HB 339 — Economic Security Act (2025) — Summary
Status & timing
- Short title: Economic Security Act of 2025.
- Introduced/Filed (various entries): late 2024 / early 2025; in the North Carolina General Assembly the bill had its first reading March 11, 2025.
- Key effective dates in the text: Minimum wage provisions take effect January 1, 2026; annual CPI adjustment process begins with a published adjusted rate on September 30, 2026 (effective the following January 1). Other provisions generally take effect when the act becomes law unless otherwise noted.
Purpose
- A broad package of workforce, wage, leave, anti-discrimination, tax-credit, and retirement provisions intended to increase economic security for workers and retirees by raising wages, expanding paid leave and workplace protections, restoring benefits, and providing targeted tax credits.
Key provisions (high-level)
- Living wage
- Raises the state minimum wage to $22.00 per hour effective January 1, 2026.
- Establishes an annual automatic adjustment tied to the Consumer Price Index (CPI-U, All Urban Consumers, U.S. City Average); adjustments are calculated/published each September 30 and take effect the following January 1.
Equal pay
- Adds an “Equal Pay Act” article prohibiting wage disparities based on sex for the same classification of work; allows civil actions and administrative complaints. Employer definition includes entities with more than five employees.
Paid leave & workplace protections
- Creates a “Healthy Families and Healthy Workplaces Act” to require paid sick leave and paid family/medical leave and to add workplace safety, emergency and evacuation protections. (Text in committee report establishes definitions and framework; full accrual/eligibility rules not included in excerpt.)
Unemployment insurance & gig workers
- Restores unemployment insurance benefits adjusted for inflation and requires study of UI coverage/benefits for app-based (“gig economy”) workers.
Tipped pay, wage theft, “Ban the Box”
- Raises the tipped minimum wage (exact new rate not shown in excerpt).
- Contains measures to prevent wage theft.
- Adds or strengthens rules to avoid automatic exclusion of applicants with criminal histories (“ban the box” / fair assessment).
Public-sector labor & benefits
- Repeals restrictions on public employee collective bargaining (restoring broader collective bargaining rights).
- Creates a rebuttable presumption that first responders, health care, and essential workers who contract COVID-19 did so in the course of employment (affecting claims/benefits).
Tax and retirement measures
- Reenacts/creates Earned Income Tax Credit and child & dependent care tax credits (to reduce tax burdens on low-income workers).
- Provides and appropriates funds for a cost-of-living adjustment (COLA) for retirees in several state retirement systems (Teachers’ & State Employees’, Consolidated Judicial, Legislative, and Local Governmental Employees’ systems).
Who would be affected
- Employees statewide (including low-wage, tipped, gig, and essential workers) — higher wages, expanded paid leave and anti-discrimination protections.
- Employers — higher labor costs (minimum wage, tipped wage, paid leave), new compliance and administrative obligations (recordkeeping, leave administration, pay-equity compliance). Thresholds vary by provision (e.g., equal pay employer definition references more than five employees).
- State and local government — fiscal impacts (retiree COLAs, UI benefit changes, tax credit administration); agencies will need rulemaking and enforcement capacity.
- First responders, health-care and essential workers — benefit presumptions affecting workers’ compensation/claims.
Fiscal and implementation considerations
- Raising minimum wages, expanding paid leave, and restoring/expanding benefits will likely increase labor costs for private employers and state/local governments.
- The bill would increase state expenditures for retiree COLAs and foregone revenue from tax credits; exact fiscal impacts depend on final text, appropriation specifics, and administrative rules.
- Several provisions require agency rulemaking and administrative capacity (Labor Department, unemployment agencies, tax authorities); implementation timelines and enforcement details are to be developed.
Procedural status / next steps
- As of the last recorded actions, HB 339 had been introduced and gone through initial readings and committee referrals. Multiple committee hearings, amendments, and floor actions are recorded. Because HB 339 covers many topics and has seen committee substitution/amendments, final form and enactment depend on subsequent committee reports, floor votes, and any executive action.
Notes and caveats
- The publicly provided excerpts contain full language for some sections (e.g., minimum wage, equal pay, Healthy Families Act preamble/definitions) but not precise implementation details for every provision (e.g., exact tipped-wage increase, paid-leave accrual rates, precise UI changes). Final impacts will depend on the complete bill text as passed and implementing rules adopted by agencies.