6. Personnel Policies and Regulations

Table of Contents

6.1 Fiscal Policies and Regulations Related to Personnel

6.2 Dual Employment

6.3 Guidelines for Dual Employment

6.4 Fees for Employee Training, Tuition, and Executive Development

6.5 Contractual Services

6.6 Moving and Relocation

6.7 Procedure for Moving and Payment

6.8 Honoraria

6.9 Reporting Misuse of State Property


6.1 Fiscal Policies and Regulations Related to Personnel

6.1.1 Salary Reserve and the Salary Control System

Maintaining position control over salaries and salary reserve and maintaining an accurate number of positions is the responsibility of each individual agency. OSBM’s responsibilities include oversight of these agency activities. Additional information can be found in Section 3, Budget Execution.

6.1.2 Unemployment Compensation

Chapter 96 of the General Statutes of North Carolina provides for full unemployment insurance for all North Carolina employees, both private and public. Fiscal management of all state agencies should be knowledgeable of its requirements and provisions. The State Human Resources Manual provides information relating to claims and services for employees.

Under the provisions of G.S. 96-9.6, the State of North Carolina elected in lieu of paying premiums, to become liable for unemployment compensation payments made on its behalf by the Employment Security Commission. Among the requirements is the provision that each employing unit (department) is required to make a contribution in each calendar year to the Unemployment Insurance Fund in an amount equal to the applicable percentage of the taxable wages the employer pays its employees during the year for services performed in this State (G.S. 96-9.2).

Each agency must provide a line item from which this staff benefit will be paid (see chart of accounts). When funding is already budgeted, immediate disbursement should be made. In instances where insufficient or no funding is budgeted, agencies must locate funds within their departments to meet this obligation. Budget requests to transfer funds into the proper line item for disbursement should be made to OSBM. Payments to cover employees not supported from appropriated funds should be paid from the same source that supported their base salaries or from reserves set up for that purpose. OSBM establishes the requirements for the reserve funds based on employment levels and trends. Notification of rate changes will be provided as necessary.

The Employment Security Commission sends detailed statements to the agencies for each fiscal period. Agency identity and budget codes are provided within the account number on the heading of the statement. General fund codes and special fund codes will carry different numbers.

6.1.3 Workers' Compensation

The North Carolina Workers' Compensation Act, Chapter 97 of the General Statutes, as amended, covers all officers and employees of the State, including those who are elected by the public or by the General Assembly, or appointed by the Governor to serve on a per diem, part time or fee basis, with or without the confirmation of the General Assembly.

When an employee of the State of North Carolina is injured on the job, responsibility for claiming Workers' Compensation benefits begins with the injured employee. The injured employee should file the claim with his/her supervisor, personnel officer, or workers' compensation administrator. Each department, institution, or agency should report each accident or injury to the Industrial Commission on forms provided. The provisions of the Workers' Compensation Act and the requirements of the Industrial Commission should be followed in preparing this report.

Each department, institution, or agency is responsible for properly investigating a Workers' Compensation claim before accepting liability for the injury on behalf of the State.Departments needing assistance in this matter should contact their department's legal staff or the Attorney General's Office.

The State of North Carolina is self-insured for the payment of Workers' Compensation claims. Each department, institution, or agency is required to pay its own claims out of its own appropriation. When necessary, each department should submit a budget revision to OSBM to transfer funds to account number 53 163X.

6.1.4 Workers' Compensation Expenditure Accounts

The following accounts are used to record expenditures that are paid under the workers' compensation program. Budget revisions should reflect the detail level listed below.

  • 53 1631 Medical Benefits: This includes medical, surgical, hospital, nursing services, medicines, sick travel, rehabilitation services, and medical and surgical supplies.
  • 53 1632 Temporary Disability Payments: This includes any expenditures paid under an agreement to pay compensation for time lost from work.
  • 53 1633 Permanent Disability Payments: This includes payment for disfigurement and permanent full and partial disability ratings given at the end of the healing period.
  • 53 1634 Death Benefits: This includes compensation paid to a surviving spouse or dependent child and allowance for funeral expense.

