N.C. Employment Security Commission Chairwoman Lynn Holmes said today that, at the direction of Gov. Bev Perdue, she is suspending certain provisions of a bill passed this summer because they do not comply with federal law.
Senate Bill 532 made a number of changes to the state's employment security commission. Perdue vetoed the legislation, but the legislature overrode it.
Opponents warned that flaws in the law would lead to improper denial of unemployment benefits for those out of work and increased state and federal unemployment tax rates for businesses.
The bill's supporters said the concerns are overblown, and that the Department of Labor has never sanctioned a state so that unemployment tax rates rise.