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Wrongful Discharge Claims Limit Employment At-Will Doctrine in North and South Carolina: Employment Law Update

Employment in North and South Carolina is at-will, which generally means an employer can terminate an employee at any time without notice. However, both states have long-recognized exceptions to the employment-at-will doctrine, including provisions that an employee cannot be discharged for reasons that contravene the “public policy” of the state. Although courts in North and South Carolina generally construe public policy wrongful termination claims narrowly, at least one recent court decision has signaled a willingness to broaden the scope of such claims, potentially exposing employers to more lawsuits by terminated employees.

Then and Now: North Carolina Workers' Comp Reform Makes Things Better for Employers

This June, North Carolina Gov. Beverly E. Perdue signed into law the first significant reforms to the state Workers' Compensation Act since 1994. The changes have received a "thumb's up" from the state Chamber of Commerce because they are positive for employers. Some of the changes are effective immediately, and others apply to workers' compensation claims that arise after the effective date. The following is a summary.

North Carolina Jumps On E-Verify Bandwagon

The Tarheel State has just joined the growing list of states requiring that employers use E-Verify. The North Carolina law was signed by Governor Bev Perdue on June 23 and requires employers with 25 or more employees to use the federal E-Verify employment verification program for all new hires. The requirements will be phased in for private employers based on their size:

North Carolina Governor Signs E-Verify Law

On June 23, 2011, Governor Beverly Perdue signed a bill into law requiring all cities, all counties, and private employers of a certain size in North Carolina to use the federal government's E-Verify program to verify the work authorization of newly-hired employees. The law is titled, "An Act To Require Counties, Cities, And Employers To Use The Federal E-Verify Program To Verify The Work Authorization Of Newly Hired Employees." North Carolina is one of 17 states, including neighboring Georgia, South Carolina and Virginia, that have some form of E-Verify requirements for employers.

North Carolina Governor Signs Mandatory E-Verify Bill

North Carolina Governor Beverly Perdue has signed into law HB 36, requiring private employers with at least 25 employees and all counties and cities to use E-Verify to verify the work authorization of newly hired employees. E-Verify is an Internet-based system that allows employers to determine the work eligibility of employees by verifying employees’ information against federal databases.

North Carolina Legislature Passes Mandatory E-Verify Bill

The North Carolina Legislature has passed a bill that requires private employers with more than 25 employees, all counties, and all cities to use the federal E-Verify program to verify the work authorization of newly hired employees. The bill, HB 36, passed on Saturday, June 18, 2011, now goes to Governor Bev Perdue for signature.

North Carolina eAuthority.

North Carolina Bans Texting While Driving; Increased Penalties for Child Labor Violations; Unemployment Benefits; Personal Protective Equipment; At-Will Employment: Court Strengthens Limits on Contracts that Modify At-Will Employment; Wage and Hour: North Carolinas Wage and Hour Act Does Not Apply to Non-Residents Working Primarily Out of State; Benefits: A Non-ERISA Short-Term Disability Plan Gives Employer Reasonable Discretion to Determine Benefits Eligibility; Unemployment Compensation: North Carolina Supreme Court Finds that Employee Who Accepts Voluntary Retirement Package is Ineligible for Unemployment Benefits; Harassment: Federal Courts Require More from Employer Harassment Investigations; Fair Labor Standards Act (FLSA): Fourth Circuit Clarifies Analysis for Administrative Exemptions.

Status of North Carolina Immigration Reform (pdf).

North Carolina legislators have been attempting to pass similar statutory changes for several years, and the successful passage of the South Carolina law may spur lawmakers forward.

Restrictive Covenants in Employment Contracts in SC and NC. (pdf).

While agreements in restraint of trade were deemed void against public policy at early English common law, a covenant imposing a reasonable restraint is no longer per se invalid.

Employment and Labor Law Desk Reference For The Carolinas.

Employment laws covering employers in the Carolinas.
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