North Carolina Overtime Laws

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

How Is Overtime Calculated in North Carolina?

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‘s minimum wage matches the federal minimum wage: $7.25.

North Carolina law sets overtime pay at one-and-a-half times an employee’s hourly wage for all hours over 40 in a workweek. Overtime is not calculated by the day, so employees can work more than eight hours per day without triggering overtime pay. You could work ten or twelve hours per shift without receiving overtime, as long as your total hours per week are less than 40.

Overtime for Tipped Employees

North Carolina 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.

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

“If a tipped employee is paid at the minimum cash wage rate of $2.13 an hour and earns $15 an hour in tips for the week and works 60 hours in a work week, “The total compensation (straight time and overtime pay) for the employee should be calculated as follows: $435 [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 (60 hours X $5.12 per hour = $307.20). As a result, the employer should pay the employee $200.40 in wages for the workweek ($507.60 – $307.20 = $200.40).”

Salaried Non-Exempt Employees

Not all salaried workers are exempt from overtime pay. 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, employers divide the regular weekly salary by 40 to determine an hourly rate, then pay the worker time-and-a-half for all hours worked over 40 in the week.

Employees on Commission

Workers on commission or who receive regular bonuses must include their commission in the employee’s regular rate of pay. This extra step can cause overtime payment errors. An employer must take the employee’s regular pay rate and include the workweek equivalent of the bonus or commission divided by 40.

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’s pay rate. If the worker has 15 overtime hours, then their overtime pay will be 40 hours at $26.25 plus 15 hours at time and a half at $39.38.

Exemptions

An “exempt” employee is excluded from overtime pay. Overtime-exempt employees fall into the following categories:

• Executive and administrative employees, whose job duties include supervising or upper-management tasks
• Highly-compensated professional workers such as computer employees who have specialized knowledge in a niche area and may have separate employee contracts
• Some nonprofit workers in summer camps or religious centers
• Outside sales employees
• Family members and live-in caregivers or nannies

In professional fields, there is a “salary basis” test. Under federal law, employees who make less than the federal amount ($684 as of 2026) must receive overtime. If you are unsure whether you should be paid overtime, consult an employment law attorney about your status.

Special Situations

Government employees may be offered “comp time” in lieu of overtime pay. Private employers can’t offer their workers future time off in exchange for working overtime. In the public sector, if you work overtime, you can bank your hours for back pay or vacation time later.

Seasonal workers in amusement parks that are open fewer than seven months a year or have very low receipts for at least six months of the year are not subject to North Carolina Wage and Hour Laws. Workers at these locations can only receive overtime after working more than 45 hours per week.

What To Do If You’re Owed Unpaid Overtime

North Carolina has a strict statute of limitations for collecting unpaid overtime. Under North Carolina Law, you must file a claim with the North Carolina Department of Labor‘s Wage and Hour Bureau within two years of the wage denial. As of September 2026, the North Carolina Department of Labor website notes that it no longer accepts claims more than one year old because of excessively high volume.

You can also file a wage complaint with the United States Department of Labor. The U.S. Department of Labor can handle all wage complaints, including violations of the Family and Medical Leave Act (FMLA), the Davis-Bacon Act (which protects contractors working on federal building sites), and ERISA violations.

Because of the backlog in both state and federal courts, it’s a good idea to speak with an employment law attorney if your claim is more than a year old, involves more than unpaid overtime, or requires complex overtime calculations. North Carolina’s overtime rules permit you to file a private overtime complaint. If you do so, you can’t file a claim through the state wage and hour division. You can find the North Carolina Wage Complaint Form here.

Research the Law

• North Carolina Code – FindLaw’s hosted version of North Carolina‘s General Statutes and Constitution
• North Carolina Laws – FindLaw’s summaries of select North Carolina laws, including criminal, injury, employment, family, and small business laws

Get Legal Advice From a North Carolina Employment Law Attorney

If you have wage or overtime issues at work, consider speaking with a local attorney experienced in wage law. In North Carolina, you can file claims under both the federal and state overtime laws at the same time. A local employment law attorney can help you navigate the legal requirements for proving your claim and help you recover any other damages and interest that may be due.