SB 1041 — Public Workforce Modernization Act.

–(6) AnEmployee. executive branch agency under the control of a member of the Council of State.

(7)– Director.An individual hired to carry out assigned tasks in return for payment and who operates under the guidance and supervision of the employer.

– The Directorterm of"employee" thedoes Officenot ofinclude Stateindependent Humancontractors. Resources.

(8)(7) Employee.Employer.

– AnThe individualState hired to carry out assigned tasks in return for payment operating under the guidance and supervision of anNorth employingCarolina. agency.

This(8) termEmploying doesagency. not include independent contractors.

(9)– EmployingThe agency.government entity that hired and that has the power to separate a person who is covered by all or a portion of this Chapter.

–(9) TheExempt agencymanagerial that hired an employee and has the power to separate the employee from a position.

(10)– ExecutiveA branchposition agency.delegated with significant managerial or programmatic responsibility that is essential to the successful operation of a State department, agency, or division, so that the application of G.S.

–126A-81 Anyto department,an commission,employee division,in board,the bureau,position council,would orcause institutionundue ofdisruption theto State within the executiveoperations branch of government,the includingagency, Thedepartment, Universityinstitution, ofor Northdivision. Carolina.

(11)(10) Exempt managerialpolicymaking employee.position.

– AnA employeeposition designateddelegated aswith anthe exemptauthority managerialto positionimpose the final decision as providedto a settled course of action to be followed within a department, agency, or division, so that a loyalty to the Governor or other elected department head in Parttheir 3respective offices is reasonably necessary to implement the policies of thistheir Article.offices.

(12)The Exemptterm policymakingdoes employee.not include personnel professionals.

–(11) AnOSHR. employee designated as an exempt policymaking position as provided in Part 3 of this Article.

(13) Experiential program.

– A program for both employment and educational or training purposes, such as a registered apprenticeship, informal apprenticeship, fellowship, or other work-based learning program.

(14) Local agency.

– One of the following:

a.

Area mental health, developmental disabilities, and substance abuse authorities, except as otherwise provided in Chapter 122C of the General Statutes.

A consolidated county human services agency created pursuant to G.S.

153A-77(b) is not considered a local agency under this subdivision.

b.

Local social services departments.

c.

County health departments and district health departments.

d.

Local emergency management agencies that receive federal grant-in-aid funds.

(15) Local employee.

– An employee of a local agency and any other county employee as designated by a board of county commissioners.

(16) OSHR.

(17)(12) Personnel professional.

(18)(13) Policy.Probationary employee.

– A policy, rule, standard, practice, procedure, criteria, or regulation established by the Commission, subject to the approval of the Governor.

(19) Qualifications.

– Training, education, years of experience, or other skills, knowledge, and abilities that bear a reasonable functional relationship to the abilities and skills required in the position.

(20) State employee.

– An employee of an executive branch agency, including The University of North Carolina.

(21) Supervisor.

– A position that has other employees directly report to it.

(22) Temporary employee.

– An employee classified as a temporary employee as provided in Part 2 of this Article.

Page 2 Senate Bill 1041-Second Edition General Assembly Of North Carolina Session 2025 (23) The University of North Carolina.

116-1.126A-4.

A(14) constituentQualifications. institution of The University of North Carolina has only the authority delegated to it by the Board of Governors or the University of North Carolina System Office.

"Part– 2.Training or education;

Appointmentyears Types.of experience;

"§or 126A-10.other skills, knowledge, and abilities that bear a reasonable functional relationship to the abilities and skills required in the position.

Appointment(15) types.Commission.

(a)– AllThe employeesState areHuman assignedResources aCommission. position with a designated appointment type.

(1)Page A2 positionSenate isBill the1041-First uniqueEdition dutiesGeneral andAssembly responsibilitiesOf ofNorth aCarolina jobSession to2025 which(16) aStateemployee. person is assigned.

