Employment 2025

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

8.2 Anti-Discrimination As mentioned in 8.1 Wrongful Dismissal , under fed- eral Title VII, it is unlawful to discriminate on the basis of race, colour, national origin, religion, sex (includ - ing pregnancy, childbirth and other related medical conditions), sexual orientation and gender identity, disability, age (40 years of age or older), citizenship status and genetic information. The EEPA also allows for a private right of action for discrimination claims brought pursuant to the same protected classes as Title VII. Under North Carolina law, it is also unlawful to terminate someone for any reason that violates North Carolina Public Policy, which includes public policy set forth in the EEPA. The statute of limitations for these state law claims is three years, meaning that employees could bring claims of discrimination past the traditional statute of limitations under Title VII. North Carolina courts have adopted similar tests to the federal McDonnell Doug - las framework for state discrimination claims. Like federal claims, damages can include back pay and front pay, as well as compensatory damages, emo - tional distress damages and – in some instances – During COVID-19, most North Carolina counties con - ducted hearings virtually via Webex. Most counties have returned to full in-person hearings. However, several of the larger, more urban counties such as Mecklenburg and Wake (Charlotte and Raleigh areas, respectively) are conducting some portion of their hearings via video. Trials in North Carolina are not being conducted virtually. As of 1 July 2024, remote notarisation for affidavits needed in court proceed - ings is allowed. This makes it significantly easier for witnesses to prepare affidavits. The North Carolina Secretary of State maintains a searchable database to locate eNotaries, making it easy for employers to locate one should the need arise. punitive damages. 8.3 Digitalisation

are frequently litigated in the North Carolina Busi - ness Court, which has mandatory jurisdiction over cases involving trade secrets. Unlike most cases filed in North Carolina superior courts, only one judge is assigned to each case in the North Carolina Business Court, and those judges are particularly familiar with the law and cases falling under their jurisdiction. Class actions claims are available under both federal and state law. Typically, class action employment claims involve claims of wage and hour violations, employment discrimination or Employee Retirement Ever since the passage of the Federal Arbitration Act (FAA), which provides that arbitration agreements are generally enforceable, the frequency of arbitration provisions in employment contracts has steadily risen. Arbitration provides many desirable features, such as the following, that many employers prefer. Income Security Act (ERISA) violations. 9.2 Alternative Dispute Resolution • Confidentiality: Unlike a case in court, arbitration filings are typically not publicly available, leading to increased privacy during the litigation. Similarly, some arbitration agreements contain confidentiality provisions to ensure the matter is not publicised. • Expeditious and cost-effective resolution: Arbitra - tion awards are generally afforded the same bind - ing effect as a court order or jury verdict. However, the resolution itself can often be attained much quicker than a typical court case. • Standard rules and procedures: Although formal rules of evidence and civil procedure do not typi - cally apply in arbitration, many established arbitra - tion organisations such as the American Arbitra - tion Association (AAA) have thorough sets of rules governing their proceedings. Arbitration agreements can be effective tools for pri - vately handling everything from contractual disputes to statutory discrimination claims. However, the FAA has several express carve-outs for certain types of claims for which a pre-dispute arbitration agreement either is not effective or cannot be used to waive any party’s rights. These claims include those aris - ing under certain sections of the Dodd-Frank Act, as

9. Dispute Resolution 9.1 Litigation

North Carolina does not have any forums specific to employment disputes; however, employment disputes

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