labor lawAdivision of labor law center

The North Carolina minimum wage will increase on July 24, 2009. Many states in the country, including Texas, Oklahoma, South Dakota and Indiana, increase their minimum wage to coincide with the federal minimum wage. North Carolina is one of these states.

 

On July 24, 2009, the federal minimum wage will increase by 70 cents from $6.55 to $7.25.

 

In 2007, the North Carolina minimum wage was $6.15 per hour. State law, however, requires that if the federal minimum wage is higher, the state must raise its minimum to match the federal rate. So, on July 24, 2008, when the federal minimum rose from $5.85 to $6.55, North Carolina increased its minimum by 40 cents per hour to match the federal rate.

 

That means the North Carolina minimum wage will also increase on that date, rising by 70 cents per hour from $6.55 to $7.25 per hour.

 

Under North Carolina state law, employers must pay the majority of employees overtime (1.5 times the usual hourly rate) for any time worked in excess of 40 hours in one payroll week. Salaried employees and managers, however, may be exempt.

 

According to the North Carolina Department of Labor overtime pay is based on the number of hours in the payroll week. North Carolina does not require companies to pay overtime based on the length of the workday, or the number of days worked in a week.

 

For example, a company’s pay period is two weeks or 80 hours. An employee puts in 45 hours the first week and 35 hours the second, totaling 80 hours. The North Carolina employer must pay the worker for 5 hours of overtime for the first payroll week.

 

North Carolina employers in the private sector and in most non-profit organizations are prohibited from offering compensatory time instead of overtime pay. Even if the worker is willing to accept comp time, it is illegal.

 

Only government agencies may offer comp time. Comp time follows the same calculation rules: 1.5 times the usual hourly rate. If a government employee works 2 hours of overtime, he or she is entitled to 3 hours of comp time for future use.

 

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1. Posted by: nicole

   Message
   Thanks for the info. Where exactly can I find policy for paragraph 7 & 9?

2. Posted by: Amelia

   Hi nicole!
   It sounds like you are referring to employers giving comp time instead of paying overtime. The NC law is here: http://www.nclabor.com/wh/faqs.pdf. Federal law also prohibits comp time in lieu of overtime, but it does not apply to employees of state or local governments. HTH, and thanks for reading the blogs!~ Amelia

3. Posted by: Gail

   There is a company located here in North Carolina and the headquarters is located in California but they are using the California pay scale to pay the employees here in North Carolina. What should an individual do @ this point to get fair pay from the employer? by the way the head uarter is no longer in operation in California…

4. Posted by: Amelia

   Hi Gail! It sounds like the employer has used the argument “we are using the California pay scale” to justify low wages. That’s silly, and probably untrue. The minimum wage in California is $8.00 per hour, while the North Carolina minimum is $7.25. The cost of living in California is much higher than in North Carolina, and the prevailing wage for government contracts is much higher in California. So if the employer is arguing that the low wages are justified in California, they are just not telling the truth.
   California employment laws offer more benefits to employees than the employment laws in any other state — including North Carolina. California employees are entitled to regular paid rest breaks and to meal breaks that must be paid in many circumstances. Just to give you an idea of the California laws, an employee who is terminated must have his or her final paycheck within 24 hours, in most cases. California employees are entitled to overtime when they work more than 8 hours per day, and when they work 7 days in a row. So what the employer is saying is just B.S.
   One reason why a company would operate in North Carolina instead of California is that the labor (payroll) costs are lower.
   However, all of that is really not relevant. A North Carolina employer can establish any pay rate the employer wants to, as long as they pay the state and federal minimum wage of $7.25 per hour or more. If the employer is not paying at least $7.25 per hour, then you should file a wage complaint with the North Carolina or U.S. Department of Labor. But if the employer is paying at least that amount, there is really nothing an employee can do to demand higher wages except look for another job. HTH, and thanks for reading the blogs!~ Amelia