North Carolina

$7.25 / hour

The minimum wage in North Carolina is currently $7.25 an hour, and employers doing business in North Carolina are required to pay at least $7.25 per hour to employees (NCDOL, Minimum Wage in N.C.).

Checked

2026-08-13

1.5%

An employer must pay time and one-half overtime based on the employee’s regular rate for all hours worked in excess of 40 in a workweek unless the employee is exempt (NCDOL, Overtime Pay, Salary and Comp Time).

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2026-08-13

Courts consider the circumstances of the whole work activity when determining whether a worker is an employee or independent contractor, and the time or mode of pay does not control employee status (NCDOL, Independent Contractor vs. Employee).

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2026-08-13

Employers are required to pay wages owed either daily, weekly, biweekly, semimonthly, or monthly and may not hold a paycheck beyond these pay periods (NCDOL Labor Ledger, January-February 2025).

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2026-08-13

Employees whose employment is discontinued for any reason shall be paid all wages due on or before the next regular payday. Wages based on bonuses, commissions, or other calculations shall be paid on the first regular payday after the amount becomes calculable (NCDOL, Payment of Final Wages to Separated Employees).

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2026-08-13

Employees must be notified of paydays, pay rates, vacation and sick-leave policies, and commission, bonus, and other pay matters. Employers must give written or accessible posted notice of a reduction in promised wages at least 24 hours before the change (NCDOL, Wage and Hour Notice to Employees).

Checked

2026-08-13

An employer may withhold or divert wages only as permitted by law or with the required written authorization or advance written notice. Deductions cannot reduce wages below minimum wage and cannot be made from the overtime premium (NCDOL, Deductions From Wages).

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2026-08-13

Wages may be paid in cash, money order, negotiable checks, direct deposit, or by payroll card subject to stated conditions. Mandatory direct deposit may be required if the employee can choose the financial institution and costs do not reduce wages below minimum wage; payroll-card wages must be withdrawable in full on payday with a one-time no-cost withdrawal (NCDOL, Debit Payroll Card Payment and Direct Deposit).

Checked

2026-08-13

North Carolina law does not require mandatory meal breaks or rest breaks for employees 16 years of age or older. Youths under 16 must be given at least a 30-minute break after five consecutive hours of work (NCDOL, Maximum/Minimum Hours Worked).

Checked

2026-08-13

There is no limit on the number of hours an employee 18 years of age or older can be required to work under North Carolina wage-and-hour law (NCDOL, Maximum/Minimum Hours Worked).

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2026-08-13

No general predictive scheduling requirement for private employers was located in NC's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

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2026-08-13

Wage benefits promised by an employer may include mileage expenses. Once promised, these benefits are wages and the employer must provide written notice of the policy and follow it (NCDOL, Promised Wages Including Wage Benefits).

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2026-08-13

Commissions promised by an employer are wages. Earned commissions may not be forfeited unless the employer’s written policy contains a forfeiture clause, and amounts calculable after separation must be paid on the first regular payday after calculation (N.C. Gen. Stat. §§ 95-25.7, 95-25.13).

Checked

2026-08-13

Bonuses promised by an employer are wages. Earned bonuses may not be forfeited unless the employer’s written policy contains a forfeiture clause, and amounts calculable after separation must be paid on the first regular payday after calculation (N.C. Gen. Stat. §§ 95-25.7, 95-25.13).

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2026-08-13

North Carolina law does not require an employer to pay severance pay. If severance is promised, the employer must give employees written notice of the policy and must follow that policy (NCDOL, Promised Wages Including Wage Benefits).

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2026-08-13

North Carolina law does not require an employer to pay holiday pay. If holiday pay is promised, the employer must give employees written notice of the policy and must follow that policy (NCDOL, Promised Wages Including Wage Benefits).

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2026-08-13

North Carolina does not have prevailing wage rates at the state level (NCDOL, Prevailing Wage Rates).

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2026-08-13

North Carolina law does not require an employer to pay sick pay. If an employer promises sick pay, the employer must give employees written notice of the policy and must follow that policy (NCDOL, Promised Wages Including Wage Benefits).

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2026-08-13

No general paid family medical leave requirement for private employers was located in NC's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

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2026-08-13

A public-school employee who is a parent, guardian, or person in loco parentis may take up to four hours per fiscal year to attend or otherwise be involved at the child’s school. The employer may require a written request at least 48 hours in advance and school verification (NCDPI Benefits and Employment Policy Manual, Policy 8.3; G.S. 95-28.3).

Checked

2026-08-13

North Carolina income tax must be withheld from all wages paid to residents regardless of where services are performed, and from wages paid to nonresidents for services performed in North Carolina (NCDOR, 2026 Income Tax Withholding Tables and Instructions for Employers).

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2026-08-13

Each new employee must complete Form NC-4, NC-4 EZ, or NC-4 NRA, as applicable. If an employee fails to furnish a certificate, the employer must withhold as if the employee were single with no allowances (NCDOR, 2026 Income Tax Withholding Tables and Instructions for Employers).

