Living Wage Guarantee Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 525

Short Title: Living Wage Guarantee Act. (Public)
Sponsors: Senators Theodros, Waddell, and Applewhite (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S525-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH A STATE MINIMUM WAGE OF FIFTEEN DOLLARS PER 2
HOUR, INCORPORATE AU TOMATIC INFLATION AD JUSTMENTS, AND ENSUR E 3
ECONOMIC STABILITY FOR WORKERS IN NORTH CAROLINA. 4
Whereas, the current minimum wage in North Carolina has remained stagnant at 5
$7.25 per hour since 2009, failing to keep pace with rising living costs; and 6
Whereas, increasing the minimum wage to $15 per hour will enhance financial 7
security for low-income workers, reduce poverty, and boost consumer spending, ben efiting the 8
State's economy; and 9
Whereas, automatic inflation adjustments will prevent wage stagnation and ensure 10
that earnings maintain their real value over time; and 11
Whereas, Article I, Section 1, of the North Carolina Constitution affirms the right of 12
all citizens to enjoy the fruits of their labor, which includes fair compensation; Now, therefore, 13
The General Assembly of North Carolina enacts: 14
SECTION 1. This act shall be known and may be cited as the "Living Wage 15
Guarantee Act." 16
SECTION 2.(a) G.S. 95-25.3 reads as rewritten: 17
"§ 95-25.3. Minimum wage.wages; automatic cost-of-living adjustments. 18
(a) Every employer employer, except a small business covered under subsection (a1) of 19
this section, shall pay to each employee who in any workweek performs an y work, wages of at 20
least six dollars and fifteen cents ($6.15) per hour or the minimum wage the amount set forth in 21
paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 206(a)(1), as that wage 22
may change from time to time, whichever is higher, except as otherwise provided in this 23
section.or wages of at least fifteen dollars ( $15.00) per hour , whichever is higher , effective 24
January 1, 2026. 25
(a1) A small business shall pay to each employee who in any workweek performs any 26
work, wages of at least the amount set forth in paragraph 1 of section 6(a) of the Fair Labor 27
Standards Act, 29 U.S.C. § 206(a)(1), as that wage may change from time to time, or the wage 28
set forth in this subsection, whichever is higher: 29
(1) Effective January 1, 2026, wages of at least twelve dollars ($12.00) per hour. 30
(2) Effective January 1, 2027, wages of at least thirteen dollars and fifty cents 31
($13.50) per hour. 32
(3) Effective January 1, 2028, wages of at least fifteen dollars ($15.00) per hour. 33
(4) Effective January 1, 2028, and annually thereafter, the amount determined by 34
the Commissioner of Labor under subsection (a2) of this section. 35
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 525-First Edition
For the purposes of this section, a "small business" is defined as a person doing business in 1
this State having fewer than 10 employees. 2
(a2) Beginning October 1, 2028, and on each October 1 thereafter, the Commissioner of 3
Labor shall calculate an adjusted minimum wage rate indexed to the percentage increase in the 4
Consumer Price Index (All 29 Urban Consumers), CPI-U, or its successor index, as calculated 5
by the U.S. Department of Labor for the 12-month period preceding the previous October 1. Each 6
adjusted minimum wage rate calculated shall be published on October 1 and take effect on the 7
following January 1. 8
…." 9
SECTION 2.(b) G.S. 95-25.22 is amended by adding new subsections to read: 10
"(a2) Any employer who violates the provisions of G.S. 95-25.13 or any rule adopted under 11
that section shall be: 12
(1) Liable to the employee or employees affected in the amount of their actual 13
damages, including, but not limited to, back pay and benefits plus interest and 14
reasonable attorneys' fees and costs. 15
(2) Subject to fines and other remedies as determined by the Nor th Carolina 16
Department of Labor. 17
(a3) Employees shall have the right to file complaints with the Department of Labor 18
regarding noncompliance. Employers shall not retaliate against employees who assert their rights 19
under this section." 20
SECTION 3. Effective July 1, 2025, there is appropriated from the General Fund to 21
the Department of Labor the sum of ten million dollars ($10,000,000) to establish a State-funded 22
Small Business Assistance Program (Program). The Program shall: (i) provide temporary 23
financial support to small businesses transitioning to the new wage requirements and (ii) engage 24
in outreach about the new minimum wage law. Federal workforce development funds may also 25
be used for this purpose. Financial support through the Program shall be made ava ilable for 26
businesses with 20 or fewer employees for a period of up to two years. The Department of Labor 27
shall develop rules for the administration of the Program. 28
SECTION 4. Except as otherwise provided, this act is effective when it becomes 29
law. 30