North Carolina § 126-1 - Purpose of Chapter; application to local employees.

§ 126-1. Purpose of Chapter; application to local employees.

It is the intent and purpose of this Chapter to establish for the government of the State a system of personnel administration under the Governor, based on accepted principles of personnel administration and applying the best methods as evolved in government and industry. It is also the intent of this Chapter that this system of personnel administration shall apply to local employees paid entirely or in part from federal funds, except to the extent that local governing boards are authorized by this Chapter to establish local rules, local pay plans, and local personnel systems. It is also the intent of this Chapter to make provisions for a decentralized system of personnel administration, where appropriate, and without additional cost to the State, with the State Human Resources Commission as the policy and rule-making body. The Office of State Human Resources shall make recommendations for policies and rules to the Commission based on research and study in the field of personnel management, develop and administer statewide standards and criteria for good personnel management, provide training and technical assistance to all agencies, departments, and institutions, provide oversight, which includes conducting audits to monitor compliance with established State Human Resources Commission policies and rules, administer a system for implementing necessary corrective actions when the rule, standards, or criteria are not met, and serve as the central repository for State Human Resources system data. The agency, department, and institution heads shall be responsible and accountable for execution of Commission policies and rules for their employees. History (1965, c. 640, s. 2; 1997-349, s. 1; 2013-382, s. 9.1(c); 2014-115, s. 55.4(c).) Cross References. - As to provisions relating to establishment of policies and rules governing the study and implementation of competitive job classification and compensation plan for nurses by the Board of Directors of the University of North Carolina Hospitals at Chapel Hill, see G.S. 116-37(d) . Editor's Note. - Session Laws 2001-424, s. 21.14(b), as amended by 2001-487, s. 110, provides: "Under the direction of the Secretary of Health and Human Services, the Director of the Office of Policy and Planning shall have the authority to direct Divisions, offices, and programs within the Department to conduct periodic reviews of policies, plans, and rules and shall advise the Secretary when it is determined to be appropriate or necessary to modify, amend, and repeal departmental policies, plans, and rules. All professional and supervisory employees in policy and management positions within the Office of Policy and Planning are exempt from Chapter 126 of the General Statutes except for Articles 6, 7, and 14 of that Chapter. Exempt positions within the Office of Policy and Planning shall not count toward the exempt position totals authorized by G.S. 126-5(d)(1)." Session Laws 2001-424, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2001'." Session Laws 2001-424, s. 36.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2001-2003 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2001-2003 fiscal biennium." Session Laws 2001-424, s. 36.5, is a severability clause. Session Laws 2006-66, s. 22.15A(a), provides: "Except as provided in subsection (b) of this section and notwithstanding any other provision of law, the State Personnel Commission [now State Human Resources Commission], the Office of State Personnel [now Office of State Human Resources], and each State department, agency, and institution shall suspend further implementation of career banding pending subsequent action by the General Assembly after its review of the State Personnel Act [now North Carolina Human Resources Act], including the traditional graded classification system and career banding. It is the intent of the 2005 General Assembly to authorize a legislative study commission to review and evaluate the compensation and other personnel policies affecting employees and employing agencies of State government." Session Laws 2006-66, s. 22.15A(b), as amended by Session Laws 2006-221, s. 21A(a), provides: "Career-banded classifications approved by the State Personnel Commission [now State Human Resources Commission] on or before June 15, 2006, and for which the agency had begun implementation by that date, may continue to be implemented without suspension as otherwise provided for in this section if: "(1) It is fully and completely implemented no later than February 1, 2007; and "(2) It is implemented entirely using technical resources provided by the Office of State Personnel [now Office of State Human Resources] and the affected agency or constituent institution." Session Laws 2006-66, s. 22.15A(c) provides: "Career-banded classifications already approved by the State Personnel Commission [now State Human Resources Commission] on or before June 15, 2006, may be incorporated into the HR/Payroll (BEACON) program development and implementation provided that such inclusion will not delay completion and implementation of the program." Session Laws 2006-221, s. 21A(b) through (e), provides: "(b) There is created the Legislative Study Commission on the State Personnel Act [now North Carolina Human Resources Act] ('Commission'). The Commission shall consist of 18 members appointed as follows: "(1) Six members appointed by the Governor, to include: "a. One person who is a current