Bill > S525

This bill establishes a comprehensive minimum wage increase for North Carolina, gradually raising the state's minimum wage to $15 per hour with different implementation timelines for small businesses (defined as having fewer than 10 employees) and larger employers. Starting January 1, 2026, most employers will be required to pay at least $15 per hour, while small businesses will have a phased approach: $12 per hour in 2026, $13.50 in 2027, and $15 in 2028. The bill also introduces an important annual automatic inflation adjustment mechanism, where the Commissioner of Labor will calculate minimum wage increases based on the Consumer Price Index (CPI-U) beginning October 1, 2028, ensuring wages keep pace with living costs. Additionally, the bill includes worker protections by allowing employees to file complaints about wage violations and prohibiting employer retaliation, with potential penalties including back pay, benefits, interest, and attorneys' fees. To support small businesses during this transition, the state will establish a $10 million Small Business Assistance Program to provide temporary financial support and conduct outreach, with funds available for businesses with up to 20 employees for two years. The overall goal is to improve economic stability for workers, reduce poverty, and ensure fair compensation in line with rising living expenses.

https://www.ncleg.gov/BillLookUp/2025/S525