Checked

2026-08-13

4.09%

When supplemental wages are paid separately and income tax was withheld from regular wages, the employer may withhold at 4.09% or aggregate the supplemental and regular wages. If no tax was withheld from regular wages, the aggregate method applies (NCDOR, 2026 Income Tax Withholding Tables and Instructions for Employers).

Effective

2026-01-01

Checked

2026-08-13

North Carolina income tax is withheld from resident wages regardless of where services are performed, except where another state requires withholding, and from nonresident wages for services performed in North Carolina (NCDOR, 2026 Income Tax Withholding Tables and Instructions for Employers).

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2026-08-13

No general local taxation requirement for private employers was located in NC's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

1% · wage base $34,200

The 2026 taxable wage base is $34,200. The beginning tax rate for a new employer is 1.000%, while experienced-employer rates range from 0.060% to 5.760% (North Carolina Division of Employment Security, Tax Rate Information).

Effective

2026-01-01

Checked

2026-08-13

No general disability insurance requirement for private employers was located in NC's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

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2026-08-13

Businesses that employ three or more employees are required to carry workers’ compensation insurance or qualify as self-insured, subject to listed statutory exceptions (North Carolina Industrial Commission, Workers’ Compensation Insurance Requirements).

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2026-08-13

Employers with average monthly withholding below $250 file quarterly; those with at least $250 but less than $2,000 file monthly by the 15th; those with average monthly withholding of $2,000 or more file semiweekly according to their federal deposit schedule (NCDOR, 2026 Income Tax Withholding Tables and Instructions for Employers).

Checked

2026-08-13

Quarterly and monthly filers use Form NC-5 on their assigned schedule. Semiweekly filers make deposits on the required schedule and file Form NC-5Q quarterly (NCDOR, 2026 Income Tax Withholding Tables and Instructions for Employers).

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2026-08-13

Employers must furnish Form W-2 to employees by January 31 and electronically file Form NC-3 together with required W-2 and 1099 statements by January 31 (NCDOR, 2026 Income Tax Withholding Tables and Instructions for Employers).

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2026-08-13

All public, private, nonprofit, and government employers must report newly hired and rehired employees to the North Carolina New Hire Directory within 20 days of hire or rehire (North Carolina New Hire Directory, Frequently Asked Questions).

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2026-08-13

Under North Carolina law, an employer may be ordered to withhold wages from an employee and pay them to a creditor for the following types of debts: taxes, student loans, child support, alimony, and payment of ambulance services in certain North Carolina counties. However, the courts of North Carolina are not permitted to order an employer to withhold wages for other types of debts such as car loans, credit card debt, and other personal debt items. It is not a violation of the North Carolina Wage and Hour Act for an employer to withhold an employee's wages if required to do so by law (NCDOL, Garnishments in North Carolina).

Checked

2026-08-13

No general pay equity requirement for private employers was located in NC's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

No general pay transparency requirement for private employers was located in NC's official sources as of 2026-08-13. This records the result of a documented search of 2 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13

State agencies under the Governor’s authority are prohibited from requesting salary history from applicants and from relying on previously earned salary when determining compensation (Executive Order No. 93 fact sheet).

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2026-08-13

The Wage and Hour Bureau investigates complaints and may collect back wages plus interest when due. An employee may also sue for back wages, and a court may award attorney’s fees, costs, liquidated damages, and interest (NCDOL, Wage and Hour Notice to Employees).

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2026-08-13

All North Carolina businesses with employees are required to display the North Carolina Workplace Laws Poster in a conspicuous place where employees can see it (NCDOL, Workplace Rights).

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2026-08-13

Youths ages 14 and 15 may work no more than three hours on a school day, eight on a nonschool day, 18 in a school week, or 40 in a nonschool week, and must receive a 30-minute break after five consecutive hours. Youths ages 16 and 17 generally may not work from 11 p.m. to 5 a.m. before a school day without required permission (NCDOL, Work Hour Limitations for Youths).

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2026-08-13

North Carolina’s E-Verify law requires an employer with 25 or more employees in North Carolina to use E-Verify for newly hired North Carolina employees. Employment terms shorter than nine months in a calendar year are excluded from the employee definition (NCDOL, E-Verify Frequently Asked Questions; N.C. Gen. Stat. §§ 64-25, 64-26).

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2026-08-13

North Carolina Online Business Registration allows a business to register for income tax withholding and receive the account identification number by email after successful completion (NCDOR, Online Business Registration).

Checked

2026-08-13

Employers must make, keep and preserve complete and accurate records of wages, hours and other employment conditions and practices for three years (NCDOL, Quick Reference Guide to the North Carolina Wage and Hour Act).

Checked

2026-08-13

5%

A late return is subject to a penalty of 5% of the tax for each month or part of a month, up to 25%. Failure to withhold or pay tax is subject to a 5% penalty, and interest accrues on unpaid tax (NCDOR, 2026 Income Tax Withholding Tables and Instructions for Employers).

Checked

2026-08-13

No general statute of limitations requirement for private employers was located in NC's official sources as of 2026-08-13. This records the result of a documented search of 3 official sources, not a statement that no such law exists. Federal requirements continue to apply where applicable.

Checked

2026-08-13