A BILL TO BE ENTITLED
AN ACT amending the north carolina wage and hour act to adjust the state minimum wage automatically when three of the four states adjoining this state increase their minimum wage amounts; appropriating funds to implement notice requirements related to the increase; and making conforming changes.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 95‑25.3 reads as rewritten:
"§ 95‑25.3.  Minimum wage.
(a)	Subject to the provisions of subsection (a1) of this section, every employer shall pay to each employee who in any workweek performs any work, wages of at least the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 206(a)(1), as that wage may change from time to time, except as otherwise provided in this section.
(a1)	When three of the four states adjoining this State increase the amount of their respective minimum wages, then:
(1)	The minimum wage in effect for this State shall increase automatically, on the ninetieth day after the effective date of the third state's increase, to six dollars and fifty cents ($6.50) per hour or to the average amount of the minimum wages set by those three states, whichever is less.
(2)	The Commissioner shall issue immediately a certification of the minimum wage adjustment. The certification shall include the effective date of the increase as set by subdivision (1) of this subsection.
(3)	The Commissioner shall provide statewide public notice of the certification and automatic adjustment by all of the following methods:
a.	By publication in at least two newspapers of statewide circulation.
b.	By publication in at least five newspapers of regional circulation.
c.	By posting the certification on the Department of Labor Web site.
d.	By mailed notice, and other appropriate means, as determined solely by the Commissioner.
Subsection (a) of this section shall no longer apply as of the expiration date set in the Commissioner's certification. The State minimum wage established by this subsection shall be effective until the General Assembly enacts the next increase or unless the General Assembly enacts legislation that repeals this subsection.
(b)	In order to prevent curtailment of opportunities for employment, the wage rate for full‑time students, learners, apprentices, and messengers, as defined under the Fair Labor Standards Act, shall be ninety percent (90%) of the rate in effect under subsection (a)  or (a1) of this section, rounded to the lowest nickel.
(c)	The Commissioner, in order to prevent curtailment of opportunities for employment, may, by regulation, establish a wage rate less than the wage rate in effect under subsection (a) or (a1) of this section, which may apply to persons whose earning or productive capacity is impaired by age or physical or mental deficiency or injury, as such persons are defined under the Fair Labor Standards Act.
(d)	The Commissioner, in order to prevent curtailment of opportunities for employment of the economically disadvantaged and the unemployed, may, by regulation, establish a wage rate not less than eighty‑five percent (85%) of the otherwise applicable wage rate in effect under subsection (a) or (a1) of this section, which shall apply to all persons (i) who have been unemployed for at least 15 weeks and who are economically disadvantaged, or (ii) who are, or whose families are, receiving Work First Family Assistance or who are receiving supplemental security benefits under Title XVI of the Social Security Act.
Pursuant to regulations issued by the Commissioner, certificates establishing eligibility for such subminimum wage shall be issued by the Employment Security Commission.
The regulation issued by the Commissioner shall not permit employment at the subminimum rate for a period in excess of 52 weeks.
(e)	The Commissioner, in order to prevent curtailment of opportunities for employment, and to not adversely affect the viability of seasonal establishments, may, by regulation, establish a wage rate not less than eighty‑five percent (85%) of the otherwise applicable wage rate in effect under subsection (a) or (a1) of this section, which shall apply to any employee employed by an establishment which is a seasonal amusement or recreational establishment, or a seasonal food service establishment.
(f)	Tips earned by a tipped employee may be counted as wages only up to the amount permitted in section 3(m) of the Fair Labor Standards Act, 29 U.S.C. 203(m), if the tipped employee is notified in advance, is permitted to retain all tips and the employer maintains accurate and complete records of tips received by each employee as such tips are certified by the employee monthly or for each pay period. Even if the employee refuses to certify tips accurately, tips may still be counted as wages when the employer complies with the other requirements of this section and can demonstrate by monitoring tips that the employee regularly receives tips in the amount for which the credit is taken. Tip pooling shall also be permissible among employees who customarily and regularly receive tips; however, no employee's tips may be reduced by more than fifteen percent (15%) under a tip pooling arrangement.
(g)	In order to prevent curtailment of opportunities for employment, an employer may, in lieu of the minimum wage prescribed by this section, pay a training wage to eligible persons in accordance with G.S. 95‑25.3A."
