Bill > S582

This bill establishes a comprehensive paid sabbatical leave program for employees in North Carolina, covering both public and private sectors. For state, county, and city employees, the bill creates a program that allows long-term employees (those continuously employed in the same position for three years) to take a four to six-week paid leave focused on health, wellness, personal development, or skill enhancement. During the sabbatical, employees will receive 70% of their salary and continue to receive benefits, and they must commit to returning to their position for at least one year after the leave. The bill requires employers to grant sabbatical leave unless essential services would be disrupted and prohibits penalizing employees who take the leave. For private sector employers, the NCWorks Commission will develop model sabbatical policies and provide resources to encourage adoption, including tax credits (up to $5,000 per employee) for businesses that offer sabbatical leave. The bill also includes $10 million in funding for state agencies and local governments to offset sabbatical leave costs, and an additional $10 million in grants for small businesses (100 or fewer employees) to support sabbatical programs. Employers will be required to report on sabbatical leave usage, and the first reports are due by July 1, 2027, with full implementation set for July 1, 2026.

Budget and Finance

https://www.ncleg.gov/BillLookUp/2025/S582