info@carolinalaw.com
info@carolinalaw.com
The Fair Labor Standards Act (FLSA) and North Carolina Wage and Hour Act (NCWHA) govern the payment of wages and benefits for workers. The FLSA requires employers to pay the minimum wage and overtime for each hour worked in excess of 40 per week. The NCWHA expands upon the federal law and provides greater protections to employees for other forms of compensation violations including but not limited to unpaid bonuses, commissions, vacation pay or other promised wages.
An employer must pay employees at least the minimum wage for all hours worked and provide time and a half overtime pay for any hours worked over 40 in a workweek. Employers are not required to pay more than the minimum wage and overtime laws mandate, nor are they required to compensate employees with vacation pay, sick leave, or other wage benefits.
Although an employer is only required to pay its employees the legally mandated minimum wage and overtime for hours worked over 40 in a week, most employers go beyond these basic requirements. Examples of additional wages employers may provide include vacation pay, sick pay, jury duty pay, holiday pay, shift differentials, bonuses, commissions, mileage, and other forms of compensation.
Once an employer promises to pay an employee more than the minimum wage and overtime requirements, the employee must receive all the wage benefits as specified by the NCWHA. An employer must continue paying such additional compensation until they change their compensation policy in accordance with North Carolina law. If an employer compensates an employee at a rate higher than the minimum wage, that higher wage must be used to calculate overtime pay. For instance, an employee earning $30.00 per hour must be paid $45.00 per hour for all hours worked over 40 in a week.
Importantly, an employer cannot retroactively reduce an employee’s wages or other compensation. Reductions are only permissible after proper notification has been given to the employee in accordance with the NCWHA. If an employer fails to pay promised wages, the employee may be entitled to liquidated damages, which can be twice the amount of unpaid wages.
Our law firm provides free consultations for employees who have been denied wages and may handle cases on a contingency basis—meaning you owe no fees unless we recover compensation. Please use our contact page to connect with our intake specialists. Although we can’t accept every case, we strive to direct each inquiry to the appropriate resources. We serve clients throughout the Carolinas from our offices in Raleigh, Charlotte, and Fayetteville.