North Carolina has enacted significant reforms to its civil service system aimed at improving the quality of its state workforce, signaling a potential shift in how government employment is managed at the state level. Signed into law by Democratic Governor Josh Stein and passed unanimously by the Republican-led legislature, the Public Workforce Modernization Act will take effect in October. The legislation eliminates several longstanding credential requirements and overhauls the state’s approach to employee evaluation and management.

The new law removes four-year degree mandates for many state positions, broadening the criteria for hiring to include apprenticeships and relevant work experience. This change is intended to expand the pool of qualified candidates and streamline recruitment. Additionally, the state is replacing a performance evaluation system that had become widely regarded as ineffective. Data from last year showed that nearly all of North Carolina’s approximately 222,000 state employees—99.4 percent—received high performance ratings, while only 13 were dismissed for poor performance. Critics argued this revealed a system that failed to differentiate between high and low performers, undermining accountability.

Performance reviews are key in determining pay raises, promotions, and disciplinary actions. The new structure seeks to make these evaluations more rigorous and meaningful, thereby enabling the state to retain top talent while addressing underperformance.

Staci Meyer, North Carolina’s human resources director and a state employee since 1991, played a central role in advancing the legislation. Meyer cited the success of a smaller internal reform effort within the Department of Motor Vehicles, where changes led to reduced customer wait times and improved service, as a model for statewide application.

North Carolina’s ability to implement these reforms without difficulty is partly due to its prohibition on collective bargaining for government employees. However, comparable reforms have taken place in other states that do allow bargaining, illustrating a broader trend toward incorporating private-sector human resource practices into public employment. States such as Georgia began this movement in 1996, with many others subsequently adopting policies that make most state employees at-will, subject to termination without cause.

Despite concerns expressed by some critics that such changes could undermine worker protections, there has been little evidence of these fears materializing. Polling conducted in May by the Searchlight Institute found broad bipartisan support for reforms that align government employment more closely with private-sector models, including performance-based pay and easier termination procedures. These views remained steady even after respondents were presented with counterarguments.

While debates over the role and size of government continue, the bipartisan backing and public approval suggest a shared interest in ensuring that state governments do not hinder their ability to recruit skilled workers or dismiss underperformers. North Carolina’s legislative overhaul may serve as a test case for similar reforms in other states seeking to modernize their public workforces.