North Carolina Wages And Benefits Laws


Requirements regarding wages come from two sources: The Fair Labor Standards Act, which is enforced by the U.S. Department of Labor , and/or the North Carolina Wage and Hour Act, which is enforced by the North Carolina Department of Labor.

Overtime Pay Rules

Unless an employee qualifies for an exemption under the Executive, Administrative, Professional, Outside Sales, or computer-related occupations exemptions.

New Minimum Salary Requirement for “Exempt” Employees:

An employee who earns less than $23,660 annually, or, $455 per week must be paid at an overtime rate for work in excess of forty hours per week, regardless of that employee’s job title. (Employees who are paid on a commission are an exception).

Permissible Deductions for Salaried Employees

An employer may deduct a full day’s pay from a salaried employee’s wages for: full day absences due to illness or injury if there is a sick pay/disability plan in place or if the employee takes unpaid leave under the Family Medical Leave Act (FMLA).

  • Employers can deduct partial-day absences for hours taken as intermittent or reduced FMLA leave.
  • An employer may make pay deductions for penalties imposed when salaried employees violate major safety rules.
  • Employer’s do not have to pay for an entire week’s salary during the employees first or last week’s of employment (if less than a full week is actually worked).