Wage and Hour Act
Minimum Wage: $7.25 per hour (effective 7/24/09).
Employers in North Carolina are required to pay the higher of
the minimum wage rate established by state or federal laws.
The federal minimum wage increased to $7.25 per hour effec-tive
July 24, 2009; therefore, employers in North Carolina are
required to pay their employees at least $7.25 per hour.
An employer may pay as little as $2.13 per hour to tipped
employees so long as each employee receives enough in tips to
make up the difference between the wages paid and the mini-mum
wage. Employees must be allowed to keep all tips, except
that pooling is permitted if no employee’s tips are reduced
more than 15 percent. The employer must keep an accurate and
complete record of tips as certified by each employee monthly
or for each pay period. Without these records, the employer
may not be allowed the tip credit.
Certain full-time students may be paid 90 percent of the mini-mum
wage, rounded to the lowest nickel.
Overtime
Time and one-half must be paid after 40 hours of work in any one
workweek, except after 45 hours at seasonal recreational and
amusement establishments. The state overtime provision does not
apply to some employers and employees who are exempt.
Youth Employment
Rules for all youths under 18 years old are: Youth employ-ment
certificates (YEC) are required. To obtain a YEC, please
visit our website at www.nclabor.com.
Hazardous or Detrimental Occupations: State and federal
labor laws protect youth workers by making it illegal for
employers to hire them in dangerous jobs. For example, non-agricultural
workers under 18 years of age may not operate a
forklift; operate many types of power equipment such as meat
slicers, circular saws, band saws, bakery machinery or wood-working
machines; work as an electrician or electrician’s
helper; or work from any height above 10 feet, including the
use of ladders and scaffolds. For a complete list of prohibited
jobs, please visit our website at www.nclabor.com.
Additional rules for 16- and 17-year-olds are: No work
between 11 p.m. and 5 a.m. when there is school the next day.
Exception: When the employer gets written permission from
the youth’s parents and principal.
Additional rules for 14- and 15-year-olds are:
Where work can be performed: Retail businesses, food serv-ice
establishments, service stations and offices of other busi-nesses.
Work is not permitted in manufacturing, mining or
construction, or with power-driven machinery, or on the
premises of a business holding an ABC permit for the on-premises
sale or consumption of alcoholic beverages; except
that youths at least 14 years of age can work on the outside
grounds of the premises with written consent from a parent or
guardian as long as the youth is not involved with the prepa-ration,
serving, dispensing or sale of alcoholic beverages.
Maximum hours per day: Three on school days; eight if a
non-school day.
Maximum hours per week: 18 when school is in session; 40
when school is not in session.
Hours of the day: May work only between 7 a.m. and 7 p.m.
(9 p.m. from June 1 through Labor Day).
Breaks: 30-minute breaks are required after any period of
five consecutive hours of work.
Additional rules for youths under 14 years old are: Work is
generally not permitted except when working for the youth’s
parents; in newspaper distribution to consumers; modeling; or
acting in movie, television, radio or theater production.
These state youth employment provisions do not apply to farm,
domestic or government work.
Wage Payment
Wages are due on the regular payday. If requested, final pay-checks
must be mailed. When the amount of wages is in dispute,
the employer’s payment of the undisputed portion cannot restrict
the right of the employee to continue a claim for the rest of the
wages.
Employees must be notified of paydays, pay rates, policies on
vacation and sick leave, and of commission, bonus and other pay
matters. Employers must notify employees in writing or through
a posted notice maintained in a place accessible to its employees
of any reduction in the rate of promised wages at least 24 hours
prior to such change.
Deductions from paychecks are limited to those required by
law and those agreed to in writing on or before payday. If the
written authorization that the employee signs does not specify
a dollar amount, the employee must receive prior to payday (1)
written notice of the actual amount to be deducted, (2) written
notice of their right to withdraw the authorization, and (3) be
given a reasonable opportunity to withdraw the authorization.
The written authorization or written notice may be given in an
electronic format, provided the requirements of the Uniform
Electronic Transactions Act (Chapter 66, Article 40 of the N.C.
General Statutes) are met.
The withholding or diversion of wages owed for the employer’s
benefit may not be taken if they reduce wages below the minimum
wage. No reductions may be made to overtime wages owed.