(2)–Anemployeeofanagency.The Anterm appointment"Stateemployee"does typenot definesinclude theemployees termsof andlocal expectedboards duration of employment,education benefitsor eligibility,employees andof thelocal applicabilitygovernments ofexcept thisas Chapterlisted toin theG.S. position.

(b)126A-170. Appointment types are as follows:

(1)(17) Permanent.Supervisor.

– AnA appointmentposition tothat ahas permanentother positionemployees establishedreport anddirectly expected to continuethat indefinitely.position.

All(18) permanentTemporary employeesemployee. are designated as one of the following subcategories:

a.– A State employee who is employed in a temporary appointment for a limited term, including a State employee hired from the OSHR Temporary Solutions Program, directly hired by an agency, hired by an agency from a private staffing firm, or hired by any other method used to fill a workforce need for a limited period of time.

CareerThe appointment.term does not include a career State employee.

–"§ Assigned126A-4. to an employee who has been continuously employed for the time period provided in G.S.

126A-10.1.Career State employee defined.

b.(a) For the purposes of this Chapter, unless the context clearly indicates otherwise, "career State employee" means a State employee or an employee of a local entity who is covered by this Chapter pursuant to G.S.

Probationary126A-170(a)(2) appointment.who:

–(1) AssignedIs toin ana employeepermanent whoposition haswith nota permanent appointment, and (2) Has been continuously employed longby enoughthe toState becomeof North Carolina or a careerlocal employeeentity underas provided in G.S.

126A-10.1.126-170(a)(2) in a position subject to this Chapter for at least the immediate 12 preceding months or 18 months as may be required by G.S.

c.126A-34(a)(2).

Permanent(b) experientialAs appointment.used in this Chapter, "probationary State employee" means a State employee who is exempt from certain provisions of this Chapter pursuant to G.S.

–126A-171 Assignedonly tobecause anthe employee in an experiential program who has not been continuously employed longby enoughthe toState becomefor athe careertime employeeperiod underrequired G.S.by subsection (a) or (d) of this section.

126A-10.1.(c) As used in this Chapter, "permanent experiential state employee" means a State employee who is exempt from certain provisions of this Chapter pursuant to G.S.

(2)126A-172 Non-permanent.only because the employee has not successfully completed the required program of employment and education and the time period required by subsection (a) of this section.

–(d) AnNotwithstanding appointmentthe toprovisions aof positionsubsection for(a) aabove: finite period of time.

All(1) non-permanentEmployees employeeswho are designatedhired asby onea ofState agency in a sworn law enforcement position or forensic scientist position and who are required to complete a formal training program prior to assuming law enforcement or forensic scientist duties with the followinghiring subcategories:agency shall become career State employees only after being employed by the agency or 24 continuous months.

a.An employee who has career state employee status retains that status if he or she transfers from a position that does not require completion of a formal training program into a position that does require a formal training program, even if the employee has worked for the agencyfor fewer than 24 continuous months.

Temporary(2) appointment.Employees of The University of North Carolina who are exempt from the minimum wage and overtime compensation provisions of the Fair Labor Standards Act and who attained career status before September 1, 2023, have the option of either (i) continuing employment with career State employee status if the employee remains in the position the employee occupied on August 31, 2023, or (ii) waiving career State employee status and continuing employment asanexemptemployeeunder G.S.

–126A-178(9).TheUniversity Assignedshall toprovide aneach affected employee employedwith for a periodwritten typicallyexplanation notof the impact of an election to exceedwaive 11career months.State employee status.

b.An employee's election to waive career State employee status must be acknowledged either through the employee's written or electronic signature within 60 days of receiving the written explanation.

Time-limitedSenate appointment.Bill 1041-First Edition Page 3 General Assembly Of North Carolina Session 2025 (3) Probationary State employees of The University of North Carolina who are exempt from theminimum wage andovertime compensation provisions of the Fair Labor Standards Act and were hired before September 1, 2023, have the option of either (i) continuing employment for the time period required by subsection (a) of this section or subdivision (1) of this subsection and earning career State employee status or (ii) continuing employment as an exempt employee under G.S.

