This document describes legal requirements that pertain to the dismissal or demotion of career status employees in the North Carolina Department of Public Instruction. The interpretive analysis section notes that the employer may terminate the employment only for specified reasons and by stated procedures. The grounds for dismissal or demotion must be adequately substantiated, and thorough documentation is essential. A question-and-answer section highlights issues of concern to administrators. The appendix contains North Carolina State law relating to career status employees, specifically: tenure; contract renewal; and contract nonrenewal of principals, assistant principals, supervisors, directors, and public-school career teachers. (LMI)