Unless otherwise approved by OSBM, the use of State appropriated funds, or other public funds, to purchase worker's compensation insurance from private insurance carriers is an inappropriate use of these funds and is not an authorized expenditure.

The State Employee's Disability Salary Continuation Plan includes a provision for coordination of benefits among various insurance plans through a reduction formula.

When an injured worker receives Workers' Compensation benefits, Disability Salary Continuation Plan benefits are reduced accordingly.

6.1.5 Safety Shoe Allowance for State Employees

In compliance with the Occupational Safety and Health Administration (OSHA) and Office of State Human Resources policy related to personal protective equipment, and to ensure that State employees are provided ample opportunity to purchase the proper and necessary safety shoes required by the job for adequate foot protection, the annual reimbursement allowance for the purchase of safety shoes is set at $125 per year. The Office of State Budget and Management and the Office of State Human Resources shall review the safety shoe reimbursement practice each biennium in order to adjust the allowance to reflect inflationary changes. Any exception to this policy must be approved in advance by the Office of State Budget and Management.

6.1.6 Use of State Funds for Recognition of Individuals

The use of State funds for purchases related to the recognition of individuals is permissible if they adhere to the policies established by the Office of State Human Resources (OSHR) for meritorious service awards, as authorized in G.S. 126-4(8) (refer to the "Service Awards" section of OSHR’s web site for further information). In addition, State funds may be expended, not to exceed $50, for the purchase of a plaque or for the printing and framing of a certificate. The expenditure of State funds for these purposes is subject to the availability of funds within the agency.

6.1.7 Payment of Awards to Employees for Employee Suggestion Program

G.S. 143-340(1) establishes the State Employee Suggestion Program. The program was rebranded as NCThinks. The Office of State Human Resources oversees the program, and is currently (as 2016) developing a replacement for NCThinks. The agency implementing an NCThinks suggestion was responsible for payment of cash awards. The amount of the award is subject to Social Security tax and federal and state income tax but is not subject to retirement withholdings.

6.1.8 Employee Wellness Activities

State agencies may spend a portion of lapsed salaries to cover nominal expenses related to health promotion and wellness activities as outlined in the Office of State Human Resources's wellness policy. Nominal expenses cannot exceed $25 per person on an annual basis, and expenditures must adhere to the following guidelines:

  1. All expenditures must be nonrecurring and cannot create an on-going obligation of state funds beyond the current fiscal year,
  2. Funds cannot be spent to provide cash awards or cash incentives to employees or contractors,
  3. Funds cannot be spent to purchase gift certificates or gifts for employees or contractors,
  4. Funds cannot be spent to purchase large pieces of exercise equipment, and
  5. Funds cannot be used to purchase individual or group memberships to health clubs or support groups.

Funds may be pooled to provide an activity to a group of employees.

Agencies are strongly encouraged to take advantage of the free materials produced by the State Health Plan’s NC Health Smart, the Division of Public Health’s Eat Smart Move More, and the Office of State Human Resources' Worksite Wellness Policy. Agencies may also disseminate information about wellness discounts available to state employees through the WeSave program (http://www.wesave.com).

Agencies that receive grants and/or donations for wellness activities may spend those funds in accordance with the grant agreement or donor's direction only after reporting those funds to OSBM to ensure proper budgeting of the funds prior to expenditure and to comply with reporting requirements where applicable.


6.2 Dual Employment

6.2.1 Purpose

The dual employment policy is a statewide uniform policy to be followed when one State department secures the services of an employee of another State department on a part-time, consulting, or contractual basis. It is recognized that conditions vary widely from department to department, however this policy will attempt to cover as many different situations as possible and to strike a sound balance between the interests of the State, the department, the employee and the public. For employees engaged on a full time basis, any additional work for other than a State department is termed secondary employment and is covered in the State Human Resources Manual. The OSC HR/Payroll Dual Employment Agreement should be used for reporting purposes involving dual employment.

6.2.2 Applications and Exclusions

The policy applies to all state employees both subject to and exempt from the provisions of the State Human Resources Act and to all State departments.

It does not apply to employees in the public school system or to employees of the community colleges. Employees in these systems are not state employees (for the purposes of Dual Employment regulations); they are employed by local boards of education and local boards of trustees.

