North Carolina FLSA Laws: Your Guide to Compliance
Protect Your Business with North Carolina-Specific FLSA Auditing
Minimum Wage in North Carolina
- Federal FLSA: $7.25/hour.
- North Carolina Law: $7.25/hour (non-tipped), matching federal rate (North Carolina General Statutes § 95-25.3). Tipped employees: $2.13/hour with a $5.12 tip credit. No state increases planned.
- What You Need to Know: Federal rate applies—misapplying tip credits or exemptions can lead to double damages and fines.
Overtime Pay
- Federal FLSA: 1.5x regular rate for hours over 40/week.
- North Carolina Specifics: Matches federal 40-hour rule. Overtime based on $7.25/hour ($10.88/hour in 2025). State law mirrors FLSA with no additional requirements (North Carolina General Statutes § 95-25.4).
- Risk: Misclassifications or unpaid overtime can trigger DOL or state penalties.
Child Labor
- North Carolina Rules: Minors under 14 restricted to limited roles; 14–15 capped at 3 hours/school day, 8 hours/non-school day; 16–17 barred from hazardous jobs. Work permits required under 18 (North Carolina General Statutes § 95-25.5).
- Federal FLSA: Aligns, but North Carolina’s permit rule is stricter—state law applies.
Recordkeeping
- Federal FLSA: 3-year retention of payroll and hours records.
- North Carolina Addition: 3 years minimum, with pay stubs required showing hours, wages, and deductions (North Carolina General Statutes § 95-25.15).
Enforcement & Penalties
- Federal: DOL penalties, back wages, up to $1.2M average for violations.
- North Carolina: Double damages for unpaid wages, fines up to $2,000 per violation, enforced by NC DOL (North Carolina General Statutes § 95-25.22).
Why It Matters for Your Business
- CFOs and Managers: North Carolina’s low minimum wage and reliance on federal FLSA heighten risks of oversight. A payroll error—like misclassified employees—could cost thousands in fines or lawsuits.
- Avoid Costly Mistakes: Stay compliant with expert FLSA auditing tailored to North Carolina laws.
Schedule Your North Carolina FLSA Audit Today
