(650) 332-8623North Carolina Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2026)
NC labor laws explained: minimum wage, overtime, breaks, child labor & more. 2026 compliance guide for construction employers.
What’s new in 2026?
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.
Pregnant workers and nursing mothers
The Pregnant Workers Fairness Act (PWFA) applies to employers with 15 or more employees. It requires reasonable accommodations for pregnancy-related conditions under EEOC rules at 29 C.F.R. Part 1636.
The PUMP for Nursing Mothers Act requires break time and a private non-bathroom space for nursing employees. Employers with fewer than 50 employees may qualify for a hardship exemption if compliance imposes an undue burden.
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
- Delaware Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Hawaii Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Indiana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Kentucky Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Michigan Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Montana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Nevada Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- New York Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Ohio Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Oklahoma Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Vermont Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Wisconsin Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
North Carolina Wages and Overtime
$7.25 /hourMinimum Wage
North Carolina minimum wage is $7.25 per hour for all non-exempt employees, as confirmed by the NC Department of Labor. NC follows the federal minimum wage floor set by the FLSA.
Multiple bills proposed raising the minimum wage during the 2025 General Assembly session, including HB 353, HB 339, SB 326, and SB 525. None passed. The $7.25 rate remains in effect for 2026.
$2.13 /hourTipped Minimum Wage
NC employers can pay tipped workers $2.13 per hour. Tips must bring total earnings to at least $7.25 per hour. If tips fall short, the employer covers the difference.
Daily, weekly, bi-weekly, semi-monthly, or monthlyPay Frequency
Under the NC Wage and Hour Act (N.C. Gen. Stat. § 95-25.1), employers may pay workers daily, weekly, bi-weekly, semi-monthly, or monthly. Bonuses and commissions can be paid annually with advance notice to the employee.
1.5x hourlyOvertime Rate
NC mandates overtime at 1.5 times regular pay for hours beyond 40 in a workweek. This applies to most hourly construction workers on your payroll.
A federal court vacated the DOL’s 2024 overtime rule on November 15, 2024. The threshold reverted to $35,568 per year ($684 per week). NC automatically adopts FLSA rules, so $35,568 applies statewide today.
Salaried foremen earning below $35,568 per year are non-exempt. They must receive overtime for hours over 40. The highly compensated employee threshold also reverted to $107,432 per year.
Federal overtime tax deduction (P.L. 119-21)
Congress enacted the One Big Beautiful Bill Act (P.L. 119-21) on July 4, 2025. It added IRC § 225 to the Internal Revenue Code.
The deduction covers tax years 2025 through 2028. It applies to the premium portion of overtime pay. Single filers can deduct up to $12,500. Joint filers can deduct up to $25,000.This does not change employer overtime obligations under the FLSA. It reduces an employee’s federal income tax on those wages. IRS Notice 2025-62 confirms employers need not separately report this on 2025 W-2s. Construction crews working regular overtime will have questions. Be ready to explain it.
NC overtime claims restricted by Fourth Circuit
A January 13, 2026, ruling by the U.S. Court of Appeals for the Fourth Circuit in Figueroa v. Butterball, LLC (No. 24-1861) established the FLSA as the sole remedy for overtime disputes.
The court determined that FLSA-covered employees are barred from pursuing simultaneous overtime claims under the NC Wage and Hour Act. Because most construction personnel fall under FLSA coverage, any overtime grievances from your workforce must now be addressed exclusively through federal law.
This decision benefits North Carolina employers by reducing the risk of redundant state-level wage litigation. It reinforces that the FLSA remains the governing standard for hourly construction labor on typical residential and commercial projects.
No NC city or county can set a minimum wage above the state level. That preemption is now a permanent statutory provision under N.C.G.S. § 95-25.1(d), codified by Session Law 2023-134. It is not tied to any budget period.
Exceptions apply for local governments regulating their own employees and certain federal grant requirements such as CDBG. Private employers are subject to the state rate only.
For full-time students, learners, and apprentices, the subminimum wage is at least 90% of the standard minimum wage. That equals $6.53 per hour based on the current $7.25 minimum.
Employees with disabilities may receive a subminimum wage with a certificate from the NC Wage and Hour Bureau. Youth workers under 20 may earn $4.25 per hour for the first 90 days of employment.
