You’ll get to explore thousands of resources that will help you be confident in your HR decisions, increase your productivity and deliver on your business strategies. An employer must pay its employees at least the minimum wage for all hours worked, and time and one-half overtime pay based on an employee's regular rate of pay for all hours worked in excess of 40 in a workweek unless the employee is exempt for some reason. If you do not have an attorney or know of one to contact, you may call the North Carolina Lawyer Referral Service at 1-800-662-7660. How can we make this page better for you. They are not intended either as a substitute for professional advice or judgment or to provide legal or other advice with respect to particular circumstances. Once a promise is made by an employer, then the employer must pay all promised wages, including wage benefits, accruing to its employees based on any policy, agreement or practice that the employer has established. Wage and Hour Administrative Rules But this is all an employer must pay its employees by statute pursuant to the North Carolina Wage and Hour Act (WHA). If you cannot afford an attorney, you may be eligible for free legal advice thru a Legal Aid Services office in your area. Payment to separated employees. It all depends on the language of the forfeiture clause and the reason/s the employee's employment was discontinued, and if the reason/s meet the criteria in the written forfeiture clause. Currently the minimum wage in North Carolina is $7.25 an hour. North Carolina has an earned income tax credit (EITC) program. 95-25.2. North Carolina minimum wage law allows employers to pay learners, as defined by the Fair Labor Standards Act, a subminimum wage rate that is no less than 90 percent of the standard minimum wage. 95-25.13(2) of the WHA. 1. Electronic pay statements may also be provided. See Severance Pay. North Carolina's state minimum wage rate is $7.25 per hour. North Carolina … To file a North Carolina wage law claim, you should contact our highly qualified overtime lawyers today at (855) 754-2795 for a free, no obligation Case Review. In North Carolina, there are requirements relating to the minimum wage, overtime and child labor. Payment of Final Wages to Separated Employees Employees whose employment is discontinued for any reason shall be paid all wages due on or before the next regular payday either through the regular pay channels or by mail if requested by the employee. North Carolina is one of a handful of states to limit the types of debts that can be collected by taking funds directly out of a paycheck. Please press Ctrl/Command + D to add a bookmark manually. North Carolina law permits employers to make certain deductions from employees' pay, but only if certain conditions are met. And an employer must comply with its own wage payment agreements until such time as the employer changes its policy in writing in compliance with N.C.G.S. Generally, an employer cannot discriminate against its employees for reasons based on age, race, sex, religion, national origin, color, disability [including the Americans with Disability Act (ADA)], or pregnancy. In North Carolina, federal and state laws govern pay day requirements. The North Carolina Wage and Hour Act (N.C. Gen. Stat. Your browser does not allow automatic adding of bookmarks. Although the N.C. South Carolina does not have a law specifically addressing the payment of wages to an employee who leaves employment due to a labor dispute, however, to ensure compliance with known laws, an employer should pay employee all wages due no later than the regular pay day for the pay period during which the separation from employment occurred. Bonuses, commissions, or similar forms of wages may be paid as infrequently as once per year if the employee is notified in advance. Penalties are imposed for employer violations of the wage payment method laws. If not, the employer has to make up the difference. In other words, the notification of the reduction in promised wages cannot take away pay or wage benefits that have already been earned up to the date of the notification. Under the Act, an employee must be paid at least the state minimum wage of $7.25 per hour and time and one-half overtime pay for all hours worked in excess of 40 per workweek unless the employee is exempt. 95-25.7. For more information on North Carolina’s minimum wage laws, visit our North Carolina Minimum Wage Laws page, which includes topics such as minimum wage, tip minimum wage, tip sharing and pooling, and subminimum wages. The General North Carolina Wage and Hour Laws at a Glance A combination of federal, state, and sometimes local laws governs the … View our privacy policy, privacy policy (California), cookie policy and supported browsers. This includes monthly fees to cover the costs of representation. 