North Carolina’s Wage and Hour Act mirrors federal minimums in many places, but it adds its own rules on tip pools, written pay policies, wage deductions and youth employment certificates. The summary below is drawn from the N.C. Department of Labor (NCDOL) and the General Statutes.
EZTime labor rule alerts flag overtime and missed rest periods before payroll.
| Topic | Rule |
|---|---|
| Minimum wage | $7.25 per hour; full-time students, learners and apprentices may be paid 90% (NCDOL) |
| Tipped cash wage | $2.13 per hour if tips make up the difference; tip pools capped at 15% of any worker’s tips |
| Overtime | 1.5x after 40 hours a week; after 45 hours in seasonal amusement or recreation businesses |
| Daily overtime | None |
| Meal and rest breaks | Not required for workers 16 and older; under 16: 30 minutes after 5 consecutive hours (NCDOL) |
| Paid sick leave | No state mandate identified; policies must be shared in writing or posted |
| Payday | Regular paydays; periods may be daily, weekly, biweekly, semimonthly or monthly |
| Final pay | By the next regular payday; mailed if the employee asks (G.S. 95-25.7) |
| Youth certificates | Required for every worker under 18 unless exempt |
The state minimum wage is $7.25 per hour, unchanged since July 24, 2009, according to the NCDOL Wage and Hour Act quick reference guide. The U.S. DOL state table (updated July 1, 2026) lists the same rate, and no increase for 2027 has been announced.
Under G.S. 95-25.3(b), full-time students, learners, apprentices and messengers may be paid 90% of the minimum wage, rounded down to the nearest nickel. Read the statute’s conditions before using this lower rate.
Employers may pay tipped workers as little as $2.13 per hour, provided each employee receives enough tips to reach the full minimum wage. NCDOL adds three requirements that go beyond the basic federal rule:
The U.S. DOL tipped table also defines a tipped employee in North Carolina as one who receives more than $20 a month in tips.
Under G.S. 95-25.4 and the federal FLSA, non-exempt employees earn time and one-half their regular rate for hours over 40 in a workweek. NCDOL notes these specifics:
There is no daily overtime in North Carolina. Federal guidance is on the U.S. DOL overtime page, our FLSA overtime guide covers exemptions, and the overtime calculator handles time-and-a-half math.
NCDOL’s breaks page states that the law does not require rest or meal breaks for employees 16 and older. If you choose to offer them, a break of at least 30 minutes may be unpaid when the employee is completely relieved of duty, while shorter breaks, such as 15 minutes, generally must be paid.
Youth under 16 are different. They must receive at least a 30-minute break after 5 consecutive hours of work, and a break shorter than 30 minutes does not interrupt a continuous work period. NCDOL says this state rule generally applies to enterprises with under $500,000 in annual gross sales or receipts and to private nonprofits; the U.S. DOL meal table also lists North Carolina among the states with meal-period rules for minors.
We did not find a North Carolina law requiring private employers to provide paid sick leave or paid vacation. What the state does regulate is transparency. Under the Wage and Hour Act, employers must tell employees about pay-related policies, including vacation, sick leave, commissions and bonuses (G.S. 95-25.13). If you offer vacation, you must provide the time off or pay in lieu of it according to your policy or practice. A policy that causes employees to lose or forfeit vacation pay must be given to them in writing or by a posted notice; employees who were not notified are not subject to the forfeiture. Use the PTO accrual calculator to set accrual rates.
G.S. 95-25.6 requires every employer to pay all wages and tips accruing to employees on the regular payday. Pay periods may be daily, weekly, biweekly, semimonthly or monthly; the U.S. DOL payday table confirms that no single frequency is mandated. Bonuses and commissions may be paid as infrequently as once a year if the schedule is set in advance.
Notice rules (G.S. 95-25.13). At hiring, tell employees in writing what they will be paid and the day and place of payment. Keep wage policies available in writing or on a posted notice, and give written notice at least one pay period before any change to promised wages.
Final pay (G.S. 95-25.7). Employees whose employment ends for any reason must be paid all wages due on or before the next regular payday. Bonuses and commissions are due on the first regular payday after the amount can be calculated. NCDOL adds that final checks must be mailed if the employee requests it.
Deductions. North Carolina strictly limits paycheck deductions. They must be required by law or authorized in writing; deductions for cash or inventory shortages or property damage need seven days’ advance notice (not required for deductions at termination); and deductions for the employer’s benefit cannot reduce pay below minimum wage for non-overtime hours or cut overtime pay owed.
Under G.S. 95-25.5, no one under 18 may be employed without a youth employment certificate unless specifically exempt, and the certificate must be in place before the youth starts. Employers keep a copy during employment and for two years after. The NCDOL quick reference guide summarizes the hour rules:
State youth rules do not apply to farm, domestic or government work. See the U.S. DOL child labor table for a state-by-state comparison.
Keep complete records of hours worked by every non-exempt employee each workweek: name, home address, phone, job title, the start of the workweek, pay rate, daily and weekly hours, straight-time and overtime earnings, additions and deductions, gross pay and pay dates. Records must be kept for three years, along with tip, deduction and leave-policy records. Employers must display the NCDOL workplace poster; free copies are available at 1-800-NC-LABOR (625-2267).
EZTime makes North Carolina’s recordkeeping list easy to meet. The time clock works as a GPS mobile app with geofencing, with NFC tags, a tablet kiosk or biometric clocks, and break alerts help you give under-16 staff their 30 minutes after five hours. Scheduling with shift templates and swaps keeps 14- and 15-year-olds inside their windows, overtime alerts flag weeks near 40 (or 45), PTO and sick-leave balances follow your written policy, and payroll-ready Excel and PDF exports work with any payroll software. Plans start at $2 per employee per month, with a 14-day trial.
This guide is general information, not legal advice. Laws change; check the N.C. Department of Labor or an employment attorney. Last reviewed November 2026.
North Carolina’s minimum wage is $7.25 per hour. Full-time students, learners, apprentices and messengers may be paid 90% of that rate, and tipped employees may be paid $2.13 if tips make up the rest.
No. According to NCDOL, private-sector employers cannot substitute comp time for required overtime pay. Overtime is owed at time and a half after 40 hours in a workweek.
Not for employees 16 and older. Workers under 16 must get a 30-minute break after five consecutive hours of work.
All wages due must be paid on or before the next regular payday, whatever the reason employment ended. Commissions and bonuses are due on the first regular payday after the amount can be calculated.
Yes. Anyone under 18 needs a youth employment certificate before starting work unless specifically exempt, and the employer must keep a copy during employment and for two years after.