Labor & Employment Laws in North Carolina
North Carolina's Department of Labor administers employment laws around events like hiring minors, minimum pay rates and terminations in the state. The laws are applicable to both employers and employees. Keeping abreast of the laws and changes that are made to them can help employers avoid fines and penalties. Understanding the laws also helps workers understand their rights as employees in North Carolina.
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Minimum Wage
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The North Carolina Wage and Hour Act mandates that employers must pay workers at least the state minimum wage per hour or the minimum wage listed in the Fair Labor Standards Act, whichever is higher. As of 2010, the state's minimum wage was $6.15 an hour, while the federal minimum wage was $7.25 an hour. Tips received by tipped employees (e.g., waitresses) must equal the minimum wage rate. If not, employers must pay tipped employees the difference between their tips and the standard minimum wage rate.
Overtime
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Employees who work more than 40 hours in a single week must receive pay at the rate of at least one and a half times their regular rate of pay. For example, an employee with an hourly rate of $10 who worked 50 hours in a single week would receive $400 at the normal rate and an additional $150 for the extra 10 hours he worked. Seasonal workers (e.g., amusement park ride operators) and employees who work at recreational facilities are only required to receive overtime pay at the rate of one and a half times their regular hourly rate after they work more than 45 hours in a single week.
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Minor Employment
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Youth younger than 18 years of age are required to have a worker's permit before they start working. Certificates are issued through the Department of Labor. When school is not in session, youth under 16 years of age are allowed to work between 11:00 p.m. and 5:00 a.m. If they are between the ages of 16 and 17 and school is in session, they can work during these hours if they get written permission from their parents and school principal. Teens who are 14 or 15 years old cannot work more than three hours a day while school is in session and no more than eight hours a day when school is not in session. Youth younger than 14 years old are not allowed to work in North Carolina except to deliver newspapers.
Severance Pay
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Employers have to pay employees who resign or who are laid off all wages they are due (e.g., sick pay, vacation pay) on or before the next payday. They can pay the employees via direct deposit, or they can send the employees a check in the mail for all monies due. Bonuses and commissions are paid on the first payday after the amount is computable after the resignation or severance takes effect.
Vacation
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Vacation time-off pay is not required in North Carolina. It is up to each employer as to whether it will pay employees while they are on vacation. Employers must adhere to guidelines written in their vacation polices. For example, if an employer's vacation policy states that the employer will pay employees up to 10 manager-approved vacation days a year, they must pay employees when they take these approved days off.
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References
- Photo Credit North Carolina state contour against blurred USA flag image by Stasys Eidiejus from Fotolia.com
