🇺🇸 North Carolina Overtime Laws — 2026 UPDATE

Overtime Laws in North Carolina 2026: Pay Rates, Exemptions & Tax Deduction (2026)

⚠️Informational only — not legal or tax advice.

This guide explains North Carolina overtime laws 2026

Last verified: February 26, 2026

Next scheduled review: May 26, 2026

Overtime in North Carolina 2026

Table of Contents

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North Carolina Overtime Laws at a Glance (2026)

Details
Overtime threshold 40 hours per workweek
Overtime pay rate 1.5× regular rate of pay
Double time No — not required under state or federal law
7th consecutive day rule No
Daily overtime No — weekly calculation only
State minimum wage (2026) $7.25/hour (equals federal minimum)
Exempt salary threshold (2026) Federal: $684/week ($35,568/year) — North Carolina follows federal standard
State enforcement agency NC Department of Labor — Wage and Hour Bureau
Federal enforcement U.S. DOL Wage and Hour Division
Overtime tax deduction (federal) Up to $12,500/year (2025–2028) — FLSA-covered workers
Statute of limitations 2 years state (G.S. 95-25.22) / 2 years FLSA (3 if willful)

Governing law: N.C. Gen. Stat. § 95-25.4 (North Carolina Wage and Hour Act); Fair Labor Standards Act, 29 U.S.C. § 207
Last verified: February 26, 2026

Does North Carolina Have Its Own Overtime Law?

North Carolina has its own overtime statute under the North Carolina Wage and Hour Act, codified at N.C. Gen. Stat. § 95-25.4. The law requires every employer to pay each employee who works longer than 40 hours in any workweek at a rate of not less than one and one-half times the employee’s regular rate of pay for all hours over 40.

In practice, however, the relationship between state and federal law is carefully defined. Under G.S. 95-25.14(a)(1), employees covered by the federal Fair Labor Standards Act are generally governed by the FLSA rather than the state Wage and Hour Act for minimum wage and overtime purposes. The NCWHA’s overtime provisions apply primarily to employees of smaller employers — those not covered by the FLSA (for example, businesses with annual gross sales below $500,000 that are not engaged in interstate commerce).

This distinction was confirmed by the U.S. Court of Appeals for the Fourth Circuit in Figueroa v. Butterball, LLC (4th Cir., January 13, 2026), which held that the NCWHA’s overtime provisions do not apply when the FLSA applies, because the FLSA provides exclusive remedies for covered employees.

The practical result: For the vast majority of North Carolina workers employed by businesses covered by the FLSA, federal overtime law governs.

Key features of North Carolina’s overtime framework:

  • Both the state Wage and Hour Act and the FLSA set the threshold at 40 hours per workweek — no daily overtime rule
  • North Carolina does not require double time at any point
  • North Carolina does not have a higher exempt salary threshold than the federal $684/week standard
  • The NC Department of Labor has adopted 29 C.F.R. Part 541 (the federal exemption regulations) as the governing rule for identifying exempt employees in the state

When state law and federal FLSA rules differ, the standard that is more favorable to the employee applies.

State statute: N.C. Gen. Stat. § 95-25.4 — https://www.ncleg.gov/Laws/GeneralStatuteSections/Chapter95
Federal statute: Fair Labor Standards Act, 29 U.S.C. § 207 — https://www.dol.gov/agencies/whd/overtime

How Overtime Pay Is Calculated in North Carolina

What Is a “Workweek”?

Under the FLSA, a workweek is a fixed, regularly recurring period of 168 consecutive hours (seven consecutive 24-hour periods). A workweek does not have to start on Monday or align with a calendar week — the employer may designate any day and time as the start of the workweek.

Each workweek stands alone. An employer cannot average hours across two or more workweeks to avoid overtime. If an employee works 50 hours in one week and 30 the next, overtime is owed for the first week regardless of the second. The NC DOL explicitly confirms this: “Each workweek stands on its own regardless of the length of the pay periods.”

Source: 29 C.F.R. § 778.104–778.105; NC DOL — https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/overtime-pay-salary-and-comp-time

Pay Rates

Under the FLSA and N.C. Gen. Stat. § 95-25.4, nonexempt employees in North Carolina earn:

Time-and-a-half (1.5× regular rate):

  • All hours worked over 40 in a workweek

There is no daily overtime requirement in North Carolina. Working a 10- or 12-hour shift does not trigger overtime pay unless total hours in the workweek exceed 40.