State employee subject to the State Personnel Act [now North Carolina Human Resources Act] and not currently working in human resources management. "b. One person who is a current State employee and currently working in human resources management. "c. One person having experience and expertise in human resources management in a large private sector organization with greater than 500 employees. "d. One person having experience and expertise in human resources management in a large public sector organization with greater than 500 employees. "e. Two persons representing the general public. "(2) Six members appointed by the Speaker of the House of Representatives, to include: "a. Four members of the House of Representatives. "b. Two persons representing the general public. "(3) Six members appointed by the President Pro Tempore of the Senate, to include: "a. Four members of the Senate. "b. Two persons representing the general public. "(c) The Commission shall: "(1) Review Chapter 126 of the General Statutes, the State Personnel Act [now North Carolina Human Resources Act], to determine whether the Act should be revised or repealed, in whole or in part. "(2) Consider the efficacy of changes in policy related to the following: classification system, compensation philosophy, salary structure, merit-based pay, pay equity, pay delivery, and performance evaluation. "(3) Evaluate career banding as an alternative to the traditional classification system, considering career progression salary adjustments as compared to current compensation increase philosophy, government/private industry best practices, and the real and perceived impact to State employees of moving to a career banding classification system. "(4) Review any other matter that the Commission finds relevant to its charge. "(d) The Commission may provide interim reports and shall provide its final report identifying its findings, recommendations, and legislative proposals by May 1, 2008. The Commission shall terminate upon filing its final report. "(e) The Speaker of the House of Representatives and the President Pro Tempore of the Senate shall each appoint a cochair for the Commission. The Commission may contract for consultant services as provided by G.S. 120-32.02. Upon approval of the Legislative Services Commission, the Legislative Services Officer shall assign professional and clerical staff to assist in the work of the Commission. Clerical staff shall be furnished to the Commission through the offices of the House of Representatives and the Senate Directors of Legislative Assistants. The Commission may meet in the Legislative Building or the Legislative Office Building upon the approval of the Legislative Services Commission. With the permission of the Speaker of the House of Representatives and the President Pro Tempore of the Senate, the Commission may meet during the regular legislative session. Members of the Commission shall receive per diem, subsistence, and travel allowances at the rate established in G.S. 120-3.1. The appointing authority shall fill vacancies. The Commission, while in the discharge of its official duties, may exercise all the powers provided under the provisions of G.S. 120-19 through G.S. 120-19.4, including the power to request all officers, agents, agencies, and departments of the State to provide any information, data, or documents within their possession, ascertainable from their records, or otherwise available to them and the power to subpoena witnesses." Session Laws, 2006-66, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2006'." Session Laws 2006-66, s. 28.3 provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2006-2007 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2006-2007 fiscal year." Session Laws 2006-66, s. 28.6, is a severability clause. Session Laws 2007-323, s. 28.18B, provides: "Notwithstanding any other provision of law, the State Personnel Commission [now State Human Resources Commission], the Office of State Personnel [now Office of State Human Resources], State agencies as to their defined critical occupational groups limited to nursing, engineering, library, fiscal, and pharmacy positions, and The University of North Carolina as to its employees subject to the State Personnel Act [now North Carolina Human Resources Act] shall begin or continue the development and implementation of career banding, effective July 1, 2007. "The Office of State Personnel [now Office of State Human Resources] shall provide quarterly updates on career banding to the Joint Legislative Commission on Governmental Operations. "The Office of State Personnel [now Office of State Human Resources] shall consult with the Joint Legislative Commission on Governmental Operations prior to the State Personnel Commission's [now State Human Resources Commission's] review and approval of career banding for major occupational groups with significant labor market changes." Session Laws 2007-323, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2007'." Session Laws 2007-323, s. 32.