North Carolina labor laws are the set of employment laws enacted by the state of North Carolina that provide certain legal protections to employees working in the state. Employment law is a broad legal term that describes a wide range of legal issues associated with employees, employers, and safety conditions in the workplace.
For example, some state or federal employment laws may provide protections against discrimination. North Carolina is one such state that provides legal protections for employees within the state with regards to discrimination.
However, other employment laws may provide guidance when drafting company policies and/or employee handbooks regarding employees’ rights.
The overall purpose of employment and labor laws is to provide protections to all workers. Employment and labor laws typically cover:
- Establishing legal protections for workers who have a legal dispute against a colleague, an employer, or a company;
- Ensuring that businesses do not discriminate against prospective job candidates or current employees during the interviewing, hiring, promoting, working, or terminating processes;
- Granting specific legal rights to workers who are self-employed or are considered independent contractors;
- Ensuring that unpaid employees, such as volunteers and interns, are also not exposed to sexual harassment, discrimination, and/or retaliation in the workplace.
It is important to note that employment laws vary by jurisdiction. Additionally, some labor law issues may be governed by both state and federal employment laws. For example, some states have mandatory overtime that is governed by state law, as well as the federal Fair Labor Standards Act (“FLSA”). North Carolina is one such state that has mandatory overtime laws, which is discussed further below.
Part-Time vs. Full-Time
As far as how part-time and full-time is defined in North Carolina, according to the North Carolina Department of Labor, there is no specific legal definition for full-time or part-time employment in North Carolina. As such, it is up to North Carolina employers to come up with their own criteria as to how many hours an employee works a day or week or any other factors that make an employee part-time vs. full-time.
However, it is important to note that employers in North Carolina are required to adhere to the federal laws concerning part-time and full-time set forth in the FLSA. The FLSA sets the standard for full-time employment at 40 hours per week.
As such, if wages or benefits are involved, then the employer must clarify clearly in writing, such as within an employment policy, handbook, etc., as to what it takes for an employee to be considered a full-time employee or a part-time employee. It is important for an employee to understand if they are full-time or part-time, as part-time employees do not earn wage benefits such as vacation time, sick leave benefits, health benefits, or holiday pay in most cases.
It is also important to note that an employer can legally switch an employee from full-time to part-time without the employee’s knowledge, as long as the employee’s wages or benefits earned before the time of the change are not taken away from them.
Minimum Wage
As far as the minimum wage in North Carolina, North Carolina has not increased the minimum wage past the federal minimum. As of 2009, the federal minimum wage is $7.25 per hour. As such, $7.25 is the minimum hourly pay that any non-exempt worker in the United States must be paid for their work.
Importantly, the Federal Minimum Wage is applicable nationwide. This means that federal minimum wage laws override any state laws that provide a lower minimum wage rate. The reason for this is to ensure that the local minimum wage in all states is at least $7.25 per hour. In the case of North Carolina, the state has set its minimum wage to match the federal minimum wage.
However, for North Carolina employers who have “tipped employees,” employers are permitted to take a credit for a certain amount of tips earned by their employees and count that credit toward the employers’ payment of the state minimum wage. However, in order to do this, North Carolina law requires that a tipped employee be notified in advance and be permitted to retain all tips.
Specifically, in North Carolina, an employer must pay tipped employees at least $2.13 an hour, but each employee must still receive enough tips to make up the difference between the wages paid and the minimum wage at $7.25. This means that if the tipped employee earns less than the credit in tips per hour, it is the employer’s responsibility to make sure that the employee earns at least the minimum wage in cash wages and tips.
Overtime
According to the North Carolina Department of Labor, an employer must pay its employees at least the minimum wage for all hours worked, and then pay that employee at a rate of one and half times their regular rate of pay for all hours worked in excess of 40 in a work week.
The exception to the overtime rule is if an employee is exempt for some reason.It is also important to note that overtime pay is based on the number of hours an employee works each week, and not the number of hours worked per day or the number of days worked per week. As such, an employee may still qualify for overtime if they only worked 3 days, so long as their total amount of hours worked exceeds 40 hours. Then, if an employer intentionally avoids paying overtime, the employee may be entitled to additional money.
Health Benefits
As far as required health benefits, North Carolina does not require that all employees receive health benefits. However, as of January 1, 2015, the employer mandate under the Affordable Care Act (“ACA”) requires all state employers with at least 51 full-time equivalent employees to provide health coverage to full-time employees.
In North Carolina, state law defines small companies as having fewer than 50 employees. Small businesses in North Carolina do not need to offer health care coverage to their employees. However, small business employers in North Carolina may still provide insurance with a Small Business Health Options Plan (“SHOP”). If an employer provides health benefits to employees, their coverage cannot be influenced by discrimination based on gender, race, age, national origin, religion, or disability.
Discrimination
It is important to note that North Carolina is an at-will employment state. This means that either an employee or employer may terminate the employment relationship at any time and for any reason, so long as the reason for the termination is not based on race, religion, color, national origin, age, sex, or disability.
If an individual is terminated based on a protected characteristic, then they may sue their employer for discrimination. In order to do so, an employee must first file a complaint with the local branch of the Equal Employment Opportunity Commission (“EEOC”). After filing a complaint with the EEOC a North Carolina employee may sue an employer for discrimination within 180 days of the discrimination occurring.
Time Off
North Carolina does not have state laws requiring employers to provide employees with time off, such as sick leave benefits. In fact, the only leave benefits for a North Carolina employee are those required by the federal Family Medical Leave Act (“FMLA”).
The FMLA requires North Carolina employers with at least 50 employees to permit all eligible employees to take up to 12 weeks of unpaid leave per year for any of the following reasons:
- In order to care for a seriously ill immediate family member, such as a child, parent, or spouse;
- In order to recuperate from their own serious health conditions;
- In order to bond with a new child; or
- In order to handle urgent matters related to a family member’s military service.
Where Can I Find a Lawyer to Help Me?
As can be seen, there are numerous labor laws, both federal and state, that provide protections and rights to North Carolina employees. As such, if you believe that your employer has violated your legal rights as an employee, it is in your best interests to consult with an experienced North Carolina labor lawyer.
An experienced North Carolina labor lawyer will be able to help you determine whether or not an employer has violated your rights as an employee. Additionally, an employment lawyer will also be able to help you determine your best course of legal action to recover for any losses you may have suffered as a result of your employee rights being violated.
Finally, an attorney can also initiate a private lawsuit on your behalf against your employer, and represent your interests in court, as necessary.
