North Carolina Minimum Wage 2026
⚠️Informational only — not legal or tax advice.
Last Updated: February 3, 2026
Last Reviewed: February 3, 2026
Applicable Period: 2026
Jurisdiction: State of North Carolina, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter
Table of Contents
- Introduction
- North Carolina Minimum Wage – 2026 Quick Reference
- Overview of Minimum Wage Law in North Carolina
- Current Minimum Wage Rates in North Carolina 2026
- Minimum Wage for Tipped Employees
- Local Minimum Wage Ordinances in North Carolina
- Who Is Covered and Who Is Exempt
- Employer Obligations and Enforcement
- North Carolina Minimum Wage vs Federal Law
- Minimum Wage Posting Requirements
- Frequently Asked Questions
- Information Verification Log
Introduction
The minimum wage in North Carolina establishes the lowest hourly compensation that employers must legally provide to covered employees. For 2026, North Carolina adopts the federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. The state maintains no separate minimum wage rate that exceeds the federal standard.
Minimum wage regulations in North Carolina operate under the North Carolina Wage and Hour Act (N.C.G.S. Article 2A) alongside federal requirements established by the Fair Labor Standards Act (FLSA). When state or local minimum wage rates exceed the federal standard, employers must comply with the higher applicable rate. North Carolina allows tip credits for tipped employees, and state law prohibits cities and counties from enacting higher minimum wage ordinances.
This page provides an authoritative overview of North Carolina minimum wage law for 2026, including current rates, tipped employee provisions, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.
| North Carolina Minimum Wage – 2026 Quick Reference | |||
|---|---|---|---|
| Category | Rate | Effective Date | Official Source |
| State minimum wage | Federal rate applies | — | N.C.G.S. § 95-25.3 |
| Federal minimum wage | $7.25/hour | July 24, 2009 | FLSA § 206(a)(1) |
| Tipped minimum wage | $2.13/hour | — | FLSA § 203(m) |
| Tip credit allowed | Yes (up to $5.12) | — | Federal law |
| Next scheduled increase | None | — | — |
| Rate adjustment mechanism | Federal adoption | — | N.C.G.S. § 95-25.3(a) |
| Local minimum wages | Prohibited | — | N.C.G.S. § 95-25.1(d) |
| Annual adjustment | No | — | — |
Last verified: February 3, 2026 via North Carolina Department of Labor website
Overview of Minimum Wage Law in North Carolina
Legal Authority
North Carolina minimum wage requirements are established under the North Carolina Wage and Hour Act, codified at N.C. General Statutes Chapter 95, Article 2A. The North Carolina Department of Labor administers and enforces minimum wage regulations in North Carolina. The state minimum wage law incorporates the federal minimum wage by reference rather than establishing an independent state rate.
Relationship to Federal Law
Under the Fair Labor Standards Act (FLSA), the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. North Carolina law adopts the federal minimum wage rate by requiring employers to pay “at least six dollars and fifteen cents ($6.15) per hour or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 206(a)(1), as that wage may change from time to time, whichever is higher” pursuant to N.C.G.S. § 95-25.3(a). Because the federal rate of $7.25 exceeds the statutory state rate of $6.15, North Carolina employers covered by either state or federal law must pay $7.25 per hour.
When both state and federal minimum wage laws apply, employers must pay whichever rate is higher. Since North Carolina’s statutory mechanism results in adoption of the federal rate, the requirements are identical for most employers.
Coverage Scope
North Carolina minimum wage law applies to employers doing business in North Carolina with certain exceptions detailed in N.C.G.S. § 95-25.14. Employees not subject to state minimum wage requirements but covered by federal law must comply with FLSA standards. The state minimum wage also applies to state and local government entities and instrumentalities of government for most employees.
Higher Rate Principle
The principle of “higher prevailing rate” requires employers to pay the highest applicable minimum wage—whether federal, state, or local. In North Carolina, because the state adopts the federal rate and local minimum wage ordinances are prohibited by law, employers must comply with the uniform federal minimum wage of $7.25 per hour unless exempt under state or federal provisions.
