Summary of July 2025 Labor Law Updates for Charlotte, North Carolina
The Charlotte team from HKM Employment Attorneys presents this monthly legal roundup for employees, HR professionals, and compliance leaders. Below, we summarize significant labor and employment law developments from July 2025 in North Carolina.
July 2025 has been a pivotal month for labor and employment law in North Carolina. Key developments include modernization of state hiring processes, the anticipated ban on noncompete agreements for lower-wage workers, and proposed sweeping economic security reforms. HR departments and employers should stay alert as these rules evolve. If you have questions or need legal guidance navigating these changes, contact HKM Employment Attorneys via https://hkm.com.
Session Law 2025-34: State Hiring Accessibility and Modernization — Legislation
Date: July 1, 2025
Summary: Governor Josh Stein signed S124 into law as Session Law 2025‑34, enacting key reforms to modernize state human resources. The legislation enables applicants to upload resumes or online profiles for state job applications, allows more flexible substitution of work experience for education requirements, expands temporary-to-permanent hiring across agencies, streamlines job postings and classifications, and authorizes sign-on and retention bonuses at the local level. Changes are effective immediately upon enactment.
Implications: This legislation is a win for job seekers—particularly those without four-year degrees—as it lowers barriers to state employment. HR professionals and agencies must update processes, adopt resume/profile upload tools, and revise job descriptions and classification policies accordingly.
House Bill 269: Workforce Freedom and Protection Act (Noncompete Ban) — Legislation
Date: Effective July 1, 2025 (as proposed)
Summary: HB 269 (Workforce Freedom and Protection Act) prohibits employers from enforcing noncompete and non‑poaching agreements against employees earning less than $75,000 annually, effective July 1, 2025. This includes restrictions barring work in certain geographies or industries, or restricting employment post-employment.
Implications: The statute—once enacted—would significantly increase mobility for lower-wage employees and challenge existing employer practices. Employers must reevaluate and likely revise employment contracts; employees would gain more freedom to change jobs without risk of legal penalties.
House Bill 339: Economic Security Act of 2025 — Pending Legislation
Date: Proposed March 11, 2025; effective dates mostly in 2026
Summary: HB 339, the Economic Security Act, proposes sweeping changes: raising the minimum wage to $22/hour (indexed for inflation), mandating equal pay for equal work, requiring paid sick and family leave and workplace safety protections, reinstating unemployment benefits, expanding paid leave, increasing tipped minimums, “ban the box” for hiring, repealing restrictions on public employee collective bargaining, and restoring tax credits and cost-of-living adjustments for retirees. Most provisions become effective upon enactment, with minimum wage changes starting January 1, 2026.
Implications: This legislation would dramatically enhance worker protections and benefits. Employers must monitor its progress, prepare for compliance with new wage, leave, and pay equity rules, and adjust policies accordingly.
Additional Context (Pending or Broader Developments)
- Budget & Vacancies: The state legislature remains embroiled in budget negotiations affecting job vacancies and staffing; House and Senate proposals diverge on cuts, programs, and funding levels.
- DEI and Identity-related Bills: Governor Stein vetoed several bills in early July targeting DEI programs and transgender rights, though the legislature may attempt overrides.
- Transgender-related provisions: Subsequent legislative actions include retroactive restrictions on state-funded gender transition procedures for incarcerated individuals and new statutory protections affirming parental rights in gender-related child-rearing decisions.
Conclusion: Looking Back on North Carolina Labor Law Updates from July 2025
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, local insight, and a no‑fee‑unless‑we‑win promise 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.