–126A-178(9). Assigned to an employee employed in a position that has a limited period not to exceed three years.

c.The University shall provide each affected employee with a written explanation of the impact of an election to continue employment as an exempt employee.

Non-permanentAn experientialemployee's appointment.election to continue employment as an exempt employee must be acknowledged either through the employee's written or electronic signature within 60 days of receiving the written explanation.

–(4) AssignedWhen to an employee intransfers anemployment experientialbetween programtwo forlocal entities, or between a limitedstate agency and a local entity, that employee resets the period of time.consecutive service stated in subdivision (a) of this section.

(3)"§§ Exempt.126A-5 through 126A-19.

–Reserved Anfor appointmentfuture tocodification apurposes. position designated by statute as exempt as defined in G.S.

126A-15.

An exempt appointment may be made to a permanent or time-limited position.

(c) An employee who moves from a non-permanent or exempt appointment to a permanent appointment shall have a probationary appointment for at least 12 months.

(d) The following exceptions apply:

(1) When a time-limited appointment exceeds three years, the employee shall be designated as having a permanent appointment and, notwithstanding subsection (c) of this section, shall not be required to have a probationary appointment.

(2) A time-limited appointment may be made to a permanent position only when that position is vacant due to the incumbent's leave of absence and the replacement employee's services will be needed for a period of one year or less.

(3) A career employee who is assigned a position that is designated as exempt under G.S.

126A-15(1)a., 126A-15(2), and 126A-15(3) may, once that employee is no longer in the designated exempt position, be reassigned as a Senate Bill 1041-Second Edition Page 3 General Assembly Of North Carolina Session 2025 career employee with no probationary period if the employee remains continuously employed by the State.

(e) Except for career and probationary appointments, the appointment types in this section do not apply to local employees.

"§ 126A-10.1.

Qualification as career employee.

(a) An employee in a probationary appointment shall be assigned a career appointment as follows:

(1) An employee who successfully completes 12 months of employment in a probationary appointment shall be assigned a career appointment except as provided in subdivisions (2) and (3) of this subsection.

The employee shall be assigned a career appointment unless there is a supervisory extension of the probationary period or separation based on performance or conduct prior to the completion of the 12 months of employment.

(2) If the employee's supervisor determines an additional six-month period is needed to assess whether the employee's performance in the probationary appointment is successful or needs improvement, the employee who successfullycompletes a total of 18 months of probationaryappointment shall be assigned a career appointment.

(3) An employee hired in a sworn law enforcement position or forensic scientist position who is required to complete a formal training program prior to assuming law enforcement or forensic scientist duties with the employing agency shall be assigned a career appointment only after being employed by the agency for 24 continuous months in a probationary appointment.

An employee who has a career appointment retains that appointment if the employee transfers from a position that does not require completion of a formal training program into a position under this subdivision that does require a formal training program, even if the employee has worked for the agency for fewer than 24 continuous months.

(b) An employee in a permanent experiential appointment shall be assigned a career appointment as follows:

(1) For experiential programs of 12 months or longer, an employee who successfully completes an experiential program in a permanent experiential appointment shall be assigned a career appointment.

The employee shall be assigned a career appointment unless there is a separation based on performance or conduct prior to the completion of the experiential program.

(2) For experiential programs of less than 12 months, an employee who successfully completes the experiential program shall be assigned a probationary appointment and shall receive a career appointment as provided in subsection (a) of this section.

(c) When an employee transfers employment between two local agencies, or between an executive branch agency and a local agency, that employee resets the period of consecutive service required in subsection (a) of this section.

(d) Employees of The University of North Carolina who are exempt from the minimum wage and overtime compensation provisions of the Fair Labor Standards Act and who attained career status before September 1, 2023, have the option of either (i) continuing employment with a career employee appointment if the employee remains in the position the employee occupied onAugust31,2023,or(ii)waivingthecareeremployeeappointmentandcontinuingemployment as astatutorilyexempt employee, as definedin Part 3ofthis Article.