Current Minimum Wage Rates in North Carolina 2026
Standard Hourly Minimum Wage
As of 2026, the standard minimum wage in North Carolina is $7.25 per hour for covered employees. This rate reflects North Carolina’s adoption of the federal minimum wage pursuant to N.C.G.S. § 95-25.3(a), which requires payment of “the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 206(a)(1), as that wage may change from time to time.”
North Carolina last raised its statutory minimum wage in 2008, when it increased to $6.55 per hour. However, because the state statute incorporates the federal rate when higher, the effective minimum wage increased to $7.25 per hour on July 24, 2009, when the federal minimum wage increased to that level. The federal minimum wage has remained unchanged since that date.
The $7.25 rate applies uniformly across all jurisdictions in North Carolina. There are no regional, geographic, or county-specific variations in the minimum wage rate.
Youth and Training Wages
North Carolina permits reduced wage rates for certain categories of workers during initial employment or training periods:
Youth Minimum Wage
- Rate: $4.25 per hour
- Eligibility: Workers under age 20
- Duration: First 90 consecutive calendar days of employment
- Authority: Federal FLSA § 206(g), adopted under N.C. law
Student Learners, Apprentices, and Messengers
- Rate: 90% of the standard minimum wage ($6.53 per hour when calculated from $7.25)
- Eligibility: Full-time students, learners, apprentices, and messengers as defined under the Fair Labor Standards Act
- Requirements: Must meet federal FLSA definitions and requirements
- Authority: N.C.G.S. § 95-25.3(b)
Workers with Disabilities
- Rate: May be less than standard minimum wage with proper certification
- Eligibility: Persons whose earning or productive capacity is impaired by age, physical deficiency, mental deficiency, or injury
- Requirements: North Carolina Commissioner of Labor may establish rates by regulation; certification required
- Authority: N.C.G.S. § 95-25.3(c)
Economically Disadvantaged Workers
- Rate: Not less than 85% of the standard minimum wage ($6.16 per hour)
- Eligibility: Persons unemployed for at least 15 weeks who are economically disadvantaged, OR persons/families receiving Work First Family Assistance or supplemental security benefits under Title XVI of the Social Security Act
- Duration: Maximum 52 weeks
- Requirements: Certificate from Division of Employment Security establishing eligibility
- Authority: N.C.G.S. § 95-25.3(d)
Seasonal Food Service Establishments
- Rate: Not less than 85% of the standard minimum wage ($6.16 per hour)
- Eligibility: Employees of seasonal food service establishments
- Requirements: Established by regulation of the Commissioner of Labor
- Authority: N.C.G.S. § 95-25.3(e)
After the applicable training or youth employment period expires, or upon reaching age 20 for youth wage provisions, employers must pay the full standard minimum wage of $7.25 per hour.
Scheduled Increases
No minimum wage increases are currently scheduled in North Carolina. The state minimum wage will remain at $7.25 per hour—the federal minimum—unless changed by future federal or state legislation.
North Carolina law does not include a mechanism for automatic annual adjustment of the minimum wage based on inflation or any other index. Any change to the minimum wage would require either:
- An increase to the federal minimum wage under the FLSA, which would automatically apply in North Carolina through the state statute’s incorporation by reference, or
- New state legislation amending N.C.G.S. § 95-25.3 to establish a higher state minimum wage
As of February 2026, no such legislation has been enacted at either the state or federal level.
Minimum Wage for Tipped Employees
Tipped Employee Cash Wage
North Carolina permits employers to pay tipped employees a reduced cash wage, provided that employee tips combined with the cash wage equal at least the full minimum wage.
