Understanding North Carolina's Minimum Wage Laws and Rates
Navigating minimum wage requirements in North Carolina is a crucial step for both employees and employers. Whether you are starting your first job, managing a small business, or curious about labor laws, it’s important to know how state and federal minimum wage laws interact in North Carolina.
Current Minimum Wage in North Carolina: What Workers Earn
As of 2024, North Carolina’s minimum wage stands at $7.25 per hour. This rate matches the federal minimum wage, which has remained unchanged since 2009. North Carolina does not have a state minimum wage separate from the federal standard. Therefore, the federal minimum acts as the base pay for most workers across the state.
Here are the core details you need to know:
- Hourly Minimum Wage: $7.25 per hour
- Overtime Pay: 1.5x regular rate for hours over 40 in a workweek
- Tipped Employees: Employers may pay as little as $2.13 per hour in direct wages, provided tips bring wages up to $7.25.
- Youth Minimum Wage: Workers under 20 may be paid $4.25 an hour for their first 90 days of employment.
The majority of hourly employees in North Carolina are covered by these rules, especially if their employer is subject to the Fair Labor Standards Act (FLSA).
Who is Covered by North Carolina Minimum Wage Laws?
Not everyone working in North Carolina is guaranteed the minimum wage. Both federal and state laws have exceptions. Most businesses with gross revenues of at least $500,000 annually must pay the federal minimum wage. Small employers or certain types of businesses may have different rules.
Some workers are exempt from minimum wage laws, including:
- Independent contractors and freelancers
- Some farm workers
- Certain seasonal and recreational business employees
- Employees with specific disabilities, under certification
- Executives, administrative, and professional workers
Tipped employees, such as servers and bartenders, may be paid a lower direct wage. However, including tips, their total pay must reach at least $7.25 per hour.
How North Carolina Compares to Surrounding States
If you live near state lines or are assessing job offers, it's useful to compare North Carolina’s minimum wage with neighboring states.
- South Carolina: No state minimum wage; defaults to federal ($7.25)
- Virginia: $12.00 per hour (as of January 2024)
- Tennessee: No state minimum wage; defaults to federal ($7.25)
- Georgia: $5.15 per hour (but most covered by federal $7.25)
North Carolina’s minimum wage is lower than Virginia’s and matches fellow Southern states like South Carolina and Tennessee.
How to Report a Minimum Wage Violation in North Carolina
If you believe your employer has not paid you the required minimum wage, you have options to seek help. North Carolina puts protections in place for workers who file complaints.
- Contact the North Carolina Department of Labor Wage and Hour Bureau
- You can also file a complaint with the U.S. Department of Labor
- Your employer is legally prohibited from retaliating against you for reporting wage violations
- Keep detailed records of hours worked and pay received
For more information or to file a complaint, you can visit the North Carolina Department of Labor’s website or contact their wage and hour division.
Does North Carolina Plan to Raise the Minimum Wage?
There have been several proposals to increase North Carolina’s minimum wage in recent years, some suggesting levels as high as $15 per hour. However, state law still mirrors the federal minimum wage as of 2024. Any increases would require legislative action. The wage will likely remain at $7.25 unless the federal rate changes or the state legislature enacts new minimum wage laws.
Cost of Living and the Minimum Wage in North Carolina
How far does minimum wage go in North Carolina? The state boasts a lower cost of living than many parts of the U.S., though prices have risen in recent years. For many minimum wage earners, especially those supporting families, a single job at $7.25 per hour is often not enough to cover basic living expenses.
Common expenses affected by wage levels include:
- Housing (rent and utilities)
- Transportation
- Groceries and utilities
- Child care and health care
Advocates and policymakers debate the living wage necessary for different regions of North Carolina. Urban areas like Charlotte and Raleigh typically have higher costs than rural communities.
Living Wage vs. Minimum Wage: Know the Difference
A living wage is the hourly rate a worker must earn to afford basic needs, reflecting local prices. This is not the same as the legal minimum wage.
Many advocacy groups recommend a higher minimum wage, believing that $7.25 does not reflect today’s household needs. By contrast, the MIT Living Wage Calculator shows that a single adult in North Carolina may need $16–20 per hour to cover the basics, depending on location and family size (MIT Living Wage Calculator).
Frequently Asked Questions About Minimum Wage in North Carolina
What is the minimum wage in North Carolina in 2024?
The minimum wage in North Carolina is $7.25 per hour in 2024, matching the federal minimum wage. There is no separate state minimum wage law that sets a higher rate.
Will North Carolina increase its minimum wage soon?
There are no scheduled increases to the minimum wage in North Carolina for 2024. Changes would need to come from new state or federal laws. State lawmakers and advocacy groups continue to propose changes.
Do tipped employees get a different minimum wage?
Yes. In North Carolina, tipped employees can be paid $2.13 per hour in direct wages. However, their total earnings (wages plus tips) must equal at least $7.25 per hour. If tips do not make up the difference, the employer must cover it.
What should I do if I am not paid minimum wage in North Carolina?
You should keep records of your hours and pay. Then contact the North Carolina Department of Labor or the U.S. Department of Labor Wage and Hour Division to file a complaint. Both agencies can investigate and help recover unpaid wages.
Does North Carolina have a training or youth minimum wage?
Yes. Workers under 20 years of age can be paid $4.25 per hour for their first 90 days of employment under federal law. After 90 days, the standard federal minimum wage applies.
Related Search Queries About North Carolina Minimum Wage
- Is there a minimum salary for exempt employees in North Carolina?
- What’s the difference between minimum wage and living wage in North Carolina?
- Is there a proposal to raise the minimum wage in North Carolina?
- North Carolina minimum wage for servers in 2024
- How does minimum wage affect unemployment in North Carolina?
- When was the last time North Carolina increased its minimum wage?
Understanding your rights and responsibilities regarding the minimum wage is essential for navigating the workforce in North Carolina. Stay informed, keep accurate records, and know where to seek help or additional information as employment laws continue to evolve.