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2007-2009 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2007-2009 fiscal biennium." Session Laws 2007-323, s. 32.5, is a severability clause. Session Laws 2011-145, s. 29.18(a)-(e), provides: "(a) The following definitions apply in this section: "(1) Furlough. - A temporary, involuntary period of leave from employment without pay but shall not include any period of involuntary leave resulting from disciplinary action. "(2) Public agency. - A State agency, department, or institution in the executive branch of State government; The University of North Carolina; the North Carolina Community College System; and a local school administrative unit. "(3) Public employee. - An employee employed by the legislative or judicial branches or by a public agency. "(b) Any furlough of a public employee paid with State funds is prohibited unless the furlough is ordered by the Governor while acting to balance the budget pursuant to Section 5 of Article III of the North Carolina Constitution or by the Chief Justice or the Legislative Services Officer, respectively, to balance the judicial branch or legislative branch budget. "The Board of Governors of The University of North Carolina, the State Board of Community Colleges, and each local public school board of education must petition the Governor to furlough its respective employees in order to balance the respective budgets. "(c) If, in accordance with subsection (b) of this section, necessary economies in expenditures must be effected by a furlough of public employees, the employing public agency, the judicial branch, or the legislative branch, respectively, shall report to the State Treasurer, the Director of the Retirement Systems Division, and the Executive Administrator of the State Health Plan the following: "(1) The specifics of the authorized furlough. "(2) The positions affected, including all full-time, part-time, temporary, and contractual positions, all nonessential personnel, and all nonteaching positions. "(3) The individual employees affected, including the applicable reduction in salary and whether the employee is subject to or exempt from the Fair Labor Standards Act. "(d) If, in accordance with subsection (b) of this section, necessary economies in expenditures must be effected by a furlough of public employees, then a public employee on a furlough who is: "(1) A member of any of the State-supported retirement plans administered by the Retirement Systems Division of the Department of State Treasurer or of an Optional Retirement Program (ORP) administered under G.S. 135-5.1 or G.S. 135-5.4 shall be considered in active service during any period of furlough and shall be entitled to all of the same benefits to which the employee was entitled on the workday immediately preceding the furlough. The member shall suffer no diminution of retirement average final compensation based on being on furlough, and the retirement average final compensation shall be calculated based on the undiminished compensation. During a furlough period, the employer shall pay both employee and employer contributions to the Retirement Systems Division or ORP on behalf of the furloughed employee as though the employee were in active service. "(2) A member of the State Health Plan for Teachers and State Employees shall be considered eligible for coverage under the Plan on the same basis as on the workday immediately preceding the furlough. The public employer shall pay contributions on behalf of the furloughed public employee as though the employee were in active service. "(e) The benefits protections provided by this section shall also apply to public employees in the judicial and legislative branches." For prior similar provisions, see Session Laws 2009-26, ss. 1-8. Session Laws 2011-145, s. 29.21(a) and (b), provides: "(a) There are established in the Office of State Budget and Management General Fund and Highway Fund reserve budget codes for the purpose of funding severance-related obligations to State employees subject to the State Personnel Act [now North Carolina Human Resources Act], and employees exempt from the State Personnel Act [now North Carolina Human Resources Act], who are separated from service due to a reduction-in-force action. Severance-related expenditures from these reserves shall include obligations to fund: "(1) A State employee's severance salary continuation with an age adjustment factor as authorized by G.S. 126-8.5, including employer-related contributions for social security, and "(2) Noncontributory health premiums for up to 12 months as authorized by G.S. 135-45.2(a)(8) for employees of employing units as defined by G.S. 135-45.1(12). "(b) The Director of the Budget shall allocate funds appropriated in Sections 2.1 and 3.1 of this act to the Severance Expenditure Reserve to public agencies to fund severance-related obligations incurred by the agencies as a result of reduction-in-force actions that cause State-supported public employees to be terminated from public employment. Funds appropriated to the Severance Expenditure Reserve shall be expended in their entirety before funds appropriated to a public agency for State-supported personal services expenditures may be used to fund any severance-related obligations. "Funds appropriated to the Severance Expenditure Reserve may be allocated to public agencies for positions that are funded by the General Fund or Highway Fund. Funds appropriated to the Severance Expenditure Reserve may also be allocated to public agencies for positions that are funded partially from the General Fund or Highway Fund and partially from sources other than the General Fund or Highway Fund but only to the extent of the proportionate part of the salaries paid from the General Fund or Highway Fund. "For the purposes of this subsection, the term 'public employee' means an employee of a State agency, department, or institution; The University of North Carolina; the North Carolina Community College System; or a local school administrative unit." Session Laws 2011-145, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2011.'" Session Laws 2011-145, s. 32.