NC recognizes these exemption categories for north carolina labor laws for salaried employees and other workers. Understanding which of your foremen or estimators qualify is a direct payroll compliance obligation:
- Tipped employees: $2.13/hour, with tips making up the gap to $7.25
- Youth workers: $4.25/hour for the first 90 days (under age 20)
- Students, learners, and apprentices: at least $6.53/hour
- Employees with disabilities: with a special certificate, a subminimum may apply
- White-collar exempt employees: must earn at least $35,568/year and meet the FLSA executive, administrative, or professional duties tests (29 C.F.R. § 541)
Agricultural laborers and domestic workers: excluded from NC minimum wage requirements
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North Carolina Prevailing Wages
NC does not set prevailing wage rates at the state level, per the NC Department of Labor. Contact the U.S. DOL Wage and Hour Division in Charlotte (704-749-3360) or Raleigh (919-790-2741).
On federally funded public works construction projects, the Davis-Bacon Act applies. Workers must be paid the applicable federal prevailing wage at least once a week.
If a job classification lacks a rate in the wage determination, the contractor must request a conformance to add the rate. For more, visit the NC DOL north carolina prevailing wage resources page and the U.S. DOL Davis-Bacon Act page.
North Carolina prevailing wage resources:
U.S. DOL Davis-Bacon Act: dol.gov/agencies/whd/davis-bacon
NC DOL prevailing wage: labor.nc.gov
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
- Georgia Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Kansas Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Louisiana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Maine Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Maryland Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Mississippi Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Pennsylvania Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- South Dakota Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Tennessee Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Texas Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Utah Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
Other Essential North Carolina Labor Laws
Health and safety standards in NC
NC is an OSHA-approved State Plan state. The NC Department of Labor (NCDOL) oversees private and public sector employers. That makes NC OSH’s reach broader than federal OSHA, which covers only private employers.
In North Carolina, employers must:
- Conduct periodic health and safety inspections through the NC OSH program
- Address identified hazards promptly, including PPE, hazard communication, and chemical safety
- Provide employees with safety data sheets and proper container labeling for hazardous chemicals
- Meet updated PPE requirements under 13 NCAC 07 .0201, amended August 11, 2025, incorporating 29 CFR 1926.95(c)
NC OSH penalty schedule (verify current amounts at labor.nc.gov):
- Serious violations: up to $14,000 per violation (higher when the injured worker is a minor)
- Non-serious violations: up to $7,000 per violation
- Willful or repeated violations: up to $70,000 per violation
These are the NC OSHA penalties most construction employers will encounter. Review the current schedule at labor.nc.gov before responding to any citation.
In North Carolina, employees should:
- Participate in safety training offered by the NCDOL
- Report unsafe working conditions to their employer or directly to NC OSH
Report health and safety violations in North Carolina to:
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.
State Hiring Accessibility and Modernization Act (S.L. 2025-34)
Governor Josh Stein signed S.L. 2025-34 on July 1, 2025. The law requires NC’s Office of State Human Resources to audit and reduce unnecessary degree requirements for state government positions.
Agencies must accept equivalent experience, apprenticeships, military service, or trade credentials in place of four-year degrees. This applies only to state government jobs. Private employers carry no new obligations.
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 NC may not discriminate against job applicants or employees based on:
- Race, color, national origin
- Religion
- Sex
- Age (40 and older)
- Disability
- Sexual orientation
- Gender identity
- Military status
- Genetic information
Job postings must focus on essential functions. Advertising that suggests any bias violates NC and federal law.
Employee resignation or termination in NC
NC is an at-will employment state. Employees can leave for any reason. Employers can terminate at any time unless the reason violates law, a contract, or public policy.
On termination, all earned wages must be paid by the next regular payday per N.C. Gen. Stat. § 95-25.7. Commission and bonus wages are due on the first regular payday after the amounts become calculable. Workers cannot forfeit wages without prior written notice per G.S. 95-25.13.
Unemployment benefits in NC
Workers qualify for nc unemployment benefits if they are unemployed through no fault of their own, have worked in NC for the past 12 months, and actively seek work each week.
Apply at the NC Division of Employment Security (des.nc.gov).
2026 update: The UI taxable wage base increased to $34,200 from $32,600 in 2025. Employers pay state unemployment tax on the first $34,200 of each employee’s wages per year (N.C.G.S. § 96-9.3).
COBRA benefits in NC
Federal COBRA (north carolina cobra) applies to employers with 20 or more employees. Separated employees can extend group health coverage for up to 18 months after a qualifying event.
NC’s Mini-COBRA law (N.C.G.S. § 58-53) covers employers with fewer than 20 employees. Employees must have been continuously insured for the three months before separation. They have a 60-day window to elect continuation coverage at up to 102% of the group rate.
Contact the NC Department of Insurance (ncdoi.gov) for applications and eligibility information.
Final paychecks in NC
Under North Carolina final paycheck law (N.C. Gen. Stat. §§ 95-25.7 and 95-25.13), separated employees must receive all earned wages by the next regular payday. Payment can come through standard channels or by trackable mail if the employee requests it.