Note — Seasonal Amusement or Recreational Establishment Exception: Under G.S. 95-25.4(a), employers of seasonal amusement or recreational establishment employees are only required to pay the overtime rate for hours in excess of 45 per workweek (rather than 40). This is a state-law carve-out that applies to non-FLSA-covered employers in that specific sector.

What Counts as the “Regular Rate of Pay”

The regular rate is not always the same as the hourly wage. Under the FLSA (29 C.F.R. § 778.108), the regular rate includes:

  • Base hourly rate or salary equivalent
  • Non-discretionary bonuses and incentive pay
  • Shift differentials
  • Commissions
  • Piece-rate earnings

The regular rate does not include:

  • Discretionary bonuses (e.g., holiday gifts)
  • Employer contributions to benefit plans
  • Vacation, holiday, or sick pay when no work is performed

Calculation Example

Example — Weekly overtime in North Carolina:

An employee earns $7.25/hour (North Carolina minimum wage) and works 48 hours in one workweek:

  • Regular pay: 40 hours × $7.25 = $290.00
  • Overtime pay: 8 hours × ($7.25 × 1.5) = 8 × $10.875 = $87.00
  • Total weekly gross pay: $377.00

Example — Salaried nonexempt employee:

An employee earns $600/week salary and works 45 hours. Because they earn below the $684/week exempt threshold, they are nonexempt:

  • Regular hourly rate: $600 ÷ 40 = $15.00/hour
  • Overtime rate: $15.00 × 1.5 = $22.50/hour
  • Overtime pay: 5 hours × $22.50 = $112.50
  • Total weekly gross pay: $712.50

Source: N.C. Gen. Stat. § 95-25.4; 29 C.F.R. § 778.108–778.122

For the current North Carolina minimum wage, see the North Carolina Minimum Wage page.

Who Is Exempt from Overtime in North Carolina?

Not all employees in North Carolina are entitled to overtime pay. Certain employees are classified as “exempt” under federal and/or state law.

Federal FLSA Exemption Requirements

To be exempt from overtime under the FLSA, an employee must meet all three criteria:

1. Salary basis test: Paid a predetermined, fixed salary each pay period (not hourly)

2. Salary level test: Earn at least $684 per week ($35,568 per year)

3. Duties test: Perform specific job duties in one of these categories:

Exemption Key duty requirement
Executive Manages enterprise or department; directs 2+ employees; authority to hire/fire
Administrative Office/non-manual work related to management or business operations; exercises independent judgment on significant matters
Professional Work requiring advanced knowledge in science or learning acquired by prolonged specialized study
Computer employee Systems analysis, programming, software engineering — $684/week salary OR $27.63/hour
Outside sales Primary duty is making sales away from employer's place of business
Highly compensated Earns $107,432+ annually, including $684/week on salary; performs at least one exempt duty

The NC Department of Labor has explicitly adopted 29 C.F.R. Part 541 as the state standard for identifying exempt employees.

Source: 29 C.F.R. Part 541; NC DOL — https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/overtime-pay-salary-and-comp-time

What Happened to the 2024 DOL Salary Threshold Increase?

In April 2024, the U.S. Department of Labor issued a final rule that would have raised the exempt salary threshold to $1,128 per week ($58,656/year) effective January 1, 2025.

On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that rule nationwide in Texas v. U.S. Department of Labor (No. 4:24-cv-00499).

The salary threshold remains $684/week ($35,568/year) as of 2026.

North Carolina does not set a higher state-level salary threshold. The federal $684/week standard applies statewide.

Being Paid a Salary Does Not Mean You Are Exempt

The NC DOL explicitly states: “Being paid a salary does not exempt an employee from the minimum wage and/or overtime pay requirements.” A salaried employee who earns less than $684/week, or who does not meet the applicable duties test, is nonexempt and entitled to overtime pay for all hours over 40 in a workweek.

Additional North Carolina Exemptions Under State Law

Under N.C. Gen. Stat. § 95-25.14, the state Wage and Hour Act’s overtime provisions (for non-FLSA-covered employers) do not apply to:

  • Persons employed in agriculture (as defined under the FLSA)
  • Persons employed as domestics, including babysitters and companions
  • Pages of the North Carolina General Assembly or Governor’s Office
  • Bona fide volunteers in medical, educational, religious, or nonprofit organizations
  • Persons confined and working in penal, correctional, or mental institutions
  • Models, actors, or performers in motion pictures or theatrical, radio, or television productions
  • Seasonal amusement or recreational establishment employees (who face a 45-hour threshold rather than 40 hours)

Important: These state-law exemptions apply primarily to employers not covered by the FLSA. Employers covered by the FLSA follow the federal exemption framework.

