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. 3) An employer cannot reduce an employee's pay below the minimum wage, which is currently $7.25 an hour. "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. Currently the minimum wage in North Carolina is $7.25 an hour. No particular method of paying employees' wages is required in North Carolina; cash, money order and negotiable checks are all acceptable. 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. and accompanying regulations (13 NCAC 12.0101, et seq.) Any reduction in pay or wage benefits must be prospective from the date of notification. For questions on employees being treated unfairly for reasons other than the protected categories mentioned, you need to consult with a private attorney. The federal government does not have any laws governing these issues. NC Statute 95-25.14 (b) (4) See Wage and Hour. This is the same as the current Federal Minimum Wage rate. Here are some fast facts you need to be familiar with as an employer […] No particular method of paying employees' wages is required in North Carolina; cash, money order and negotiable checks are all acceptable. The term wages is specifically defined in the North Carolina wage payment law. Contact their Central Office in Raleigh at 919-856-2564. And pursuant to N.C.G.S. If not, the employer has to make up the difference. 95-25.12. 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. Related topic covered on other pages include: Compensable time (hours worked) Bonuses, commissions, or similar forms of wages may be paid as infrequently as once per year if the employee is notified in advance. 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. 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. Author: Vicki M. Lambert, The Payroll Advisor. 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. See Recruiting and Hiring. North Carolina law permits employers to make certain deductions from employees' pay, but only if certain conditions are met. 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. 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. Employers are also required to notify affected employees within a certain time period. North Carolina exempts executive employees from its minimum wage, overtime, and record keeping requirements. 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. 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. North Carolina’s current minimum wage is $7.25. 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 Definition of Wages. 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, all severance pay is subject to income tax withholding. Discover the power of XpertHR employment law guidance and best practice at your fingertips with a free trial. Wage payment laws are generally state specific. See Form W-2 Requirements. 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. Penalties are imposed for employer violations of the wage payment method laws. 95-25.7. If you have questions about North Carolina… However, the employer can reduce an employee's rate of pay all the way down to the minimum wage with proper written notification. The North Carolina Wage and Hour Act (N.C. Gen. Stat. 95-25.13(3) of the WHA. 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. Employers' remedies preserved. Unlike some states, this applies in all situations including when an employee voluntarily quits or … 2. 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. In North Carolina, there are requirements relating to the minimum wage, overtime and child labor. See Severance Pay. Employers may also pay wages by direct deposit or electronic paycard or debit card if certain requirements are met. Frequency of Wage Payments An employer must pay its employees on regularly scheduled paydays either daily, weekly, bi-weekly, semi-monthly, or monthly. An employer may, however, retroactively increase an employee's pay or wage benefits without prior notification. View our privacy policy, privacy policy (California), cookie policy and supported browsers. This includes monthly fees to cover the costs of representation. See EEO, Diversity and Employee Relations. It is important that both employers and employees know their rights and responsibilities under the NCWHA. The minimum wage rate in North Carolina is the same as the Federal Minimum Wage, which is $5.15 per hour. You can also complete the Free Unpaid Overtime Case Review box on this page and an experienced attorney will contact you shortly. Use of the service is subject to our terms and conditions. § 95.25.1, et seq.) Special rules apply to vacation time, bonuses and commissions. 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. 95-25.8. Definitions. Additional requirements apply. North Carolina law primarily relies on federal laws, including the Family and Medical Leave Act (FMLA) and the federal minimum wage. 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). 95-25.13(2) of the WHA. For more information about workplace rights, please contact our toll free number at 1-800-NC-LABOR (800-625-2267). 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(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." 95-25.7A. Wage and Hour Administrative Rules 95-25.11. 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. Although the N.C. 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. 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. 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. An employer is not required to pay its employees more in wages than is required by the minimum wage and overtime pay provisions. North Carolina wage garnishment laws permit wage attachments in very limited circumstances. 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