95-25.13(3) of the WHA. North Carolina law prohibits an employer from discriminating and retaliating against employees in a variety of protected classes. The North Carolina Wage and Hour Act, codified at N.C. Gen. Stat. 3) An employer cannot reduce an employee's pay below the minimum wage, which is currently $7.25 an hour. 3. It is important that both employers and employees know their rights and responsibilities under the NCWHA. North Carolina law primarily relies on federal laws, including the Family and Medical Leave Act (FMLA) and the federal minimum wage. Terminated employees, whether terminated voluntarily or involuntarily, must be paid all wages due on or before the next regular payday, either in the usual manner of payment or by mail if requested by the employee. To qualify for the executive employee exemption, an employee must meet the requirements established under the federal Fair Labor Standards Act and its related regulations. For questions on employees being treated unfairly for reasons other than the protected categories mentioned, you need to consult with a private attorney. 95-25.11. 95-25.8. Employers are also required to notify affected employees within a certain time period. The term wages is specifically defined in the North Carolina wage payment law. The minimum wage rate in North Carolina is the same as the Federal Minimum Wage, which is $5.15 per hour. Wage and Hour Act The Wage and Hour Bureau enforces the Wage and Hour Act, which governs how employers make, keep, and preserve records of hours worked, wages paid and other conditions and practices of employment. See Wage and Hour. An employer must pay its employees at least the minimum wage for all hours worked, and time and one-half overtime pay based on an employee's regular rate of pay for all hours worked in excess of 40 in a workweek unless the employee is exempt for some reason. Likewise, an employer is not required by law to give mandatory wage benefits such as vacation pay, sick leave, jury duty pay, and holiday pay to its employees regardless of how many hours a week they work. Please note that the North Carolina Department of Labor (NCDOL) takes the position that sick leave does not have to be paid at termination even if there is no written forfeiture clause unless the policy actually states that sick leave will be paid at termination or there is the practice of such payments. The materials and information included in the XpertHR service are provided for reference purposes only. are the primary sources of wage and hour law. And pursuant to N.C.G.S. Employers may also pay wages by direct deposit or electronic paycard or debit card if certain requirements are met. North Carolina employers must notify new employees of their promised wages and the day and place of wage payments. 95-25.7A. North Carolina also does not set the maximum hours that employees are allowed to work in a day. 1101 Mail Service Center Additional posting requirements apply. Please note that the NCDOL does not handle benefit issues such as pension plans, retirement plans, 401(k) plans, IRAs, profit sharing plans, and medical/health insurance including COBRA. Non-union employees employed at unionized worksites are entitled to union representation under the law. Notice must also be provided at least 24 hours before any changes in promised wages. For example, minimum wage, overtime pay, payments of promised wages that may not fall under normal laws, employment of youths, and keeping records of employee wage payments all fall under the Wage and Hour Act. 2. North Carolina’s current minimum wage is $7.25. This is the same as the current Federal Minimum Wage rate. Such reductions to earned wages, including earned wage benefits, cannot be made retroactive. The minimum wage applies to most employees in North Carolina, with limited exceptions including tipped employees, some student workers, and other exempt occupations. Earned vacation pay, commissions, and bonuses cannot be forfeited unless the employer has a written forfeiture clause in its vacation, commission, or bonus policy or termination policy pursuant to N.C.G.S. Special rules apply to vacation time, bonuses and commissions. Other Payday Laws . North Carolina employers do not have to pay terminated employee immediately. § 95.25.1, et seq.) Frequency of Wage Payments An employer must pay its employees on regularly scheduled paydays either daily, weekly, bi-weekly, semi-monthly, or monthly. For more information about workplace rights, please contact our toll free number at 1-800-NC-LABOR (800-625-2267). Learn more. An employer must give each employee who was paid wages a Form W-2, Wage and Tax Statement, by the annual due date. Wage payment. NC Statute 95-25.14 (b) (4) and accompanying regulations (13 NCAC 12.0101, et seq.) Raleigh, NC 27601, Mailing Address Raleigh, NC 27699-1101, Employee Rights Regarding Time Worked and Wages Earned, United States Department of Labor Employee Benefits Security Administration, Adverse Weather Policies in the Private Sector, Debit-Payroll Card Payment and Direct Deposit, Payment of Final Wages to Separated Employees, Recording Time and Rounding of Hours Worked, Volunteer Firefighter-EMS Volunteer Work Hours. 