North Carolina Remote Work Laws 2026

Employee Classification

Q1: How do I know if I’m an employee or independent contractor?

General Answer:

According to North Carolina law, classification depends on application of the “right to control” test, which examines multiple factors including: control over work details, who provides tools/equipment, method of payment, nature of work, skill required, permanence of relationship, ability to hire assistants, and opportunity for profit/loss.

No single factor is determinative. The totality of circumstances matters.

⚠️ This is complex: Classification determinations require detailed analysis of specific facts.

Consult:

• Employment attorney licensed in North Carolina
• NC Department of Labor: (919) 707-7970
• U.S. Department of Labor: 1-866-4-USWAGE
• Tax professional (for tax classification)

Resources: See Classification section in Part 2 of this guide

Q2: Can my employer classify me as a contractor even though I work full-time?

General Answer:

According to employment law principles, classification does NOT depend on hours worked or whether work is “full-time.” Classification depends on the nature of the working relationship under applicable legal tests.

Someone working 40+ hours per week may be properly classified as either employee or independent contractor depending on the specific factors present.

Key Point: Employer cannot simply choose classification. The legal relationship determines classification regardless of what parties call it or what contract says.

If you believe you’re misclassified:

• You may have legal rights to employee benefits and protections
• Strict deadlines may apply for claims
• Document your working relationship thoroughly

Consult immediately:

• Employment attorney
• NC Department of Labor
• U.S. Department of Labor
• IRS (for tax status): 1-800-829-1040

Q3: What should I do if I think I’m misclassified?

Steps to Consider:

1. Document Everything:

• How much control employer exercises over your work
• Who provides tools and equipment
• How you’re paid
• Whether you have other clients
• Your job duties and responsibilities
• Written contracts or agreements

2. Seek Professional Guidance:

• Employment attorney can evaluate your classification
• May have claims for back wages, benefits, taxes

3. Consider Filing With Agencies:

• NC Department of Labor (for state wage claims)
• U.S. Department of Labor (for FLSA violations)
• IRS Form SS-8 (determination of worker status for tax purposes)

⚠️ Deadlines Matter: Many employment claims have strict deadlines (often 2-3 years for wage claims, shorter for others). DO NOT delay seeking legal counsel.

⚠️ Retaliation Protections: Laws generally prohibit retaliation for asserting employee rights, but documentation is important.

Consult:

• Employment attorney IMMEDIATELY
• NC DOL: (919) 707-7970
• U.S. DOL: 1-866-4-USWAGE

Q4: Does working remotely affect my classification as employee vs. contractor?

General Answer:

According to employment law principles, remote work location does NOT automatically change classification status.

The same legal tests apply whether work is performed:

• On employer’s premises
• At employee’s home
• At remote location

However: Remote work arrangements may affect some factors in the analysis, such as:

• Level of supervision and control
• Who provides equipment and workspace
• Independence of work

Key Principle: It’s the nature of the working relationship—not the location—that determines classification.

Consult:

• Employment attorney for classification analysis
• See Classification section (Part 2) for detailed factors

Q5: Can I be both an employee and independent contractor for the same company?

General Answer:

According to employment law principles, it is legally possible to have both an employment relationship AND an independent contractor relationship with the same company, BUT:

Requirements (generally):

• The work under each relationship must be genuinely separate and distinct
• Each relationship must independently satisfy the appropriate legal tests
• Cannot be a scheme to avoid employment obligations

Red Flags (may indicate improper classification):

• Work under both relationships is similar or overlapping
• Contractor work is just extra hours of employee work
• Purpose appears to be avoiding overtime or benefits
• Lack of clear separation between roles

⚠️ High Scrutiny: Authorities closely scrutinize dual relationships for potential misclassification.

Consult:

• Employment attorney before entering dual relationship
• Tax professional for tax implications
• NC Department of Labor for guidance

Q6: If I’m classified as a contractor, am I entitled to any benefits or protections?

