Wages in dispute. 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. Exempt employees are not entitled to overtime pay under federal or NC labor laws. Employers are also required to notify affected employees within a certain time period. The major federal law governing wages and hours is called the Fair Labor Standards Act (FLSA). Definitions. No particular method of paying employees' wages is required in North Carolina; cash, money order and negotiable checks are all acceptable. Withholding of wages. Contact their Central Office in Raleigh at 919-856-2564. 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. 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. An employer must give each employee who was paid wages a Form W-2, Wage and Tax Statement, by the annual due date. The North Carolina Wage and Hour Act (N.C. Gen. Stat. And pursuant to N.C.G.S. 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 has an earned income tax credit (EITC) program. 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. The minimum wage applies to most employees in North Carolina, with limited exceptions including tipped employees, some student workers, and other exempt occupations. In North Carolina, there are requirements relating to the minimum wage, overtime and child labor. 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. 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. How can we make this page better for you. 3) An employer cannot reduce an employee's pay below the minimum wage, which is currently $7.25 an hour. 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. Wage payment. Bonuses, commissions, or similar forms of wages may be paid as infrequently as once per year if the employee is notified in advance. 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. 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. All employers must provide itemized written statements of deductions to employees each time deductions are made. 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. Please press Ctrl/Command + D to add a bookmark manually. Additional requirements apply. The General Related topic covered on other pages include: Compensable time (hours worked) Notice must also be provided at least 24 hours before any changes in promised wages. 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. "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. Employers may also pay wages by direct deposit or electronic paycard or debit card if certain requirements are met. Currently the minimum wage in North Carolina is $7.25 an hour. 4. The federal government does not have any laws governing these issues. You can also complete the Free Unpaid Overtime Case Review box on this page and an experienced attorney will contact you shortly. NC Statute 95-25.3 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. Generally, employers must pay employees a minimum wage, as specified by the FLSA and North Carolina law. § 95-25.1, et seq., is an important source of workplace protection. 4 West Edenton St. XpertHR is part of the LexisNexis® Risk Solutions Group portfolio of brands. Your browser does not allow automatic adding of bookmarks. Penalties are imposed for employer violations of the wage payment method laws. "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. Discover the power of XpertHR employment law guidance and best practice at your fingertips with a free trial. North Carolina employers do not have to pay terminated employee immediately. 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