6.2.3 Definitions:

  • Parent department - The State department, agency, or institution having control over the services of the employee, and from which the employee receives his or her regular paycheck.
  • Borrowing department - The State department, agency, or institution seeking, on a temporary or part-time basis, the services of an employee of another State department.
  • Straight-time employee - Generally, an employee with a 40-hour per week work schedule, including employees on rotating shifts and those with split shifts. Permanent employees filling positions subject to the State Human Resources Act, with perhaps extremely rare exceptions, are straight-time employees for the purposes of this policy statement. Such persons, except when working odd or split shifts, are considered to be on their own time between 5:00 p.m. and 8:00 a.m. and on Saturdays, Sundays, holidays, and while on annual leave.
  • Variable-time employee - An employee, though considered to be the incumbent in a full-time budgeted position, may be required to maintain on-duty status (normally, at a fixed work station) for only a limited number of hours per week. An example of a variable-time employee is a teacher in an institution of higher education who for one semester might be scheduled to teach classes for fifteen hours a week, and for the next semester only ten hours but with the added duty of advising students. The hours during which the employee advises might be fixed, or the employee might have the option of scheduling his/her own appointments. Variable-time employees are considered to be on their own time except at those hours when they are required to be in scheduled on-duty status.
  • Instructional Contractual Services - The employment by one higher education institution of a teacher under contract to another institution: An example of this practice is the exchange of teachers between two proximate institutions, such as the North Carolina School of the Arts and Winston-Salem State University.
  • Honoraria - Notwithstanding any definitions previously given or henceforth to be given to the word "honorarium," any payment by one agency to an employee of another agency for any type of services is subject to the procedures of the Uniform Statewide Policy on Dual Employment.


6.3 Guidelines

6.3.1 Permission of parent department

The administrative head of the parent department must give approval in writing in each instance of an employee's performing services for pay for another State department.

Approval should be granted or withheld after a careful weighing of the circumstances, considering such factors as the character of the services to be performed, the effect on the morale of other state employees, the ethical considerations involved, the temporary loss of the services of the individual to the parent department, the possibly reduced efficiency of the individual as a result of fatigue or inattention to primary responsibilities, the urgency of the situation, possible alternative arrangements, and other pertinent factors. If the administrative head of the department is to perform services for pay for another State department, the Office of State Budget and Management must approve the arrangements.

6.3.2 Statement of employee's immediate supervisor

In any case of services performed for pay for a borrowing department during an employee's "own time," the employee's immediate supervisor must certify in writing that (a) the actual work and any related travel time will be performed outside of regularly scheduled working hours, and (b) the employee will not use "company time" to prepare for the services to the borrowing department.

6.3.3 Payment for services

It is assumed that certain officials will make outside appearances and speeches, which are in fact a part of their normal duties, and such officials should not expect to be paid for these occasions.

If payment is to be made for services, the rate must be agreed upon in advance and may not be increased merely because additional funds become available. Neither are retroactive payments permissible to persons who have already performed services without compensation. Commuting expenses are not reimbursable.

An employee under contract to an educational institution for an academic year (normally, nine months) is ordinarily considered to be a free agent during the summer notwithstanding that such employee may be paid on a twelve-month basis.

6.3.4 Professional Service Contract

The State or one of its departments may contract with a professional corporation for the delivery of professional services by one or more of its employees who are also state employees as long as they are in compliance with all other regulations of the Dual Employment Policy. (Historically, this situation has occurred most frequently in agencies/institutions employing physicians who, through their private practice, are also working for another agency/institution through contractual arrangement). Strict adherence to these policies must ensure that employers will know if the same person is working at more than one State job and will be able to see that time which is supposed to be spent at one job is in fact spent at that job and not at another job.

6.3.5 Procedures for Payment

All payments for services must be made by the borrowing department directly to the parent department of the employee borrowed, and not to the employee.

All payments for services of borrowed employees must be made by the borrowing department from dual employment line items. They may not be made from salaries and wages line items. If funds for part-time services are presently budgeted in salaries and wages line items, the Office of State Budget and Management will give favorable consideration to requests to transfer these budgeted amounts to dual employment lines if needed. The same would apply to transfer of funds budgeted for temporary wages.