Cash wage requirement: $2.13 per hour
Maximum tip credit: $5.12 per hour
Total minimum compensation: $7.25 per hour (cash wage + tips)
Who Qualifies as a Tipped Employee
Under North Carolina law, which adopts federal FLSA standards, a “tipped employee” is defined as an employee who customarily and regularly receives more than $20 per month in tips as specified in N.C.G.S. § 95-25.2(14). Qualifying occupations typically include:
- Restaurant servers and bartenders
- Hotel service workers
- Casino service workers
- Parking attendants and valets
- Delivery drivers who receive tips
- Barbers and hair stylists
- Other service workers who customarily receive tips
Employer Obligations for Tipped Workers
Employers who claim a tip credit must comply with specific requirements under both state and federal law pursuant to N.C.G.S. § 95-25.3(f):
- Inform employees in writing before claiming the tip credit of the tip credit provisions and the amount of cash wages to be paid
- Ensure total compensation (cash wage plus tips) equals or exceeds $7.25 per hour for all hours worked
- Pay the difference if an employee’s tips fail to bring total compensation to the minimum wage
- Maintain accurate records of employee tips, which must be certified by the employee monthly or for each pay period
- Allow employees to retain all tips except in permitted tip pooling arrangements
- Monitor tip receipt to demonstrate employees regularly receive tips in the claimed amount, even if the employee refuses to certify tips accurately
Failure to meet these requirements invalidates the tip credit, requiring the employer to pay the full minimum wage of $7.25 per hour as a cash wage.
Tip Pooling and Sharing
North Carolina permits tip pooling among employees who customarily and regularly receive tips. Specific regulations apply pursuant to N.C.G.S. § 95-25.3(f):
For Businesses Covered by North Carolina Department of Labor:
- Tip pooling is permissible among tipped employees
- No employee’s tips may be reduced by more than 15% under a tip pooling arrangement
- Employees must retain at least 85% of their tips
- Employer must maintain accurate and complete records of tips received and amounts distributed under the tip pooling arrangement
General Tip Pooling Rules:
- Only employees who customarily and regularly receive tips may participate in tip pools
- Managers, supervisors, and employers cannot participate in tip pools or retain any portion of employee tips
- Tips must be distributed in accordance with the established tip pooling policy
- Mandatory service charges added to customer bills are not considered tips and may be retained by the employer unless specifically designated otherwise
Recordkeeping Requirements: Employers claiming tip credits must obtain from each tipped employee, either monthly or for each pay period, a signed certification of the amount of tips received. These records must be maintained as part of the employer’s wage and hour records.
Overtime for Tipped Employees
When calculating overtime pay for tipped employees, employers must base the calculation on the employee’s regular rate of pay, which includes both the cash wage paid and the tip credit counted as wages. For a tipped employee earning the minimum cash wage of $2.13 per hour, the regular rate is $7.25 per hour (the full minimum wage). Overtime must be paid at 1.5 times this regular rate ($10.88 per hour), minus the allowable tip credit.
Local Minimum Wage Ordinances in North Carolina
North Carolina law prohibits cities and counties from enacting their own minimum wage ordinances that differ from the state minimum wage. All employers in North Carolina must comply with the uniform statewide rate of $7.25 per hour.
State Preemption of Local Wage Laws
Under N.C.G.S. § 95-25.1(d), enacted in 2016, “the provisions of this Article supersede and preempt any ordinance, regulation, resolution, or policy adopted or imposed by a unit of local government or other political subdivision of the State that regulates or imposes any requirement upon an employer pertaining to compensation of employees, such as the wage levels of employees, hours of labor, payment of earned wages, benefits, leave, or well-being of minors in the workforce.”
This preemption provision prevents municipalities from establishing higher minimum wage rates or imposing additional wage requirements beyond state law. The preemption does not apply to:
- Local governments regulating, compensating, or controlling their own employees
- Economic development incentives awarded under state law
- Requirements of federal community development block grants
- Certain affordable housing programs established under N.C.G.S. § 160D-1311
Uniform Statewide Rate
Because of state preemption, the $7.25 federal minimum wage applies uniformly across all jurisdictions in North Carolina. No cities or counties in North Carolina have authority to enact rates exceeding the state minimum wage.
This includes major metropolitan areas such as:
- Charlotte
- Raleigh
- Durham
- Greensboro
- Winston-Salem
- Fayetteville
- Cary
- Wilmington
- High Point
- Asheville
All employers in these and other North Carolina municipalities must pay at least $7.25 per hour to covered employees, with no local variations.
Employer Compliance
Employers operating in multiple locations across North Carolina benefit from simplified compliance, as the same minimum wage rate applies statewide. Employers need not track different rates for different jurisdictions within the state. However, employers must still comply with all other applicable wage and hour requirements under state and federal law, including overtime, youth employment, and recordkeeping provisions.