The Universityshall provide each affectedemployee with awrittenexplanationoftheimpact ofan election to waive thecareer employee appointment.

An employee's election to waive the career employee appointment must Page 4 Senate Bill 1041-Second Edition General Assembly Of North Carolina Session 2025 be acknowledged either through the employee's written or electronic signature within 60 days of receiving the written explanation.

"Part 3.

Application of the North Carolina Human Resources Act.

"§ 126A-15.

Definitions.

For the purposes of this Part, the terms used in Part 2 of this Article and the following definitions apply:

(1) Designated employees of policymakers.

– Any of the following who have been designated as exempt by the agency head and provided written notice:

a.

For each agency, three confidential assistants for each agency head and one confidential assistant for each chief deputy or chief administrative assistant.

b.

The chief deputy or chief administrative assistant to the head of each agency.

(2) Exempt managerial employee.

– Aposition designatedunder G.S.

126A-15.4.

(3) Exempt policymaking employee.

– A position designated under G.S.

126A-15.4.

(4) Exempt wardens.

– Wardens of State adult correctional facilities that have been designated as exempt by the agency head and provided written notice.

Exempt wardens shall be public servants under G.S.

138A-3(70) and shall file Statements of Economic Interest under G.S.

138A-22.

(5) Limited exemption employees.

– Any of the following:

a.

The Office of the Commissioner of Banks and its employees.

b.

The following employees of the Department of Natural and Cultural Resources:

1.

Director and Associate Directors of the North Carolina Museum of History.

2.

Program Chiefs and Curators.

3.

Regional History Museum Administrators and Curators.

4.

Employees assigned to assist the North Carolina Symphony Society, Incorporated.

5.

Director, Associate Directors, and Curators of Tryon Palace.

6.

Director, Associate Directors, and Curators of the Transportation Museum.

7.

Director and Associate Directors of the North Carolina Arts Council.

8.

Director, Assistant Directors, and Curators of the Division of State Historic Sites.

c.

Employees of the Department of Information Technology (DIT), and employees in all agencies, departments, and institutions with similar classifications as DIT employees, who voluntarily relinquish annual longevity payments, relinquish any claim to longevity pay, or voluntarilyrelinquishanyclaim to careerstatus or eligibilityfor career status as approved by the State Chief Information Officer and the Director of OSHR.

d.

Employees of the Utilities Commission and the Commission's Public Staff.

(6) Specialized Treasurer's Office employees.

– All of the following:

a.

Employees of the Department of State Treasurer possessing specialized skills or knowledge necessary for the proper administration of investment programs and compensated pursuant to G.S.

147-65.2(b).

Senate Bill 1041-Second Edition Page 5 General Assembly Of North Carolina Session 2025 b.

Employees of the Department of State Treasurer possessing specialized skills or knowledge necessary for the proper administration of the Supplemental Retirement Plans and compensated pursuant to G.S.

135-91(c2).

(7) State employees compensated as teachers.

– Teaching and related educational classes of employees of the Division of Juvenile Justice of the Department of Public Safety, the Department of Health and Human Services, and any other agency whose salaries are set in the same manner as for corresponding public school employees in accordance with Chapter 115C of the General Statutes.

(8) Statutorily exempt employees.

– Any of the following:

a.

Constitutional officers of the executive branch of the State.

b.

Deputy commissioners appointed pursuant to G.S.

97-79.

c.

Members of executive branch boards, committees, commissions, councils, and advisory councils compensated on a per diem basis.

d.

Officials or employees whose salaries are fixed by the General Assembly, except for those employees on a legislatively established salary schedule not otherwise exempted by this Chapter, or by the Governor,orbytheGovernorandCouncil ofState,orbytheGovernor subject to the approval of the Council of State.

e.

Employees of the Office of the Governor that the Governor, at any time, in the Governor's discretion, exempts from the application of this Chapter by means of a letter to the Director designating these employees.

f.