Employee's travel and/or subsistence expenses, if any, incurred in the performance of services for the borrowing department, will be paid directly to the employee by the borrowing department. (Commuting expenses are excluded.)

All payments to the parent department must include the following:

  • Payment for employee's services.
  • Employer's Social Security contributions computed on the payment for services.
  • Employer's retirement contribution computed on the amount of payment from above, if applicable (applicable when the borrowing agency is merely supporting a portion of the employee’s regular salary; not applicable for additional compensation beyond the employee’s regular salary).

Subject to negotiation between the two departments, payments may include an amount for the overhead expenses of the lending department to cover administrative and other indirect costs; payments may also include amounts for direct costs incurred by the parent department, agency, such as identifiable related expenses for clerical and duplicating services.

If the work (including preparation) is performed during the employee's regular work schedule (normally 8:00 to 5:00, Monday through Friday), and the employee is not on leave, the employee may not under any circumstances receive additional pay.

Compensation must be in accordance with the minimum wage and overtime pay provisions, which require overtime payments of time and one-half the employee's regular rate of pay for the hours worked in excess of 40 in the week. However, if during any given workweek the employee does not perform any work for the parent department, no overtime payment will be required unless the employee works more than 40 hours for the borrowing department.

If a straight-time employee is on authorized leave from regular duties with the parent department, the employee may be paid for the extra work on the same basis as in the paragraph above.

In all cases of additional payment to an employee, the parent (lending) department must make the payment to the employee as an addition to the employee's regular pay. This is necessary to maintain the integrity of the retirement, social security, and federal and state income tax records.

The parent department will budget and receive all payments from the borrowing agency as agency receipts, in an account titled "Reimbursement-Dual Employment." It is not permissible to handle such payments as refunds of expenditures. If the conditions above (no additional pay) apply, any receipt from the borrowing agency will be handled by the lending department as an over-realization of the receipts line item.

6.3.6 Maintaining Records

The extent of the practice of cross-hiring in State government must be periodically assessed. Borrowing departments must, therefore, maintain the following information for each instance:

  • Employee Information
    • Name of employee borrowed;
    • Classification, rank, or title;
    • Parent agency of employee;
    • Character of services performed (lecture, consultation, etc.).
  • Time (hours and days) employed by borrowing department:
    • During employee's regularly scheduled working hours;
    • During employee's own time.
  • Amount of payment to parent department:
    • For services;
    • For employer's retirement and social security contributions;
    • For indirect expenses of parent department;
    • For related direct costs of parent department.

Copies of the parent department head's approval must be attached. If applicable, the statement of the employee's immediate supervisor, referred to under the Guidelines section above, must also be attached.

6.3.7 Instructional Services

For this type of regular-session dual employment, (and not applicable to summer school), the following procedures for payment will apply where the teaching covers one or more courses for an entire academic period (quarter or semester):

Rate of Pay Gross Pay
$1,500 $1,700
  • The permission of the administrative head of the parent institution and/or the teacher's immediate supervisor is implied and need not be documented.
  • The rate of pay and the amount of any related expenses must be agreed upon in writing in advance.
  • Any additional salary payment made to the on-loan teacher for these outside services may be included on the parent institution's regular payroll and may be paid out of the salaries line item carrying the teacher's regular contract salary. In these cases it is not necessary to make payments from "Dual Employment Wages", and no budget revision is necessary unless the over-realized receipts from the borrowing agency are required for a substitute teacher.
  • Ordinarily, any supplemental pay to the teacher for outside teaching would be handled on the parent institution's payroll as in the following example, where the regular contract pay is $1,500 per month and the pay for outside services is $200:
  • If the parent institution suffers a loss as a result of the loan of the teacher, the teacher's total compensation should be adjusted. Example: There is a teacher whose nine-month salary for teaching four classes per semester is $9,000. By arrangement, the teaching assignment at the parent institution for the year is reduced to two classes per semester, but the teacher will teach two classes at another institution. The teacher's regular salary would ordinarily remain the same (the teacher on loan would not receive $13,500) [9,000 + 4,500] and the borrowing institution would provide one-half of the $9,000 to be paid. The remaining $4,500 is available to the parent institution for a substitute teacher.
  • The teacher may not be paid for work not yet performed. This means that for each pay period the borrowing institution must send a transmittal (which may be a form letter) and a check to the parent institution. OSC HR/Payroll Dual Employment Agreement will be required for these additional payments where the affected payroll is prepared by the state’s BEACON payroll system.
  • The borrowing institution will make payments for services from a line item titled "Employee on Loan Payments", transferring funds, upon Office of State Budget and Management approval, from salaries line items as required.

