The North Carolina General Assembly’s 2025 Session: Employment-Related Bills to Watch

Quick Hits

• The 2025 session of the North Carolina General Assembly is considering employment-related bills related to union organizing and collective bargaining, nondiscrimination in the workplace, noncompete and nonpoaching agreements, and DEI.
• Senate Bill 120 / House Bill 207 aim to prohibit employers from restricting labor organizations and requiring employees to refrain from union membership as a condition of employment.
• Senate Bill 154 / House Bill 168 seek to prevent hair-based discrimination in workplaces, schools, and public spaces by expanding the definition of race-based discrimination to include traits historically associated with race, such as natural hairstyles.
• House Bill 269 would ban noncompete and nonpoaching agreements for employees earning less than $75,000 a year, effective July 1, 2025.

Remove Barriers to Labor Organizing (Senate Bill 120 and House Bill 207)

Senate Bill (SB) 120 and House Bill (HB) 207, short-titled, “Remove Barriers to Labor Organizing,” was referred to the North Carolina House of Representatives’ Rules, Calendar, and Operations of the House Committee and the North Carolina Senate’s Rules and Operations of the Senate Committee in late February. The legislation would prohibit employers from restricting labor organizations and associations from organizing within the state. This prohibition would restrict employers from requiring employees to refrain from union membership as a condition of employment or continued employment.

North Carolina CROWN Act (Senate Bill 154 and House Bill 168)

The North Carolina CROWN Act legislationwas reintroduced this session and echoes the bipartisan federal “Creating a Respectful and Open World for Natural Hair Act,” or “CROWN Act,” bill introduced in February 2025 by Senators Cory Booker (D-NJ) and Susan Collins (R-ME). The North Carolina CROWN Actwould protect individuals in the state from hair-based discrimination and retaliation in workplaces, schools, and public spaces. That includes preventing employers from enacting or enforcing policies on hair and grooming that would disproportionately affect people with “natural” or “cultural” hairstyles, including Bantu knots, braids, locks, and twists. It would also expand the definition of race-based discrimination to include “traits historically associated with race, including but not limited to, hair texture, hair type, and protective styles.” More than half of the states have enacted CROWN Act bills.

Equality in State Agencies/Prohibition on DEI (House Bill 171)

HB 171, short-titled, “Equality in State Agencies/Prohibition on DEI,” would apply to state employers and would prohibit any state agency from “promoting, supporting, funding, implementing, or maintaining workplace DEI programs, policies, or initiatives,” including in state government hiring and employment. The bill would eliminate all dedicated diversity, equity, and inclusion (DEI) staff positions and offices and end all DEI-related training. It would also prohibit any state agency or unit of local government from using public funds for DEI initiatives, including federal funds. All state agencies and local governmental units would be required to create annual public posts detailing their compliance. Further, the bill would make it a crime to act in any way deemed contrary to promote or support DEI in state and local government.

Workforce Freedom and Protection Act (House Bill 269)

HB 269, named the “Workforce Freedom and Protection Act,” was introduced in the House in March and would prohibit noncompete and nonpoaching agreements in the state. The prohibition against noncompete agreements would apply to employees making less than $75,000 a year and would disallow any agreements restricting the employee’s right to work for another employer for any period of time, work in a specific geographic area, or from engaging in work activities performed for the employer. These restrictions would be in effect as of July 1, 2025, and would ban employers from entering into noncompete agreements as of that date. The bill would also prohibit “non-poaching” agreements, which are agreements between employers that restricts one employer from soliciting, recruiting, or hiring employees from the other employer, or in any way prevents companies from competing against each other for employees.

Allow Public Employee Collective Bargaining (House Bill 256)

HB 256, introduced in the House in February, is the second bill introduced in this session to encourage union activity and collective bargaining. Currently, public employees are prohibited from collective bargaining, but this bill would repeal that law, paving the way for North Carolina government employees to engage in union activity.

Reduce Barriers to State Employment (Senate Bill 124 and House Bill 177)

Another pair of bills, SB 124 and HB 177, specifically directed at state employers, seeks to make state employment opportunities more accessible to individuals without four-year college degrees. Titled “An Act to Reduce Barriers to State Employment,” the legislation would direct the North Carolina State Human Resources Commission to assess the educational and experiential requirements for state positions and identify certain positions to remove the four-year college degree requirement, leaning toward other requirements including military service, apprenticeships, and trade schools where appropriate.

Ogletree Deakins’ Charlotte and Raleigh offices will continue to monitor developments and will provide updates on the Employment Law, North Carolina, and Unfair Competition and Trade Secrets blogs as additional information becomes available.

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