(650) 332-8623North Carolina Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
Explore North Carolina’s labor laws in this all-encompassing guide for 2025, detailing wages, breaks, overtime, and essential rights for workers.
What’s New in 2025?
North Carolina Meals and Breaks
30 MinutesFor Meal Breaks
- Employees under 16 years are required to receive a 30-minute break after every five hours of work.
- Breaks should not interrupt continuous work if it lasts less than 30 minutes and is not deductible from wages.
No LawsFor Rest Breaks
- North Carolina law does not mandate rest breaks for employees aged 16 and older.
- Employers have discretion over allowing breaks, including smoking breaks, during work hours.
North Carolina Leave and Paid Time Off (PTO)
Under the federal Family and Medical Leave Act (FMLA), North Carolina employers are required to provide eligible employees with at least 12 weeks of unpaid leave for certain family and medical reasons.
Employees qualify for this benefit if they have been employed with the same employer for at least 12 months or have worked a minimum of 1,250 hours in the previous year, and if the employer has at least 50 employees within a 50-75 mile radius.
Full-time, probationary, permanent, and time-limited employees in North Carolina are eligible for up to 30 days of sick leave annually.
Sick leave can be used for various reasons, including doctor appointments, childbirth, illness, injury, and family care.
North Carolina law does not require employers to provide paid or unpaid vacation days. While some employers may offer limited vacation leave, often around 10 days after a year of service, this is not mandated and can vary widely by company, location, and industry.
There are no state requirements in North Carolina for bereavement leave, and it is up to the employer to decide whether to provide such leave.
North Carolina law does not require employers to provide holiday leave. Any holiday benefits would be determined by company policy rather than state law.
Employers in North Carolina are legally required to provide paid time off for employees who are called for jury duty. Employees must present a copy of their jury summons to their employers within a reasonable time frame.
There are no specific requirements in North Carolina regarding voting leave. Employees are encouraged to vote, but it is up to individual employers to provide time off for this purpose.
North Carolina does not have specific laws requiring leave for domestic violence or sexual assault. Employers may choose to offer such leave, but it is not mandated by state law.
There are no specific state laws in North Carolina that require emergency response leave. Employers may have policies in place, but it is not a legal requirement.
North Carolina does not have specific laws requiring leave for organ or bone marrow donation. This type of leave would be subject to company policy rather than state law.
There are no state requirements for school leave in North Carolina. Any such leave would depend on employer discretion and company policy.
Under the Uniformed Services Employment and Reemployment Rights Act (USERRA), North Carolina employers must protect and not discriminate against employees who are called to active duty in the U.S. Military, including the Armed Forces, National Guard, and Reserves. This applies regardless of the size of the employer.
Labor laws may vary across states. Find out how it is in other states.
- Arkansas Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Delaware Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Hawaii Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Indiana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025
- Kentucky Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Michigan Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Montana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Nevada Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- New York Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Ohio Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025
- Oklahoma Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Vermont Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025
- Wisconsin Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
North Carolina Wages and Overtime
$7.25 /hourMinimum Wage
The current minimum wage in North Carolina is $7.25 per hour for all non-exempt employees.
Notably, the new state budget, effective from July 1, 2023, to June 30, 2025, prohibits local governments from enacting minimum wage laws that differ from the state level, ensuring uniformity across the state.
$2.13 /hourTipped Minimum Wage
In North Carolina, employers are required to pay tipped employees a minimum of $2.13 per hour.
However, employers must ensure that the tips received by these employees bring their total earnings to at least the state minimum wage of $7.25 per hour.
Once+ MonthlyPay Frequency
Under the North Carolina Wage and Hour Act (NCWHA), an employer may pay employees daily, weekly, bi-weekly, semi-monthly, or monthly.
Wages based on bonuses, commissions or other forms may be paid as infrequently as annually if the employee is notified in advance.
1.5x hourlyOvertime Rate
North Carolina mandates an overtime wage of 1.5 times the employee’s regular pay for any work exceeding 40 hours in a week.
With the upcoming changes starting January 1, 2025, the U.S. Department of Labor will increase the salary threshold for overtime exemptions to $58,656 annually. Employers will need to adjust their payroll practices accordingly to comply with this change.
The current minimum wage in North Carolina is $7.25 per hour. Employers operating in the state must pay all employees at least this amount, although agricultural and domestic workers are governed by the federal minimum wage.
This $7.25 per hour minimum wage applies to all levels of government within North Carolina, including county and local governments, as well as government agencies.