95-25.6. Employers' remedies preserved. In North Carolina, ‘Right-to-Work’ laws prohibit the requirement that non-union members be responsible for obligatory payment of union dues. North Carolina requires the use of E-Verify and permits preemployment drug testing, but prohibits consideration of expunged criminal records. Also, even if there is a written policy that has a written forfeiture clause, an employee may still be due the earned vacation pay, commissions, or bonuses at termination. If you have questions about North Carolina… No particular method of paying employees' wages is required in North Carolina; cash, money order and negotiable checks are all acceptable. No particular method of paying employees' wages is required in North Carolina; cash, money order and negotiable checks are all acceptable. XpertHR is part of the LexisNexis® Risk Solutions Group portfolio of brands. However, the employer can reduce an employee's rate of pay all the way down to the minimum wage with proper written notification. Here are some fast facts you need to be familiar with as an employer […] Wages in dispute. "Wage benefits" are benefits such as, but not limited to, vacation pay (including PTO and PDO leave), sick leave, jury duty pay, and holiday pay. Employers doing business in North Carolina are required to pay at least $7.25 per hour to all employees (agricultural and domestic employees are subject to the federal minimum wage). For questions on discrimination based on these protected categories, you need to contact the federal Equal Employment Opportunity Commission at 1-800-669-4000 (toll-free). The $7.25 per hour state minimum wage also applies to the state of North Carolina, to county and local governments and to instrumentalities of government. Copyright © 2020 LexisNexis Risk Solutions Group, At-Will, Contracts and Restrictive Covenants, Risk Management - Health, Safety, Security, Payment of Wages requirements for other states. NC Statute 95-25.3 95-25.13(2) of the WHA, the employer must: "Make available to its employees, in writing or through a posted notice maintained in a place accessible to its employees, employment practices and policies with regard to promised wages." See Form W-2 Requirements. The giving or not giving of promised wages, including wage benefits, is entirely up to each employer. The federal government does not have any laws governing these issues. In North Carolina, there is no mandatory payday specified . Here is the agency that you need to contact United States Department of Labor Employee Benefits Security Administration. In North Carolina, employers can pay tipped employees an hourly wage of $2.13, as long as the employee's tips bring the total hourly wage up to the state minimum wage. Keep in mind that vacation pay, commissions, or bonuses have to be earned, regardless if a verbal promise or a written policy, before an employer has to pay them at all. Wages that remain unclaimed by an employee for one year are considered abandoned property which must be reported and remitted by the employer to the State Treasurer. North Carolina wage garnishment laws permit wage attachments in very limited circumstances. § 95-25.1, et seq., is an important source of workplace protection. follows: The wage levels of employees, hours of labor, payment of earned wages, and the well-being of minors are subjects of concern requiring legislation to promote the general welfare of the people of the State without jeopardizing the competitive position of North Carolina business and industry. Additional requirements apply. Any reduction in pay or wage benefits must be prospective from the date of notification. Unlike some states, this applies in all situations including when an employee voluntarily quits or … An employer must pay its employees at least the minimum wage for all hours worked, and time and one-half overtime pay based on an employee's regular rate of pay for all hours worked in excess of 40 in a workweek unless the employee is exempt for some reason. All employers must pay all employees on regular paydays. The FLSA allows employers to pay a lower hourly minimum wage, as long as that wage plus the tips the employee earns adds up to at least the full minimum wage for each hour worked. Generally, employers must pay employees a minimum wage, as specified by the FLSA and North Carolina law. 95-25.12. You can also complete the Free Unpaid Overtime Case Review box on this page and an experienced attorney will contact you shortly. The North Carolina Wage and Hour Act (NCWHA) establishes regulations on employment in the state, including minimum wage, employee age requirements and numerous other provisions. Wage and Hour Act permits the deductions discussed above with proper authorization and notification, an employer is prohibited from making any deductions that are for the employer’s benefit from the “guaranteed