Deductions for cash or inventory shortages or for loss or damage
to an employer’s property may not be taken unless the employ-ee
receives seven days’ advance notice. This seven-day rule does
not apply to these deductions made at termination. An employer
may not use fraud or duress to require employees to pay back
protected amounts.
If the employer provides vacation pay plans to employees, the
employer shall give vacation time off or payment in lieu of time
off, as required by company policy or practice. Employees must
be notified in writing or through a posted notice of any company
policy or practice that results in the loss or forfeiture of vacation
time or pay. Employees not so notified are not subject to such loss
or forfeiture.
The wage payment provisions apply to all private-sector
employers doing business in North Carolina. The wage pay-ment
provisions do not apply to any federal, state or local
agency or instrumentality of government.
Complaints
The department’s Wage and Hour Bureau investigates com-plaints
and collects back wages plus interest if they are due to
the employee. The state of North Carolina may bring civil or
criminal actions against the employer for violations of the law.
The employee may also sue the employer for back wages. The
court may award attorney’s fees, costs, liquidated damages and
interest.
Anyone having a question about the Wage and Hour Act may
write or call:
N.C. Department of Labor
Wage and Hour Bureau
1101 Mail Service Center
Raleigh, NC 27699-1101
Phone: 1-800-625-2267 or (919) 807-2796
Fax: (919) 807-2786
E-mail: ask.wageandhour@labor.nc.gov
www.nclabor.com
Employment at Will—Right-to-Work Laws
North Carolina is an employment-at-will state. The term
“employment-at-will” simply means that unless there is a specif-ic
law to protect employees or there is an employment contract
providing otherwise, then an employer can treat its employees as
it sees fit and the employer can discharge an employee at the will
of the employer for any reason or no reason at all.
North Carolina is a “right-to-work” state, which means that the
right of a person to work cannot be denied or abridged because
that person belongs—or does not belong—to a labor union. In
addition, an employer cannot require any person, as a condition
of employment or continuation of employment, to pay any
dues, fees or other charges of any kind to a labor union. Also,
an employer cannot enter into an agreement with a labor union
whereby (1) non-union members are denied the right to work
for the employer, (2) membership is made a condition of
employment or continuation of employment, or (3) the labor
union acquires an employment monopoly in any enterprise.
In addition, in CWA v. Beck, 487 U.S. 735 (1988), the U.S.
Supreme Court stated that if a collective bargaining agreement
between an employer and a labor union requires employees to
pay uniform periodic dues and initiation fees, employees who
are not union members can object to the use of their payments
for certain purposes and can only be required to pay their share
of union costs relating to collective bargaining, contract
administration and grievance adjustment. Thus, if you believe
that you have been required to pay dues or fees used in part to
support activities not directly related to the duties of collective
bargaining, you may be entitled to a refund and to an appropri-ate
reduction in future payments.
NCDOL does not have any enforcement authority of these laws, but
if you have any questions, contact the Regional Office of the
National Labor Relations Board (NLRB) at the following address
and phone number:
NLRB—Region 11 Office
Republic Square
4035 University Parkway, Suite 200
Winston-Salem, NC 27106-3325
(336) 631-5201
Employment Discrimination
The department’s Employment Discrimin ation Bureau (EDB)
enforces the Retaliatory Employ ment Discrimination Act
(REDA). Employees involved in the following activities are
protected from retaliation or discrimination by their employer:
• Workers’ Compensation Claims
• Wage and Hour Complaints
• Occupational Safety and Health Complaints
• Mine Safety and Health Complaints
• Genetic Testing
• Sickle Cell or Hemoglobin Carriers
• N.C. National Guard Service
• The Juvenile Justice System
• Victims of Domestic Violence
• Pesticide Regulation Complaints
Employers who have questions about the application of REDA,
or employees who believe they have been discriminated or retal-iated
against, should contact the EDB information officer:
N.C. Department of Labor
Employment Discrimination Bureau
1101 Mail Service Center
Raleigh, NC 27699-1101
Phone: 1-800-625-2267 or (919) 807-2831
Fax: (919) 807-2824
E-mail: ask.edb@labor.nc.gov
www.nclabor.com
All complaints must be made within 180 days of the date of
retaliation.
	
	

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Printed 8/09
50,000 copies of this public document were printed at a cost of $1,660.63, or $.03 per copy.
N.C. Department of Labor
Wage and Hour Notice to Employees