Employees of the Office of the Lieutenant Governor, that the Lieutenant Governor, at any time, in the Lieutenant Governor's discretion, exempts from the application of this Chapter by means of a letter to the Director designating these employees.

g.

Employees of The University of North Carolina who are exempt from the minimum wage and overtime compensation provisions of the Fair Labor Standards Act, instructional and research staff, student-oriented professionals, finance professionals, business office professionals, auditor professionals, information technology professionals, physicians, dentists, pilots, and the faculty of the North Carolina School of Science and Mathematics, and all temporary employees.

The Board of Governors of The University of North Carolina shall have the authority to establish positions under this subdivision to be exempt from this Chapter without further review or approval by any other agency.

h.

Employees of a regional school established pursuant to Part 10 of Article 16 of Chapter 115C of the General Statutes.

i.

Employees of a school for the deaf or blind governed by Article 9C of Chapter 115C of the General Statutes hired on or after July 1, 2024.

j.

Employees whose salaries are fixed under the authority vested in the Board of Governors of The University of North Carolina by the provisions of G.S.

116-11(4), 116-11(5), and 116-14.

k.

Employees of the North Carolina Cooperative Extension Service of North Carolina State University and North Carolina Agricultural and Technical StateUniversitywhoareemployedin countyoperationsand who are not exempt pursuant to sub-subdivision g.

or j.

of this subdivision.

l.

Employees of the North Carolina State Ports Authority.

Page 6 Senate Bill 1041-Second Edition General Assembly Of North Carolina Session 2025 m.

Employees of the North Carolina Global TransPark Authority.

n.

Theexecutivedirectorandoneassociate directoroftheNorth Carolina Center for Nursing established under Article 9F of Chapter 90 of the General Statutes.

o.

Employees of the Tobacco Trust Fund Commission established in Article 75 of Chapter 143 of the General Statutes.

p.

Employees of the North Carolina Turnpike Authority.

q.

TheExecutiveAdministratorofthe StateHealthPlanfor Teachers and State Employees and employees of the State Health Plan for Teachers and State Employees as designated by law or by the Executive Administrator of the Plan.

r.

The North Carolina State LotteryDirector and employees of the North Carolina State Lottery.

s.

The Chief Administrative Law Judge of the Office of Administrative Hearings and five employees of the Office of Administrative Hearings as designated by the Chief Administrative Law Judge.

t.

The Executive Director and the Assistant Director of the U.S.S.

North Carolina Battleship Commission.

u.

The Executive Director, Deputy Director, all other directors, assistant and associate directors, and center fellows of the North Carolina Center for the Advancement of Teaching.

v.

Employees of the Department of Commerce employed in the Rural Economic Development Division.

w.

Employees of the North Carolina Health Information Exchange Authority.

x.

Employees of the Division of Health Benefits of the Department of Health and Human Services.

y.

The Associate Superintendent of Early Education of the Department of Public Instruction who serves as chief academic officer of early education.

z.

Employees of the North Carolina Youth Outdoor Engagement Commission.

aa.

Employees of the Division of State Operated Healthcare Facilities of the Department of Health and Human Services who are (i) health care professionals licensedunderChapter 90orChapter90Bofthe General Statutes or (ii) engineers responsible for maintenance or buildings operations at one of the health care facilities operated by the Secretary of the Department of Health and Human Services under G.S.

122C-181.

bb.

The Executive Director of the North Carolina Boxing and Combat Sports Commission created pursuant to G.S.

143-652.2.

cc.

No more than 10 employees of the State Bureau of Investigation designated by the Director of the State Bureau of Investigation.

dd.

No more than 17 employees of the State Highway Patrol as designated by the Commander of the State Highway Patrol.

ee.

The Chief Investment Officer of the North Carolina Investment Authority and employees of the North Carolina Investment Authority who possess specialized skills or knowledge necessary for the proper administration of investment programs and who are employed in a position designated by the Chief Investment Officer as exempt in accordance with G.S.

147-72.1.

Senate Bill 1041-Second Edition Page 7 General Assembly Of North Carolina Session 2025 ff.

