NC’s 100-Day No-Fault Guarantee


Selecting the right person for a job is never a guarantee. If you have to terminate a new employee, your unemployment insurance account will not be charged if you notify the local Employment Security Commission office. The termination must occur with a 100-day probationary period from the date of hiring, due to a bona fide inability to do the work. This gives employers a greater potential for holding down their unemployment costs by allowing more time to build successful working relationships and to evaluate the job performance of employees. As a result, the employer is not penalized for giving someone a chance at the job. The employer’s unemployment tax experience rating will not be affected. North Carolina is currently the only state with a 100-day “no fault” period for new employees.