Who Is Covered and Who Is Exempt
Employees Covered by North Carolina Minimum Wage
North Carolina minimum wage law covers most private sector employees working in the state. Unless specifically exempted under N.C.G.S. § 95-25.14, covered employees include:
- Private sector workers: Full-time and part-time employees of private businesses
- Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for overtime exemption
- Hourly employees: Workers compensated on an hourly basis
- Temporary and seasonal workers: Generally covered unless specifically exempt
- Minor employees: Workers under age 18, subject to youth employment provisions
- Part-time employees: Entitled to the same minimum wage as full-time employees
The minimum wage applies regardless of the number of hours worked per week. Part-time employees must receive at least $7.25 per hour for all hours worked, just as full-time employees must.
Exemptions from Minimum Wage Requirements
The following categories of employees may be exempt from North Carolina minimum wage requirements under N.C.G.S. § 95-25.14:
Persons Employed in FLSA-Covered Enterprises
Employees of enterprises engaged in commerce or in the production of goods for commerce as defined in the Fair Labor Standards Act are generally exempt from state minimum wage provisions but remain subject to federal minimum wage requirements. Because the state and federal rates are identical at $7.25 per hour, this exemption has limited practical effect for most workers.
Executive, Administrative, and Professional Employees
Employees performing bona fide executive, administrative, or professional duties as defined under the Fair Labor Standards Act may be exempt if they meet both salary and duties tests. For 2026, the minimum salary threshold for exempt status under federal law is $844 per week ($43,888 annually).
Outside Sales Employees
Employees whose primary duty is making sales away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business location may be exempt from minimum wage requirements.
Agricultural Workers
Persons employed in agriculture, as defined under the Fair Labor Standards Act, are exempt from state minimum wage provisions but may be covered by federal requirements.
Domestic Employees
Persons employed as domestics, including babysitters and companions, as defined under the Fair Labor Standards Act, are exempt from state minimum wage requirements.
Computer Professionals
Computer systems analysts, computer programmers, software engineers, and other similarly skilled workers as defined in the Fair Labor Standards Act may be exempt from minimum wage requirements if they meet applicable salary or fee thresholds and duties tests.
Seasonal and Recreational Workers
- Employees of boys’ or girls’ summer camps
- Employees of seasonal religious or nonprofit educational conference centers
- Employees of seasonal amusement or recreational establishments
- Employment in seasonal recreation programs by state or local government
Family Members
The spouse, child, or parent of the employer, or any person qualifying as a dependent of the employer under North Carolina income tax laws, is exempt from minimum wage requirements.
Other Exempt Categories
- Pages in the North Carolina General Assembly or Governor’s Office
- Bona fide volunteers in medical, educational, religious, or nonprofit organizations where no employer-employee relationship exists
- Persons confined in and working for penal, correctional, or mental institutions
- Actors, performers, and models in certain entertainment productions
- Employees of outdoor dramas in production roles
- Seafood processing employees
- Independent contractors (if properly classified)
Coverage Determination
Employers uncertain about whether an employee qualifies for an exemption should consult the North Carolina Department of Labor or the U.S. Department of Labor Wage and Hour Division. Misclassification of employees as exempt can result in liability for back wages, penalties, and other remedies.
For employees not covered by state minimum wage law, federal FLSA requirements may still apply if the employer meets federal coverage standards (generally enterprises with annual gross sales of $500,000 or more, or engaged in interstate commerce).