6.3.8 Joint Appointments

It shall be mutually agreed between departments as to which department will be the parent department. Normally, it will be the department who first employed the employee.

In cases of Joint Appointment (involving base pay) the borrowing department will reimburse the parent department for matching social security and retirement contributions. The employer portion of medical insurance will be borne by the parent department and not prorated to the borrowing department.


6.4 Fees for Employee Training, Tuition, and Executive Development

6.4.1 Employee Training Fees

Fees for courses that provide training in specific areas are charged in the Accounting System to "Employee Training" under "Other Services." Employee training involves courses that develop an employee's knowledge, skill, and ability to perform the duties of his/her present job, such as courses on computer usage or management skills development. These courses generally have a set fee, are of relatively short duration, and are not part of a curriculum the employee is participating in leading to some educational degree.

6.4.2 Tuition Fees

Tuition fees are those costs for courses included in an academic program directly related to the employee's job or field of work and which are necessary to complete a degree program from an accredited educational institution. These expenses are charged to "Employee Educational Expense" under "Other Services". Please consult the State Human Resources Manual for additional information on the State's Academic Assistance Program.

6.4.3 Executive Development Fees

Executive development fees are expenses incurred when an employee participates in an executive development opportunity (such as the UNC Executive Development programs) that would not fit the definition of Employee Training or Tuition fees. Executive development fees are charged to "Other Employee Training Expenses" under "Other Services".


6.5 Contractual Services

6.5.1 Policy for Contractual Services

It is the policy of the State that State agencies shall acquire contractual services only after it is determined that the services cannot be reasonably accomplished by employees of the agency seeking such services. General Statute 143, Articles 3 and 3C and the rules, regulations, and procedures of the Division of Purchase and Contract provide the reference for the procurement of services.

** NOTE** OSBM coordinates the efforts of governmental agencies in the collection, development, dissemination, and analysis of official economic, demographic, and social statistics pertinent to State budgeting. To minimize duplication of effort in collecting or developing new statistical series, including contractual arrangements, State agencies must submit to OSBM proposed procedures and funding requirements.(G.S.143C-2-2).

6.5.2 Types of Contractual Services

  • Consultant Services

    No State agency shall contract to obtain services of a consultant or advisory nature unless the proposed contract has been justified to and approved in writing by the Division of Purchase and Contract in the Department of Administration.

    Services of a consultant or advisory nature shall mean work or tasks performed by independent contractors possessing specialized qualifications to investigate assigned problems or projects and to provide counsel, review, analysis or advice in formulating or implementing improvements in programs or services. It is the policy of the State that whenever possible consultant services shall be obtained from other State agencies when the services available from other State agencies substantially meet the reasonable specifications of the requesting agency.

  • Service Contracts

    A service contract is any agreement in which an independent contractor performs routine or recurrent services requiring specialized knowledge, experience, expertise, or similar capabilities for a State agency for compensation from State funds (i.e. maintenance of building or equipment, food services, audits). The service is not primarily for review, analysis or advice in formulating or implementing improvement in programs or services.

  • Personal Service Contract

    A personal service contract is an agreement for services provided by a professional individual on a temporary or occasional basis (i.e. an engineer or artist). This may also be a consulting service if it is of an advisory nature.

  • Contracts with Retirees

    If an agreement is made with a retired state employee to provide services of a consultant or advisory nature, the proposed contract must be approved pursuant to the requirement of "Consultant Services" above.

    An agreement to employ a retired state employee on a contract basis must be made pursuant to the requirements of G.S. 135-3(8)c.

