Employment 2025

USA – NORTH CAROLINA Law and Practice Contributed by: Phillip Strach, Alyssa Riggins, Nathaniel Pencook and Cassie Holt, Nelson Mullins Riley & Scarborough LLP

grievance procedure. The NLRA imposes an obliga - tion on both parties to bargain in good faith about wages, hours, and other terms and conditions of employment until the parties agree on a “collective bargaining agreement”. If the parties reach a stand- off or “impasse” before they can come to terms on an agreement, the employer may impose any terms and conditions offered to the collective employees before the impasse was reached. Once an employ - ment contract is in place, neither the employer nor the employees may deviate from its terms without the other party’s consent. In North Carolina, the negotiation of collective bar - gaining agreements between public employers and employees is prohibited by law. However, public employees do retain the right to organise or otherwise join employee associations. This means that public employees can negotiate with their employer for ben - efits, but any collective bargaining agreement entered into between the parties would be deemed void as an illegal contract. As North Carolina is an “at-will employment state”, employers do not need grounds for terminating employment. This means that no motivation is required to justify the termination of an employee. There are exceptions to the employment-at-will doc - trine, namely: • the employee has contracted for a definite term of employment; • the employee’s termination is in violation of state or federal anti-discrimination statutes; and • the employee’s termination violates North Carolina public policy. Contracts for a definite term of employment Regarding the first exception, employers should com - municate details surrounding the employment relation - ship explicitly at its inception to better maintain con - trol of the termination process and prevent unwanted 7. Termination 7.1 Grounds for Termination Motivation and Procedures for Dismissal

litigation. The employer also needs to determine the likelihood of an employment dispute and document the termination accordingly. If the employer is already on notice of the likelihood of dispute, counsel should be consulted to review the evidence supporting a ter - mination and to ensure that no relevant documents or communications are deleted. Violation of federal or state anti-discrimination law Regarding the second exception, employers must ensure that the rationale for ending the employment relationship does not violate federal or state law. The employer may not terminate someone owing to their membership of a protected class or in retaliation for the exercise of certain rights, for example. Employers should be cognisant of certain protections for individ - uals over the age of 40 under federal and North Caroli - na law. The federal Age Discrimination in Employment Act (ADEA) and the Older Workers Benefit Protection Act (OWBPA) prohibit discrimination based on age. When an employer grants a release or is involved in a settlement with an employee over the age of 40, the ADEA and the OWBPA require the employer to give the employee 21 days to consider and accept the terms of any agreement. The ADEA and the OWBPA also require employers to allow the employee seven days to rescind the agreement after signing. When an employer undertakes a reduction in the force or a group lay-off, the ADEA and the OWBPA require the employer to provide affected employees with certain statistical information regarding the other individuals affected by the termination. Violation of North Carolina public policy Within this third exception, North Carolina Courts have recognised three distinct scenarios where termination of employment was in violation of public policy in the state, namely when: • the termination stems from an employee refusing to break the law at the request of the employer; • where the employee was fired for “engaging in a legally protected activity”; and • “based on some activity by the employer contrary to law or public policy”.

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