Wellness Break Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 582

Short Title: Wellness Break Act. (Public)
Sponsors: Senators Theodros and Chitlik (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S582-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH A SABBATICAL PROGRAM FOR LONG-TERM EMPLOYEES 2
IN NORTH CAROLINA, PROMOTING HEALTH, REJUVENATION, AND PERSONAL 3
WELL-BEING. 4
The General Assembly of North Carolina enacts: 5
6
PART I. PUBLIC EMPLOYEE SABBATICAL LEAVE 7
SECTION 1.(a) Article 2 of Chapter 126 of the General Statutes is amended by 8
adding a new section to read: 9
"§ 126-8.7. Paid sabbatical leave. 10
(a) Definitions. – The following definitions apply in this section: 11
(1) Long-term employee. – A career State employee who has been continuously 12
employed in the same position for the immediate three years. 13
(2) Sabbatical leave . – A period of paid leave for health improvement, 14
skill-building, and personal enrichment of between four to six weeks. 15
(b) Sabbatical Leave. – The State Human Resources Commission shall adopt rules and 16
policies for sabbatical leave that include at least the following requirements: 17
(1) The long-term employee shall not have been granted a sabbatical leave in the 18
prior three years. 19
(2) The long-term employee shall submit an application to the employer for 20
sabbatical leave that outlines the intended use of their sabbatical leave, 21
including a focus on health, wellness, personal development, or skill 22
enhancement. 23
(3) The long-term employee shall agree to return to the same position at the end 24
of the sabbatical leave for a period of one year. 25
(4) The employer shall grant the requested sabbatical leave unless the employer 26
determines that the grant would prevent the employer from providing essential 27
services. 28
(5) The employer shall continue to provide the employee benefits and an amount 29
equal to seventy percent (70%) of the employee's salary during the sabbatical 30
leave. 31
(6) The employer shall allow the employee to return to the same position at the 32
end of the sabbatical leave. 33
(7) The employer shall not penalize or discriminate against a long-term employee 34
that takes a sabbatical leave. 35
(c) Requirements. – The sabbatical leave authorized by this section: 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 582-First Edition
(1) Is available without exhaustion of the employee's sick and vacation leave and 1
is awarded in addition to any other leave authorized by State or federal law. 2
(2) Has no cash value upon termination from employment. 3
(3) May not be used for calculating an employee's retirement benefits. 4
(d) A long-term employee that fails to return to the same position or remain employed by 5
the employer for one year shall be liable for repayment of one-half of the cost of all salary and 6
benefits received during the sabbatical leave. This provision shall not apply if the failure to return 7
is due to the death or permanent disability of the employee. 8
(e) Notwithstanding any other provision of this Chapter, this section applies to all State 9
employees, public school employees, and community college employees. 10
(f) All State employers, local boards of education, and local community college boards 11
of trustees shall report information requested by the State Human Resources Commission on use 12
of sabbatical leave, including rate of use and other measurable outcomes, including measures of 13
employees' well-being and retention . The State Human Resources Commission shall report to 14
the General Assembly annually by July 1 o n the reported use and measurable outcomes of 15
sabbatical leave, and any recommendations to improve program effectiveness and sustainability." 16
SECTION 1.(b) Article 5 of Chapter 153A of the General Statutes is amended by 17
adding a new section to read: 18
"§ 153A-99.2. Paid sabbatical leave. 19
Each county shall establish a policy to provide paid sabbatical leave to its employees that 20
includes, at a minimum, the requirements of G.S. 126-8.7. Each county shall upon request report 21
information requested by the State Human Resources Commission on use of sabbatical leave." 22
SECTION 1.(c) Article 7 of Chapter 160A of the General Statutes is amended by 23
adding a new section to read: 24
"§ 160A-169.2. Paid sabbatical leave. 25
Each city shall establish a policy to provide paid sabbatical leave to its employees that 26
includes, at a minimum, the requirements of G.S. 126-8.7. Each city shall upon request report 27
information requested by the State Human Resources Commission on use of sabbatical leave." 28
SECTION 1.(d) The State Human Resources Commission shall adopt r ules as 29
required by G.S. 126-8.7, as enacted by this section, no later than June 1, 2026. All State 30
agencies, counties, and cities shall comply with the requirements of G.S. 126-8.7, 153A-99.2, 31
and 160A-169.2, respectively, as enacted by this act, no later than July 1, 2026. The State Human 32
Resources Commission shall submit the first report required by G.S. 126-8.7, as enacted by this 33
act, no later than July 1, 2027. 34
35
PART II. PRIVATE SECTOR SABBATICAL LEAVE 36
SECTION 2.1.(a) Article 3B of Chapter 105 of the General Statutes is amended by 37
adding a new section to read: 38
"§ 105-129.20. Credit for paid sabbatical leave for employees. 39
