May 2026 Labor Law Updates for Charlotte, North Carolina
May brought several important developments for North Carolina employees, HR professionals, and compliance leaders, including appellate rulings on discrimination, wage retaliation, workers’ compensation, unemployment appeals, and employee departures. This North Carolina labor law roundup from HKM Employment Attorneys also covers a significant wage-and-hour enforcement action and two proposed state workforce measures.
North Carolina workplace rights continue to evolve through court rulings, state enforcement activity, and proposed legislation. Employees and employers with questions about discrimination, retaliation, unpaid wages, workplace injuries, restrictive covenants, or other North Carolina labor law issues can contact HKM Employment Attorneys to discuss their legal options.
Bah v. Sampson Bladen Oil Company, Inc. — Federal Appellate Ruling
Date: May 29, 2026
Summary: The Fourth Circuit affirmed summary judgment for the employer in a lawsuit alleging race discrimination under Title VII and retaliation under North Carolina’s Retaliatory Employment Discrimination Act (REDA). The employee alleged she was assigned lower-performing stores and later fired because of her race and because she raised overtime concerns. The court found that the employer had documented legitimate reasons for its actions, including performance and communication issues, and that the employee did not show those reasons were a pretext for discrimination. The court also concluded that her internal discussions about overtime did not qualify as a protected REDA complaint. This was an unpublished opinion and is not binding precedent in the Fourth Circuit.
Implications: For North Carolina employers, the case highlights the value of contemporaneous performance documentation and clear, consistently applied workplace policies. Employees considering a wage-retaliation claim should understand that the content and context of a complaint can affect whether it receives REDA protection.
Smith v. The BDK Group Shallotte, LLC — North Carolina Workers’ Compensation Ruling
Date: May 6, 2026
Summary: In a published decision, the North Carolina Court of Appeals held that the Industrial Commission had exclusive jurisdiction over a district manager’s work-related injury claims. The employee experienced a medical emergency while working and initially filed a workers’ compensation claim. After the Industrial Commission dismissed that claim without prejudice, he pursued civil claims in Superior Court. The Court of Appeals reversed the trial court’s denial of the employers’ motions to dismiss, finding that the pleadings established an employment relationship, a work-related injury, and no applicable exception to the Workers’ Compensation Act’s exclusivity rule.
Implications: This May 2026 employment update reinforces that many workplace-injury disputes must begin before the North Carolina Industrial Commission rather than in civil court. Employees and employers should evaluate the proper forum early, particularly when claims arise from an injury occurring during the course of employment.
Franzo v. North Carolina Division of Employment Security — Unemployment Benefits Appeal
Date: May 6, 2026
Summary: The North Carolina Court of Appeals affirmed dismissal of an unemployment-benefits appeal involving an alleged overpayment. The claimant timely filed a petition for judicial review but did not serve her former employer, a party to the Division of Employment Security proceeding, within the statutory 10-day period. The court held that the service requirement under N.C. Gen. Stat. § 96-15(h) is jurisdictional, meaning the court lacked authority to hear the appeal. The opinion was unpublished and is not controlling precedent.
Implications: Employees appealing North Carolina unemployment decisions must closely follow service deadlines and provide notice to every required party. Employers should also monitor appeals involving their former employees because they may have formal rights and obligations in the review process.
Relation Insurance, Inc. v. Pilot Risk Management Consulting, LLC — North Carolina Supreme Court Ruling
Date: May 22, 2026
Summary: The North Carolina Supreme Court issued a major decision involving former employees who left a Greensboro insurance agency for a competing business. The dispute included alleged violations of confidentiality and non-solicitation agreements, trade-secret claims, alleged misuse of electronic information, and questions about evidence preservation. The court affirmed summary judgment on the employer’s unjust-enrichment claim but reversed and remanded the other appealed claims for further proceedings, including claims affected by issues surrounding spoliation of evidence.
Implications: The decision is a reminder that employee exits can create substantial legal risk when confidential information, customer data, restrictive covenants, or company systems are involved. Employers should maintain clear offboarding procedures and data-access controls, while employees should avoid transferring, deleting, or using employer information after departure.
North Carolina Department of Labor Action Against Elevation Pediatric Therapy — Wage-and-Hour Enforcement
Date: May 7, 2026
Summary: The North Carolina Department of Labor filed a motion to compel against Elevation Pediatric Therapy, LLC, and its CEO and registered agent during an ongoing Wage and Hour Bureau investigation. According to NCDOL, 14 former employees alleged unpaid wages and/or missing payroll documentation involving work performed between March 2025 and March 2026. The agency reported that the combined alleged unpaid-wage amount was approximately $36,714.68. The allegations had not been adjudicated as of the agency’s announcement.
Implications: The action underscores North Carolina’s enforcement focus on wage payment and payroll-record compliance. Employers should maintain accurate wage records, respond promptly to agency inquiries, and ensure that final-pay and overtime practices comply with the North Carolina Wage and Hour Act.
Senate Bill 1082, the NC Right to Work Amendment — Proposed Constitutional Amendment
Date: May 20, 2026
Summary: The North Carolina Senate passed Senate Bill 1082, the NC Right to Work Amendment, and sent it to the House. The proposal would add a right-to-work provision to the North Carolina Constitution stating that a person’s right to work cannot be denied or restricted because of union membership or nonmembership. If approved by the General Assembly, the proposal would be submitted to voters in the November 3, 2026 statewide election. The measure did not change North Carolina law in May.
Implications: This was one of the month’s most significant union and workplace-policy developments. Employers, employees, and labor organizations should monitor the bill’s House progress because a constitutional amendment could shape future debates over organized labor and workplace rights in North Carolina.
Senate Bill 1041, the Public Workforce Modernization Act — Proposed State Employment Legislation
Date: May 4, 2026
Summary: Senate Bill 1041 advanced through its first legislative steps in May. The proposal would establish a new Public Workforce Modernization Act and restructure aspects of the state human-resources system affecting state agencies, universities, and certain locally administered programs supported by federal funding. Its stated goals include a more decentralized human-resources framework, equal employment opportunity, nondiscrimination, fair compensation and benefits, and career-development opportunities for public employees.
Implications: Although the bill was not an effective change to North Carolina employment law in May, public-sector employers and employees should watch its progress. A substantial revision to the state workforce framework could eventually affect HR authority, compensation practices, employee protections, and workplace policies across state government.
Conclusion: Looking Back on North Carolina Labor Law Updates from May 2026
With North Carolina courts increasingly addressing discrimination, breach of contract, unpaid wages, and retaliatory employer conduct, having a dedicated employment lawyer in Charlotte is more critical than ever. At HKM Employment Attorneys in Charlotte, our all-plaintiff team—including managing partner Sunny Panyanouvong‑Rubeck and experienced litigator Taylor Adams—specializes in representing employees on issues from non-competes and harassment to wage and hour disputes with zero upfront fees . We bring trial-tested advocacy and local insight to every case. If recent court rulings in the Charlotte area have you reviewing your rights at work, reach out to our Charlotte office and let us help you take action.