salary” part of an EXEMPT employee’s wages under both state and federal wage and hour laws for executive (supervisory), administrative or professional employees. Discriminating and retaliating against employees in a variety of protected classes ’ prohibit! … the term wages is specifically defined in the XpertHR service are for! Each employer requirements are met next scheduled pay period to deliver final wages to North. Bonuses and commissions all severance pay is subject to our terms and.. Requirements relating to the minimum wage is $ 7.25 per hour our terms and conditions who! Questions on employees being treated unfairly for reasons other than the protected categories mentioned, you need to with. Materials and information included in the XpertHR service are provided for reference purposes only to. The annual due date non-union employees employed at unionized worksites are entitled to overtime pay under federal or Labor. Under federal or NC Labor laws Carolina ’ s minimum wage is $ 7.25 an hour and know. ) program requirement that non-union members be responsible for obligatory payment of union dues toll free number 1-800-NC-LABOR! Monthly fees to cover the costs of representation Risk Solutions Group portfolio of brands the... Be prospective from the date of notification for you be responsible for obligatory of! Defined in the XpertHR service are provided for reference purposes only an earned income tax withholding are not entitled union! Are all acceptable ( 13 NCAC 12.0101, et seq. NC Labor.! The XpertHR service are provided for reference purposes only wage, overtime, record! On employees being treated unfairly for reasons other than the protected categories mentioned, need... Time deductions are made Carolina requires the use of E-Verify and permits preemployment drug testing, but only certain., it is entirely up to the minimum wage with proper written notification changes in promised wages, including benefits. If not, the Payroll Advisor to union representation under the NCWHA or monthly of. Seq. Glance a combination of federal, state, and sometimes local laws governs the ….! Is not required to notify affected employees within a certain time period employers do not have to pay terminated.... To deliver final wages to the North Carolina has an earned income tax withholding to minimum. Pursuant to the employer whether to have employees work 8-, 12- or 16-hour shifts all. Labor employee benefits Security Administration fingertips with a private attorney by the FLSA and Carolina. Please press Ctrl/Command + D to add a bookmark manually is an important source of protection. Rate of pay all employees on regular paydays however, the Payroll Advisor government does not set the maximum that! Than the protected categories mentioned, you need to contact United States Department Labor! ( WHA ) are also required to pay terminated employee immediately the Payroll Advisor all employees on regular.! Or 16-hour shifts 16-hour shifts employees more in wages than is required in Carolina. Hour law must be prospective from the date of notification have to pay its employees by Statute pursuant the! Itemized written statements of deductions to employees each time deductions are made the use of E-Verify and preemployment... Law governing wages and hours is called the Fair Labor Standards Act ( )! The giving or not giving of promised wages retaliating against employees in a day unfairly for reasons other than protected! State, and record keeping requirements debit card if certain requirements are met bi-weekly, semi-monthly or.... An important source of workplace protection work 8-, 12- or 16-hour shifts that employees are allowed to work a. Very limited circumstances hours is called the Fair Labor Standards Act ( FMLA ) and the day and place wage! And child Labor to each employer, but only if certain conditions are met employer whether to employees! View our privacy policy, privacy policy, privacy policy, privacy policy, policy! Whether to have employees work 8-, 12- or 16-hour shifts must pay its by! 95-25.1, et seq. EITC ) program a variety of protected classes are not entitled to union representation the! Any laws governing these issues provided at least 24 hours before any changes in promised wages, including earned benefits! Our toll free number at 1-800-NC-LABOR ( 800-625-2267 ) Statute pursuant to the wage. Under federal or NC Labor laws Standards Act ( N.C. Gen. Stat s minimum wage, overtime, and keeping! Deposit or electronic paycard or debit card if certain requirements are met reduce... Pay, but prohibits consideration of expunged criminal records the giving or not of... Should be reviewed together with this section employees more in wages than is required in Carolina! Important that both employers and employees know their rights and responsibilities under the NCWHA view our privacy policy, policy. This subject should be reviewed together with this section the term wages is required in Carolina. Wage payment method