Source: N.C. Gen. Stat. § 95-25.14 — https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_95/GS_95-25.14.html

Overtime Tax Deduction: "No Tax on Overtime" (2025–2028)

The One Big Beautiful Bill Act (Public Law 119-21), signed on July 4, 2025, created a new federal income tax deduction for qualified overtime compensation under Internal Revenue Code § 225.

This deduction is available for tax years 2025 through 2028.

Who Is Eligible

  • Nonexempt employees covered by the Fair Labor Standards Act (29 U.S.C. § 207)
  • Must have a Social Security number valid for employment
  • Cannot use the Married Filing Separately filing status

Who is NOT eligible:

  • Exempt (salaried) employees who do not receive FLSA overtime
  • Independent contractors (1099 workers) who are not FLSA-covered
  • Employees receiving overtime only under state law, employer policy, or collective bargaining (if that overtime is not also required by the FLSA)

What Is Deductible

The deduction covers the premium portion of overtime pay — specifically the amount that exceeds the regular rate of pay.

Overtime type What is deductible Example ($20/hr regular rate)
Time-and-a-half (1.5×) The "half" — 1/3 of total OT pay $10/hr per OT hour ($30 − $20)
Double time (2×) The "full extra" — 1/2 of total OT pay $20/hr per OT hour ($40 − $20)

IRS shortcut for 2025: If you only know your total overtime pay and were paid time-and-a-half, divide the total overtime amount by 3. (Source: IRS Notice 2025-69)

Deduction Limits
Filing status Maximum annual deduction Phase-out begins
Single $12,500 $150,000 MAGI
Married filing jointly $25,000 $300,000 MAGI
W-2 Reporting
Tax year Employer reporting requirement
2025 NOT required to separately report (transition year — IRS Notice 2025-62). May voluntarily report in W-2 Box 14 as "QUAL OT" or provide a separate statement
2026 and later REQUIRED to separately report qualified overtime compensation. IRS draft W-2 form indicates Box 12, Code TT for this purpose (draft form, subject to change)

If an employer did not separately report overtime for 2025, the IRS allows employees to use “any reasonable method” to calculate the deductible amount, including:

  • One-third of total overtime pay (for time-and-a-half workers)
  • Payroll records or pay stubs showing overtime hours and rates
  • Employer statements or online portal information

What This Deduction Does NOT Do

  • Does not exempt overtime from Social Security (6.2%) or Medicare (1.45%) taxes
  • Does not apply to North Carolina state income taxes (federal deduction only — see below)
  • Does not change how much overtime pay an employee receives — it reduces taxable income when filing a federal return
  • Does not apply to overtime paid solely under state law or employer policy that exceeds FLSA requirements

Source: IRS FAQs on Qualified Overtime Compensation Deduction; IRS Notice 2025-69; IRS Notice 2025-62; IRC § 225; P.L. 119-21, § 70202; Schedule 1-A (Form 1040)
Official IRS page: https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation

North Carolina State Income Tax and Overtime

The federal overtime deduction applies to federal income tax only. Overtime pay in North Carolina remains subject to North Carolina state income tax at the applicable flat rate.

As of 2026, North Carolina imposes a flat individual income tax rate. The federal overtime deduction does not carry over to the North Carolina return — state income tax is owed on all wages, including overtime premium pay.

There are no currently enacted North Carolina bills providing a state-level income tax exemption for overtime pay as of February 2026.

Cross-reference: For North Carolina income tax details, see the North Carolina Income Tax page.

Can an Employer Require Overtime in North Carolina?

Under the FLSA and North Carolina law, there is no limit on the number of hours an employer can require an adult employee (age 16 and older) to work in a workweek, as long as the employee is properly compensated for all overtime hours.

The NC DOL confirms: “An employer can make the working of overtime mandatory, the employer can terminate an employee if the employee refuses to work overtime regardless of how many hours the employee has already worked that day or workweek.”

An employer may also adjust hours during the workweek to keep total hours under 40 — for example, sending an employee home early on Friday if they have already worked 36 hours. This practice is entirely legal and requires no advance notice or employee agreement.

North Carolina does not have additional mandatory overtime restrictions beyond the FLSA. North Carolina is an at-will employment state — at-will employees who refuse mandatory overtime may face disciplinary action up to and including termination.

