N.C. Gen. Stat. » Chapter 95
NC General Statutes

N.C. Gen. Stat. § 95-98 (2026)

Contracts between units of government and labor unions, trade unions or labor organizations concerning public employees declared to be illegal

✓ current as of July 2026
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Any agreement, or contract, between the governing authority of any city, town, county, or other municipality, or between any agency, unit, or instrumentality thereof, or between any agency, instrumentality, or institution of the State of North Carolina, and any labor union, trade union, or labor organization, as bargaining agent for any public employees of such city, town, county or other municipality, or agency or instrumentality of government, is hereby declared to be against the public policy of the State, illegal, unlawful, void and of no effect. (1959, c. 742.)

 

Notes of Decisions
Cited in 10 cases, 1969–2014 · leading case: Jacksonville Prof'l Fire Fighters Ass'n Local 2961, Iaff v. City of Jacksonville, 685 F. Supp. 513 (E.D.N.C. 1987).
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Jacksonville Prof'l Fire Fighters Ass'n Local 2961, Iaff v. City of Jacksonville, 685 F. Supp. 513 (E.D.N.C. 1987). · cites it 12× “Second, defendant argues that it is prevented from entering any agreement with plaintiffs’ union by state statute, N.C.G.S. § 95-98. Third, defendant submits that its actions regarding sleep time deduction were taken in compliance with an opinion by the Wage and Hour Deputy…”
Atkins v. City of Charlotte, 296 F. Supp. 1068 (W.D.N.C. 1969). · cites it 11× “N.C.G.S. § 95-98: Contracts between units of government and labor unions, trade unions or labor organizations concerning public employees declared to be illegal.”
Winston-Salem/Forsyth Cnty. Unit of the North Carolina Ass'n of Educators v. Phillips, 381 F. Supp. 644 (M.D.N.C. 1974). · cites it 18× “Plaintiffs suggest that one of the reasons for the termination of the salary supplement was the discovery of the statute, N.C.G.S. § 95-98, by the governmental officials between 1967 and 1969.”
City of Winston-Salem v. Chauffeurs, Teamsters & Helpers Local Union No. 391, 470 F. Supp. 442 (M.D.N.C. 1979). · cites it 12× “As such, plaintiff contends their conspiracy is to induce plaintiff to enter into a collective bargaining agreement in violation of N.C.Gen.Stat. § 95-98. Since plaintiff believed these acts of defendants were continuing and would cause plaintiff immediate irreparable harm,…”
Wilson v. City of Charlotte, Nc, 702 F. Supp. 1232 (W.D.N.C. 1988). · cites it 10× “4 On December 3, 1985, Chief Blackwelder sent Wilson a reply letter stating that North Carolina state law prohibits local government employers from entering into contracts with labor organizations, N.C. Gen. Stat. § 95-98 (1985), 5 and, therefore, *1235 the City would not…”
Int'l Longshoremen's Ass'n v. North Carolina State Ports Auth., 370 F. Supp. 33 (E.D.N.C. 1974). · cites it 6× “tate, and therefore immune from suit under the Eleventh Amendment? (2) Is the determination of the NMB that the employees represented by the plaintiff are “employees” as defined by the RLA subject to judicial review? (3) Does the RLA apply to the employees in this case? (4) Was…”
Laborers Local 236, AFLO-CIO v. Scott Walker, 749 F.3d 628 (7th Cir. 2014). “, N.C. Gen.Stat. § 95-98 (declaring any agreement or contract between a state or local government unit and an employee bargaining agent to be illegal) (enacted 1959); Va.”
Cananwill, Inc. v. EMAR Grp., Inc., 250 B.R. 533 (M.D.N.C. 1999). · cites it 2× “Gen.Stat. § 14-291.2(d) (contracts created in which part of the consideration consists of the opportunity- to participate in pyramid scheme are “contrary to public policy and therefore void and unenforceable”); N.”
Local 660, Int'l Ass'n of Firefighters v. City of Charlotte, 381 F. Supp. 500 (W.D.N.C. 1974). · cites it 2× “North Carolina General Statutes § 95-98, cited by the defendants as authority prohibiting the requested relief, does not apply to this case; no contracts or agreements are contemplated between defendants and Local 660.”
Local 660, Int'l Ass'n of Firefighters, an Unincorporated Labor Org. v. City of Charlotte, a Mun. Corp., 518 F.2d 83 (4th Cir. 1975). “A state statute (N.C.G.S. § 95-98) prohibits contracts between governmental agencies or units (including cities) and labor unions as bargaining agents for public employees; but that *85 statute does not justify denying the request for withholding made by plaintiffs in this case.”
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