Medical Payment Law

N.C.G.S. §14-357.1 states that it shall be unlawful for any employer with twenty-five (25) or more employees to require any applicant for employment to pay the cost of a medical examination or the cost of providing any records required by the employer as a condition of the initial act of hiring.

The following explains the N.C. Wage & Hour Bureau’s enforcement position:

• The term “records” as used in N.C.G.S. §14-357.1 includes medical records and any other required records including, but not limited to, criminal records.
• The term “medical examination” as used in N.C.G.S. §14-357.1 includes, but is not limited to, drug screening tests.
• N.C.G.S. §14-357.1 would be violated if the employer hired an employee on the condition that the cost of the employee’s medical examination or costs to provide records would have to be paid back at one time or over a period of time by the employee, or deducted from the employee’s first paycheck or any subsequent paycheck by the employer.
• N.C.G.S. §14-357.1 does not apply to a controlled substance examination required by the United States Department of Transportation or the United States Nuclear Regulatory Commission.

Any employer who violates the provisions of N.C.G.S. §14-357.1 may be liable for a fine of not more than $100 for each violation.  The Commissioner of Labor is charged with enforcing N.C.G.S. §14-357.1.

For more information about workplace rights, please contact our toll-free number at 1-800-NC-LABOR (800-625-2267).