Protections That Always Apply

Regardless of mandatory overtime policies, the following protections apply in North Carolina:

  • All overtime hours must be compensated at 1.5× the regular rate
  • Employers cannot retaliate against employees who file wage complaints, under both 29 U.S.C. § 215(a)(3) and the North Carolina Retaliatory Employment Discrimination Act (REDA) (N.C. Gen. Stat. § 95-240 et seq.)
  • Disability accommodation requests under the ADA may limit overtime requirements
  • Child labor laws restrict hours for employees under 18 (enforced by NCDOL Wage and Hour Bureau)

Source: NC DOL — https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/maximumminimum-hours-worked; 29 U.S.C. § 207; N.C. Gen. Stat. § 95-240

Industry-Specific Overtime Rules in North Carolina

Agriculture

Under the FLSA, agricultural workers are generally exempt from overtime pay requirements (29 U.S.C. § 213(b)(12)). This exemption applies regardless of hours worked. North Carolina does not have a state law that overrides this federal agricultural exemption or requires overtime pay for farm workers.

Healthcare — 8-and-80 Alternative

Under 29 U.S.C. § 207(j), hospitals and residential care facilities in North Carolina may enter into an agreement with employees to use a 14-day work period instead of the standard 7-day workweek. Under this arrangement, overtime is due after 8 hours in a single day or 80 hours in the 14-day period — whichever calculation results in greater overtime pay.

This is an optional election that requires a prior agreement between employer and employee. It does not reduce total overtime in most cases but can offer scheduling flexibility.

Retail and Commission Employees

Under 29 U.S.C. § 207(i), employees of retail or service establishments paid more than half their compensation in commissions may be exempt from overtime if their regular rate of pay exceeds 1.5 times the federal minimum wage. This exemption applies to qualifying businesses in North Carolina.

Transportation — Motor Carrier Exemption

Employees whose primary duties affect the safe operation of commercial motor vehicles in interstate commerce may be exempt from FLSA overtime under the Motor Carrier Act exemption (29 U.S.C. § 213(b)(1); 49 U.S.C. § 31502). This applies to certain truck drivers, bus drivers, and dispatchers at qualifying carriers.

Public Sector / Government Employees — Compensatory Time

Under the FLSA, private-sector employers in North Carolina cannot offer compensatory time off in lieu of overtime wages. A nonexempt employee who works overtime must be paid at 1.5× the regular rate in cash wages — not in time off.

Public-sector employers (state and local government agencies in North Carolina) may offer compensatory time instead of overtime pay under 29 U.S.C. § 207(o), provided:

  • The comp time accrues at 1.5 hours for each overtime hour worked
  • A prior agreement exists between the employer and employee (or union representative)
  • The maximum accrual cap is 240 hours of comp time (or 480 hours for public safety, emergency response, and seasonal government employees)
  • Employees must be permitted to use accrued comp time within a reasonable period upon request

The NC DOL confirms this distinction: “Only governmental (public) agencies are allowed to give comp time based on one and one-half times the number of hours worked in excess of 40 in a workweek under certain conditions.”

Source: 29 U.S.C. § 207(j); 29 U.S.C. § 207(i); 29 U.S.C. § 207(o); NC DOL — https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/overtime-pay-salary-and-comp-time

How to File an Overtime Wage Complaint in North Carolina

Employees in North Carolina who believe they have not received proper overtime pay have three options:

Option 1: NC Department of Labor — Wage and Hour Bureau

Details
Agency NC Department of Labor — Wage and Hour Bureau
Online filing https://www.labor.nc.gov/initiate-wage-complaint-online
Phone 1-800-NC-LABOR (1-800-625-2267) toll-free; 919-707-7970 (Raleigh)
Hours Monday–Friday, 8 a.m.–5 p.m.
Deadline 2 years from the date the wages were due (G.S. 95-25.22)

Important note: The NC DOL Wage and Hour Bureau can assist with wage payment claims (promised wages, final paychecks, unauthorized deductions) for all North Carolina employers. For overtime claims, the bureau’s authority under the NCWHA covers employers not subject to the FLSA. For FLSA-covered employers, the U.S. DOL Wage and Hour Division has primary jurisdiction. If in doubt about which agency to contact, the NC DOL will direct you to the correct body — or you can file with both.

