North Carolina Overtime Laws: Everything You Need to Know
If you work in North Carolina, you are likely entitled to a range of employee protections and benefits under state and federal law. However, one of the more complicated areas of employment law may be overtime pay. In this article, we will examine North Carolina’s overtime laws, including what constitutes overtime, who is eligible for overtime pay, how to calculate overtime pay, and other related topics.
What is Overtime Pay?
In general, overtime pay is the additional compensation that an employer must pay to an employee who works more than 40 hours per week. Under federal law, employers must pay overtime to hourly employees at a rate of one-and-a-half times their regular hourly rate for all hours worked over 40 in a workweek. Salaried employees who are classified as exempt from overtime regulations are not entitled to overtime pay.
Who is Eligible for Overtime Pay?
In North Carolina, most employers are required to pay employees overtime pay for all hours worked over 40 hours in a workweek. However, there are some exemptions to this rule. Employees who are classified as exempt from overtime pay provisions include executive, administrative, and professional employees who meet certain criteria, such as earning a salary and performing duties that involve a significant degree of discretion and independent judgment. Other categories of exempt employees include outside salespeople, farmworkers, and certain computer-related employees.
How is Overtime Pay Calculated?
In North Carolina, overtime pay is calculated as one-and-a-half times the employee’s regular hourly rate for all hours worked over 40 in a workweek. To calculate an employee’s overtime pay, you multiply the employee’s regular hourly rate by 1.5 for all hours worked over 40. For example, if an employee earns $10 per hour and works 50 hours in a week, they are entitled to $15 per hour for the 10 hours worked over 40, in addition to their regular pay.
What are the Consequences of Not Paying Overtime?
Employers who fail to pay employees overtime may face legal and financial consequences. Employees who are denied overtime pay may file a wage claim with the North Carolina Department of Labor or file a lawsuit in state or federal court against their employer. If an employer is found to have violated the law, they may be required to pay back wages, damages, and other penalties. Depending on the circumstances, employers who violate the law may also face criminal charges and fines.
Other Overtime-Related Issues
In addition to eligibility for overtime pay and overtime pay calculations, there are several other issues to consider with regard to overtime in North Carolina, including:
• Overtime Pay for Tipped Employees: Tipped employees, such as restaurant servers, may be entitled to overtime pay based on their hourly rates plus tips. In North Carolina, employers are required to pay tipped employees the full minimum wage of $7.25 per hour, and may claim a “”tip credit”” of up to $3.02 per hour towards their minimum wage obligations. Tipped employees are entitled to overtime pay at one-and-a-half times their regular hourly rate.
• Breaks and Overtime: North Carolina does not require employers to provide breaks or meal periods to employees, whether they are eligible for overtime pay or not. However, if an employee works through their break or meal period and the additional time pushes them over the 40-hour threshold, that additional time may qualify as overtime.
• Overtime and Holiday Pay: Employers in North Carolina are not required to pay employees overtime for working on holidays or weekends. However, if an employee works on a holiday and the additional time pushes them over the 40-hour threshold, they are entitled to overtime pay for the additional time worked.
• Overtime and Telecommuting: Employees who work from home or remotely are generally entitled to overtime pay if they work over 40 hours per week. However, determining how much time an employee spends working can be challenging, so employers should ensure that they have proper time-tracking systems in place.
Conclusion
If you work in North Carolina, it is important to know your rights when it comes to overtime pay. Overtime regulations can be complex and confusing, but employers are required to pay eligible employees overtime pay for all hours worked over 40 in a workweek. If you believe that your employer has violated overtime regulations, you should speak with an experienced employment law attorney or contact the North Carolina Department of Labor for assistance. By understanding your rights and taking appropriate action, you can ensure that you are fairly compensated for the time you spend working.
Quick Guide to NC Overtime Laws
North Carolina Overtime Laws
General NC Overtime Laws are located in chapter 95-25.4 of the NC General Statutes. The law states the following:
“Every employer shall pay each employee who works longer than 40 hours in any workweek at a rate of not less than time and one half of the regular rate of pay of the employee for those hours in excess of 40 per week.”
What is the minimum overtime wage in NC?
According to NC Overtime Laws on minimum wage, the current overtime minimum wage is $10.90 after rounded to the lowest nickel. If you have worked more than 40 hours a week, unless you’re in a certain profession, your employer is required to pay you overtime rates according to North Carolina overtime laws.
If you believe your overtime rates under NC Overtime Laws have been violated, you can file a claim with the North Carolina Department of Labor. If you want to file a claim for wages, the compensation must be more than $50 and you must wait 10 days if the wages were on your last paycheck according to North Carolina overtime laws. Call (919) 807-2796 to file a claim.
Who may not qualify for overtime wages in NC?
There are certain professions under the Fair Labor Standards Act and NC Overtime Laws that do not require certain employees to be paid overtime wages. Some of these exempt employees under North Carolina overtime laws include the following:
• Executives, administrators, and other professionals who earn at least $455 per week under Section 13(a)(1) of the Fair Labor Standards Act
• Independent contractors
• Transportation workers
• Certain agricultural and farm workers
• Live-in employees
• Some computer-related workers
FAQS about NC Overtime
Most of the following information is provided by the North Carolina Department of Labor Wage and Hour Bureau. For more information on these valuable FAQs, visit the following document provided by the NCDOL:
Is a part-time employee paid overtime under NC Overtime Laws?
North Carolina overtime laws apply to all regular part-time and full-time employees who work more than 40 hours a workweek.
Can my employer institute mandatory overtime?
If you are over the age of 18, an employer is allowed to require mandatory overtime. Mandatory must be provided in an employment contract as part of the employee’s duty to the company.
Can an employer provide comp time instead of overtime pay?
Normally, an employer cannot offer comp time in lieu of paying for the overtime hours under North Carolina overtime laws. However, if the business is in the private sector, exempt employees from overtime pay can be given comp time for hours worked overtime, but the comp time must be specified in the wage benefit policy.
Does holiday pay automatically become overtime pay?
An employer does not have to observe a holiday, but many employers still provide holiday pay. However, if the employer provides holiday pay, the pay does not qualify as overtime pay according to NC Overtime Laws. For example, if a person receives 8 hours of holiday pay on top of 40 hours worked in a week, the person will only be paid 48 regular hours.