General Answer:

According to general employment law principles, independent contractors are generally NOT entitled to:

Employee-Only Benefits:

• Minimum wage protections (under FLSA)
• Overtime pay
• Workers’ compensation coverage
• Unemployment insurance benefits
• Employer-provided health insurance
• FMLA leave protections
• Employee anti-discrimination protections under some statutes

However, contractors DO have:

• Right to payment under contract terms
• Some anti-discrimination protections (depending on statute and relationship)
• Ability to negotiate terms and rates
• Generally more control over how work performed

Tax Differences:

• Contractors pay self-employment tax
• Responsible for own estimated tax payments
• May deduct business expenses

⚠️ If Misclassified: If you’re actually an employee misclassified as contractor, you may have rights to employee benefits retroactively.

Consult:

• Employment attorney for classification review
• Tax professional for tax status
• NC Department of Labor

Q7: What’s the difference between W-2 and 1099 classification?

General Answer:

W-2 Form:

• Given to employees by employers
• Reports wages, taxes withheld
• Employer withholds income tax, Social Security, Medicare
• Employer pays half of Social Security/Medicare taxes

1099 Form (specifically 1099-NEC):

• Given to independent contractors
• Reports nonemployee compensation
• No taxes withheld by payer
• Contractor responsible for all self-employment taxes (15.3%)
• Contractor makes quarterly estimated tax payments

⚠️ Key Point: Form used does NOT determine classification. Just because you receive 1099 doesn’t mean you’re properly classified as contractor. Legal relationship controls.

If misclassified:

• May be entitled to refund of excess self-employment taxes
• May file IRS Form SS-8 for determination
• May have wage and hour claims

Consult:

• Tax professional for tax status questions
• Employment attorney for classification review
• IRS: 1-800-829-1040

Wages and Overtime

Q8: What is North Carolina’s minimum wage?

Answer:

According to North Carolina wage and hour law, North Carolina follows the federal minimum wage under the Fair Labor Standards Act (FLSA).

Current Rate: $7.25 per hour (federal rate)

Note on Proposed Changes: H.B. 353 proposed increasing minimum wage to $10/hour in 2026, but this bill has NOT been enacted as of December 2025.

Tipped Employees:

• Cash wage minimum: $2.13/hour
• Tips must bring total to at least $7.25/hour
• If tips insufficient, employer must make up difference

Source:

• NC Department of Labor: (919) 707-7970 – https://www.labor.nc.gov
• U.S. Department of Labor: https://www.dol.gov/general/topic/wages/minimumwage

Q9: Am I entitled to overtime pay in North Carolina?

General Answer:

According to the Fair Labor Standards Act (FLSA), which applies in North Carolina:

If you are a non-exempt employee: You are generally entitled to overtime pay at 1.5 times your regular rate for all hours worked over 40 in a workweek.

If you are an exempt employee: You are generally NOT entitled to overtime pay.

Common Exempt Categories:

• Executive, administrative, professional (EAP) exemptions
• Computer professionals (meeting salary or hourly threshold)
• Outside sales
• Certain other specifically exempted occupations

Exemption Requirements (generally):

• Paid on salary basis (usually)
• Earn at least $684/week ($35,568/year) for EAP exemptions
• Perform exempt duties under DOL tests

⚠️ Important: Job title does NOT determine exemption. Actual duties and salary matter.

If you’re uncertain:

• Consult employment attorney
• NC DOL: (919) 707-7970
• U.S. DOL: 1-866-4-USWAGE

Resources: See Overtime section in Part 3

Q10: Can my employer require me to work overtime?

Answer:

According to North Carolina and federal law:

YES, employers can generally require employees to work overtime (mandatory overtime) in North Carolina.

Limitations:

• North Carolina has NO maximum hours restrictions for adults
• Employer must PAY overtime (time-and-a-half) for non-exempt employees
• Cannot retaliate against employees for requesting accommodation

Exceptions:

• Some industries have federal hour restrictions (trucking, aviation)
• Employees may request accommodation under ADA or for religious reasons
• Union contracts may restrict mandatory overtime

If you refuse mandatory overtime:

• Employer may discipline or terminate (absent contract or accommodation)
• However, employer must still pay overtime rate for hours worked

Protections:

• Cannot refuse to pay overtime because employee didn’t get approval
• Cannot use “comp time” instead of overtime pay for private-sector employees

Consult:

• Employment attorney if termination related to overtime refusal
• NC DOL: (919) 707-7970

Q11: Am I entitled to breaks or meal periods?