Liaisons to the Collaboration for Prosperity Zones set out in G.S.

143B-28.1 for the Departments of Commerce, Environmental Quality, and Transportation.

(9) University health employees.

– Any of the following:

a.

Employees of the University of North Carolina Health Care System.

b.

Employees of the University of North Carolina Hospitals at Chapel Hill.

c.

Employees of the clinical patient care programs of the School of Medicine of the University of North Carolina at Chapel Hill.

d.

Employees of the Medical Faculty Practice Plan, a division of the School of Medicine of East Carolina University.

e.

Employees of UNC-CH Dental School Clinical Operations, a division of the Adams School of Dentistry at the University of North Carolina at Chapel Hill.

f.

Employees of ECU Dental School Clinical Operations, a division of the School of Dental Medicine at East Carolina University.

(10) University police officers.

– Commissioned police officer positions of The University of North Carolina.

Employees in these positions are eligible for all employment and retirement benefits provided to State law enforcement officers subject to this Chapter.

"§ 126A-15.1.

Application of this Chapter.

(a) Except as otherwise provided, this Chapter applies to all executive branch employees and local employees.

(b) This Chapter does not apply to the following:

(1) Public school superintendents, principals, teachers, and other public school employees, except for G.S.

126A-71 and Article 14.

(2) Employeesofcommunitycollegeswhosesalariesarefixedinaccordancewith G.S.

115D-6.1 and G.S.

115D-20 and employees of the Community Colleges System Office whose salaries are fixed by the State Board of Community Colleges in accordance with G.S.

115D-3, except for G.S.

126A-71, 126A-103, and 126A-104 and Article 14.

(3) Employees of the Office of Proprietary Schools whose salaries are fixed by the State Board of Proprietary Schools in accordance with G.S.

115D-89.2.

(4) Officers, employees, and members of the governingboard of a North Carolina nonprofitcorporationwithwhichtheDepartmentofCommercehascontracted pursuant to the authority granted in G.S.

143B-431.01.

(5) Constitutional officers, officials, and employees of the Judicial Department.

(6) Constitutional officers, officials, and employees of the General Assembly.

"§ 126A-15.2.

Exemptions from this Chapter.

(a) Probationary employees are exempt from the following:

(1) All of Article 8 of this Chapter, except for G.S.

126A-84(b)(1) and (2).

(2) G.S.

126A-91.

(b) Permanent experiential employees are exempt from the following:

(1) Article 3 of this Chapter.

(2) Article 4 of this Chapter, except for G.S.

126A-43.

(3) All of Article 8 of this Chapter, except for G.S.

126A-84(b)(1) and (2).

(4) G.S.

126A-91.

(c) Non-permanent experiential employees are exempt from the following:

(1) Article 3 of this Chapter.

(2) Article 4 of this Chapter, except for G.S.

126A-43.

(3) All of Article 8 of this Chapter, except for G.S.

126A-84(b)(1) and (2).

Page 8 Senate Bill 1041-Second Edition General Assembly Of North Carolina Session 2025 (4) Article 9 of this Chapter.

(d) Temporary employees are exempt from the following:

(1) Article 3 of this Chapter.

(2) Article 4 of this Chapter, except for G.S.

126A-43.

(3) Article 5 of this Chapter, except for G.S.

126A-52.

(4) Part 2 of Article 6 of this Chapter.

(5) Article 7 of this Chapter.

(6) Article 8 of this Chapter.

(7) Article 9 of this Chapter.

(e) Time-limited appointments are exempt from the following:

(1) All of Article 8 of this Chapter, except for G.S.

126A-84(c)(1) and (2).

(2) Article 9 of this Chapter.

(f) Employees in a position with an experience-based salary schedule established in the Current Operations Appropriations Act, as defined in G.S.

143C-1.1, are exempt from Article 4 of this Chapter.

(g) Limited exception employees are exempt from the following:

(1) Article 3 of this Chapter.

(2) Article 4 of this Chapter, except for G.S.