Employer Obligations and Enforcement
Employer Compliance Obligations
Employers subject to North Carolina minimum wage law must comply with requirements established under the North Carolina Wage and Hour Act:
- Pay the applicable minimum wage of at least $7.25 per hour for all hours worked
- Maintain accurate payroll records documenting hours worked and wages paid for at least three years
- Display required posters informing employees of minimum wage rates and worker rights
- Issue compliant wage statements showing gross wages, deductions, and net pay
- Provide written notice to employees of wage rates, pay schedules, and payment methods as required by N.C.G.S. § 95-25.13
- Retain time and payroll records for at least two years, including time cards, work schedules, and wage computation records
Recordkeeping Requirements:
Employers must maintain payroll records for three years under North Carolina law, including:
- Employee names, addresses, and Social Security numbers
- Hours worked each workday and workweek
- Wage rates and total wages paid each pay period
- Deductions from wages and reasons for deductions
- Total wages paid and date of payment
- For tipped employees: records of tips received, certified by employee monthly or per pay period
Enforcement of Minimum Wage Law
The North Carolina Department of Labor enforces minimum wage requirements in North Carolina. The agency’s Wage and Hour Bureau:
- Investigates wage complaints filed by employees
- Conducts routine compliance inspections
- Issues citations and administrative orders for wage violations
- Assists in collection of unpaid wages on behalf of employees
- Refers cases for civil or criminal prosecution when appropriate
- Provides guidance and technical assistance to employers
Filing a Complaint:
Employees who believe they have not been paid proper minimum wage may file a complaint with the North Carolina Department of Labor through:
- Online: North Carolina Department of Labor website
- Phone: 1-800-625-2267 (toll-free) or (919) 807-2796
- Mail: N.C. Department of Labor, Wage and Hour Bureau, 4 West Edenton Street, Raleigh, NC 27601
- In-person: Regional offices located throughout the state
Employees may also file complaints with the U.S. Department of Labor Wage and Hour Division:
- Phone: 1-866-487-9243
- Regional offices: Charlotte (704-749-3360) and Raleigh (919-790-2741)
North Carolina law prohibits retaliation against employees who file wage complaints, provide information in wage investigations, or exercise rights under the Wage and Hour Act. Retaliation protections are codified at N.C.G.S. § 95-25.20.
Penalties for Minimum Wage Violations
Employers who violate North Carolina minimum wage law may be subject to penalties under N.C.G.S. § 95-25.22 and related provisions:
Back Wages:
Employers must pay employees the difference between wages paid and the required minimum wage for all hours worked. The statute of limitations for wage claims is generally two years from the date of the violation, or three years for willful violations.
Liquidated Damages:
Under federal FLSA provisions applicable to North Carolina employers, employees may recover liquidated damages equal to the amount of unpaid wages, effectively doubling the recovery. Courts may decline to award liquidated damages if the employer shows it acted in good faith and had reasonable grounds to believe it was not violating the law.
Civil Penalties:
The North Carolina Commissioner of Labor may assess civil penalties for violations of the Wage and Hour Act pursuant to N.C.G.S. § 95-25.23. Penalties may be imposed for:
- Failure to pay minimum wage as required
- Failure to maintain required records
- Failure to display required notices
- Retaliation against employees for exercising rights under the Act
Civil penalties collected are deposited in the Civil Penalty and Forfeiture Fund.
Criminal Penalties:
Willful violations of the North Carolina Wage and Hour Act may result in criminal prosecution. However, criminal penalties are rarely pursued except in cases involving egregious or repeated violations.
Court Orders:
The North Carolina Department of Labor may seek court orders to:
- Enjoin violations of the Wage and Hour Act
- Restrain withholding of unpaid minimum wages or overtime compensation
- Require payment of wages found to be due
Attorney Fees and Costs:
Employees who prevail in wage actions may recover reasonable attorney fees and court costs in addition to unpaid wages and liquidated damages.
North Carolina Minimum Wage vs Federal Law
The Federal Minimum Wage Floor
The Fair Labor Standards Act (FLSA) establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate sets a floor for minimum wage requirements nationwide and applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000.
When State Law Applies
North Carolina’s minimum wage statute at N.C.G.S. § 95-25.3(a) requires employers to pay “at least six dollars and fifteen cents ($6.15) per hour or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. 206(a)(1), as that wage may change from time to time, whichever is higher.” Because the federal minimum of $7.25 exceeds the $6.15 statutory state rate, the effective minimum wage in North Carolina is $7.25 per hour.
For employers covered by both state and federal law, the requirements are functionally identical. North Carolina law serves primarily to extend minimum wage protection to employers and employees who may fall outside federal coverage, such as smaller employers not engaged in interstate commerce with annual sales below $500,000.