Answer:

According to North Carolina law:

For adults (16+ years old): North Carolina law does NOT require employers to provide meal breaks or rest breaks.

For minors (under 16): Must receive 30-minute break after 5 consecutive hours of work.

However—Federal Standards When Breaks Provided:

If employer voluntarily provides breaks:

Short breaks (5-20 minutes):

• Must be paid according to FLSA
• Cannot deduct from pay

Meal periods (30+ minutes):

• May be unpaid IF:
  
  • Employee completely relieved of duties
  • Employee free to leave workstation
  • Employee doesn’t perform any work

For Remote Workers:

• Same rules apply
• Document break times if breaks are unpaid
• Don’t perform work during unpaid meal periods

Nursing Mothers:

• Federal law requires break time and private space (not bathroom) for expressing milk
• Applies to employees for one year after child’s birth
• Employers with fewer than 50 employees may be exempt if undue hardship

Source:

• NC DOL: (919) 707-7970
• U.S. DOL: https://www.dol.gov/general/topic/workhours/breaks

Q12: How is my regular rate calculated for overtime purposes?

General Answer:

According to FLSA regulations, “regular rate” for overtime calculations includes most forms of compensation:

Included in Regular Rate:

• Hourly pay
• Salary (divided by hours worked)
• Commissions
• Non-discretionary bonuses
• Shift differentials
• Most other forms of compensation

Excluded from Regular Rate:

• Discretionary bonuses
• Gifts
• Reimbursements for business expenses
• Pay for time not worked (vacation, holiday, sick pay)
• Premium overtime pay
• Some other specific exclusions

Calculation Example (Illustrative Only):

Employee works 45 hours, earns $15/hour + $200 non-discretionary bonus:

1. Total compensation: (45 × $15) + $200 = $875
2. Regular rate: $875 ÷ 45 hours = $19.44/hour
3. Overtime rate: $19.44 × 0.5 = $9.72 (half-time premium)
4. Overtime pay: $9.72 × 5 hours = $48.60

⚠️ This is simplified: Actual calculations can be complex depending on compensation structure.

Consult:

• U.S. DOL Wage and Hour Division: 1-866-4-USWAGE
• Employment attorney for complex calculations
• NC DOL: (919) 707-7970

Q13: Can my employer pay me a salary and still require me to track hours?

Answer:

YES, according to general employment law principles.

Reasons employers may require exempt employees to track hours:

• Client billing purposes
• Project management
• Leave tracking (vacation, sick time)
• Verifying work performed
• Business analytics

Key Points:

• Tracking hours does NOT automatically make you non-exempt
• Exemption status depends on duties performed and salary, not time tracking
• Employers can require exempt employees to work specific hours or schedules

However:

• Exempt employees must receive full salary for any week they perform work (subject to limited exceptions)
• Cannot dock pay for partial-day absences (with limited exceptions)

If employer docking pay improperly:

• May lose exemption
• May owe overtime retroactively
• Consult employment attorney

Q14: What should I do if my employer isn’t paying me properly?

Steps to Consider:

1. Document Everything:

• Hours worked (keep own records)
• Pay stubs
• Time records
• Communications about pay
• Job duties

2. Raise Issue Internally (if comfortable):

• Speak with supervisor or HR
• Submit written complaint
• Document all responses

3. File Complaint With Authorities:

North Carolina Department of Labor:

• Handles NC Wage and Hour Act violations
• Can investigate and order payment
• Phone: (919) 707-7970
• File online: https://www.labor.nc.gov

U.S. Department of Labor:

• Handles FLSA violations (minimum wage, overtime)
• Can investigate and order payment
• Phone: 1-866-4-USWAGE
• Office locator: https://www.dol.gov/agencies/whd/contact/local-offices

4. Consider Private Attorney:

• May file lawsuit for unpaid wages
• Wage and hour laws provide for attorney’s fees if you win
• May recover liquidated damages (double damages in some cases)
• NC Bar Referral: (800) 662-7660

⚠️ Time Limits: Wage claims have deadlines (generally 2-3 years). Act promptly.