Wages from commissions or bonuses are due on the first regular payday after the amounts become calculable. Workers cannot be forced to forfeit wages without prior written notice of forfeiture policy.
Workers’ compensation 2026 update: NC requires coverage for all employers with three or more employees, per the NC Industrial Commission. The maximum weekly benefit for claims arising on or after January 1, 2026, is $1,446. That is 66 2/3% of the injured worker’s average weekly wage, capped at the state maximum under N.C.G.S. § 97-29.
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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.
Stay compliant with North Carolina labor laws
Labor compliance is not paperwork for its own sake. Wrong overtime classifications or stale recordkeeping expose a construction business to real wage claims and penalties. Labor laws that NC construction employers must follow changed significantly in 2025 and 2026.
Workyard’s analysis of 280 contractor discovery calls found that nearly 1 in 3 construction businesses identify labor compliance, including overtime rules, union pay codes, and state wage laws, as a primary operational risk. Workyard is workforce management software especially built for construction businesses.
Discover how Workyard helps businesses maintain compliance while simultaneously boosting productivity. You can sign up for a free 14-day trial today to start improving your workflow at no cost.
NC’s minimum wage is $7.25 per hour. Overtime is 1.5 times regular pay for hours over 40 in a workweek. The salary threshold for white-collar overtime exemptions is now $35,568 per year ($684 per week) after a federal court vacated the higher threshold on November 15, 2024. NC automatically adopts FLSA rules, so $35,568 applies statewide. For North Carolina labor laws for salaried employees, any foreman or project manager earning below $35,568 must receive overtime for hours over 40.
NC law does not require rest breaks for employees 16 and older. Workers under 16 must receive a 30-minute break after every five consecutive hours of work. Employers have full discretion on whether to provide breaks for adult workers. On a busy concrete pour, a 10-minute break is a courtesy under NC labor law break rules, not a legal right.
Federal North Carolina FMLA requires up to 12 weeks of unpaid leave for eligible employees at qualifying employers. NC has no mandatory paid sick leave, vacation, or holiday requirement. Employers must grant paid jury duty leave. USERRA protects employees called to military service. The PWFA applies to employers with 15 or more employees. The PUMP Act applies broadly, with a hardship exemption for employers under 50 employees.
NC is an at-will employment state. Employers can terminate for any legal reason without notice. Final wages are due on the next regular payday per N.C. Gen. Stat. § 95-25.7. Commission and bonus wages are due on the first regular payday after amounts are calculable. Workers cannot forfeit earned wages without prior written notice per G.S. 95-25.13. Labor laws in North Carolina do not require severance pay.
Workers can file a complaint with the NC Department of Labor’s OSH Division at labor.nc.gov/safety-and-health/complaints. Employers can use the NCDOL Consultation Program for voluntary compliance reviews. NC OSH investigates complaints for both private and public sector employers. On construction sites, a worker who spots a trench safety violation can file a complaint without fear of retaliation.
Yes. NC is a right-to-work state. Under nc state labor laws, employers cannot require workers to join a union or pay union dues as a condition of employment. Workers can join or decline union membership without consequence. Contractors cannot condition a hire or continued employment on union affiliation or non-affiliation. Is nc a right to work state? Yes, under both state statute and long-standing policy.
Yes. North Carolina is an at-will employment state. Employers can terminate at any time for any legal reason. Employees can resign for any reason without notice. Exceptions include fixed-term employment contracts, anti-discrimination protections, and public policy violations.
Workers under 14 cannot work except in limited situations such as a family business, newspaper delivery, or entertainment work. Workers 14 and 15 are limited to 3 hours per day on school days and 18 hours per week during school sessions. Construction sites, power-driven machinery, and hazardous occupations are off-limits for this age group. A 30-minute break is required after every 5 consecutive hours of work. These nc child labor laws apply regardless of parent consent or employer promises. Full rules are at the NC DOL Youth Employment page.
NC employers must keep hiring and termination records for 1 year. Time cards and wage records must be kept for 2 years. Payroll records and I-9 forms must be kept for 3 years. OSHA injury and illness records must be kept for 5 years. Toxic substance exposure records must be kept for 30 years. These nc recordkeeping requirements apply to construction employers of any size. Failing to maintain these records can cost you in a wage claim or safety audit.
NC does not have a North Carolina prevailing wage law at the state level. For federally funded public works construction projects, the Davis-Bacon Act applies. Davis-Bacon requires payment of federal prevailing wages at least weekly. Contact the U.S. DOL Wage and Hour Division in Charlotte (704-749-3360) or Raleigh (919-790-2741) for wage determinations. NC state labor laws do not set prevailing wages, but federal law controls on eligible federal contracts.
