House Bill 835: State Contract Employee Protection

• Adds Article 17 to Chapter 126 of the General Statutes to prohibit mistreatment of contract employees working in North Carolina state government workplaces or on state-controlled projects.

• Defines "adverse action" as nine categories of employer conduct including reassignment, compensation reduction, disciplinary action, increased supervision, withdrawal of privileges, difficult duties, and workplace bullying.

• Prohibits state employees and private third-party employers from retaliating against contract employees for making labor law complaints, testifying in investigations, exercising protected employee rights, or reporting workplace bullying; violating state employees face up to termination from employment.

• Authorizes the North Carolina Department of Labor to investigate violations and assess civil penalties of $1,000 to $20,000 per violation; violators are ineligible to contract with state agencies for five years.

• Allows contract employees to file civil actions within two years of alleged adverse action in superior court; prevailing parties may recover reinstatement, back pay, attorney fees, and litigation costs.