H1112: NC Workforce Stability & Economic Protection. Latest Version

2025-2026

House
Passed 1st Reading
Rules


AN ACT TO PROTECT NORTH CAROLINA'S ECONOMY AND WORKFORCE BY REQUIRING AN ANNUAL ECONOMIC IMPACT STUDY OF FEDERAL IMMIGRATION ENFORCEMENT OPERATIONS, MANDATING EMPLOYER NOTIFICATION TO WORKERS REGARDING FEDERAL AUDITS, AND AUTHORIZING THE ATTORNEY GENERAL TO MONITOR AND REPORT ON THE IMPACTS OF ENFORCEMENT ACTIONS ON STATE COMMERCE.



The General Assembly of North Carolina enacts:



SECTION 1.  Chapter 64 of the General Statutes is amended by adding a new Article to read:



Article 4.



NC Workforce Stability & Economic Protection Act.



§ 64‑70.  Short title; findings.



(a)        This act shall be known as the NC Workforce Stability & Economic Protection Act.



(b)        The General Assembly finds that:



(1)        North Carolina's economy is powered by a diverse workforce that contributes over fifteen billion dollars ($15,000,000,000) annually in investments and critical labor to sectors, including agriculture, advanced manufacturing, and life sciences.



(2)        Uncoordinated federal immigration enforcement operations under the One Big Beautiful Bill Act of 2025 have caused significant disruptions to North Carolina businesses, leading to sudden labor shortages, broken supply chains, and decreased consumer spending in local communities.



(3)        To maintain North Carolina's status as a top state for business, the State must have accurate data on how federal actions impact state tax revenues, business continuity, and the overall stability of the workforce.



§ 64‑71.  Annual study of economic impact of federal immigration enforcement.



(a)        The Office of State Budget and Management, in consultation with the Department of Commerce and the Department of Revenue, shall conduct an annual study to quantify the economic impact of federal immigration enforcement operations within the State.



(b)        The study shall evaluate the impact of federal immigration enforcement operations on this State and include, but is not limited to, all of the following topics:



(1)        Estimated losses in State and local tax revenue.



(2)        Estimated decreases in gross State product attributable to workforce reductions.



(3)        The fiscal impact on State‑funded services and infrastructure resulting from business closures or contractions.



(c)        The Office of State Budget and Management shall report study findings to the Joint Legislative Economic Development and Global Engagement Oversight Committee no later than March 1 of each year.



§ 64‑72.  Employer notification of federal audits.



(a)        Notice to Employees. – Except as otherwise required by federal law, any employer who receives a Notice of Inspection (NOI) by a federal immigration agency to conduct an audit of Employment Eligibility Verification forms (Form I‑9) or other employee records shall provide a written notice to each current employee in the employee's primary language within 72 hours of receiving the notice.



(b)        Content of Notice. – The notice shall include the name of the federal agency, the date the employer received the notice, and a general description of the records sought.



(c)        Prohibition on Retaliation. – No employer shall discharge, discipline, or otherwise retaliate against an employee for exercising their rights under this section or for requesting information regarding an inspection.



(d)       Enforcement and Penalties. – A violation of this section shall result in a civil penalty of not less than five hundred dollars ($500.00) for a first violation and up to one thousand dollars ($1,000) for each subsequent violation, to be collected by the Commissioner of Labor.



§ 64‑73.  Monitoring federal enforcement impacts on civil rights and commerce.



(a)        The Attorney General is authorized to monitor federal immigration enforcement operations to ensure they do not infringe upon the constitutional rights of North Carolina residents or cause unlawful interference with State commerce.



(b)        The Attorney General shall establish a public portal for North Carolina business owners and workers to report economic disruptions or civil rights grievances resulting from federal operations.



(c)        The Attorney General shall issue an annual Workforce and Community Safety Report summarizing these findings to the Governor and the General Assembly.



SECTION 2.  If any provision of this act or its application is held invalid, the invalidity does not affect other provisions or applications of this act that can be given effect without the invalid provisions or application and, to this end, the provisions of this act are severable.



SECTION 3.  There is appropriated from the General Fund to the Office of State Budget and Management the sum of one hundred thousand dollars ($100,000) in nonrecurring funds for the 2026‑2027 fiscal year to be used to assist in conducting the study required by Section 1 of this act.



SECTION 4.  This act is effective when it becomes law.