NC General Statutes

N.C. Gen. Stat. § 96-1 (2026)

Title and definitions

✓ current as of July 2026

Find cases: SyfertCases citing this section NCLEGncleg.gov (official) JustiaChapter 96 CornellLII Search CasesGoogle Scholar

(a) Title. - This Chapter shall be known and may be cited as the "Employment Security Law."

(b) Definitions. - The following definitions apply in this Chapter:

(1) Agricultural labor. - Defined in section 3306 of the Code.

(2) Average weekly insured wage. - The weekly rate obtained by dividing the total wages reported by all insured employers for a calendar year by the average monthly number of individuals in insured employment during that year and then dividing that quotient by 52.

(3) Base period. - The first four of the last five completed calendar quarters immediately preceding the first day of an individual's benefit year.

(4) Benefit. - Compensation payable to an individual with respect to the individual's unemployment.

(5) Benefit year. - The fifty-two-week period beginning with the first day of a week with respect to which an individual first files a valid claim for benefits and registers for work. If the individual is payroll attached, the benefit year begins on the Sunday preceding the payroll week ending date. If the individual is not payroll attached, the benefit year begins on the Sunday of the calendar week with respect to which the individual filed a valid claim for benefits and registered for work.

(6) Code. - Defined in G.S. 105-228.90.

(7) Computation date. - August 1 of each year.

(8) Department. - The North Carolina Department of Commerce.

(9) Division. - The Department's Division of Employment Security.

(10) Employee. - Defined in section 3306 of the Code.

(11) Employer or employing unit. - Any of the following:

a. An employer as defined in section 3306 of the Code.

b. A State or local governmental unit required to provide unemployment compensation coverage to its employees under section 3309 of the Code.

c. A nonprofit organization required to provide unemployment compensation coverage to its employees under section 3309 of the Code.

d. An Indian tribe required to provide unemployment compensation coverage to its employees under section 3309 of the Code.

(12) Employment. - Defined in section 3306 of the Code, with the following additions and exclusions:

a. Additions. - The term includes service to a governmental unit, a nonprofit organization, or an Indian tribe as described in sections 3306(c)(7) and 3306(c)(8) of the Code.

b. Exclusions. - The term excludes all of the following:

1. Service performed by an independent contractor.

2. Service performed for a governmental entity or nonprofit organization under sections 3309(b) and 3309(c) of the Code.

3. Service by one or more of the following individuals if the individual is authorized to exercise independent judgment and control over the performance of the work and is compensated solely by way of commission:

A. A real estate broker, as defined in G.S. 93A-2.

B. A securities salesman, as defined in G.S. 78A-2.

4. Service performed by a direct seller, as defined in section 3508(b)(2) of the Code. The term does not include a person defined in section 3508(b)(2)(A)(iii) of the Code.

5. Service performed by a nonresident employee for a nonresident business performing disaster-related work in this State during a disaster response period at the request of a critical infrastructure company. The definitions and provisions of G.S. 166A-19.70A apply to this exclusion.

(13) Employment security law. - A law enacted by this State or any other state or territory or by the federal government providing for the payment of unemployment insurance benefits.

(14) Employment service company. - A person that contracts with a client or customer to supply an individual to perform employment services for the client or customer and that both under contract and in fact meets all of the following conditions:

a. Negotiates with the client or customer on such matters as time, place, and type of work, working conditions, quality, and price of the employment services.

b. Determines the assignment of an individual to the client or customer, even if the individual retains the right to refuse a specific assignment.

c. Hires and terminates an individual supplied.

d. Sets the rate of pay for the individual supplied.

e. Pays the individual supplied.

(14a) Federal disaster declaration. - Declaration of a major natural disaster by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, provided that the declaration allows disaster unemployment assistance under the federal act.

(15) Federal Unemployment Tax Act (FUTA). - Chapter 23 of the Code.

(16) Full-time student. - Defined in section 3306 of the Code.

(17) Governmental unit. - The term includes all of the following:

a. The State, a county, or a municipality, or any department, agency, or other instrumentality of one of these entities.

b. The State Board of Education, the Board of Trustees of The University of North Carolina, the board of trustees of other institutions and agencies supported and under the control of the State, a local board of education, or another entity that pays a teacher at a public school or educational institution.

c. A special district, an authority, or another entity exercising governmental authority.

d. An alcoholic beverage control board, an airport authority, a housing authority, a regional authority, or another governmental authority created pursuant to an act of the General Assembly.

(18) Immediate family. - An individual's spouse, child, grandchild, parent, and grandparent, whether the relationship is a biological, step-, half-, or in-law relationship.

(19) Independent contractor. - An individual who contracts to do work for a person and is not subject to that person's control or direction with respect to the manner in which the details of the work are to be performed or what the individual must do as the work progresses.

(20) Indian tribe. - Defined in section 3306 of the Code.

(21) Nonprofit organization. - A religious, charitable, educational, or other organization that is exempt from federal income tax and described in section 501(c)(3) of the Code.

(22) Person. - An individual, a firm, a partnership, an association, a corporation, whether foreign or domestic, a limited liability company, or any other organization or group acting as a unit.

(23) Secretary. - The Secretary of the Department of Commerce or the Secretary's designee.

(24) Taxable wages. - The amount determined under G.S. 96-9.3.

(25) Unemployed. - Defined in G.S. 96-15.01.

(26) Unemployment Trust Fund. - The federal fund established pursuant to section 904 of the Social Security Act, as amended.

(27) United States. - Defined in section 3306 of the Code.