⚠️ Retaliation Protections: Laws prohibit retaliation for wage complaints, but document everything.

Leave and Benefits

Q15: Am I entitled to paid sick leave in North Carolina?

Answer:

According to North Carolina law:

NO, North Carolina does NOT have a state law requiring private employers to provide paid sick leave to employees.

What This Means:

• Paid sick leave is voluntary employer policy in North Carolina
• Employer may choose to provide or not provide paid sick leave
• If employer has policy, must follow it consistently

Federal Law:

• No federal law requires paid sick leave for private-sector employees
• Some cities/states have paid sick leave laws (but not NC)

What You May Have:

• Unpaid leave under FMLA (if eligible)
• Employer’s voluntary paid sick leave policy
• Paid leave under employment contract

If employer has policy:

• Review employee handbook
• Employer must follow stated policy
• Cannot discriminate in application

Source: NC Department of Labor; see Leave section in Part 4

Q16: What is FMLA and am I eligible?

General Answer:

The Family and Medical Leave Act (FMLA) is a federal law providing eligible employees with unpaid, job-protected leave.

Your Employer Must:

• Employ 50 or more employees (within 75-mile radius)

You Must:

• Have worked for employer at least 12 months
• Have worked at least 1,250 hours in past 12 months
• Work at location with 50+ employees within 75 miles

Leave Entitlement:

• Up to 12 weeks unpaid leave per year for:
  
  • Your own serious health condition
  • Care for family member with serious health condition
  • Birth/adoption/foster placement of child
  • Qualifying military family reasons
• Up to 26 weeks for military caregiver leave

Job Protection:

• Right to return to same or equivalent position
• Health benefits continue during leave

For Remote Workers:

• 75-mile radius measured from worksite (may be complicated for remote workers)
• Consult HR or attorney for worksite determination

Consult:

• U.S. Department of Labor: 1-866-4-USWAGE
• Employment attorney
• Your employer’s HR department

Resources: See FMLA section in Part 4

Q17: Can my employer deny my FMLA request?

General Answer:

According to FMLA regulations, employer may deny FMLA leave if:

Eligibility Issues:

• You don’t meet 12-month employment requirement
• You haven’t worked 1,250 hours
• Your employer doesn’t have 50+ employees
• You’re not within 75-mile radius of 50 employees

Procedural Issues:

• Insufficient medical certification provided
• Failed to provide required notice when foreseeable
• Failed to comply with employer’s usual call-in procedures

Employer CANNOT Deny If:

• You meet all eligibility requirements
• You provide proper notice and certification
• Leave is for qualifying reason

If Improperly Denied:

• You may have FMLA interference claim
• May seek reinstatement, back pay, damages
• File complaint with U.S. DOL or sue in court

Deadlines: FMLA claims generally must be filed within 2-3 years

Consult:

• Employment attorney if leave denied
• U.S. DOL: 1-866-4-USWAGE

Q18: What is a “serious health condition” under FMLA?

General Answer:

According to FMLA regulations, a “serious health condition” generally means:

Inpatient Care:

• Overnight stay in hospital, hospice, or residential medical facility

Continuing Treatment by Healthcare Provider:

• Period of incapacity of more than 3 consecutive days PLUS:
  
  • Two or more visits to healthcare provider, OR
  • One visit to healthcare provider plus continuing treatment under supervision

Pregnancy/Prenatal Care:

• Incapacity due to pregnancy or prenatal care

Chronic Conditions:

• Chronic serious health condition requiring periodic visits (at least twice per year)

Permanent/Long-Term Conditions:

• Conditions requiring continuing supervision but not active treatment (e.g., Alzheimer’s, terminal cancer)

Conditions Requiring Multiple Treatments:

• Absences to receive multiple treatments (e.g., chemotherapy, physical therapy, dialysis)

Generally NOT Covered:

• Routine medical exams
• Common cold, flu (unless complications)
• Minor injuries
• Cosmetic treatments (unless complications)

⚠️ Fact-Specific: Whether condition qualifies depends on specific facts and medical certification.

