North Carolina Revises the Rules on Retaliation Claims

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Effective June 22, 2026, North Carolina amended the Retaliatory Employment Discrimination Act (“REDA”). The amended statute (Session Law 2026-13) specifies required content of complaints, implements new procedural obligations for complainants, and authorizes respondents to submit position statements. Below is a summary of the key changes and practical guidance for employers navigating these new requirements.

REDA Basics

The North Carolina Retaliatory Employment Discrimination Act (N.C. Gen. Stat. §§ 95-240 through 95-245) prohibits employers from retaliating against employees who in good faith engage in certain protected activities, as outlined in the statute. These protected activities include filing or threatening to file a wage and hour, workplace health and safety, or worker’s compensation complaint or claim, among other activities specifically enumerated in the statute. REDA is violated if an employer retaliates against an employee because of these protected activities. Retaliatory action is broadly defined to include discharge, suspension, demotion, retaliatory relocation, or any other adverse employment action affecting the terms, conditions, privileges, and benefits of employment.

An employee who believes they have been subjected to retaliation may file a written complaint with the Retaliatory Employment Discrimination Bureau (“REDB”), a division of the North Carolina Department of Labor (the “Department”), within 180 days of alleged retaliatory action. The REDB then investigates the complaint and either dismisses it (issuing a right-to-sue letter) or attempts conciliation if it determines reasonable cause that the allegation is true. The Department must make a determination no later than 90 days after the filing of the complaint.

Here’s What’s Changed

REDA’s Complaint; Investigation; and Conciliation provision (N.C.G.S. § 95-242) was revised to add several procedural requirements governing the contents, filing, review, and investigation of REDA complaints, while providing respondents with an opportunity to receive complete allegations and assert affirmative defenses:

• Specified complaint contents. The statute now enumerates ten specific items that must be included in every REDA complaint, including complainant and respondent identifying information, the protected activity at issue, a description of the adverse action, and, most notably, any facts that would explain a legitimate, non-discriminatory reason for the adverse action. Additionally, if a complaint is missing required information but is filed within the 180-day deadline, the Department will notify the complainant of the specific deficiencies. The complainant then has 30 days to submit a complete complaint.
• Defined filing methods. Complaints may now be filed through a form on the Department of Labor’s website, by mail, or by email.
• Treatment of extraneous materials. Any extraneous materials, such as those unrelated to the allegations in the complaint, will not be considered in the investigation and must be destroyed.
• Forwarding the full complaint. The Department must forward a copy of the “full complaint,” not merely the initial or partial filing to the respondent within 20 days of receipt, ensuring the respondent receives the complete, finalized version. This provides employers with information related to the complaint up front and allows them to prepare informed position statements.
• Respondent position statements. While in practice respondents were permitted to submit position statements to the Department, the amendments codify that right. Within seven days of receiving the complaint, a respondent may submit a position statement asserting affirmative defenses. This procedural addition provides an early opportunity for an employer to present its position before the investigation proceeds. However, the statute expressly provides that the Department may initiate prior to receiving a response from the respondent.

The amendment also adds a new section, N.C.G.S. § 95-246, clarifying that deadlines and other time periods under REDA are calculated according to Rule 6 of the North Carolina Rules of Civil Procedure. Weekends and legal holidays are excluded from periods of less than seven days, and if the last day of any period falls on a Saturday, Sunday, or legal holiday, the period extends to the next business day.

The Respondent Questionnaire—Clear Guidance on an Employer’s Response

In conjunction with these amendments, the Department introduced a comprehensive Respondent Questionnaire that may serve as an employer’s position statement. It requests information about the employment relationship, the alleged protected activity and its timing, decision-makers’ knowledge, prior discipline and performance history, the adverse action taken and business or personnel process followed, the employer’s legitimate, non-discriminatory reason for the adverse action, and the documents and witnesses supporting the employer’s position.

As of August 16, 2026, the Respondent Questionnaire is not yet available on the Department’s website. If the questionnaire is not provided with the complaint, employers should promptly request a copy from the Department.

Practical Tips for Employers

The 2026 REDA amendments present both new challenges and new opportunities for employers. The following recommendations will help employers respond effectively when a REDA charge is filed.

• Act quickly on position statements. The seven-day window to submit a position statement is extremely tight. Employers should treat receipt of a REDA complaint as an urgent matter requiring immediate attention. Designate an individual, such as in-house counsel or an experienced HR leader, who is responsible for initiating the response process the same day the complaint is received.
• Complete the Respondent Questionnaire thoroughly. The Respondent Questionnaire is comprehensive by design and offers employers an opportunity to build the evidentiary record in their favor early. In completing the questionnaire or otherwise preparing a position statement, employers should:
  • Articulate a clear, documented business justification for the legitimate, non-discriminatory for the adverse action, supported by contemporaneous records such as written discipline, performance evaluations, attendance records, or policy violation notices.
  • Be precise about when decision-makers became aware of the protected activity. If the decision-maker was unaware, say so clearly and identify evidence supporting that position.
  • Document a clear chronology showing that performance or conduct concerns predated the protected activity.
• Maintain comprehensive documentation. Because the statute now specifically requires the complainant to identify facts supporting a legitimate, non-discriminatory reason, if known, employers should maintain written performance reviews, documented counseling sessions, and clear records of policy violations. These records will serve as critical evidence during a REDA investigation.
• Do not submit extraneous materials. While the statute provides only that extraneous materials submitted with the complaint will not be considered, this directive will likely be equally applied to the respondent’s submission. Ensure that any materials submitted with your position statement or questionnaire are directly relevant to the specific allegations and defenses at issue.
• Engage counsel early. Given the compressed timeline and the detailed information and documentation sought from respondents, employers should consider engaging outside employment counsel as soon as a REDA charge is received. Counsel can help craft a strategic position statement, advise on document submission and preservation, and ensure the questionnaire responses do not inadvertently create new exposure.

Overall, the 2026 amendments bring clarity and structure to the REDA complaint and investigation process. For employers, the codified right to submit a position statement is a meaningful opportunity to frame the narrative early. But the tight deadlines and comprehensive disclosure requirements necessitate preparation and prompt action. Employers would be well-served to review their internal processes now—before a complaint arrives—to ensure they can respond swiftly and effectively when one does.