Your browser does not allow automatic adding of bookmarks. Special rules apply to vacation time, bonuses and commissions. For more information about workplace rights, please contact our toll free number at 1-800-NC-LABOR (800-625-2267). 4 West Edenton St. Employers are also required to notify affected employees within a certain time period. Currently the minimum wage in North Carolina is $7.25 an hour. 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. Although the N.C. 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. 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. "Promised wages" can be an hourly rate that is more than the minimum wage, overtime pay for certain days worked rather than the statutory requirement of paying overtime pay for the hours worked in excess of 40 in a workweek, shift differential pay, commissions, bonuses, piece-rate, production pay, a weekly salary, a monthly salary, or mileage expenses. Payment to separated employees. An employer may, however, retroactively increase an employee's pay or wage benefits without prior notification. NC Statute 95-25.3 In North Carolina, federal and state laws govern pay day requirements. 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. North Carolina law permits employers to make certain deductions from employees' pay, but only if certain conditions are met. Under the FLSA, employers may pay tipped employees $2.13 an hour as long as the employee’s tips bring their compensation up to the minimum wage and the employer complies with the FLSA’s tip credit provisions. 2. 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. 3. Use of the service is subject to our terms and conditions. An employer must give each employee who was paid wages a Form W-2, Wage and Tax Statement, by the annual due date. 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. Copyright © 2020 LexisNexis Risk Solutions Group, At-Will, Contracts and Restrictive Covenants, Risk Management - Health, Safety, Security, Payment of Wages requirements for other states. No particular method of paying employees' wages is required in North Carolina; cash, money order and negotiable checks are all acceptable. 95-25.12. N.C. Department of LaborPhysical Address North Carolina … The federal government does not have any laws governing these issues. 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. Generally, employers must pay employees a minimum wage, as specified by the FLSA and North Carolina law. Withholding of wages. Exempt employees are not entitled to overtime pay under federal or NC labor laws. North Carolina Wage Payment Law North Carolina's law regarding wage payment is stated in North Carolina's General Statutes Chapter 95, Article 2A. Please press Ctrl/Command + D to add a bookmark manually. Employers may also pay wages by direct deposit or electronic paycard or debit card if certain requirements are met. In North Carolina, there are requirements relating to the minimum wage, overtime and child labor. 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. Currently the minimum wage in North Carolina is $7.25 an hour. However, the employer can reduce an employee's rate of pay all the way down to the minimum wage with proper written notification. See Wage and Hour. 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. North Carolina Wage and Hour Laws at a Glance A combination of federal, state, and sometimes local laws governs the … 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. 95-25.13. Author: Vicki M. Lambert, The Payroll Advisor. Vacation pay plans. 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. All employers must provide itemized written statements of deductions to employees each time deductions are made. Electronic pay statements may also be provided. Additional requirements apply. An employer is not required to pay its employees more in wages than is required by the minimum wage and overtime pay provisions. See Recruiting and Hiring. North Carolina law primarily relies on federal laws, including the Family and Medical Leave Act (FMLA) and the federal minimum wage. 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. 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. By Patricia Dzikowski, Attorney. 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. If you have questions about North Carolina… In North Carolina, there is no mandatory payday specified . They can wait until the next scheduled pay period to deliver final wages to the terminated employee. The North Carolina Wage and Hour Act, codified at N.C. Gen. Stat. 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. Such reductions to earned wages, including earned wage benefits, cannot be made retroactive. And pursuant to N.C.G.S. 95-25.2. 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. See Form W-2 Requirements. Here is the agency that you need to contact United States Department of Labor Employee Benefits Security Administration. The General Notice must also be provided at least 24 hours before any changes in promised wages. Federal law and guidance on this subject should be reviewed together with this section. This includes monthly fees to cover the costs of representation. North Carolina employers do not have to pay terminated employee immediately. 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. If you cannot afford an attorney, you may be eligible for free legal advice thru a Legal Aid Services office in your area. North Carolina's state minimum wage rate is $7.25 per hour. In North Carolina, ‘Right-to-Work’ laws prohibit the requirement that non-union members be responsible for obligatory payment of union dues. 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. Any reduction in pay or wage benefits must be prospective from the date of notification. 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." It regulates how much workers must be paid, how many hours they can be required to work, and the special rules that apply to younger workers. 95-25.13(2) of the WHA. Learn more. How can we make this page better for you. 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. 