Consult:

• Your healthcare provider
• U.S. DOL: 1-866-4-USWAGE
• Employment attorney

Q19: Can my employer require a doctor’s note for absences?

Answer:

According to general employment law principles:

YES, employers can generally require medical documentation (doctor’s notes) for absences, with some limitations:

Permissible:

• Requiring doctor’s note after certain number of days absent
• Requiring documentation for FMLA leave (medical certification)
• Requiring note to return to work after illness

Limitations:

ADA Considerations:

• Cannot require disability-related medical information unless job-related and consistent with business necessity
• Must keep medical information confidential

FMLA:

• Can require medical certification for FMLA leave
• Cannot require more information than FMLA allows
• Cannot contact healthcare provider directly without authorization

Consistency:

• Must apply policy consistently to avoid discrimination claims

For Remote Workers:

• Same rules apply as on-site workers

Best Practices:

• Have clear policy in handbook
• Apply consistently
• Keep medical information confidential
• Train supervisors on proper handling

Consult:

• Employment attorney for policy development
• EEOC for ADA questions: 1-800-669-4000
• U.S. DOL for FMLA questions: 1-866-4-USWAGE

Workers’ Compensation

Q20: Am I covered by workers’ compensation if I work from home?

General Answer:

According to North Carolina Workers’ Compensation Act principles:

Generally YES, if:

• Your employer has workers’ compensation coverage (generally required for 3+ employees in NC)
• Your injury or illness is work-related (arises out of and in the course of employment)

Key Requirements:

• Injury must occur while performing work duties
• Injury must have employment connection

Challenges for Remote Workers:

The question of whether injury is work-related can be more complex for remote workers. Courts and the Industrial Commission examine factors such as:

• Was employee performing work duties at time of injury?
• Was injury during work hours?
• Was location where injury occurred dedicated workspace?
• Did injury result from employment activities?

⚠️ Fact-Specific: Whether specific injury is covered requires detailed analysis.

Consult:

• NC Industrial Commission: (919) 807-2500
• Workers’ compensation attorney
• Your employer’s workers’ comp carrier

Resources: See Workers’ Compensation section in Part 4b

Q21: What should I do if I’m injured while working from home?

Immediate Steps:

1. Seek Medical Attention:

• Get necessary medical treatment immediately
• Tell medical provider injury is work-related

2. Report to Employer Immediately:

• North Carolina law: Report within 30 days to employer
• DO NOT DELAY—late reporting can affect benefits
• Report in writing if possible
• Keep copy of report

3. Document Everything:

• How injury occurred
• What work activities you were performing
• Date, time, location
• Witnesses (if any)
• Photos of injury/workspace

4. File Workers’ Comp Claim:

• Employer should provide Form 18 (Notice of Accident)
• Employer must file with NC Industrial Commission
• You can file Form 18 if employer doesn’t

5. Seek Legal Counsel:

• Workers’ compensation attorney can help navigate process
• Many work on contingency (paid from settlement/award)
• Especially important if claim denied

⚠️ Critical Deadlines:

• Report to employer: 30 days
• File claim: 2 years (generally)
• Missing deadlines can forfeit rights

Resources:

• NC Industrial Commission: (919) 807-2500
• Workers’ comp attorney
• NC Bar Referral: (800) 662-7660

Q22: Will workers’ compensation cover all my medical bills?

