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Bill Summary · HB 438

HB 438 — Require Paid Rest Breaks (North Carolina)

Status: Passed 1st Reading (introduced)
Introduced: Nov 12, 2024
Subject: Employment / Wage & Hour law (adds rest‑break requirement)

Main purpose

HB 438 amends the North Carolina Wage and Hour Act to require employers to offer employees working a shift of six hours or more at least one voluntary, paid rest break of at least 20 minutes, scheduled “near the middle” of the workday.

Key provisions

  • Adds new statutory section — G.S. 95‑25.4A (Rest breaks):
    • Employers must offer each employee working a six‑hour (or longer) workday at least one voluntary paid break of at least 20 minutes.
    • The break should be scheduled near the middle of the workday.
    • The break cannot be used to delay a workday’s start or shorten its duration unless the employer approves.
  • Enforcement and penalties — amendment to G.S. 95‑25.23:
    • Civil penalty up to $100 for a first violation; up to $500 for each subsequent violation.
    • In setting penalties, the Commissioner considers business size and gravity of the violation.
    • Penalty determinations are final unless the employer appeals within 15 days; appeals are handled through administrative and judicial proceedings under Chapter 150B.
  • Technical change — G.S. 95‑241(a)(1) is updated to include the new section among labor statutes enforced by the Commissioner.

Who is affected

  • Employers operating in North Carolina: required to offer and pay for the mandated break for qualifying shifts.
  • Employees in North Carolina working shifts of six hours or more: eligible to take one paid 20‑minute break per shift.
  • No specific exemptions are provided in the text (e.g., for healthcare, transit, agricultural sectors), so any sector‑specific exemptions would need to appear elsewhere or in regulation.

Enforcement & procedure

  • The state’s Commissioner of Labor (or statutorily designated enforcement office) assesses penalties and enforces compliance.
  • Employers may contest penalties via the administrative appeal process within 15 days, and thereafter through the courts under Chapter 150B.

Timing / Effective date

  • The bill states it is effective when it becomes law and applies to employment in the State on or after that date. (Legislative history will determine the specific effective date if enacted.)

Potential impacts / considerations

  • Employers: will need to update scheduling, payroll (paid break time), and time‑keeping practices to comply; potential exposure to penalties for noncompliance.
  • Employees: gain a guaranteed paid rest break for shifts of six hours or longer.
  • Regulators: will require oversight, investigations, and administrative processes for penalty assessments and appeals.
  • The measure sets a simple, uniform requirement but leaves questions about exemptions, multiple breaks, and application to certain job classes; those may be addressed later by rule or additional legislation.

For reference: proposed new statute G.S. 95‑25.4A and amendments to G.S. 95‑25.23 and G.S. 95‑241.

Compiled from official sources — confirm details with the bill’s official record.

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