Section 1.

Adds new GS 126-8.7, paid leave for pregnancy loss, requiring the State Human Resources Commission (Commission) to adopt rules and policies to grant a permanent, probationary, or time-limited full-time State employee with paid leave for pregnancy loss, with required elements, including that the leave be at least 56 hours. Defines pregnancy loss to mean a miscarriage, an unsuccessful round of intrauterine insemination or of an assisted reproductive technology procedure, a failed adoption arrangement, a failed surrogacy arrangement, or a diagnosis or event that impacts pregnancy or fertility. Requires the Commission to adopt rules and policies to provide that a permanent, probationary, or time-limited part-time State employee be granted a prorated amount of paid leave for pregnancy loss on an equitable basis. Provides that the leave is available without exhaustion of an employee’s sick or vacation leave and awarded in addition to shared leave, has no cash value upon termination from employment, and may not be used for calculating an employee’s retirement benefits. Applies leave provisions to employees of State agencies, departments, and institutions, including The University of North Carolina; to public school employees; and to community college employees. Requires each governing board to adopt rules and policies regarding this leave that are substantially equivalent to the Commission’s rules required by the act. Effective July 1, 2025, and applies to requests for pregnancy loss occurring on or after that date.

Makes conforming changes to GS 126-5, effective July 1, 2025, so that GS 126-8.7 applies to all State employees, public school employees, and community college employees. Directs the legislative and judicial branches to adopt paid bereavement leave policies. 

Effective July 1, 2025, appropriates $1.8 million from the General Fund to the Reserve for Compensation Increases for the 2025-2026 fiscal year and again for 2025-2027 (appears to intend 2026-27 year) to fund paid leave for pregnancy loss as enacted by the act.

Section 2.

Enacts GS 126-8.8, requiring the State Human Resources Commission to adopt rules and policies to provide that a permanent, probationary, or time-limited full-time State employee be granted up to three consecutive workdays of paid bereavement leave, or a prorated amount of paid bereavement leave, on the death of any member of the employee's immediate family, defined to include a spouse, parent, child, brother, sister, grandparent, or grandchild, and step, half, and in-law relationships. Specifies criteria that must be included in the Commission's rules and policies, including requiring a requesting employee to submit a statement of the deceased's name and relationship to the employee and to establish a period of aggregated State service required before the employee is leave eligible. Specifies that the leave is available without exhaustion of the employee's earned and awarded leave, has no cash value upon termination, and cannot be used in calculating retirement benefits. Defines the scope of the statute to include State agency, department, and institution employees, including UNC; public school employees; and community college employees. Directs the appropriate governing board, officer, or entity to adopt rules and policies to award paid bereavement leave to employees that are substantially equivalent to those adopted by the Commission.

Makes conforming changes to GS 126-5, effective July 1, 2025.

Appropriates $2 million from the General Fund to the Reserve for Compensation Increases for 2025-26 and again for 2026-27 to fund the bereavement leave authorized by the act. 

Applies to requests for paid bereavement leave for deaths occurring on or after July 1, 2025.