Higher Applicable Rate Rule
The fundamental principle governing minimum wage compliance is that employers must pay whichever rate—federal, state, or local—provides employees the highest hourly wage. In North Carolina, because the state adopts the federal rate and local minimum wage ordinances are prohibited, employers need only comply with the uniform federal minimum of $7.25 per hour.
Practical Application:
- Identify whether the employer is covered by federal FLSA (most employers with annual sales exceeding $500,000 or engaged in interstate commerce)
- Identify whether the employer is covered by state law (employers doing business in North Carolina)
- Pay the higher applicable rate—in North Carolina, both rates are $7.25 per hour
| Regional Minimum Wage Context | |
|---|---|
| North Carolina's minimum wage of $7.25 can be compared to surrounding states for regional context: | |
| State | 2026 Rate |
| Virginia | $12.41 |
| Tennessee | $7.25 |
| South Carolina | $7.25 |
| Georgia | $7.25 |
| North Carolina | $7.25 |
North Carolina’s rate equals the rates in Tennessee, South Carolina, and Georgia, all of which adopt the federal minimum wage. Virginia’s rate significantly exceeds the federal minimum at $12.41 per hour. These neighboring states with federal-rate minimums create a consistent wage floor across much of the Southeast region.
Note: Rates shown are standard minimum wages and may not reflect local or industry-specific variations in other states.
Minimum Wage Posting Requirements
North Carolina law requires employers to display an official minimum wage notice in a conspicuous location accessible to all employees. The poster must include current wage rates, employee rights, and contact information for the North Carolina Department of Labor.
Where to obtain posters:
- Download from the North Carolina Department of Labor website
- Request printed copies by contacting the N.C. Department of Labor at 1-800-625-2267
- Available languages: English and Spanish
Posting locations:
The notice must be posted in each workplace location where employees can readily see it, typically:
- Near time clocks or employee entrances
- In break rooms or employee lounges
- In areas where employees gather or receive work assignments
- At locations where wage and hour information is customarily posted
Required Federal Posters:
In addition to state posters, employers must display federal labor law posters including:
- Fair Labor Standards Act minimum wage poster (available from U.S. Department of Labor)
- Equal Employment Opportunity Commission notice
- OSHA workplace safety poster (if applicable)
- Family and Medical Leave Act notice (if employer has 50+ employees)
Compliance:
Failure to display required posters may result in citations and penalties from the North Carolina Department of Labor. Employers must update posters when minimum wage rates change or when new poster versions are released by the Department.
Frequently Asked Questions: Minimum Wage in North Carolina 2026
What is the minimum wage in North Carolina in 2026?
The minimum wage in North Carolina is $7.25 per hour, the same as the federal minimum wage. This rate applies to all covered employers and employees throughout the state with no geographic variations.
When is the next minimum wage increase in North Carolina?
No minimum wage increases are currently scheduled in North Carolina. The rate will remain $7.25 per hour unless changed by future federal or state legislation. North Carolina has no automatic adjustment mechanism for the minimum wage.
Does North Carolina allow tip credit?
Yes, North Carolina permits employers to pay tipped employees a cash wage of $2.13 per hour, with up to $5.12 in tip credit, provided total compensation reaches $7.25 per hour. Employers must notify employees in advance of the tip credit and maintain accurate tip records certified by employees pursuant to N.C.G.S. § 95-25.3(f).
Are there different minimum wages in different cities in North Carolina?
No, North Carolina maintains a uniform statewide minimum wage of $7.25 per hour. State law at N.C.G.S. § 95-25.1(d) prohibits local jurisdictions from enacting different minimum wage rates. All cities and counties in North Carolina, including Charlotte, Raleigh, Durham, and other metropolitan areas, apply the same $7.25 rate.
Who is exempt from minimum wage in North Carolina?
Common exemptions from North Carolina minimum wage include executive, administrative, and professional employees meeting salary and duties tests ($844 per week minimum), outside sales employees, agricultural workers, domestic employees, computer professionals meeting specific requirements, and family members of the employer as specified in N.C.G.S. § 95-25.14. Independent contractors properly classified are not covered. Most hourly workers, including part-time employees, are covered.
What happens if an employer pays below minimum wage in North Carolina?
