Bill > H1059

This bill, the Fair Minimum Wage Act, aims to increase the minimum wage in North Carolina and provide mechanisms for its adjustment and local control. It establishes a statewide minimum wage of $15.00 per hour, which will automatically adjust annually for inflation based on the Consumer Price Index (CPI-U), starting January 1, 2027, to help preserve workers' purchasing power. However, employers with gross annual receipts below $400,000 will be subject to a lower minimum wage of $11.00 per hour, also adjusted for inflation. The bill also repeals the restriction that prevented local governments from setting their own minimum wages, allowing them to establish higher local minimum wages if needed to address local economic conditions. To further support workers and businesses, it creates the North Carolina Wage Board, which will annually review wages and publish reports on targets for affordability and competitiveness, and establishes a Short-Time Compensation Program. This program allows employers to reduce employees' work hours and wages by 10% to 60% instead of resorting to layoffs, with employees receiving partial unemployment benefits to supplement their reduced wages, provided certain criteria are met, such as the employer continuing to provide fringe benefits. Finally, the bill appropriates $150,000 to the Department of Labor for the 2026-2027 fiscal year to implement these changes.