1101 Mail Service Center 95-25.8. For questions on employees being treated unfairly for reasons other than the protected categories mentioned, you need to consult with a private attorney. Unlike some states, this applies in all situations including when an employee voluntarily quits or … 95-25.7A. 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). 95-25.7. 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. Penalties are imposed for employer violations of the wage payment method laws. 4. View our privacy policy, privacy policy (California), cookie policy and supported browsers. 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). § 95.25.1, et seq.) 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. 95-25.13(3) of the WHA. North Carolina exempts executive employees from its minimum wage, overtime, and record keeping requirements. Here are some fast facts you need to be familiar with as an employer […] Discover the power of XpertHR employment law guidance and best practice at your fingertips with a free trial. Employers' remedies preserved. § 95-25.1, et seq., is an important source of workplace protection. Raleigh, NC 27601, Mailing Address 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. 95-25.6. 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. North Carolina wage garnishment laws permit wage attachments in very limited circumstances. See EEO, Diversity and Employee Relations. The minimum wage applies to most employees in North Carolina, with limited exceptions including tipped employees, some student workers, and other exempt occupations. Definitions. No particular method of paying employees' wages is required in North Carolina; cash, money order and negotiable checks are all acceptable. Contact their Central Office in Raleigh at 919-856-2564. You can also complete the Free Unpaid Overtime Case Review box on this page and an experienced attorney will contact you shortly. The term wages is specifically defined in the North Carolina wage payment law. See Definition of Wages. North Carolina also does not set the maximum hours that employees are allowed to work in a day. 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. 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. Wage payment. Additional posting requirements apply. North Carolina’s employment laws allow for an employee (or the NC Commissioner of Labor) to sue an employer for violations of the minimum wage, overtime, and benefit pay acts. The minimum wage rate in North Carolina is the same as the Federal Minimum Wage, which is $5.15 per hour. North Carolina’s current minimum wage is $7.25. Related topic covered on other pages include: Compensable time (hours worked) 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. It is important that both employers and employees know their rights and responsibilities under the NCWHA. 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. and accompanying regulations (13 NCAC 12.0101, et seq.) "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. NC Statute 95-25.14 (b) (4) XpertHR is part of the LexisNexis® Risk Solutions Group portfolio of brands. Non-union employees employed at unionized worksites are entitled to union representation under the law. In North Carolina, all severance pay is subject to income tax withholding. Pay periods may be daily, weekly, bi-weekly, semi-monthly or monthly. Penalties are imposed for noncompliance. The major federal law governing wages and hours is called the Fair Labor Standards Act (FLSA). 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. North Carolina employers must notify new employees of their promised wages and the day and place of wage payments. 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. 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. See Severance Pay. All employers must pay all employees on regular paydays. Bonuses, commissions, or similar forms of wages may be paid as infrequently as once per year if the employee is notified in advance. 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. If not, the employer has to make up the difference. Other Payday Laws . The North Carolina Wage and Hour Act (N.C. Gen. Stat. Wage payment laws are generally state specific. Frequency of Wage Payments An employer must pay its employees on regularly scheduled paydays either daily, weekly, bi-weekly, semi-monthly, or monthly. 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. 1. North Carolina requires the use of E-Verify and permits preemployment drug testing, but prohibits consideration of expunged criminal records. North Carolina’s minimum wage is $7.25 per hour. Wage and Hour Administrative Rules 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. 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. Currently the minimum wage in North Carolina is $7.25 an hour. 95-25.11. North Carolina has an earned income tax credit (EITC) program. The giving or not giving of promised wages, including wage benefits, is entirely up to each employer. are the primary sources of wage and hour law. Pay periods may be daily, weekly, biweekly, semimonthly or monthly. This is the same as the current Federal Minimum Wage rate. Wages in dispute. But this is all an employer must pay its employees by statute pursuant to the North Carolina Wage and Hour Act (WHA). The materials and information included in the XpertHR service are provided for reference purposes only. 3) An employer cannot reduce an employee's pay below the minimum wage, which is currently $7.25 an hour. The employee can receive as compensation for such violation: his unpaid wages plus interest; the same amount over again as a penalty; costs, fees, and attorney’s fees. 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. 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. North Carolina law prohibits an employer from discriminating and retaliating against employees in a variety of protected classes. Instead, it is entirely up to the employer whether to have employees work 8-, 12- or 16-hour shifts. 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