Overview of North Carolina's Minimum Wage Requirements
As of September 30, 2023, the minimum wage in North Carolina is $7.25 per hour, which is equivalent to the federal minimum wage. This wage applies to a significant portion of the state's workforce, with approximately half of all workers in North Carolina earning $32,000 a year or less. Employers are mandated to pay premium pay after 40 hours of work in a week. In the case of seasonal amusement or recreational establishments, premium pay is required after 45 hours a week.
Despite the economic arguments and public support for raising the minimum wage, attempts to increase it have been consistently shut down by the big business lobby, such as the NC Chamber of Commerce. This has resulted in North Carolina maintaining the same minimum wage since at least 2008, according to historical data.
Understanding Local Minimum Wage Variations
The minimum wage requirements in various counties and cities in North Carolina are identical to the state's minimum wage, which is $7.25 per hour. This applies to all employers operating in North Carolina, including county and local governments. For tipped employees, employers can take a credit for a certain amount of tips earned by their employees toward the employers’ payment of the minimum wage. However, employers must pay at least $2.13 an hour to tipped employees, provided each employee receives enough tips to make up the difference between the wages paid and the minimum wage.
It's important to note that some cities, like Charlotte, don’t have the power to set a higher minimum wage for local businesses without legislative approval. The Republican-controlled General Assembly has opposed increasing the current minimum.
Minimum Wage Eligibility and Exemptions
In North Carolina, the minimum wage provisions apply to most employees, with the current minimum wage being $7.25 per hour. However, there are several exemptions as per G.S. 95-25.14. These exemptions include individuals employed in commerce or the production of goods for commerce as defined in the Fair Labor Standards Act, those employed in agriculture, and domestic workers.
Other exemptions include employees of boys' or girls' summer camps or of a seasonal religious or nonprofit educational conference center, those employed in the seafood industry, and family members of the employer. Certain executive, administrative, professional or outside sales roles, and computer systems analysts, programmers, software engineers, or other similarly skilled workers are also exempt.
Minimum Wage Considerations and Compliance Tips
As of January 1, 2024, food business employers in North Carolina need to be aware of several key minimum wage legal and compliance considerations. The basic combined cash and tip minimum wage rate is $7.25. The maximum tip credit against minimum wage is $5.12, and the minimum cash wage is $2.13. A tipped employee is defined as one who receives more than $20 in tips monthly.
Employers are required to obtain from each employee, either monthly or each pay period, a signed certification of the amount of tips received. This is because tip credit is not permitted unless such certification is obtained. Employers must also notify employees in advance of the amount of cash wages they will be paid and the amount that wages will be increased using the tip credit.
FAQs
- What is the current minimum wage in North Carolina? As of September 30, 2023, the minimum wage in North Carolina is $7.25 per hour.
- Are there any exemptions to the minimum wage in North Carolina? Yes, there are several exemptions including individuals employed in commerce, agriculture, domestic workers, and certain executive roles.
- What are the minimum wage requirements for tipped employees in North Carolina? Employers must pay at least $2.13 an hour to tipped employees, provided each employee receives enough tips to make up the difference between the wages paid and the minimum wage.
Information Source Links
- North Carolina page on the Rich States, Poor States website
- North Carolina Department of Labor's website
- U.S. Department of Labor website
- NCDOL's website
- Department of Labor's website
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