{"id":375457,"date":"2017-08-31T12:43:51","date_gmt":"2017-08-31T17:43:51","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/state\/north-carolina-law\/north-carolina-overtime-laws.html"},"modified":"2026-10-05T16:14:00","modified_gmt":"2026-10-05T21:14:00","slug":"north-carolina-overtime-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/north-carolina-law\/north-carolina-overtime-laws.html","title":{"rendered":"North Carolina Overtime Laws"},"content":{"rendered":"\n
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North Carolina Overtime Laws<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

North Carolina<\/span>\u2019s Wage and Hour Act<\/span> outlines how workers must be paid for regular hours and overtime. If you are a qualified employee in North Carolina<\/span> and work more than 40 hours per workweek<\/span>, you may meet the overtime pay<\/span> requirements<\/span>. Overtime compensation<\/span> calculations depend on whether an employee works<\/span> more than 40 hours per week, not more than a certain number of hours<\/span> per day<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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Both hourly and salaried employees<\/span> may be entitled to overtime wages<\/span> under North Carolina<\/span> law. The North Carolina<\/span> Department of Labor<\/span><\/a> oversees state laws<\/span> regarding wage payment<\/span>. State laws<\/span> mirror the federal <\/span>Fair Labor Standards Act<\/span> (FLSA<\/span>)<\/a> for exempt and non-exempt workers.<\/p>\n

How Is Overtime Calculated in North Carolina<\/span>?<\/strong><\/h2>\n

Many hourly workers are nonexempt under state and federal overtime requirements, but some hourly workers may qualify for an exemption based on their duties and pay. North Carolina<\/span>‘s minimum wage<\/a> matches the\u00a0federal minimum wage<\/span>: $7.25.<\/p>\n

North Carolina<\/span> <\/a>law<\/a>\u00a0sets\u00a0overtime pay<\/span>\u00a0at one-and-a-half times<\/span>\u00a0an employee\u2019s\u00a0hourly wage<\/span>\u00a0for all hours over 40 in a workweek<\/span>. Overtime is not calculated by the day, so employees can work more than eight hours per day without triggering overtime pay<\/span>. You could work ten or twelve hours per shift without receiving overtime, as long as your total hours per week are less than 40.<\/p>\n

Overtime for Tipped Employees<\/span><\/h3>\n

North Carolina<\/span> allows employers to pay tip credits. An employee may be paid a cash wage below the applicable minimum wage only if the employee’s cash wage plus tips equals at least the applicable minimum wage for the workweek<\/span>.<\/p>\n

To calculate overtime, employers pay the employee based on a wage-only calculation. A sample calculation from the North Carolina<\/span> Department of Labor<\/span> explains it like this:<\/p>\n

\u201cIf a tipped employee<\/span> is paid at the minimum cash wage rate of $2.13 an hour and earns $15\u00a0an hour in tips for the week and works 60 hours in a work week<\/span>, \u201cThe total compensation (straight time and overtime pay<\/span>) for the employee should be calculated as follows: $435\u00a0[60 hours X $7.25 an hour] + $72.60 [20 hours X $3.63 an hour (one-half rate for $7.25)] = $507.60. However, since the employee earned $15 an hour in tips, the employer is allowed to take a credit of $5.12 an hour for the full 60 hours of work<\/span> (60 hours X $5.12 per hour = $307.20). As a result, the employer should pay the employee $200.40 in wages for the\u00a0workweek<\/span>\u00a0($507.60 – $307.20 = $200.40).\u201d<\/p>\n

Salaried Non-Exempt Employees<\/span><\/h3>\n

Not all salaried workers are exempt from overtime pay<\/span>. Salaried workers who are not supervisors or whose weekly pay is below the statutory amount can receive overtime if they work more than 40 hours per week. To calculate overtime pay<\/span>, employers divide the regular weekly salary by 40 to determine an\u00a0hourly rate<\/span>, then pay the worker time-and-a-half for all hours worked over 40\u00a0in the week.<\/p>\n

Employees on Commission<\/h3>\n

Workers on commission or who receive regular bonuses must include their commission in the employee\u2019s <\/span>regular rate of pay<\/span>. This extra step can cause overtime payment errors. An employer must take the employee\u2019s regular pay rate and include the workweek<\/span> equivalent of the bonus or commission divided by 40.<\/p>\n

For instance, suppose the worker earned a $1,000 bonus for the month for bringing a project in on time. The worker already earns $20 per hour, or $800 per week. The bonus has a weekly value of $1,000 divided by 20 workdays, or $50 per day. Divided by eight hours, it adds $6.25 to the worker\u2019s pay rate. If the worker has 15 overtime hours<\/span>, then their overtime pay<\/span> will be 40 hours at $26.25 plus 15 hours at time and a half at $39.38.<\/p>\n

Exemptions<\/h2>\n

An \u201cexempt\u201d employee is excluded from overtime pay<\/span><\/a>. Overtime-exempt employees fall into the following categories:<\/p>\n