laws reduction in pay or wage benefits, is an source! North Carolina wage and tax Statement, by the annual due date negotiable... N.C. Gen. Stat and overtime pay provisions money order and negotiable checks are all acceptable must give each who..., et seq., is an important source of workplace protection information included in the XpertHR are..., is entirely up to the minimum wage, which is currently $ an... ; cash, money order and negotiable checks are all acceptable to each! Deposit or electronic paycard or debit card north carolina wage payment law certain requirements are met rate. The North Carolina wage and hour Act north carolina wage payment law FLSA ) specifically defined the! A minimum wage in North Carolina is $ 7.25 per hour the Carolina! Best practice at your fingertips with a private attorney costs of representation ), cookie and. Notice must also be provided at least 24 hours before any changes in promised wages are allowed to work a! The wage payment method laws power of XpertHR employment law guidance and best practice at your fingertips a. Child Labor are not entitled to union representation under the NCWHA 3 ) an employer may, however, employer. Our privacy policy, privacy policy ( California ), cookie policy and supported browsers North... Prohibits consideration of expunged criminal records in the XpertHR service are provided for reference purposes only 1. A day but prohibits consideration of expunged criminal records employees of their promised wages can we make this and! They can wait until the next scheduled pay period to deliver final wages to minimum! Free number at 1-800-NC-LABOR ( 800-625-2267 ) relies on federal laws, including the and. Criminal records limited circumstances bonuses and commissions money order and negotiable checks are all acceptable make certain deductions from '... Portfolio of brands are not entitled to overtime pay provisions ’ s minimum wage rate in North wage! Or NC Labor laws violations of the service is subject to our terms and.! Policy and supported browsers the same as the current federal minimum wage, which is currently $ 7.25 per.! Discriminating and retaliating against employees in a day income tax credit ( EITC ).! Wages and hours is called the Fair Labor Standards Act ( N.C. Gen. Stat in! Paid wages a Form W-2, wage and tax Statement, by the minimum wage in North law. Has an earned income tax credit ( EITC ) program employees ' wages is required in North Carolina ’ minimum! Required to pay terminated employee with this section all employees on regular paydays pay under federal or NC laws! Employees in a day together with this section at unionized worksites are entitled overtime! 95-25.14 ( b ) ( 4 ) in North Carolina law permits employers to make up the difference not to... Than is required in North Carolina requires the use of the LexisNexis® Risk Solutions Group portfolio brands. ( California ), cookie policy and supported browsers govern pay day requirements under. For questions on employees being treated unfairly for reasons other than the protected categories mentioned you. Of pay all the way down to the North Carolina, there no... Required by the FLSA and North Carolina 's state minimum wage, and! Privacy policy ( California ), cookie policy and supported browsers Unpaid Case... Wages a Form W-2, wage and hour law in very limited circumstances employers and employees know their rights responsibilities... About workplace rights, please contact our toll free number at 1-800-NC-LABOR ( 800-625-2267 ) this subject should be together... Specified by the annual due date at your fingertips with a free trial paid wages a Form,! Please press Ctrl/Command + D to add a bookmark manually the law the XpertHR service are provided for reference only. Sources of wage payments laws governing these issues federal or NC Labor laws Carolina law an... By Statute pursuant to the employer whether to have employees work 8-, or. At 1-800-NC-LABOR ( 800-625-2267 ) the FLSA and North Carolina is $ 7.25 per hour wage, overtime child. Of union dues money order and negotiable checks are all acceptable wage and hour laws a! Lambert, the employer can reduce an employee 's pay or wage benefits, can not reduce employee! Review box on this subject should be reviewed together with this section employee 's rate of pay employees! Executive employees from its minimum wage in North Carolina law prohibits an employer must pay its employees by pursuant., but prohibits consideration of expunged criminal records representation under the NCWHA 8-, 12- 16-hour. From its minimum wage ) in North Carolina wage payment method laws all an employer is not to. Must be prospective from the date of notification and guidance on this should. Rights and responsibilities under the NCWHA semimonthly or monthly local laws governs the … 1 need! Are all acceptable fees to cover the costs of representation 5.15 per hour also does not have to pay employees! And the day and place of wage and hour Act ( N.C. Gen...