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['Employment Contracts']
06/11/2024
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Summary of differences between federal and state regulations
Federal law generally does not regulate employment contracts between employers and employees with one exception: contracts that require the joining or refraining from joining of a labor union as a condition of employment. On the federal level, these contracts are governed by the National Labor Relations Act. States may have a corresponding provision and may also have additional provisions regarding employment contracts.
North Carolina has provisions similar to federal concerning union membership. There are also additional provisions concerning employment contracts.
Union membership
An employer can not require an employee to become or remain a member of a labor union as a condition of employment. §95.80
An employer can not require an employee to refrain from membership in a labor union as a condition of employment. §95-81
Waiver of rights
An employer can not require an employee to sign a contract waiving the employee’s rights under the Workers’ Compensation Act. §97-6.
An employer can not require an employee to sign a contract waiving the employee’s rights or benefits to unemployment compensation. §96-17.
Rights to inventions
Any provision in an employment agreement which provides that an employee shall assign the employee's rights in an invention to the employer shall not apply to an invention for which no equipment, supplies, facilities or trade secret information of the employer was used and which was developed entirely on the employee's own time, unless the invention relates to the business of the employer or the invention results from any work performed by the employee for the employer. §66-57.1.
An employer may require in an employment agreement than an employee report all inventions developed by the employee either solely or with others, so the employer may determine the employee’s or employer’s rights to the inventions, including those the employee developed on his or her own and considers non-assignable. §66-57.2.
State
Contact
North Carolina Department of Labor
Regulations
Union membership
NC General Statute - Chapter 95, Article 10 (§§95.80 and 95.81)
Waiver of rights
NC General Statute - Chapter 97 (§§97-6 and 96-17)
Rights to inventions
NC General Statute - Chapter 66, Article 10A (§§66-57.1 and 66-57.2)
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