In a move that will impact businesses across North Carolina, the state’s General Assembly recently approved a budget for the period from July 1st, 2023, through June 30th, 2025. One of the most notable changes in this budget is a set of modifications to workplace legal compliance. Governor Roy Cooper has allowed the budget to become law without his signature. Continue reading to explore the key changes that businesses and employers in North Carolina need to be aware of in terms of safety citations, adopting new standards, and the impact on local wage and hour laws.
Safety Citation Timing
Effective October 1st, 2023, the North Carolina Department of Labor (NCDOL) will have six months following the occurrence of any Occupational Safety and Health Act of North Carolina (OSHANC) violation to issue a citation to employers. This adjustment brings the OSHANC statute of limitations back in line with most states, those with their own safety and health laws, and those where the federal government administers these laws.
Before this change, NCDOL had the authority to issue citations for violations dating back to the 1970s, as long as they were issued within six months after NCDOL initiated an inspection. However, this modification limits citations to violations occurring within six months of the citation being issued. Employers should now carefully consider the timing of their inspections and ensure compliance within this window.
Adopting New Standards
The budget eliminates an exception in state law that allowed NCDOL to adopt occupational safety and health standards identical to federal regulations without the usual process of public notice, comments, hearings, and oversight by the North Carolina Rules Review Commission. Starting July 1st, 2023, all changes to OSHA standards adopted by NCDOL will be subject to this oversight.
This change aligns with federal law, which requires state plans to maintain standards “at least as effective” as federal OSHA standards. It also means that employers may have a basis to challenge the legality of any OSHA standard adopted by NCDOL after July 1st, 2023, that does not go through the standard rulemaking process.
Local Wage And Hour Laws
Perhaps one of the most impactful changes for employers is the budget’s statement that policies outlined in the North Carolina Wage and Hour Act now supersede and preempt any local government ordinances, regulations, or policies pertaining to the compensation of employees. This includes wage levels, hours of labor, payment of wages, benefits, leave, and the well-being of minors in the workforce.
While local governments can still regulate their own employees and enact measures to comply with certain programs, they are barred from adopting minimum wage, overtime, or paid leave laws that differ from state law. This move eliminates the potential for a patchwork of local wage and hour laws, which can create compliance challenges for employers.
It’s important to note that any modifications to North Carolina’s minimum wage, overtime, or paid leave laws must be enacted statewide, as the state’s constitution already prohibits the General Assembly from enacting local laws regulating labor matters.
Your Guiding Light
North Carolina business owners often find themselves in unfamiliar terrain in the ever-shifting landscape of workplace regulations and legal compliance. Navigating the complex maze of state-specific laws can be daunting. However, there’s a guiding light in the form of a professional employer organization (PEO). Picture a PEO as your customized compass, finely tuned to navigate North Carolina’s unique regulatory waters. It’s your trusted ally, ensuring you stay compliant and sail smoothly through the intricacies of state laws. With a PEO like GMS by your side, you’re not just ticking checkboxes; you’re unfolding the sails of your business towards untapped horizons. It’s not just assistance; it’s a transformative voyage toward unlocking North Carolina’s business potential. So, don’t merely comply – transcend and let a North Carolina-focused PEO be your guiding star on this journey. Get a quote from us today.