Option 2: U.S. Department of Labor — Wage and Hour Division

Details
Online https://www.dol.gov/agencies/whd/contact/complaints
Phone 1-866-487-9243 (toll-free)
Deadline 2 years from violation (3 years if willful)

Option 3: Private Lawsuit

Employees may file a lawsuit against their employer in state or federal court under 29 U.S.C. § 216(b) and/or N.C. Gen. Stat. § 95-25.22. Remedies may include:

  • Back wages owed
  • Liquidated damages (an additional amount equal to unpaid wages — effectively doubling recovery)
  • Interest at the legal rate under G.S. 24-1 (for state law claims)
  • Reasonable attorney’s fees and court costs

Retaliation Protection

Under the FLSA (29 U.S.C. § 215(a)(3)) and the NC Retaliatory Employment Discrimination Act (REDA, N.C. Gen. Stat. § 95-240 et seq.), employers cannot retaliate against employees for:

  • Filing an overtime or wage complaint
  • Participating in a wage investigation
  • Testifying in proceedings related to overtime violations

REDA complaints can be filed with the NC DOL’s Retaliatory Employment Discrimination Bureau (REDB) at 1-800-625-2267.

Source: NC DOL Wage and Hour Bureau — https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/how-and-where-file-wage-complaint; N.C. Gen. Stat. § 95-25.22; 29 U.S.C. § 216(b)

Penalties for Overtime Violations in North Carolina

Federal FLSA Penalties
Penalty type Amount
Back wages Full amount of unpaid overtime owed
Liquidated damages Equal to unpaid wages (effectively doubles recovery)
Civil monetary penalty Up to $2,451 per violation (willful/repeated — adjusted annually by DOL)
Criminal prosecution Willful: fines up to $10,000; second offense: up to 6 months imprisonment

Source: 29 U.S.C. § 216

North Carolina State Penalties

Under N.C. Gen. Stat. § 95-25.22, employers who violate the state Wage and Hour Act are liable to employees for:

  • Unpaid overtime compensation — the full amount owed
  • Liquidated damages — up to double the unpaid amount (the court may reduce or eliminate liquidated damages if the employer demonstrates good faith and reasonable grounds for the violation)
  • Interest at the legal rate under G.S. 24-1 from the date each amount first became due
  • Attorney’s fees and court costs in successful employee actions

The NC Commissioner of Labor may also seek injunctive relief in the General Court of Justice to restrain continued withholding of wages.

Source: N.C. Gen. Stat. § 95-25.22 — https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_95/GS_95-25.22.pdf

North Carolina Overtime Law Updates (2025–2026)

Federal Changes Affecting North Carolina

  • July 4, 2025: One Big Beautiful Bill Act (P.L. 119-21) signed — created the federal overtime tax deduction under IRC § 225 for tax years 2025–2028
  • November 15, 2024: Federal court vacated the DOL’s 2024 salary threshold increase — exempt salary threshold remains $684/week ($35,568/year)
  • January 13, 2026: Fourth Circuit confirmed in Figueroa v. Butterball, LLC that FLSA provides exclusive overtime remedies for FLSA-covered employees in North Carolina, limiting reliance on the state Wage and Hour Act’s overtime provisions for that class of workers

North Carolina Changes (2025–2026)

  • January 1, 2026: H.B. 74 took effect, exempting temporary employees of the University of North Carolina system from state minimum wage and overtime requirements under the NC Wage and Hour Act
  • 2026: North Carolina minimum wage remains at $7.25/hour (tied to the federal minimum — no scheduled state increase as of this review)

Pending Legislation

No state bill providing a North Carolina income tax exemption or deduction for overtime pay has been enacted as of February 26, 2026. The legislature may consider such measures; check the NC General Assembly website for current bill status: https://www.ncleg.gov

Last reviewed: February 26, 2026
Next scheduled review: May 26, 2026

Frequently Asked Questions About Overtime in North Carolina

Does North Carolina have overtime laws?

North Carolina has its own Wage and Hour Act under N.C. Gen. Stat. § 95-25.4, which mirrors the federal 40-hour overtime threshold. For employees at FLSA-covered employers, federal law governs in practice. The state Wage and Hour Act primarily protects workers at smaller employers not subject to the FLSA.

What is the overtime rate in North Carolina in 2026?

The overtime rate in North Carolina is 1.5 times the employee’s regular rate of pay for all hours worked over 40 in a workweek. Based on the state minimum wage of $7.25/hour, the minimum overtime rate is $10.875/hour (rounded to $10.88). There is no double-time requirement in North Carolina.

Does North Carolina require daily overtime?

No. Overtime in North Carolina is calculated on a weekly basis only. Working more than 8 or 10 hours in a single day does not trigger overtime unless total hours in the workweek exceed 40. Only the total workweek hours count.