For full-time students, learners, and apprentices, the subminimum wage can be set at no less than 90% of the standard minimum wage, which translates to about $6.52 per hour in 2025.
- Tipped Employees: Employers can pay tipped employees a reduced rate of $2.13 per hour, as long as their total earnings, including tips, meet the federal minimum wage of $7.25 per hour. If not, employers must cover the difference.
- Youth Workers: Employees under 20 years old can earn a reduced rate of $4.25 per hour for their first 90 days of employment; after that, they must be paid the full minimum wage.
- Full-Time Students and Apprentices: Full-time students, learners, and apprentices can be paid less than the minimum wage but must receive at least 90% of it, which is currently around $6.53 per hour.
- Employees with Disabilities: Employers may pay employees with disabilities a subminimum wage, typically no less than 50% of the standard minimum wage, but only with a certificate from the North Carolina Wage and Hour Bureau.
- Certain Exempt Employees: Some employees, including executive, administrative, professional, outside sales, and computer workers, may be exempt from minimum wage and overtime requirements under state law if they meet specific criteria set by the federal Fair Labor Standards Act (FLSA).
- Agricultural Laborers and Domestic Workers: These categories of workers are also excluded from minimum wage requirements in North Carolina.
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North Carolina Prevailing Wages
North Carolina’s Department of Labor states: “North Carolina does not have prevailing wage rates at the state level. You need to contact the United States Department of Labor’s Wage and Hour Division office in either Charlotte (704) 749-3360 or Raleigh (919) 790-2741.”
However, if a public works construction project is federally funded, the Davis-Bacon Act may come into effect.
- On Davis-Bacon projects, workers must be paid at least once a week.
- If a contractor works on a contract covered by the Davis-Bacon Act and the wage determination does not include a rate for a specific job classification, the necessary classification and wage rate must be added in accordance with the contract wage determination. This process is known as conformance.
For more information, visit North Carolina’s Department of Labor.
NC Child Labor Laws
< 14 Years
Exceptions
In North Carolina, children under 14 are generally not allowed to work, except in specific situations such as working for their parents, delivering newspapers, or participating in modeling or acting in films or theater productions.
14-15 Years
Hour Restrictions
- A maximum of three hours per day when school is in session, and no more than eight hours when school is not in session.
- Work hours are limited to between 7 a.m. and 7 p.m. (extended to 9 p.m. from June 1 through Labor Day when school is not in session).
- A total of 18 hours per week is permitted when school is in session, and up to 40 hours per week when school is not in session.
- A 30-minute break is required after five consecutive hours of work.
- Employment is only allowed outside of school hours.
- Work can be performed in retail, food service, service stations, and offices, but not in manufacturing, mining, construction sites, with power-driven machinery, in businesses with ABC permits for alcohol, or in hazardous occupations.
16-17 Years
Hour Restrictions
- During the school term, those enrolled in grades 12 or lower cannot work between 11 p.m. and 5 a.m. if school is scheduled for the following day, unless the employer has written permission from the youth’s parents and principal.
- Work in hazardous or detrimental occupations is not permitted.
<18 Years
Laws in NC for children under 18
NC forbids employment in hazardous or detrimental occupations for youths under the age of 18.
Here are other state-specific labor laws to look into:
- Colorado Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Georgia Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025
- Kansas Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Louisiana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Maine Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Maryland Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Mississippi Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Pennsylvania Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- South Dakota Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Tennessee Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
- Texas Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025
- Utah Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025
Other Essential North Carolina Labor Laws
Health and Safety Standards in NC
North Carolina has stringent safety standards to guarantee the safety of its workforce. As such, the health and safety standards of any company or organization are highly regulated and enforced, primarily by the North Carolina Department of Labor (NCDOL).
In North Carolina, employers must…
- Conduct periodic health and safety inspections through the North Carolina Occupational Safety and Health (NC OSH) program to ensure compliance with safety standards.
- Address any issues identified during inspections promptly, including those related to workplace safety, hazard communication, and personal protective equipment.
- Provide employees with information about hazardous chemicals in the workplace, including safety data sheets and appropriate labeling on chemical containers.
In North Carolina, employees should…
- Participate in safety training and education programs offered by the North Carolina Department of Labor to promote workplace health and safety.
- Be aware of their rights regarding hazard communication and report any unsafe working conditions.
- Utilize resources provided by the state to evaluate and address workplace safety concerns.
