labor lawAdivision of labor law center

On July 24, 2008 the North Carolina minimum wage will increase 40 cents from $6.15 per hour to $6.55 per hour when the federal minimum wage increases. On that date, the federal minimum wage will increase 70 cents,  from $5.85 per hour to $6.55 per hour.

 

That’s because North Carolina is one of a host of states that ties the state minimum wage to the federal rate. In 2007, the North Carolina minimum wage was $6.15 per hour. However, under state law, if the federal minimum wage is higher, the North Carolina minimum wage automatically increases, as well.

 

On the same day, the minimum wage in Texas, Virginia, North Dakota, Oklahoma, South Dakota, Indiana and Idaho will increase to $6.55 per hour, as well.

 

The next scheduled increase in the North Carolina minimum wage will occur on July 24, 2009 when the federal and state minimum wages will go from $6.55 per hour to $7.25 per hour..

 

According to the North Carolina Department of Labor, employers must pay most employees overtime at a rate equal to 1.5 times the employee’s usual hourly rate when they work more than 40 hours per workweek. However, a number of employees are exempt including many salaried employees and managers.

 

North Carolina does not require overtime based on the length of the workday, or the number of days worked in the week, as some other states do. Overtime is calculated based on the workweek, not on the pay period. It would be illegal for a North Carolina employer to pay overtime after 80 hours in a two-week pay period, for example. If an employee works 45 hours in one workweek, and 35 hours the next workweek, he or she is entitled to 5 hours of overtime pay.

 

Employers in the private sector cannot grant compensatory time off, or “comp time” to workers instead of paying overtime, under North Carolina law. Even if the employee is willing to accept time off in another pay period in lieu of overtime pay, it is not legal for businesses and most non-profit organizations.

 

Only government agencies can legally grant “comp time” instead of paying overtime in North Carolina. These agencies may give workers 1.5 hours of “comp time” for each hour of overtime that the employee works, under certain conditions. A government employee who works 2 hours of overtime may be granted 3 hours of “comp time” (or paid time off)  to use at a point in the future. This is optional – government agencies can pay overtime instead of granting “comp time” if they choose.

 

Some salaried employees are still entitled to overtime pay, under federal and North Carolina law. Any salaried employee who earns less than $455 per week is automatically entitled to overtime pay. The US Department of Labor provides extensive guidelines on which salaried employees are exempt from overtime in CFR 541. The North Carolina Department of Labor has adopted the same guidelines in CFR 541 on the state level.

 

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1. Posted by: penney wedbetter

   I worked for [employer name deleted] from July 2007 to March 2008. When I was promoted to manager, I worked 2 months straight with no day off. Is this illegal? My District Manager was aware of this as well. I endured sexual harrassment and demeaning conduct from my General Manager before he quit. And then at the very end I walked out the door because I just couldnt take it anymore. Many days I worked open to close, with no help from my DM at all…….is this illegal?

2. Posted by: Cara

   Hi Penney! This is an interesting question. For a complete answer, please post it at our sister site, http://www.laborlawtalk.com. And, thanks for reading the blog! Cara