” section of the bill. To read this bill, go to http://j.mp/h650-nc.
Status: The bill was passed by the House and the Senate and was signed by the Governor on June 23, 2011.
H36—Employers and Local Government Must Use E-Verify: This bill requires all public and private employers to use E-Verify when hiring new employees. The original bill required only private sector employers bidding on public contracts to use the system. It was expanded by the Senate to require all employers with a staff of 25 or more to use E-Verify, and now addresses concerns raised by the business community regarding penalties and processes. To read this bill, go to http://j.mp/h36-nc.
Status: The bill was passed by the House and the Senate and was signed by the Governor on June 23, 2011.
H30—Allow Wage Garnishment to Satisfy Judgments: This bill allows a creditor to seek garnishment of a debtor’s wages once certain criteria have been met. There are specific guidelines regarding what can be garnished and how the garnishment can take place—a change from the original bill which allowed for greater latitude. The final version of the bill dramatically narrows what can be garnished. To read this bill, go to http://j.mp/h30-nc.
Status: The bill has passed the House and was heard by Senate before being placed in the Senate Judiciary I Committee. It may be taken up again during the 2012 Short Session.
S386—Repeal G.S. 95-98 (Contracts between units of government and labor unions, trade unions or labor organizations concerning public employees declared to be illegal): For the past several sessions, this bill to allow collective bargaining for public employees has been filed in both chambers. There was no chance of it passing in this session. To read this bill, go to http://j.mp/s386nc.
Status: Sent to Senate Rules Committee and never heard.
H223—Healthy Families & Workplace/Paid Sick Leave: This sick leave bill has been filed during several sessions but with the new House leadership, there was never even a hearing on the bill. To read this bill, go to http://j.mp/h223-nc.
Status: Sent to House Commerce Committee and never heard.
ECNC is the only group in North Carolina that focuses exclusively on providing the business community with an avenue of public policy input on day-to-day employer-employee workplace issues. CAI and ECNC persistently spend long hours promoting bills at the NCGA on employers’ behalf. Support from CAI’s members and other proponents of their work have helped create the successes of workers’ comp and unemployment reform. Continued support from their advocates will help CAI and ECNC continue their public policy efforts to address and resolve critical workplace issues for employers of North Carolina.
For more information on any of the rulings above or to find out how CAI can help you with your compliance issues, please contact a member of CAI’s Advice and Counsel Team at 919-878-9222 or 336-668-7746.
Photo Source: Brian Turner, dbking