RALEIGH, N.C. — Several new laws set to take effect in North Carolina on July 1 aim to enhance consumer protection in auto insurance, establish human trafficking awareness in the vacation rental sector, and modify employment agreements for workers. These legislative changes come with significant implications for residents and businesses across the state.
Effective July 1, the state will raise the minimum liability limits for automobile insurance. Currently, the required minimum is $30,000 per person for bodily injury, with $60,000 per accident and $25,000 for property damage. Under the new provisions, these limits will increase to $50,000 per person and $100,000 per accident for bodily injury, while property damage limits will also rise to $50,000. Additionally, all new and renewed auto insurance policies will include underinsured motorist coverage.
In a related alteration, the ‘inexperienced operator surcharge’—applied to those drivers with less than three years of experience—will extend from three years to eight years. This new regulation will affect individuals who are first licensed on or after July 1.
Another notable legislative change focuses on human trafficking awareness in the vacation rental industry. Under House Bill 973, property managers and related personnel will be mandated to undergo training and develop procedures for identifying and reporting signs of human trafficking. Vacation rental properties listed after July 1 will need to ensure that all relevant staff complete this training before the listing goes live. Additionally, all employees, property managers, and contractors must re-certify every two years.
The changes in workplace agreements, as outlined in House Bill 269, known as the ‘Workforce Freedom and Protection Act,’ will prohibit non-compete and non-poaching agreements targeting employees earning less than $75,000 annually. This move aims to enhance workforce mobility and allow employees greater freedom to seek new employment opportunities without the constraints of restrictive agreements.
Finally, a new tax affecting transportation services will also be implemented. North Carolinians utilizing taxi or ride-sharing services will see a 1.5% tax on exclusive rides, while shared ride services will incur a 1% tax. This tax applies upon entering the vehicle, regardless of whether the ride is completed.
These legislative changes reflect ongoing efforts to address consumer protection, enhance public safety, and promote worker freedom in North Carolina. Residents are encouraged to familiarize themselves with these new laws as they take effect.
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