Report health and safety violations (unsafe working conditions) in North Carolina to…
Employees:
Employers:
Hiring and/or Firing Employees in North Carolina
Hiring practices in North Carolina are governed by some of the more stringent state labor laws, controlling recruitment, hiring, and onboarding.
Employee termination and resignation in North Carolina is subject to specific legal requirements and notice obligations, including considerations for notice periods, severance pay, and the state’s at-will employment doctrine.
North Carolina is an at-will employment state, meaning that employers can terminate employees for any reason (with some exceptions) and without notice. Similarly, employees can resign without notice.
North Carolina advocates employees’ right to work. Employers cannot condition employment on an individual becoming or remaining a member of a specific organization or labor union. Additionally, employers cannot require applicants or employees to abstain from membership in any labor union as a condition for employment.
Employers in North Carolina may conduct background checks, but they must comply with the relevant state laws. If drug testing is implemented, it must follow regulations set by the North Carolina statutes, and employers are responsible for all associated costs of testing.
North Carolina is committed to providing equal employment opportunities, prohibiting discrimination based on factors such as race, religion, gender, and age. Employers must adhere to both federal and state EEO laws, including the North Carolina Equal Employment Practices Act (NCEEPA).
Anti-Discrimination Laws in NC
Employers in North Carolina must follow stringent anti-discrimination guidelines throughout the hiring process. North Carolina labor laws prohibit employers from discriminating against job applicants based on protected characteristics. Job advertisements must not suggest any form of bias, and job descriptions should focus on essential job functions and requirements.
Employers in North Carolina may not discriminate against job applicants based on…
- Race
- Religion
- Color
- National origin
- Sex
- Age (40 and older)
- Disability
- Sexual orientation
- Gender identity
- Military status
- Genetic information
Employee Resignation or Termination in NC
North Carolina is an at-will employment state, allowing employees to resign for any reason and employers to terminate employees at any time, provided the reason is not discriminatory or unlawful. However, there are exceptions to this rule, such as when an employment contract specifies a definite term, or when termination violates state public policy or anti-discrimination laws.
When terminating an employee, employers must pay all due wages by the next regular payday. Payments can be made through standard methods, but employees may request payment via trackable mail. Additionally, any wages based on commissions or bonuses must also be paid on the next regular payday after calculation. Employees are not obligated to forfeit wages unless the employer has provided written notification as specified in the employment policy.
Unemployment Benefits in NC
Workers in North Carolina are eligible for unemployment benefits if they:
- Are unemployed.
- Have worked in North Carolina for the past 12 months.
- Have earned a minimum amount of wages determined by the state.
- Actively seek work each week while collecting benefits.
Use this website to start your application for unemployment benefits in North Carolina:
North Carolina Division of Employment Security
COBRA Benefits in NC
Separated employees in North Carolina may extend employer-provided health care coverage through COBRA, which stipulates…
- Continuation of Coverage: Separated employees in North Carolina have the option to extend their employer-provided health care coverage through COBRA. This allows individuals who have lost their jobs or experienced a reduction in hours to continue their group health insurance for a limited time following a qualifying event, such as termination or a decrease in work hours.
- Duration of Coverage: Under North Carolina’s Mini-COBRA law, eligible individuals can maintain their health coverage for up to 18 months after a qualifying event.
- Eligibility Requirements: To qualify for Mini-COBRA, individuals must have been enrolled in their employer’s group health plan and must apply within a specified timeframe after the qualifying event occurs.
- Cost of Coverage: Individuals opting for Mini-COBRA are responsible for paying the full premium costs, including any portion previously covered by the employer.
- Employer Responsibilities: Employers must notify eligible individuals about their COBRA rights and provide information on how to apply for coverage within 14 days of the qualifying event.
- Importance of COBRA Benefits: COBRA benefits are essential for individuals who need to maintain health coverage during job transitions, particularly those with pre-existing conditions who may face waiting periods with new plans. This continuation coverage ensures that employees and their families can access necessary medical care without interruption.
Use this website to start your application for COBRA benefits in North Carolina: North Carolina Department of Insurance.
Final Paychecks in NC
Separated employees in North Carolina must receive their final paychecks in accordance with state law, which outlines specific requirements for timely payment:
- Payment Timing: Employees whose employment is terminated for any reason must receive all due wages on or before the next regular payday. Payment can be made through the usual pay channels or by mail if requested by the employee.
- Wages Calculation: Wages based on bonuses, commissions, or other calculations will be paid on the first regular payday after the amounts become determinable following the separation.