(a) Credit. – A business that provides paid sabbatical leave for employees during the 40
taxable year is allowed a credit to offset its costs in providing paid sabbatical leave for its eligible 41
employees. For the purposes of this subsection, a taxpayer provides paid sabbatical leave if that 42
leave meets at least the requirements of the model policy estab lished by the NCWorks 43
Commission as provided in G.S. 143B-438.14A. 44
The credit is equal to a dollar amount per eligible employee provided paid sabbatical leave 45
by the employer of up to twenty -five percent (25%) of the salary and benefits paid t o the 46
employee during the sabbatical, not to exceed five thousand dollars ($5,000) per employee. 47
(b) Allocation. – If the taxpayer is an individual who is a nonresident or a part -year 48
resident, the taxpayer must reduce the amount of the credit by multiplying it by the fraction 49
calculated under G.S. 105-153.4(b) or (c), as appropriate. If the taxpayer is not an individual and 50
is required to apportion its multistate business income to this State, the taxpayer must reduce the 51
General Assembly Of North Carolina Session 2025
Senate Bill 582-First Edition Page 3
amount of the credit by multiplying it b y the apportionment fraction used to apportion its 1
apportionable income to this State." 2
SECTION 2.1.(b) This section is effective for taxes imposed for taxable years 3
beginning on or after July 1, 2026. 4
SECTION 2.2.(a) Part 3B of Article 10 of Chapter 143B of the General Statutes is 5
amended by adding a new section to read: 6
"§ 143B-438.14A. Paid sabbatical leave. 7
(a) Definitions. – The following definitions apply in this section: 8
(1) Long-term employee. – An employee who has been continuously employed 9
by the same employer in the same position for the immediate three years. 10
(2) Sabbatical leave. – A period of paid leave for health improvement, 11
skill-building, and personal enrichment of between four to six weeks. 12
(b) The NCWorks Commission shall do the following: 13
(1) Develop model policies for sabbatical leave for private sector employers , in 14
consultation with the State Human Resources Commission, that include at a 15
minimum the requirements of G.S. 126-8.7. 16
(2) Provide the following information to (i) all State agencies that contract or 17
engage in public -private partnerships with non -State entities and (ii) the 18
NCWorks Commission website for private sector employers: 19
a. Model sabbatical leave policies. 20
b. Research supporting sabbatical leave as a tool for enhanced 21
productivity, workforce sustainability , and retention of long -term 22
workers in private sector employment. 23
c. Identified grants, tax credits, or other funding sources that can be used 24
to offset the cost of sabbatical leave. 25
(3) Recognize private sector employers that provide sabbatical leave as 26
"Workforce Wellness Leaders." 27
(4) Establish and award matching grants to State businesses employing fewer than 28
100 employees to offset the costs of sabbatical leave. Grants shall provide no 29
greater than fifty percent (50%) of the costs of the salary and benefits provided 30
by the employer to an employee for sabbatical leave. 31
(c) A State agency shall strongly encourage all non-State entities that the State agency 32
contracts or partners with to implement sabbatical leave policies in accordance with the model 33
policies developed by the NCWorks Commission. 34
(d) The NCWorks Commission shall survey private sector employers annually on use of 35
sabbatical leave, including rate of use and other measurable outcomes, including measures of 36
employees' well-being and retention. The NCWorks Commission shall report to the General 37
Assembly annually by July 1 on the reported use and measurable outcomes of sabbatical leave, 38
and any recommendations to improve program effectiveness and sustainability." 39
SECTION 2.2.(b) The NCWorks Commission shall develop and publish model 40
policies no later than June 1, 2026, and shall comply with the remaining requirements established 41
by G.S. 143B-438.14A, as enac ted by this section, no later than July 1, 2026. The NCWorks 42
Commission shall submit the first report required by G.S. 143B-438.14A, as enacted by this 43
section, no later than July 1, 2027. 44
45
PART III. APPROPRIATIONS 46
SECTION 3.(a) There is appropriated from the General Fund to the Department of 47
Administration, State Human Resources Commission, the sum of ten million dollars 48
($10,000,000) in recurring funds for the 2026-2027 fiscal year to provide funds to State agencies 49
and local governments to offset costs associated with sabbatical leave. 50
General Assembly Of North Carolina Session 2025
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SECTION 3.(b) There is appropriated from the General Fund to the Department of 1
Commerce the sum of ten million dollars ($10,000,000) in recurring funds for the 2026 -2027 2
fiscal year for the NCWorks Commission to establish and provide grants to businesses in the 3
State employing 100 or fewer employees that provide sabbatical leave in accordance with 4
G.S. 143B-438.14A, as enacted by this act. 5
SECTION 3.(c) This section is effective July 1, 2026. 6
7
PART IV. EFFECTIVE DATE 8
SECTION 4. Except as otherwise provided, this act is effective when it becomes 9
law. 10