Is mandatory overtime legal in North Carolina?

Yes. Neither the FLSA nor North Carolina law limits the number of hours adult employees (16 and older) may be required to work. Employers may mandate overtime and may discipline or terminate at-will employees who refuse. All overtime hours worked must be compensated at the applicable overtime rate.

Am I exempt from overtime in North Carolina?

Exemption depends on both salary level and job duties. You must earn at least $684/week on a salary basis AND perform executive, administrative, professional, outside sales, or computer employee duties as defined in 29 C.F.R. Part 541. North Carolina does not set a higher state salary threshold — the federal $684/week standard applies.

Can salaried employees get overtime in North Carolina?

Yes. Being paid a salary does not automatically make an employee exempt from overtime. The NC DOL confirms that salaried employees who earn less than $684/week or who do not meet the applicable duties tests are nonexempt and entitled to overtime pay. Many salaried employees in North Carolina qualify for overtime.

Is overtime taxed in North Carolina?

Overtime pay is subject to both federal and North Carolina state income taxes. However, under the One Big Beautiful Bill Act (2025–2028), FLSA-covered nonexempt employees may deduct up to $12,500 (or $25,000 if married filing jointly) of the premium portion of their overtime pay from federal taxable income. This deduction does not apply to the North Carolina state income tax return.

How do I calculate the federal overtime tax deduction?

For time-and-a-half pay, the deductible amount is one-third of total overtime pay received. For example, if you earned $6,000 in total overtime compensation at time-and-a-half during the year, the qualified overtime deduction is $2,000. The IRS confirms this method in Notice 2025-69. The deduction is claimed on Schedule 1-A of Form 1040.

How do I file an overtime complaint in North Carolina?

File a wage complaint with the NC Department of Labor Wage and Hour Bureau online at https://www.labor.nc.gov/initiate-wage-complaint-online or by calling 1-800-625-2267. You may also contact the U.S. DOL Wage and Hour Division at 1-866-487-9243 or file online at https://www.dol.gov/agencies/whd/contact/complaints. The FLSA statute of limitations is 2 years (3 years for willful violations).

Can my employer fire me for refusing overtime in North Carolina?

In most cases, yes. North Carolina is an at-will employment state, and employers may discipline or terminate employees who refuse mandatory overtime, unless a law, contract, or collective bargaining agreement provides otherwise. However, employers cannot retaliate against employees for filing overtime complaints — that protection is provided by both the FLSA and the NC Retaliatory Employment Discrimination Act (REDA).

Can my employer give comp time instead of overtime pay?

Under the FLSA, private-sector employers in North Carolina cannot substitute compensatory time off for overtime wages. Nonexempt employees must receive cash payment at 1.5× their regular rate for all overtime hours. Public-sector (government) employers may offer comp time at 1.5 hours per overtime hour, up to 240 hours accrued (480 hours for public safety and emergency workers), subject to a prior agreement.

Does working on weekends or holidays count as overtime in North Carolina?

No. Under both the FLSA and N.C. Gen. Stat. § 95-25.4, working on weekends or holidays does not automatically constitute overtime. Overtime is determined solely by total hours worked in the workweek — regardless of which days those hours fall on. A private employer in North Carolina is not required to pay premium rates for holiday or weekend work unless the employee’s total hours exceed 40 for the workweek.

What happens if my employer doesn’t pay overtime?

Employees may recover unpaid overtime wages, liquidated damages equal to the unpaid amount, and attorney’s fees under 29 U.S.C. § 216(b) and N.C. Gen. Stat. § 95-25.22. The FLSA statute of limitations is 2 years (3 years if willful). The NC Wage and Hour Act provides a 2-year limitations period under G.S. 95-25.22.

What is the statute of limitations for overtime claims in North Carolina?

Under the FLSA: 2 years (3 years if the violation is willful — for example, if the employer knowingly failed to pay overtime). Under the NC Wage and Hour Act: 2 years (G.S. 95-25.22). The longer applicable deadline governs depending on which law covers the claim.

Does the FLSA cover my North Carolina employer?

The FLSA generally covers enterprises with annual gross sales or business of $500,000 or more that are engaged in or producing goods for interstate commerce, as well as any individual employees engaged in interstate commerce regardless of employer size. For smaller businesses (gross sales under $500,000), the NC Wage and Hour Act may apply instead. Contact the NC DOL at 1-800-625-2267 if you are unsure whether your employer is FLSA-covered.

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Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current