- Forfeiture Conditions: Wages may not be forfeited unless the employee has been informed of the employer’s policy regarding forfeiture in accordance with G.S. 95-25.13. Employees who have not been notified are not subject to any loss or forfeiture of wages.
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NC Recordkeeping Requirements
Employers in North Carolina are required to maintain various employment, payroll, and other records for specific durations.
1 Year
Employers must retain these documents for at least one year:
- All employment records, including applications, resumes, and other hiring documents, must be kept for one year after the employee’s termination.
- Personnel files for employees who have been involuntarily terminated must also be retained for one year from the date of termination.
2 Years
Employers must retain these documents for at least two years:
- Basic employment and earnings records such as time cards, wage rate tables, and records of additions to or deductions from wages.
- Documentation showing why employees of different genders may receive different wages, including wage rates and job evaluations.
3 Years
Employers must retain these documents for at least three years:
- Payroll records, including copies of each employee’s I-9 form.
- Certificates, notices, collective bargaining agreements, and employment contracts.
5 Years
Employers must retain these documents for at least five years:
- Records of job-related injuries and illnesses under the Occupational Safety and Health Act.
6+ Years
Employers must retain these documents for six years or more:
- Records of employee exposure to toxic substances (for 30 years).
Penalties for Labor Law Noncompliance in NC
Up to $14,000Serious Violations
This fine applies when an employee is injured due to a violation. If the injured employee is a minor, the penalty increases to $14,000.
Up to $7,000Non-Serious Violations
Employers can incur this fine for failing to meet various labor law requirements.
$7,000Failure to Correct Violations
If violations are not rectified, employers face this additional penalty.
Up to $70,000Willful or Repeated Violations
Serious offenses that are repeated or intentional can attract higher fines.
In North Carolina, labor law violations are investigated and addressed by…
- The Division of Employment Security (DES)
These violations are typically reported to the Division of Employment Security (DES) by concerned employees, employers, and other interested parties. After receiving a report, the DES conducts investigations in collaboration with other divisions.
Further Details on Other NC Labor Laws
Overtime Pay Changes
Starting January 1, 2025, the U.S. Department of Labor will increase the salary threshold for overtime exemptions to $58,656 annually ($1,128 weekly).This means that North Carolina employers must adapt to new federal overtime rules. Here are the key points:
- Salary Threshold Increase: The overtime pay threshold will rise to $58,656 per year.
- Employee Impact: Many employees who previously qualified for exemptions will now earn extra pay if they make less than this amount.
- Financial Adjustments: Employers might need to raise salaries or change job roles to comply, impacting their finances.
- State Regulations: North Carolina automatically adopts these federal rules into its own laws, so the changes will have a direct effect.
- National Context: Other states will also face similar changes, but specifics may vary based on their own laws.
Employers in North Carolina will need to prepare for this change by either raising salaries or reclassifying employees as non-exempt.
The current minimum wage in North Carolina is $7.25 per hour for all non-exempt employees. For tipped employees, the minimum wage is $2.13 per hour, provided their total earnings from tips bring them up to at least the state minimum wage.
Overtime pay is mandated at a rate of 1.5 times the employee’s regular pay for any hours worked beyond 40 in a week.
Starting January 1, 2025, the salary threshold for overtime exemptions will increase to $58,656 annually.
Yes, employees under 16 years old are required to receive a 30-minute meal break after every five hours of work.
For employees aged 16 and older, North Carolina law does not mandate rest breaks; employers have the discretion to allow breaks, which may include smoking breaks.
Meal breaks that last less than 30 minutes do not interrupt continuous work and are not deductible from wages.
North Carolina does not have state requirements for various types of leave, such as vacation days, bereavement leave, or holiday leave; these are left to employer discretion.
However, under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to at least 12 weeks of unpaid leave for specific family and medical reasons.
Additionally, employees are entitled to paid time off for jury duty if summoned.
North Carolina is an at-will employment state, allowing both employers and employees to terminate employment at any time for any reason, except for discriminatory or unlawful reasons.
Upon termination, employers must pay all due wages on or before the next regular payday. Employees whose wages are based on bonuses or commissions will receive those on the next payday after calculation.
Employers must notify employees of any policies regarding wage forfeiture.
Employees in North Carolina can report unsafe working conditions or health and safety violations to the North Carolina Department of Labor (NCDOL) through the Occupational Safety and Health Division.
Complaints can be filed using the NC OSH Complaint Form available on the NCDOL website.
Employers are also required to conduct regular health and safety inspections and address any identified issues promptly.