    Any employee separated from State government and paid severance wages pursuant to (G.S. 126-8.5(b)) shall not be employed under a contractual arrangement by any State agency, other than the constituent institutions of the University of North Carolina and the North Carolina Community College System, until 12 months have elapsed since the separation. This subsection does not affect any reduction in force right that the employee may have.

  • Contracts Between State Departments, Agencies and Institutions

    The department budget offices of contracting departments, agencies and institutions must review each contract, prior to its execution, to be sure the terms of the contract are consistent with the budget policies and regulations of the State Budget Manual. If any terms are found to be inconsistent with budget regulations, including travel and subsistence regulations, those terms must be amended to conform to the State Budget Manual or be deleted from the contract. After this departmental review, if the department budget division feels an exception to budget policy is warranted and the need for an exception can be documented, a request for an exception may be made to OSBM prior to execution of the contract.

    All payments for services should be made after the service has been satisfactorily performed. Payments shall be made on a quarterly reimbursable basis for an amount equivalent to the percentage of the contract performed and services rendered. If a cash flow problem exists, departments, agencies, and institutions may advance one month's estimated expenses, or one quarter's estimated expenses if the contract is six months or longer duration, to the provider of the services. Such advances must be reported to OSBM immediately.

  • Contracts Between a State Agency and Private Employment Search Firm

    A state agency may employ a private employment search firm to conduct employment searches for difficult to fill professional and managerial vacancies. A search firm would normally be retained only after exhaustion of other methods of locating a person for a specialized, highly responsible position. Non-state funds shall be used to pay these costs to the maximum extent possible. State funds may only be used when non-state funds are not available.

    Certain interdepartmental contracts may involve "dual employment" considerations that are addressed in the Dual Employment section.


6.6 Moving and Relocation

6.6.1 Conditions and Limitations

An employee's moving expenses may be paid by the State when:

  • A change of residence is deemed to be in the best interest of the State when such a change is required as a result of a promotion within the department or by a change in assignment involving a transfer of the employee for the advantage and convenience of the employing agency. Transfer within or between departments if the employee is heavily recruited is termed for the best interest of the State. Department Secretaries or Agency Heads can authorize the payment of moving expenses for new hires to state employment when it is determined that this is in the best interest of the State.
  • Move is accomplished within 90 days. The department head or designee may approve an extension of an additional 90 days.
  • The new duty station for existing employees is 50 miles or more from either the employee's existing (or prior) duty station or residence, whichever is closer to the new duty station.
  • The new hire to state employment is 50 miles or more from their existing residence.

Every effort should be made to expedite the movement of the employee's household goods. However, the time allowed for the employee's locating a new residence and moving is the responsibility of the individual department and should be granted as leave-with-pay, for up to a total of 16 hours, which is accounted for as normal workday activities.

6.6.2 Expenses Paid

Maximum payment for various categories of costs is enumerated in this section. Any additional costs must be borne fully by the employee.

Please note that the Internal Revenue Service (IRS) considers moving expenses paid to an employee directly or indirectly as taxable compensation. If an agency elects to pay for an employee’s moving expenses, then the agency must treat the payment as employee compensation for purposes of withholding federal, state, and FICA taxes. The Office of State Controller (OSC) has established payroll system payment mechanisms to ensure withholding of taxes for this type of compensation (applicable to agencies whose payroll is processed by OSC). Any moving expenses paid to an employee based on guidance in section 6.6 Moving and Relocation is taxable.

6.6.3 Moving of household and personal goods

Payment for movement of household and personal goods includes items such as furniture, clothing, and personal effects. Any items that require special handling and/or packing, such as an animal, a boat, airplane, motor vehicles, antiques, satellite dish, campers, woodworking equipment, workshop items, heavy machine equipment, and building materials are not considered as household or personal goods. Payment includes, and is limited to, the cost of actual packing, transporting, and unpacking of a maximum of 15,000 pounds. If the move is on a weight basis (50 miles or more), the maximum cost to be paid can be no more than the lowest available regulated tariff rates. If additional storage is required for any such items, it is the responsibility of the employee and is not reimbursable.

