orth Carolina’s unemployment compensation program, like those in other states, is regulated by the U.S. Department of Labor under the Social Security Act and the Federal Unemployment Tax Act (FUTA). The administration of the program is funded by federal taxes, while the benefits for claimants are paid out of a fund created by a state tax on employers. North Carolina’s unemployment statute is the Employment Security Law.
The Division of Employment Security (DES) is a division of the North Carolina Department of Commerce. DES has its central office in Raleigh and local offices throughout the state. The Secretary of the Department of Commerce is charged with administering the Employment Security Law and appointing an assistant secretary to assist in the implementation of the employment security laws and oversee DES. A State Advisory Council aids DES in formulating policies and discussing problems related to the administration of the employment security laws. It is composed of the assistant secretary and 15 persons representing employers, employees and the general public, appointed as follows: