Verne Hill
NEW STATE LAWS (July 1, 2025)
(July 1, 2025)
Several new laws taking effect in North Carolina this week including a ban on certain vaping products, changes to automotive insurance policies, and changes to non-compete agreements. Here’s a breakdown of some of the most notable changes now in effect:
Auto insurance requirements just got more expensive
North Carolina has increased its minimum auto liability insurance limits for the first time in decades:
$50,000 per person injured in an accident
$100,000 total for injuries per accident
$50,000 for property damage
That’s a significant jump from the previous limits of $30,000/$60,000/$25,000. Insurance experts say drivers could see higher premiums, especially those with older or minimal coverage.
In addition, first-time drivers may now face surcharge penalties for up to eight years, a change from the previous three-year limit.
New transportation tax on rideshares and taxis
Whether you take Uber, Lyft, or a taxi, expect to see a new line item on your receipt. A new transportation commerce tax went into effect on July 1:
1.5% tax on exclusive (solo) rides. 1% tax on shared rides
The fee even applies if you cancel your trip after boarding. The funds will help North Carolina maintain and expand its highway infrastructure.
Tighter restrictions on vape sales
A new law aimed at protecting minors restricts the sale of vape products not approved or under review by the FDA. Under the updated rules:
Retailers must be licensed to sell vaping products
Only FDA-approved or pending products are legal
Enforcement began earlier this year; full compliance is required as of July 1
The law targets unregulated and potentially dangerous vape products, often marketed to youth.
Vacation rental hosts must complete human trafficking training
North Carolina now requires short-term rental property owners and staff to complete human trafficking awareness training:
Training must be completed before listing a property for rent
Must be renewed every two years. $2,000 fine for each violation
Officials say the move is meant to improve safety in rental properties, especially in tourist-heavy areas during peak travel seasons.
Non-compete agreements now banned for many workers
Under the new Workforce Freedom & Protection Act, non-compete and non-poaching clauses are no longer enforceable for employees making less than $75,000 per year.
This means workers can now switch jobs or be recruited by competitors without fear of legal consequences, especially important in service industries, healthcare, and hospitality.
Each of these laws is designed to improve public safety, protect workers, or raise consumer standards, but they also come with new responsibilities for residents and business owners alike.