Total transportation charge on any shipment shall be no more than the charge that would apply on the same shipment under the next greater unit of weight at a rate applicable to such next greater unit of weight.

When a shipment exceeds 15,000 pounds, reimbursement shall be based upon the tariff rate of 15,000 pounds, provided reimbursement does not exceed actual poundage costs.

6.6.4 Excess weight authorization

When due to extraordinary circumstances the total weight exceeds the maximum weight allowable, (15,000 pounds) a request for payment for this excess, which sets forth in detail the nature of such extraordinary circumstances, may be granted by department secretaries or agency heads.

Except as otherwise provided specifically herein, payment may be made only for basic services performed by the carrier. No payment may be made for expedited service, space reservation, or other special or non-routine services by the carrier.

6.6.5 Insurance

Payment of transit insurance costs, in addition to that included in the carrier's required base coverage of 60 cents per pound per article, is limited to $1.25 per pound per article, and coverage for up to 15,000 pounds. Additional coverage is the responsibility of the employee and is not reimbursable.

6.6.6 Appliance Connections

The reasonable costs of disconnection of appliances, as defined in this section, at the old residence and reconnection or reinstallation of the same appliances at the new residence, by the carrier or by a service company may be allowed up to a maximum of $200. This would include items typically found in performing household operations such as electrical, water, gas hook-up, household appliances, and connection of a single telephone. This would not include items considered unnecessary to household operations such as television antennas, cablevision connection, satellite dish, nor any type of power tools or other equipment associated with home workshops, hobbies, or other activities. Also, utility deposits or the running of utility lines are not a reimbursable expense by the employing agency.

6.6.7 Mobile Homes

In lieu of an allowance for loading, unloading and insurance coverage, charges not to exceed a total of $500 are allowable for the following costs associated with the movement of mobile homes utilized as the employee's residence:

  • Blocking and unblocking;
  • Anchoring and skirting;
  • Movement of air conditioners and utility buildings;
  • Wheel rental.

Claims for payment for such services, whether performed by the carrier or a service company, must be supported by itemization on the bill of lading or on paid receipts, as applicable, detailing in either case the appliances serviced, the work done, and the individual cost of each such service. Such services performed by the carrier, and for which he assumes complete responsibility, may be invoiced at the applicable tariff rates, and must be further supported by an affidavit signed by the employee verifying that the carrier performed the services.

6.6.8 Employee Travel and Subsistence

Payment for travel expenses incurred in moving the employee and his or her family from the old residence to the new residence is authorized as follows:

  • For locating new residence

    Transportation, mileage calculated at the statutory rate for a maximum of three round trips by automobile with each trip not to exceed two days (2 days, 1 night) for total house hunting trips not to exceed 6 days (6 days, 3 nights). Subsistence for meal costs as shown in the State Budget Manual travel section for each member of the family per trip. If overnight lodging is necessary, subsistence for the following day is allowable. Lodging is limited to one double room.

  • For day of moving

    Mileage calculated at the statutory rate for a one-way automobile trip (a maximum of two cars). Subsistence for meal costs as shown in the State Budget Manual travel section for each member of the family. Employees have two days to complete the move. If overnight lodging is necessary, subsistence for the following day is allowable. Lodging is limited to one double room. The department head or his/her designee can approve any additional time needed.

  • New duty station

    Subsistence at the new duty station is not to exceed five days a week (Monday-Friday or a consecutive five-day period, if working a nontraditional schedule). Mileage is limited for one-round trip per week from the employee’s current residence to the new duty station, subject to state travel laws and regulations, from the time he or she begins work until he or she moves into his new residence, not to exceed a total of 40 consecutive working days, excluding any leave time.


6.7 Procedure for Moving and Payment

6.7.1 Arranging the Move

Prior to the actual move, the employee will submit a request for the department head or his/her designee. The request shall include bids from three movers and an estimate of other allowable expenses. These regulations require competitive bids that do not exceed the tariff rates and charges as published and filed with the North Carolina Utilities Commission. Bidders must have all required State and federal licenses and insurance.

Bids included in the request should include:

  • Shipment weight;
  • Number of cartons;
  • Charges for loading and unloading;
  • Cost of transit insurance coverage.

