Debt of Employees to Other State Agencies Policy

Policy Number
Board of Trustees
Date Approved
Effective Date
Responsible Division
Human Resources
N.C. Gen. Stat. § 143-553

As provided in N.C. Gen. Stat. §143-553, any individuals employed by a board of trustees of a community college who “owe money to the State and whose salaries are paid in whole or in part by State funds must make full restitution of the amount owed as a condition of continuing employment,” except for money owed to the University of North Carolina Health Care System or to East Carolina University’s Division of Health Sciences for health care services, as permitted by law.

The President or designee shall develop procedures to ensure compliance with these provisions balanced against due process for affected employees.

  1. The agency owed the money will write to the Human Resources Director indicating the individual who has a past due account. The information will also include the amount of money owed and for what general reason.
  2. A written notice will be sent to the employee stating that full restitution of the amount owed is a condition of continued employment.
  3. The employee must obtain and provide written evidence within a reasonable time from the Agency owed that a satisfactory arrangement for payment has been agreed upon, which may also include an arrangement to garnish the employee’s wages. A “reasonable time” shall be determined based on the specific situation and timing of notification of debt.
  4. Steps to terminate employment shall be taken if the employee does not provide evidence of payment or provision for payment, or evidence that the employee is pursuing administrative or judicial remedies pursuant to a dispute of the debt or amount owed.