The Rights of North Carolina Career State Employees to Grieve Disciplinary Matters
North Carolina's State Human Resources Act (SHRA) gives “career State employees” robust protection against arbitrary discipline and a structured path to challenge agency actions. Covered employees may be disciplined only for “just cause,” must receive specified procedural safeguards, and can pursue a two-step internal grievance followed by an external appeal to the Office of Administrative Hearings (OAH).
*Understand that these rules can change and this article may not be up to date with 100% currently accurate information. There is no substitute for a formal consultation regarding your employment law issue!*
Who is a “career State employee”?
Most SHRA-covered employees become “career” after holding a permanent appointment for 12 continuous months. There are carve-outs—for example, certain sworn law-enforcement and forensic positions require 24 continuous months—and UNC's recent EHRA changes include special election rules for affected university employees. Status matters because the strongest disciplinary protections and appeal rights attach to career employees. Over the years, the legislature has reduced the number of North Carolina state employees who are eligible for the career protections under the SHRA.
What disciplinary actions can be grieved?
Career State employees may challenge disciplinary dismissals, demotions, and suspensions without pay on the ground that the action lacked “just cause.” They may also grieve an involuntary, non-disciplinary separation due to unavailability, and a handful of other employment decisions (e.g., priority consideration failures), but this article focuses on disciplinary matters. Importantly, grievances that combine discipline with allegations of unlawful discrimination or retaliation must first go through the agency's EEO Informal Inquiry before entering the formal grievance track.
The substantive standard: “just cause”
North Carolina organizes “just cause” for discipline into two buckets:
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Unsatisfactory job performance (including grossly inefficient performance), and
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Unacceptable personal conduct (on or off duty where sufficiently job-related).
For performance-based discipline, the policy contemplates progressive steps—typically a written warning before suspension/demotion and at least two prior actions before dismissal—whereas unacceptable personal conduct or grossly inefficient performance can warrant more serious action without prior warnings. Insubordination, or refusal to follow the direction of a supervisor, can also be considered unacceptable personal conduct and subject to discipline without warnings. Agencies retain discretion within these frameworks, but courts look both to compliance with policy and to an equitable, case-specific assessment when evaluating “just cause.”
Procedural protections before serious discipline
Before a career employee can be suspended without pay, demoted, or dismissed, the agency must hold a pre-disciplinary conference (PDC). The employee receives written notice (at least 24 hours when practicable) identifying the proposed action and the specific acts or omissions at issue; the conference is not a formal evidentiary hearing, but it gives the employee a chance to respond. After the PDC, the agency issues a written decision that includes the basis, effective date, specific reasons, and the employee's appeal rights. Failure to provide required notice, appeal rights, or a PDC is a procedural violation, and the grievance filing clock does not start until proper notice of appeal rights is given.
Separately, the SHRA itself requires that before disciplinary action is taken, the employee be furnished a written statement of the specific reasons and appeal rights; an employee may be suspended without prior warning only in limited circumstances (e.g., to avoid disruption or for safety), with written reasons to follow.
The grievance path and timelines (disciplinary cases)
For disciplinary actions, the process bypasses the informal discussion step and starts with the formal internal grievance:
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File the formal grievance (Step 1 – Mediation) within 15 calendar days of the event/action (for discipline, effectively the written notice). Mediation must be requested within 3 business days of receipt and concluded within 35 calendar days unless both sides agree to a limited extension. If mediation impasses, the grievant has 5 calendar days to advance to Step 2.
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Step 2 – Hearing Officer/Panel. The hearing should conclude within 35 calendar days of the Step 2 filing. A proposed agency decision then goes to the Office of State Human Resources (OSHR) for review. The Final Agency Decision (FAD) must issue within 90 calendar days of the original grievance filing (OSHR review included). The FAD must include applicable appeal rights.
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External appeal to OAH. If dissatisfied, the employee may file a contested case at OAH within 30 days of receiving the FAD. OAH is directed to resolve the case within 180 days (absent extraordinary cause). In “just cause” cases, the burden of proof rests with the employer; available relief includes reinstatement, back pay, and other appropriate remedies, and attorney's fees may be awarded where reinstatement/back pay is ordered or in prevailing whistleblower appeals. Judicial review of OAH's final decision is to the North Carolina Court of Appeals. North
Practical pointers that matter in real life
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Calendar days are real days. The 15-day, 5-day, and 30-day clocks are calendar days, not business days. Mark your calendar from the date of receipt of the written notice (for filing to OAH) or the date the informal step concludes/discipline occurs (for internal deadlines). Build in mailing time if notices are sent by certified mail.
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Mediation is not optional. For most grievable issues (including disciplinary cases), mediation is Step 1 of the formal process. An unexcused failure to attend can forfeit the internal grievance. If mediation impasses, do not miss the 5-day window to file Step 2.
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Procedural defects help you. If the agency misses required steps—e.g., no PDC for a demotion/dismissal/suspension; inadequate notice; no appeal-rights language—the remedy can include resetting clocks and, ultimately, relief for procedural violations before reaching the merits. The time to file does not begin until you receive proper notice of appeal rights.
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Discrimination/retaliation changes the route. If your disciplinary challenge also alleges unlawful discrimination, harassment, or retaliation, you must start with the EEO Informal Inquiry before the formal internal grievance. The agency has up to 75 days (extendable to 90) to complete that inquiry; you then have 15 days after the EEO conclusion to file the formal grievance. You can also pursue an external administrative charge simultaneously.
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Mind the 90-day cap. From filing the grievance to issuance of the FAD, the entire internal process must finish within 90 days, including OSHR review. Agencies are expected to manage mediation and Step 2 hearing timelines so that the FAD issues on time.
Why these rights matter
The SHRA's framework balances managerial authority with employee due process. Substantively, “just cause” prevents discipline for trivial or pretextual reasons and channels performance concerns into progressive coaching and warnings. Procedurally, structured deadlines, mandatory mediation, independent Step 2 review, and OSHR oversight create consistency across agencies. And the right to a contested case at OAH—with the employer carrying the burden in just-cause disputes—provides meaningful external review and remedies up to reinstatement and back pay.
Bottom line
If you are a North Carolina career State employee, discipline must be grounded in just cause and preceded by the required pre-disciplinary conference; you have a clear, deadline-driven path to challenge that discipline: 15 days to file the grievance, mediation first, 5 days to proceed to Step 2 if needed, a Final Agency Decision within 90 days, and 30 days to take it to OAH. Track the dates, insist on the process, and use the blend of agency review and independent adjudication the SHRA provides.
If you are a career state employee who is facing discipline, use the contact form on this website to initiate a consultation. We provide free brief initial attorney consultations for North Carolina Career State Employees.