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2025 presented several developments in North Carolina that impact employers.
First, North Carolina's Workplace Violence Prevention Act was amended. The amendments expand employer-initiated protections, allowing a business to seek a civil no-contact order on behalf of the entire workforce, rather than just individual employees, to prevent acts that threaten safety or disrupt operations. This broader standing gives employers additional power to address workplace threats and safety risks proactively.
House Bill 805 became effective on January 1, 2026. This law provides for purposes of any state administrative rules, regulations or public policies, "sex" means a person's biological sex, male or female, at birth. Additionally, the law provides that an individual's self-declared gender identity will not be treated as legally or biologically equivalent to sex. This definition of sex, which excludes self-declared gender identity, may impact the scope of North Carolina's cause of action for wrongful discharge in violation of public policy. North Carolina's espoused public policy regarding "sex" may provide a defense in wrongful discharge claims in which discrimination against an employee's self-declared gender identity is asserted as a protected trait.
On the horizon for 2026 is a push to ban non-compete agreements for employees that fall under a specific compensation level. The NC House has proposed the Workforce Freedom and Protection Act. This bill proposes to ban non-compete agreements for employees earning under $75,000 annually. Banning non-competes that limit unskilled employee's right to work has been a trending topic in the legislature for several years.
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