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2011-2013 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2011-2013 fiscal biennium." Session Laws 2011-145, s. 32.5, is a severability clause. Session Laws 2012-142, s. 6.13(b), provides: "The Office of State Personnel [now Office of State Human Resources] shall adopt a policy implementing the relevant portions of G.S. 143C-6-8 , as amended by this section, for State employees." Session Laws 2012-142, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2012.'" Session Laws 2012-142, s. 27.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2012-2013 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2012-2013 fiscal year." Session Laws 2012-142, s. 27.7, is a severability clause. Session Laws 2013-382, s. 9.1(b), provides: "The following entities and positions created by Chapter 126 of the General Statutes are hereby renamed by this act: "(1) The State Personnel Commission is renamed the 'North Carolina Human Resources Commission.' "(2) The Office of State Personnel is renamed the 'North Carolina Office of State Human Resources.' "(3) The State Personnel Director is renamed the 'Director of the North Carolina Office of State Human Resources.' " Session Laws 2013-382, s. 9.1(c), provides: "Modification of References. - The Revisor of Statutes shall delete any references in the General Statutes to the State Personnel Act, State Personnel Commission, the State Personnel Director, and the Office of State Personnel (or any derivatives thereof) and substitute references to the North Carolina Human Resources Act, the State Human Resources Commission, the Director of the Office of State Human Resources, and the Office of Human Resources (or the appropriate derivative thereof) to effectuate the renaming set forth in this section wherever conforming changes are necessary." Session Laws 2013-382, s. 9.2, provides: "No action or proceeding pending on the effective date of this section [August 21, 2013], brought by or against the State Personnel Commission, the Director of the Office of State Personnel, or the Office of State Personnel, shall be affected by any provision of this section, but the same may be prosecuted or defended in the new name of the Commission, Director, and Office. In these actions and proceedings, the renamed Commission, Director, or Office shall be substituted as a party upon proper application to the courts or other public bodies." Session Laws 2013-382, s. 9.3, provides: "Any business or other matter undertaken or commanded by the former State Personnel Commission, State Personnel Director, or Office of State Personnel regarding any State program, office, or contract or pertaining to or connected with their respective functions, powers, obligations, and duties that are pending on the date this act becomes effective [August 21, 2013] may be conducted and completed by the Commission, Director, or Office in the same manner and under the same terms and conditions and with the same effect as if conducted and completed by the formerly named commission, director, or office." Session Laws 2014-115, s. 55.4(c), effective August 11, 2014, substituted "State Human Resources System" for "State Personnel System" in the Article heading. Session Laws 2014-115, s. 55.3(h), provides: "The Codifier of Rules shall make all necessary changes in nomenclature in Title 25 of the North Carolina Administrative Rules as follows: "(1) To change the name of the Office of State Personnel to the Office of State Human Resources. "(2) To change the name of the State Personnel Commission to the State Human Resources Commission. "(3) To change the name of the Director of the Office of State Personnel to the Director of the Office of State Human Resources. "(4) To change the name of the Office of State Personnel Director to the Office of State Human Resources Director. "(5) Any other change consistent with this section." State Government Reorganization. - The State personnel system was transferred to the Department of Administration by G.S. 143A-84 (now repealed), enacted by Session Laws 1971, c. 864. Effect of Amendments. - Session Laws 2011-145, s. 29.21A(a), effective July 1, 2011, and applicable to employees subject to reductions in force on or after July 1, 2011, in the section catchline, deleted "State employees receive priority consideration" following "Posting requirement" and substituted "reduction in force" for "reduction-in-force rights"; in the introductory language of subsection (a), inserted "in a place readily accessible to employees that is located"; in the first sentence of subdivision (a)(2), deleted "in a location readily accessible to employees" from the end; deleted subsection (a2), which pertained to duty of the State Personnel Commission [now State Human Resources Commission] to adopt rules providing priority consideration for separated State employees; deleted subsections (c1) and (c2), which pertained to State employees separated due to reduction in force, and applicants for reemployment with more than 10 years of service receiving priority, respectively; and deleted subsection (d), which was the definition for "Qualifications." Session Laws 2013-382, s. 9.1(c), effective August 21, 2013, twice substituted "State Human Resources Commission" for "State Personnel Commission" and "Office of State Human Resources" for "Office of State Personnel." Session Laws 2014-115, s. 55.4(c), effective August 11, 2014, substituted "State Human Resources system" for "State Personnel System" in the fourth sentence.