§ 126A-8-5.  Grievance appeal process.

(a) Once a final agency decision has been issued in accordance with G.S. 126A-8-4, an applicant, employee, or former employee may file a contested case in the Office of Administrative Hearings under Article 3 of Chapter 150B of the General Statutes. The contested case must be filed within 30 days of receipt of the final agency decision. Except for cases of extraordinary cause shown, the Office of Administrative Hearings shall hear and issue a final decision in accordance with G.S. 150B-34 within 180 days from the commencement of the case. In deciding cases under this section, the Office of Administrative Hearings may grant the following relief:

(1) Reinstatement of the employee to the position from which the employee has been removed.

(2) Ordering the employment, promotion, transfer, or salary adjustment of any individual to whom it has been wrongfully denied.

(3) Directing other suitable action to correct the abuse which may include the requirement of payment for any loss of salary that has resulted from the improper action of the agency.

(b) An aggrieved party in a contested case under this section shall be entitled to judicial review of a final decision by appeal to the Court of Appeals as provided in G.S. 7A-29(a). The appeal shall be taken within 30 days of receipt of the written notice of final decision. A notice of appeal shall be filed with the Office of Administrative Hearings and served on all parties to the contested case hearing.

(c) The following issues may be heard as contested cases after completion of the agency grievance procedure and the OSHR review:

(1) Discrimination or harassment. - An applicant for employment, an employee, or former employee may allege discrimination or harassment based on race, religion, color, national origin, sex, age, disability, genetic information, or political affiliation if the employee believes that he or she has been discriminated against in his or her application for employment or in the terms and conditions of the employee's employment, or in the termination of his or her employment.

(2) Retaliation. -- An applicant for employment, an employee, or former employee may allege retaliation for protesting discrimination based on race, religion, color, national origin, sex, age, disability, political affiliation, or genetic information if the employee believes that he or she has been retaliated against in his or her application for employment, in the terms and conditions of the employee's employment, or in the termination of the employee's employment.

(3) Just cause for dismissal, demotion, or suspension. - A career employee may allege that he or she was dismissed, demoted, or suspended for disciplinary reasons without just cause. A dismissal, demotion, or suspension not imposed for disciplinary reasons shall not be considered a disciplinary action within the meaning of this section. However, in contested cases conducted pursuant to this section, an employee may appeal an involuntary nondisciplinary separation due to an employee's unavailability in the same fashion as if it were a disciplinary action, but the agency shall only have the burden to prove that the employee was unavailable.

(4) Veteran's and National Guard preference. - An applicant for employment or an employee may allege that he or she was denied veteran's preference or National Guard preference in violation of the law.

(5) Failure to post or give priority consideration. - An applicant for employment or an employee may allege that he or she was denied hiring or promotion because a position was not posted in accordance with this Chapter, or a career State employee may allege that he or she was denied a promotion as a result of a failure to give priority consideration for promotion as required by G.S. 126A-5-12 or a career employee may allege that he or she was denied hiring as a result of the failure to give him or her a reduction-in-force priority.

(6) Whistleblower. - A whistleblower grievance as provided in Article 14 of this Chapter.

(d) Any issue for which an appeal to the Office of Administrative Hearings has not been specifically authorized by this section shall not be grounds for a contested case hearing.

(e) In contested cases conducted pursuant to this section, the burden of showing that a career employee was discharged, demoted, or suspended for just cause rests with the employing agency. In all other contested cases, the burden of proof rests with the employee or applicant.

(f) The Office of Administrative Hearings may award attorneys' fees to an employee where reinstatement or back pay is ordered or where an employee prevails in a whistleblower grievance. The remedies provided in this subsection in a whistleblower appeal shall be the same as those provided in G.S. 126A-14-4.

(g) The Office of Administrative Hearings shall report to OSHR and the Joint Legislative Administrative Procedure Oversight Committee on the number of cases filed under this section and on the number of days between filing and closing of each case. The report shall be submitted on May 1 and November 1 of each year.  (2026-40, s. 1.)