Wednesday, July 2, 2025
As part of a nationwide drive against human trafficking, North Carolina has enacted a new law, HB 971 requiring hotel and vacation rental managers and employees and subcontractors to receive awareness training and education related to human trafficking. The law takes effect on July 1, 2025, and is intended to provide those who work in and around hotels and vacation rentals with the training to identify and report signs of trafficking and to be part of a broader effort throughout the state to address this serious issue.
Training Requirements and Deadlines
Under the new law, property managers of vacation rentals listed on or after July 1, 2025, must complete the mandated training before listing their properties. For rentals listed prior to this date, all involved parties—including property managers, employees, and third-party contractors—must complete the training by June 30, 2027, and renew it every two years thereafter.
Employees and contractors must undergo training within 60 days of starting their service and repeat it biennially. The training is designed to be accessible and is offered at no cost through the North Carolina Department of Labor (NCDOL), in collaboration with the North Carolina Human Trafficking Commission and other state agencies.
The primary objective of HB 971 is to enhance the state’s efforts in identifying and preventing human trafficking activities within lodging establishments. By equipping employees and contractors with the necessary knowledge and tools, the legislation seeks to create a proactive environment where signs of trafficking can be recognized and reported promptly. This initiative aligns with broader state and national efforts to address and mitigate human trafficking.
Key Provisions of HB 971
- Training Requirements: The North Carolina Department of Labor (NCDOL), in consultation with the North Carolina Human Trafficking Commission, the North Carolina Restaurant and Lodging Association, and the Department of Health and Human Services, is tasked with developing or identifying a human trafficking awareness training program. This training must be accessible electronically, in person, or in a classroom setting, at no cost to the individuals required to complete it.
- Employee and Contractor Compliance: Employees and contractors involved in housekeeping, maintenance, check-in/check-out services, or food and beverage services at lodging establishments must complete the training. New employees must undergo training within 60 days of starting their service, while existing employees must complete it by June 30, 2027, and renew it every two years thereafter.
- Reporting Procedures: Lodging establishments are required to implement procedures for reporting suspected human trafficking to local law enforcement or the National Human Trafficking Hotline. They must also display signage with hotline information in conspicuous areas.
- Penalties for Non-Compliance: Violations of the training and reporting requirements can result in escalating civil penalties: $500 for the first offense, $1,000 for the second, and $2,000 for each subsequent violation. Intentionally misrepresenting training completion is considered an unfair trade practice under North Carolina General Statutes, subjecting violators to further legal consequences.
Roles and Responsibilities
The law applies to a wide range of individuals within the lodging industry. Property managers, employees performing housekeeping, maintenance, check-in/check-out services, and third-party contractors involved in these activities are all required to complete the training. Accommodation facilitators, such as Airbnb and VRBO, also have responsibilities under this law. They must notify property managers of the training requirements and collect certifications confirming completion before listing a property.
Reporting Procedures and Compliance
In addition to training, the law, HB 971 mandates that property managers implement procedures for reporting suspected human trafficking to local law enforcement or the National Human Trafficking Hotline. Lodging establishments are also required to display human trafficking awareness signage prominently, providing information on how to report suspected trafficking.
To ensure compliance, property managers must maintain records of training completion, including employee names, training dates, and course titles, for at least three years after employment ends. These records must be available for inspection by the NCDOL upon request.
Penalties for Non-Compliance
Failure to comply with the training and reporting requirements can result in escalating civil penalties: $500 for the first offense, $1,000 for the second, and $2,000 for each subsequent violation. Additionally, intentionally misrepresenting training completion is considered an unfair trade practice under North Carolina General Statutes, subjecting violators to further legal consequences.
Support and Resources
To assist businesses in meeting these new requirements, the NCDOL has launched a dedicated website offering free training resources, signage templates, reporting guidance, and frequently asked questions. This initiative is part of a broader effort to raise awareness and provide the hospitality industry with the tools needed to identify and prevent human trafficking.
Conclusion
The recent law of North Carolina, HB 971 is a measure of prevention to curtail cases of human trafficking in North Carolina’s hotel and tourism industry. By mandating training and laying out appropriate reporting procedures, the state aims at enabling those who operate in the hotel sector to play a proactive part in identifying and reporting cases of trafficking. With the 2025 July deadline approaching, property ownership and hotels are advised to go through and be in compliance with the regulation to ensure North Carolina is a safer place for all.
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