126A-43.

(3) G.S.

126A-50(4) and policies adopted pursuant to that subdivision.

(4) G.S.

126A-72(a)(1), covering hours and days of work, vacation, and sick leave.

(5) Part 3 of Article 7 of this Chapter.

(h) Specialized Treasurer's Office employees are exempt from the following:

(1) Article 3 of this Chapter.

(2) Article 4 of this Chapter, except for G.S.

126A-43.

(3) Article 5 of this Chapter, except for G.S.

126A-52 and G.S.

126A-57.3.

(4) Part 2 of Article 6 of this Chapter.

(5) Parts 2 and 3 of Article 7 of this Chapter.

(6) Article 8 of this Chapter.

(i) Exempt policymaking employees and designated employees of policymakers are exempt from the following:

(1) Article 5 of this Chapter, except for G.S.

126A-52 and G.S.

126A-57.2.

(2) Part 2 of Article 6 of this Chapter.

(3) Article 8 of this Chapter.

(4) Article 10 of this Chapter.

(5) G.S.

126A-92(b).

(6) G.S.

126A-93.

(j) Exempt managerial employees and exempt wardens are exempt from the following:

(1) Part 2 of Article 5 of this Chapter.

(2) All of Article 8 of this Chapter, except for G.S.

126A-84(b)(1) and (2).

(3) Article 10 of this Chapter.

(4) G.S.

126A-92(b).

(5) G.S.

126A-93.

(k) Statutorily exempt employees are exempt from the following:

(1) Article 3 of this Chapter.

(2) Article 4 of this Chapter, except for G.S.

126A-43.

(3) Article 5 of this Chapter, except for G.S.

126A-52.

(4) Part 2 of Article 6 of this Chapter.

(5) Parts 2 and 3 of Article 7 of this Chapter.

(6) Article 8 of this Chapter.

(7) Article 9 of this Chapter, except for G.S.

126A-95.

Senate Bill 1041-Second Edition Page 9 General Assembly Of North Carolina Session 2025 (8) Article 10 of this Chapter.

(l) State employees compensated as teachers are exempt from the following:

(1) Article 3 of this Chapter.

(2) Article 4 of this Chapter, except for G.S.

126A-43.

(3) Article 5 of this Chapter, except for G.S.

126A-52.

(4) Part 2 of Article 6 of this Chapter.

(5) Part 1 of Article 7 of this Chapter, except as to G.S.

126A-71.

(6) Article 8 of this Chapter.

(7) Article 9 of this Chapter, except for G.S.

126A-95.

(8) Article 10 of this Chapter.

(m) University health employees are exempt from the following:

(1) Article 3 of this Chapter.

(2) Article 4 of this Chapter, except for G.S.

126A-43.

(3) Article 5 of this Chapter, except for G.S.

126A-52 and G.S.

126A-57.3.

(4) Part 2 of Article 6 of this Chapter.

(5) Parts 2, 3, and 4 of Article 7 of this Chapter.

(6) Article 8 of this Chapter.

(7) Article 9 of this Chapter, except for G.S.

126A-95.

(n) University police employees are exempt from the following:

(1) Article 3 of this Chapter.

(2) Article 4 of this Chapter, except for G.S.

126A-43.

(3) Article 5 of this Chapter, except for G.S.

126A-52 and G.S.

126A-57.3.

(4) Part 2 of Article 6 of this Chapter.

(5) Parts 2, 3, and 4 of Article 7 of this Chapter.

(7) Article 9 of this Chapter, except for G.S.

126A-95.

(8) Article 10 of this Chapter.

(o) Local employees are exempt from the following:

(1) G.S.

126A-57.3.

(2) Parts 1, 2, and 3 of Article 7 of this Chapter.

(3) G.S.

126A-94.

(4) Article 13 of this Chapter.

"§ 126A-15.3.

Additional exemptions for experiential programs.

Notwithstanding G.S.

126A-15.2, for good cause or based on requirements of an experiential program set by the federal government or an external funding source, the Director may make an experiential program exempt from additional Articles or sections of this Chapter.