Employers who pay below minimum wage face back wage liability for unpaid amounts, liquidated damages equal to the unpaid wages (effectively doubling recovery), civil penalties assessed by the Commissioner of Labor, and potential court orders requiring payment under N.C.G.S. § 95-25.22. Willful violations may result in criminal prosecution. Employees can file complaints with the North Carolina Department of Labor or federal Department of Labor to recover unpaid wages. North Carolina law at N.C.G.S. § 95-25.20 prohibits retaliation against workers who report violations.
Do small businesses have to pay minimum wage in North Carolina?
Yes, all employers in North Carolina must pay minimum wage regardless of size. Even businesses with one employee must comply with the $7.25 hourly rate under state law. Additionally, federal minimum wage may apply if the employer is engaged in interstate commerce or has annual sales exceeding $500,000, covering most small businesses.
Is North Carolina’s minimum wage higher than the federal minimum?
No, North Carolina adopts the federal minimum wage of $7.25 per hour. The state statute at N.C.G.S. § 95-25.3(a) requires payment of either the statutory state rate of $6.15 or the federal rate, whichever is higher. Since the federal rate exceeds the state statutory rate, the effective minimum wage in North Carolina is $7.25, identical to the federal requirement.
How often does North Carolina increase its minimum wage?
North Carolina does not have a mechanism for automatic minimum wage increases. The effective rate changes only when federal law changes (because North Carolina adopts the federal rate) or when the state legislature enacts new minimum wage legislation. The federal minimum wage has remained at $7.25 since July 24, 2009, and no increases are currently scheduled at either the state or federal level.
Can employers pay less than minimum wage during training?
North Carolina permits a training wage of $4.25 per hour for employees under age 20 during their first 90 consecutive calendar days of employment under federal FLSA § 206(g). Additionally, employers may pay full-time students, learners, apprentices, and messengers 90% of the minimum wage ($6.53 per hour) under specific conditions defined by federal FLSA standards pursuant to N.C.G.S. § 95-25.3(b). After the training or youth employment period, employers must pay full minimum wage of $7.25 per hour.
How to file a minimum wage complaint in North Carolina
Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the North Carolina Department of Labor. Filing methods include:
- Online: Visit www.labor.nc.gov and access the complaint filing system
- Phone: Call 1-800-625-2267 (toll-free) or (919) 807-2796
- Mail: N.C. Department of Labor, Wage and Hour Bureau, 4 West Edenton Street, Raleigh, NC 27601
- In-person: Visit regional office locations in Raleigh, Charlotte, or other areas
Alternatively, employees may file complaints with the U.S. Department of Labor Wage and Hour Division at 1-866-487-9243 or through regional offices in Charlotte (704-749-3360) or Raleigh (919-790-2741).
The North Carolina Department of Labor will investigate the complaint and may recover unpaid wages on behalf of the employee. North Carolina law at N.C.G.S. § 95-25.20 prohibits employer retaliation against workers who file wage complaints or participate in investigations.
Do remote workers in North Carolina get the North Carolina minimum wage?
Generally, the minimum wage of the jurisdiction where the employee physically performs work applies. Remote workers located in North Carolina are entitled to North Carolina’s minimum wage of $7.25 per hour, even if their employer is based in another state. However, if the employer’s state has a higher minimum wage that applies to remote workers, that higher rate may govern depending on the specific circumstances and state laws involved.
Information Verification Log
All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.
| North Carolina — Primary Legal & Government Sources | ||
|---|---|---|
| Official statutes and government resources used to verify North Carolina minimum wage rules for 2026. | ||
| Source | Last Verified | Access Method |
| N.C. General Statutes § 95-25.3 (Minimum Wage) | February 3, 2026 | North Carolina General Assembly website |
| N.C. General Statutes § 95-25.1 (Preemption) | February 3, 2026 | North Carolina General Assembly website |
| N.C. General Statutes Chapter 95, Article 2A (Wage and Hour Act) | February 3, 2026 | www.ncleg.gov |
| North Carolina Department of Labor | February 3, 2026 | Official state website (labor.nc.gov) |
| Fair Labor Standards Act (FLSA) | February 3, 2026 | U.S. Department of Labor |