SECTION 2.(a)  G.S. 127A‑105 reads as rewritten:
"§ 127A‑105.  Rations and pay on State service.
The militia of the State, both officers and enlisted personnel, when called into the service of the State by the Governor shall receive the same pay as when called or ordered into the service of the United States, and shall be rationed or paid the equivalent thereof, provided that no officer or enlisted personnel shall receive less than 18 times the minimum hourly wage per day as provided for in G.S. 95‑25.3(a) or (a1)."
SECTION 2.(b)  G.S. 127A‑107 reads as rewritten:
"§ 127A‑107.  Rate of pay for other service.
The Governor may, whenever the public service requires it, order upon special or regular duty any officer or enlisted member of the national guard or naval militia, and the expenses and compensation therefor of such officer and enlisted member shall be paid out of the appropriations made to the Department of Crime Control and Public Safety. Such officers and enlisted members shall receive the same rate of pay as officers and enlisted members of the same grade and like service of the regular service, provided that no such officer or enlisted member shall receive less than 18 times the minimum hourly wage per day as provided for in G.S. 95‑25.3(a) or (a1). Officers and enlisted members when on duty in connection with examining boards, efficiency boards, advisory boards, courts of inquiry or similar duty shall be allowed per diem and subsistence prescribed for lawful State boards and commissions generally for such duty. Officers and enlisted members serving on general or special courts‑martial shall receive the base pay of their rank. No staff officer or enlisted member who receives a salary from the State as such shall be entitled to any additional compensation other than actual and necessary expenses incurred while traveling upon orders issued by the proper authority."
SECTION 2.(c)  G.S. 163‑46 reads as rewritten:
"§ 163‑46.  Compensation of precinct officials and assistants.
The precinct chief judge shall be paid the state minimum wage for his services on the day of a primary, special or general election. Judges of election shall each be paid the state minimum wage for their services on the day of a primary, special or general election. Assistants, appointed pursuant to G.S. 163‑42, shall each be paid the state minimum wage for their services on the day of a primary, special or general election. Ballot counters appointed pursuant to G.S. 163‑43 shall be paid a minimum of five dollars ($5.00) for their services on the day of a primary, general or special election. If an election official is being paid an hourly wage or daily fee on an election day and the official is performing additional election duties away from the assigned precinct voting place, the official shall not be entitled to any additional monies for those services, except for reimbursable expenses in performing the services.
If the county board of elections requests the presence of a chief judge or judge at the county canvass, the chief judge shall be paid the sum of twenty dollars ($20.00) per day and judges shall be paid the sum of fifteen dollars ($15.00) per day. If the county board of elections requests a precinct official, including chief judge or judge, to personally deliver official ballots or other official materials to the county board of elections, the precinct official shall be paid the sum of twenty dollars ($20.00) per day and judges shall be paid the sum of fifteen dollars ($15.00) per day.
The chairman of the county board of elections, along with the director of elections, shall conduct an instructional meeting prior to each primary and general election which shall be attended by each chief judge and judge of election, unless excused by the chairman, and such precinct election officials shall be paid the sum of fifteen dollars ($15.00) for attending the instructional meetings required by this section.
In its discretion, the board of county commissioners of any county may provide funds with which the county board of elections may pay chief judges, judges, assistants, and ballot counters in addition to the amounts specified in this section. Observers shall be paid no compensation for their services.
A person appointed to serve as chief judge, or judge of election when a previously appointed chief judge or judge fails to appear at the voting place or leaves his post on the day of an election or primary shall be paid the same compensation as the chief judge or judge appointed prior to that date.
For the purpose of this section, the phrase "the State minimum wage," means the amount set by G.S. 95‑25.3(a) or (a1). For the purpose of this section, no other provision of Article 2A of Chapter 95 of the General Statutes shall apply."
SECTION 3.  There is appropriated from the General Fund to the Department of Labor the sum of fifty thousand dollars ($50,000) for the 2006‑2007 fiscal year to implement the notice requirements of G.S. 95‑25.3(a1) as enacted by this act. These funds shall not revert.
SECTION 4.  Section 3 of this act becomes effective July 1, 2006. The remainder of this act is effective when it becomes law.