Employers in North Carolina should adhere to their own policies regarding vacation time. This includes providing time off or payment in lieu of time off, as specified in their policies. If a business has a policy that results in an employee losing vacation time, the company must notify employees in writing or through a posted notice. Without such notification, employees cannot lose their vacation time.
North Carolina Labor Laws
North Carolina Minimum Wage
In North Carolina, the minimum wage is $7.25 per hour, a rate that has been in effect since July 24, 2009.
North Carolina Law Posters
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History of North Carolina Labor Laws
In 1980, the minimum wage in North Carolina was $2.75 per hour, which was lower than the federal minimum wage of $3.10 at that time. Shortly after, the state and federal minimum wages aligned, and they have remained equal ever since.
Municipality Minimum Wage Laws
Due to legislation passed in 2016, cities and counties in North Carolina are not allowed to set their own minimum wage rates.
North Carolina Minimum Wage Exemptions
Full-time students who meet specific criteria can be paid 90% of the minimum wage, rounded down to the nearest nickel.
North Carolina Posting Requirements
Required posters:
- Minimum Wage
- OSHA
- Unemployment Insurance
- Workers' Compensation
Tipped Wage in North Carolina
For tipped employees in North Carolina, the minimum wage is $2.13 per hour. If an employee’s combined wages and tips do not reach at least $7.25 per hour, the employer must make up the difference.
Tip pooling is permitted, provided that no employee’s tips are reduced by more than 15%. Employers are also required to maintain accurate and complete records of tips, with employees certifying the amounts each month or pay period.
Overtime Wage in North Carolina
The overtime rate in North Carolina is one-and-a-half times the employee’s regular rate of pay, applicable when an employee works more than 40 hours in a workweek.
Employees exempt from overtime under federal law are also exempt under state law. Additional exemptions include:
- Agricultural workers, as defined by the Fair Labor Standards Act
- Domestic employees, as defined by federal law
- Volunteers in medical, educational, religious, or nonprofit organizations where no employer-employee relationship exists
- Certain individuals employed in production roles by outdoor dramas
Child Labor Laws in North Carolina
Minors aged 16 and 17 in North Carolina are not allowed to work between 11 p.m. and 5 a.m. when there is school the next day, unless the employer obtains written permission from the employee’s parents and school principal.
For 14- and 15-year-olds, the rules are as follows:
- They can work up to 3 hours on a school day and 8 hours on a non-school day.
- They can work up to 18 hours per week when school is in session and up to 40 hours per week when school is not in session.
- They are allowed to work only between 7 a.m. and 7 p.m., extended to 9 p.m. from June 1 through Labor Day when school is not in session.
- Employers must provide them with a 30-minute break after any period of five consecutive hours of work.
Employer Recordkeeping Requirements in North Carolina
North Carolina employers must adhere to the federal Fair Labor Standards Act (FLSA) requirements for recordkeeping. This includes retaining the following information for each employee:
- Full name and Social Security number
- Address, including zip code
- Birth date, if under 19
- Sex and occupation
- Time and day of the week when the employee’s workweek begins
- Hours worked each day
- Total hours worked each workweek
- Basis on which wages are paid
- Regular hourly pay rate
- Total daily or weekly straight-time earnings
- Total overtime earnings for the workweek
- All additions to or deductions from wages
- Total wages paid each pay period
- Date of payment and the pay period covered by the payment
North Carolina Labor Law Questions & Answers
Yes, small businesses in North Carolina are required to comply with minimum wage laws.
Minors aged 14 and 15 can work:
- Up to 3 hours on a school day
- Up to 8 hours on a non-school day
- Up to 18 hours per week when school is in session
- Up to 40 hours per week when school is not in session
Yes, employers can require employees to work overtime without advance notice. If an employee’s hours exceed 40 in a workweek, they must be paid time-and-a-half their regular rate of pay.
No, except for minors aged 14 and 15, who must be given a 30-minute break after five consecutive hours of work.
North Carolina Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.