SB 686 — Call Center Eco. Dev. Incentive Clawback.

Bill Text

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This act enacts protections and requirements for call center employers that relocate jobs out of North Carolina.

• § 95-31.1

  Call center job protection.

  This adds a new section defining provisions for call center job protection.

• § 95-31.1(a)

  Definitions. – The following definitions apply in this section: Agency. – A State executive branch agency. Call center employer or employer. – Any business that employs for the purpose of customer service or back-office operations: Fifty or more employees, excluding part-time employees; or Fifty or more employees who in the aggregate work at least 1,500 hours per week (exclusive of overtime hours). Commissioner. – The Commissioner of Labor. Part-time employee. – An employee who is employed for an average of fewer than 20 hours per week or who has been employed for fewer than six of the last 12 months preceding the date on which notice is required.

  This defines key terms related to call center employers and employees.

• § 95-31.1(b)

  Notice Requirements. – A call center employer that intends to relocate a call center, or one or more facilities or operating units within a call center comprising at least thirty percent (30%) of the call center's or operating unit's total volume when measured against the previous 12-month average call volume of operations, or substantially similar operations, from North Carolina to outside the State shall notify the Commissioner at least 120 days before such relocation.

  This requires call center employers to notify the Commissioner of Labor prior to relocating a significant portion of their operations out of state.

• § 95-31.1(c)

  Compilation. – The Commissioner shall compile a semiannual list of all call center employers that relocate a call center or one or more facilities or operating units with a call center comprising at least thirty percent (30%) of the call center's total volume of operations outside the State.

  This requires the Commissioner to maintain and publish a list of call center employers that relocate.

• § 95-31.1(d)

  Distribution. – The Commissioner shall distribute the list required in subsection (c) of this section to all agencies subject to this Chapter.

  This mandates the distribution of the list of relocating call centers to relevant state agencies.

• § 95-31.1(e)

  Reversion. – Except as provided by this section, and notwithstanding any other provision of law, an employer that appears on the list described in subsection (c) of this section shall remit the unamortized value of any grants, guaranteed loans, tax benefits, or any other governmental support it has previously received to the Commissioner on a graduated scale formula as follows: y=-.8x + 100 repayments reaching zero percent (0%) at the five-year mark. For the purposes of this formula, "y" equals the percentage of payback and "x" equals the amount of time. However, this subsection shall not be construed to supersede any conflicting terms of any preexisting incentive agreement.

  This imposes a financial clawback on call center employers that relocate jobs, requiring them to pay back certain state incentives.

• § 95-31.1(f)

  To recover the loss of call center employees within the State, the call center employer in partnership with the North Carolina Community College System shall implement a program for the retraining of affected employees who have become unemployed due to the relocation of a call center outside of the State. Each relocating call center employer shall remit retraining tuition for its former employees to the office of the North Carolina Community College System to be used within 18 months of displacement or the tuition will be forfeited.

  This establishes a requirement for call center employers to fund retraining for displaced workers.

• § 95-31.1(g)

  No provision of this act shall be construed to permit withholding or denial of payments, compensation, or benefits under any other State law (including State unemployment compensation, disability payments, or worker retraining or adjustment funds) to workers employed by call center employers that relocate outside the State.

  This ensures that affected workers retain their rights to state benefits regardless of job relocation.

• § 95-31.1(h)

  The provisions of this act are severable. If any of its provisions are declared to be invalid under the State or federal constitution, or preempted by federal law or regulation, the validity of the remainder of this act shall not be affected.

  This states that if part of the law is invalidated, the rest remains in effect.

• § 95-31.1(i)

  This act is effective when it becomes law and applies to the relocation of call center jobs from this State on or after that date.

  This sets the effective date for the new law.

Action History

1. April 08, 2021

   Passed 1st Reading

2. April 08, 2021

   Ref To Com On Rules and Operations of the Senate

3. April 07, 2021

   Filed

Sponsors

• Michael V. Lee · Primary
• Amy S. Galey · Cosponsor

Subjects