(28) Wages. - Defined in section 3306 of the Code, except that no amount is excluded as provided under subdivision (b)(1) of that section. (Ex. Sess., 1936, c. 1, s. 1; 1947, c. 598, s. 1; 1977, c. 727, s. 1; 2011-401, s. 2.1; 2013-2, s. 1(b); 2013-224, s. 19; 2017-8, s. 1(a); 2018-94, s. 1(a); 2019-187, s. 1(d).)

§§ 96-1.1 through 96-1.5. Repealed by Session Laws 1977, c. 727, ss. 2-6.

§ 96-2. Declaration of State public policy.

As a guide to the interpretation and application of this Chapter, the public policy of this State is declared to be as follows: Economic insecurity due to unemployment is a serious menace to the health, morals, and welfare of the people of this State. Involuntary unemployment is therefore a subject of general interest and concern which requires appropriate action by the legislature to prevent its spread and to lighten its burden which now so often falls with crushing force upon the unemployed worker and his family. The achievement of social security requires protection against this greatest hazard of our economic life. This can be provided by encouraging employers to provide more stable employment and by the systematic accumulation of funds during periods of employment to provide benefits for periods of unemployment, thus maintaining purchasing power and limiting the serious social consequences of poor relief assistance. The legislature, therefore, declares that in its considered judgment the public good and the general welfare of the citizens of this State require the enactment of this measure, under the police powers of the State, for the compulsory setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own. (Ex. Sess. 1936, c. 1, s. 2.)

Notes of Decisions

Cited in 12 cases (1 in the last 5 years), 1979–2022 · leading case: Boyland v. S. Structures, Inc., 615 S.E.2d 919 (N.C. Ct. App. 2005).

Sort: Relevance Newest Treatment

Boyland v. S. Structures, Inc., 615 S.E.2d 919 (N.C. Ct. App. 2005). · cites it 8× “" The Commission further concluded that "the Appeals Referee properly and correctly applied the Employment Security Law (G.S. § 96-1 et seq.) to the facts as found, and the resultant decision was in accordance with law and fact.”

Ascension Lutheran Church v. Emp. Sec. Comm'n, 501 F. Supp. 843 (W.D.N.C. 1980). · cites it 6× “Facts North Carolina’s Employment Security Law, N.C.G.S. § 96-1 et seq., was enacted in 1936 pursuant to Title IX of the Social Security Act of 1935, forerunner of the Federal Unemployment Tax Act, now codified at 26 U.”

Marlow v. North Carolina Emp. Sec. Comm'n, 493 S.E.2d 302 (N.C. Ct. App. 1997). · cites it 5× “Petitioner sought judicial review 24 April 1996 in Catawba County Superior Court, which affirmed the Commission 20 August 1996.”

Begley v. Emp. Sec. Comm'n, 274 S.E.2d 370 (N.C. Ct. App. 1981). · cites it 2× “The 1977 General Assembly in Chapter 727 of the 1977 Session Laws amended the Employment Security Law, G.S. 96-1 et seq., to add to the definition of the term "Employer" contained in G.”

Bailey v. Div. of Emp. Sec., North Carolina Dep't of Com., 753 S.E.2d 219 (N.C. Ct. App. 2014). · cites it 2× “The undersigned also concludes that the Appeals Referee properly and correctly applied the Employment Security Law (G.S. §96-1 et seq.) to the facts as found, and the resultant decision was in accordance with the law and fact.”

Matter of Sarvis, 251 S.E.2d 434 (N.C. 1979). “The major purpose of our Employment Security law, G.S. 96-1 et seq., is “to provide a fund by systematic accumulation during periods of employment to be retained and used for the benefit of persons furloughed from their jobs through no fault of their own.”

In Re Peterkin, 102 B.R. 50 (Bankr. E.D.N.C. 1989). “§§ 96-1 et seq., which provides for the collection of funds to benefit certain unemployed individuals, was enacted to lessen economic insecurity; and, had ESC not initiated contempt proceedings against Mr.”

Marlow v. Nc Emp. Sec. Com'n, 493 S.E.2d 302 (N.C. Ct. App. 1997). · cites it 5× “Petitioner sought judicial review 24 April 1996 in Catawba County Superior Court, which affirmed the Commission 20 August 1996.”

Carolina Power & Light Co. v. Emp. Sec. Comm'n, 665 S.E.2d 141 (N.C. Ct. App. 2008). · cites it 6× “Comm'n, this Court stated the public policy of the Employment Security Act as follows: The [Employment Security Act, N.C.G.S. § 96-1 et seq. ] is to be liberally construed in favor of applicants.”

Edgecombe Cnty. Dep't of Soc. Servs. v. Hickman, 712 S.E.2d 209 (N.C. Ct. App. 2011). · cites it 2× “The Commission also concludes that the Appeals Referee properly and correctly applied the Employment Security Law (G.S. § 96-1 et seq.) to the facts as found, and the resultant decision was in accordance with the law and fact[s].”

NC Dep't of Com., Bd. of Rev. v. Aces Up Expo Solutions (N.C. Ct. App. 2020). · cites it 3× “This section explained that N.C. Gen. Stat. § 96-1 (b)(10) defers to federal law which -7- STATE EX REL.”

Ghee v. Walmart Stores East LP (E.D.N.C. 2022). · cites it 2× “See N.C. Gen. Stat. §§ 96-1 et seg. The Court dismissed plaintiff's complaint on October 7, 2021.”

— N.C. Gen. Stat. § 96-1(11) — 1 case

NC Dep't of Com., Bd. of Rev. v. Aces Up Expo Solutions (N.C. Ct. App. 2020). “This section explained that N.C. Gen. Stat. § 96-1 (b)(10) defers to federal law which -7- STATE EX REL.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.