Minimum Wage $7.25 PER HOUR
North Carolina's minimum wage is $7.25 per hour, the same as the federal minimum wage. Covered employees must be paid at least the minimum wage or the promised rate of pay, whichever is greater.
North Carolina allows a tip credit for tipped employees. Employers may pay a direct cash wage of at least $2.13 per hour, but tips must bring the worker's total pay to at least $7.25 per hour. If tips do not cover the difference, the employer must make up the shortfall.
Overtime Laws 1.5X RATE
Most non-exempt North Carolina employees must receive overtime at one and a half times their regular rate for hours worked over 40 in a workweek. At North Carolina's $7.25 minimum wage, that equals $10.88 per hour.
Overtime is calculated by workweek. Working more than eight hours in one day does not automatically create overtime if total hours for the week do not exceed 40. Bonuses, commissions, and other pay may need to be included when calculating the regular rate.
Meal & Rest Breaks NO MANDATE
North Carolina does not generally require employers to provide meal or rest breaks for employees who are 16 or older. Break rights may still come from an employment agreement, collective bargaining agreement, or workplace policy.
When an employer provides short rest breaks, those breaks are usually paid. A meal period may be unpaid only when the employee is fully relieved of duty and the time qualifies as a bona fide meal period.
Final Paycheck NEXT PAYDAY
When a North Carolina employee leaves a job for any reason, earned wages generally must be paid on or before the next regular payday. Final wages may be paid through the regular pay channels or by trackable mail if requested by the employee in writing.
Filing a Claim 2 YEAR WINDOW*
North Carolina workers may file certain wage complaints with the North Carolina Department of Labor, including claims involving unpaid wages, final paychecks, unauthorized deductions, vacation pay disputes, and other wage-payment issues.
North Carolina Wage and Hour Act claims generally must be brought within two years. Federal FLSA minimum wage and overtime claims also generally have a two-year limitations period, extended to three years for willful violations.
Employee Misclassification COMMON VIOLATION
Some North Carolina employers label workers as independent contractors or exempt employees to avoid paying overtime, payroll taxes, or other wage obligations. A job title, contract, or salary does not automatically decide whether wage protections apply. The actual working relationship, economic realities, and day-to-day duties matter.
This article is provided for informational and educational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship with Josephson Dunlap LLP. Wage and hour laws vary by state, and the application of these laws depends on the specific facts of each situation. The figures and information cited above are current as of the date of publication and are subject to change. Prior results in other matters do not guarantee or predict a similar outcome in any future matter. If you believe your wages were not paid correctly, consult a qualified, licensed employment attorney.
Think You May Be Owed Back Wages?
Josephson Dunlap reviews wage claims for North Carolina workers at no cost. There is no fee unless wages are recovered. A case manager will go through your situation and tell you where you stand.