Transportation and loading shall be governed by the rules and regulations as contained in tariffs on file with the North Carolina Utilities Commission.

The department head or his/her designee will notify the employee in writing as to the mover receiving the contract. The department head or designee should accept the low bid unless judged not to be the State's advantage and interest. An employee can either be paid after the move or have the agency to pay the vendor, whichever method is agreed to by the agency and employee. See section 6.7.2 for more details.

6.7.2 Procedure for Payment

Upon the completion of the move, the employee may pay the carrier and/or submit to the department's budget officer vouchers consisting of:

  • A bill of lading from the carrier which shows the actual rates and charges for transporting, loading and insurance, itemized by miles, loading charges with numbers and sizes of cartons, insurance coverage, and appliance disconnections and connections, as spelled out in this section.
  • Certified weight ticket obtained by the mover and certifying the actual gross, tare, and net weights. This can be obtained from platform scales at truck stops, weight stations, etc.
  • A copy of the letter authorizing the transfer at State expense. The agency shall reimburse the employee or pay the carrier upon receipt of proper documentation.

Please review the Office of State Controller’s Job Aid for guidance on the proper accounting of moving expenses. Reimbursement for appliance connections by a service company may be handled as a separate transaction.

6.7.3 Alternate Procedure

Department heads or his/her designees are authorized to approve moving by an alternate procedure provided proper documentation and receipts support the move. The agency may reimburse the actual cash expenditure made by an eligible employee in moving his household goods by another method, provided such reimbursement does not exceed that which would have been made if a regulated common carrier had been used. This alternative may be applicable for movement of an employee's goods contained in a house trailer or by a rental trailer or truck or by a nonlicensed mover. It is the responsibility of the department head or designee to determine if this method is cost effective before approval is granted.


6.8 Honoraria

6.8.1 State Employees

A state employee shall not accept an honorarium for an activity where state-reimbursed travel, work time, or resources are used or where the activity can be construed as having a relationship to the employee's State position; such activity would be considered official duty on behalf of the state. A relationship exists between the activity and the employee's State position if "but for" that employee's State position, the employee would not participate in the activity in the same manner or capacity. The employee should make every attempt to avoid the appearance of impropriety.

An employee may receive an honorarium for activities performed during regular non-working hours or while on annual leave if the following conditions are met:

  • All expenses are the total responsibility of the employee or the non-state sponsor of the activity in which the employee is participating.
  • The activity has no relationship to the employee's State duties.

Nothing in this policy shall be interpreted as preventing the payment to the State by an outside source for actual expenses incurred by an employee in an activity, or the payment of a fee to the State (in lieu of an honorarium to the individual) for the services of an employee. Any such payments made to the State should be deposited to the departmental account and an appropriate entry should be made to the appropriate revenue line.

6.8.2 Non State Employees

Honoraria are the responsibility of each department, institution, or agency contracting for the personal services of a non-state employee. Each department shall develop a form letter for such invitations and it shall include the amount of the honorarium offered. This amount shall cover any expenses incurred by the non-state employee in lieu of a per diem.

6.8.3 Exceptions

Any exceptions to these rules and regulations, except those expressly delegated, must be approved in advance by OSBM.

6.8.4 Severance Policy

(G.S. 126-8.5) governs the policies and procedures applicable to severance.


6.9 Reporting Misuse of State Property

Pursuant to G.S. 143B-920, any state employee is required to report any possible misuse of State property to his or her immediate supervisor, who is then required to report this information to the head of the respective department, agency, or institution. The agency, department, or institution head is required to report this information in writing to the State Bureau of Investigation (SBI) within 10 days.

Notification of the SBI within the 10-day period is required even if the agency, department, or institution head is unable to determine whether the allegation is credible. (1998 Advisory Opinion of the North Carolina Attorney General, #373).


Personnel Policies and Regulations

Contracts between state agencies, departments, institutions

Contractual services

Dual employment

Employee training fees

Employee tuition fees

Employee Wellness Activities


Executive development fees


Moving and relocating

Payment of awards to employees for employee suggestion system

Salary control

Salary reserve

Unemployment compensation

Workers’ compensation