"§ 126A-15.4.

Process for designating exempt managerial and policy positions.

(a) An exempt managerial position is a position delegated with significant managerial or programmatic responsibility that is essential to the successful operation of an agency, so that the application of G.S.

126A-81 to an employee in the position would cause undue disruption to the operations of the agency.

(b) An exempt policymaking position is a position delegated with the authority to impose the final decision as to a settled course of action to be followed within an agency, so that loyalty to the Governor or member of the Council of State in their respective offices is reasonably necessary to implement the policies of their offices.

The term does not include personnel professionals.

(c) Exempt Policymaking and Exempt Managerial Positions in Cabinet Departments.

– Subject to this Chapter, the Governor may designate a total of 425 exempt policymaking and exempt managerial positions throughout the following departments and offices:

(1) Department of Administration.

(2) Department of Commerce.

(3) Department of Public Safety.

Page 10 Senate Bill 1041-Second Edition General Assembly Of North Carolina Session 2025 (4) Department of Natural and Cultural Resources.

(5) Department of Health and Human Services.

(6) Department of Environmental Quality.

(7) Department of Revenue.

(8) Department of Transportation.

(9) Department of Information Technology.

(10) Department of Military and Veterans Affairs.

(11) Department of Adult Correction.

(12) Office of State Human Resources.

(13) Office of State Budget and Management.

(d) Exempt Policymaking and Exempt Managerial Positions in Council of State Departments and Offices.

– The following officials maydesignate up to 25 exempt policymaking positions or two percent (2%) of the total number of full-time positions in the department, whicheveris greater,and 25 exemptmanagerial positions ortwopercent (2%)ofthetotal number of full-time positions in the department, whichever is greater, except as described below:

(1) The Secretary of State.

(2) The Auditor.

(3) The Treasurer.

(4) The Attorney General.

(5) The Commissioner of Agriculture.

(6) The Commissioner of Insurance.

(7) The Commissioner of Labor.

– Notwithstanding the designation limits of this subsection, the Commission shall designate three additional full-time equivalent attorney positions as exempt policymaking positions.

(8) The Superintendent of Public Instruction.

– Notwithstanding the designation limits of this subsection, the Superintendent may designate up to 70 exempt policymaking positions or two percent (2%) of the total number of full-time positions in the department, whichever is greater, and up to 70 exempt managerial positions or two percent (2%) of the total number of full-time positions in the department, whichever is greater.

(e) Exempt Policymaking and Exempt Managerial Positions in the Office of the State Controller and the State Board of Elections.

– (1) The State Controller.

– The total number of exempt positions, policymaking and managerial, is limited to 10.

(2) The Executive Director of the State Board of Elections.

– The total number of exempt positions is limited to the following seven positions:

Agency Human Relations Director II, Agency General Counsel II, Assistant General Counsel II, Public Information Manager, Legislative Affairs Manager, Internal Auditor, and Administrative Officer III.

(f) Designation of Additional Positions.

– The Governor or member of the Council of State may request that additional positions be designated as exempt.

The request shall be made by sending a list of exempt policymaking and exempt managerial positions that exceed the limit imposed by this subsection to the Speaker of the North Carolina House of Representatives and the President of the North Carolina Senate.

A copy of the list also shall be sent to the Director.

The General Assembly may authorize all, or part of, the additional positions to be designated as exempt policymaking and exempt managerial positions.

(1) If the General Assembly is in session when the list is submitted and does not act within 30 days after the list is submitted, the list is deemed approved by the General Assembly, and the positions shall be designated as exempt positions.

Senate Bill 1041-Second Edition Page 11 General Assembly Of North Carolina Session 2025 (2) If the General Assembly is not in session, the list shall be submitted to the Joint Legislative Commission on Governmental Operations, and if the Commission does not meet within 90 days of submission, the list is deemed approved pursuant to G.S.

120-76.1(b), and the positions shall be designated as exempt.

(g) Letter.