General Answer:

According to NC Workers’ Compensation Act:

If your claim is accepted, workers’ compensation generally covers:

Medical Benefits:

• All reasonable and necessary medical treatment related to work injury
• Doctor visits
• Hospital stays
• Surgery
• Prescriptions
• Physical therapy
• Medical equipment
• Mileage to medical appointments

No Co-Pays or Deductibles:

• Workers’ comp pays 100% of covered medical expenses
• Employee doesn’t pay co-pays or deductibles for covered treatment

Choice of Doctor:

• Generally, employee may choose treating physician from list provided by employer or insurer
• After 90 days, may change to doctor of choice in some circumstances
• Emergency treatment: go where needed

Limitations:

• Must be reasonable and necessary for work injury
• Must be related to compensable injury
• Unauthorized treatment may not be covered

If Claim Denied:

• May need to use own health insurance initially
• Can appeal denial
• Consult workers’ compensation attorney immediately

Consult:

• NC Industrial Commission: (919) 807-2500
• Workers’ compensation attorney
• Your employer’s workers’ comp carrier

Q23: Can I be fired for filing a workers’ compensation claim?

General Answer:

According to North Carolina law:

NO, employers generally cannot terminate employee solely for filing legitimate workers’ compensation claim. This is considered retaliatory discharge.

Protections:

• Public policy protects right to file workers’ comp claims
• Wrongful termination claim may exist if fired in retaliation
• Employer also cannot retaliate through demotion, harassment, etc.

However:

• Employer CAN terminate for legitimate, non-retaliatory reasons
• Employment-at-will generally applies (can fire for any lawful reason)
• Employer may terminate if cannot accommodate work restrictions and no alternative available

Key Factors Courts Consider:

• Timing (fired shortly after filing claim?)
• Stated reason for termination
• Employer’s past practice
• Evidence of retaliatory motive

If You Believe Termination Was Retaliatory:

• Document circumstances thoroughly
• Consult employment attorney IMMEDIATELY
• Strict deadlines apply for legal claims
• May have multiple claims (workers’ comp retaliation, wrongful discharge)

Consult:

• Employment attorney
• NC Industrial Commission: (919) 807-2500
• NC Bar Referral: (800) 662-7660

Remote Work Specific

Q24: Can my employer require me to work from a specific location?

Answer:

According to general employment law principles:

YES, employers generally can:

• Require employees to work on-site
• Require remote workers to work from specific location (e.g., home only, not coffee shops)
• Require specific state/geographic area
• Change remote work arrangements

Employer’s Business Reasons May Include:

• Security and confidentiality concerns
• Supervision and collaboration needs
• Tax and legal compliance (multi-state issues)
• Insurance coverage requirements
• Client requirements

Exceptions:

ADA Accommodation:

• If remote work is reasonable accommodation for disability, employer must consider
• Cannot deny if reasonable accommodation and no undue hardship

Contract:

• If employment contract guarantees remote work, employer must honor

Union Agreement:

• Collective bargaining agreement may have requirements

For Changes to Arrangement:

• Employment-at-will principle generally applies
• Employer can change terms of employment
• Employee can quit if don’t agree

If Work Location Changed:

• May create unemployment insurance eligibility if quit for “good cause”
• Consult employment attorney if circumstances seem discriminatory or retaliatory

Q25: Can my employer monitor my computer activity while I work from home?

General Answer:

According to employment law and privacy principles:

Generally YES, employers can monitor work activity on employer-provided equipment, with some limitations:

What Employers Generally CAN Monitor:

• Email on company email system
• Internet browsing on company devices
• Keystrokes and screenshots on company computers
• Company phone usage
• Work-related software/applications
• Time worked and productivity

Important Limitations:

Notice:

• Best practice (and some state laws) require notice to employees
• Employee handbook should disclose monitoring
• Consent often obtained

Scope:

• Monitoring should be work-related
• Should not extend to personal devices or accounts
• Should not monitor in areas with privacy expectation (bathroom, etc.)

North Carolina Law:

• NC is “one-party consent” state for recording
• No specific employee privacy law restricting monitoring
• Federal laws (ECPA) apply

For Remote Workers:

• Same monitoring rights apply
• Employer generally CANNOT monitor personal devices
• Employer generally CANNOT monitor personal accounts
• Cannot use cameras to monitor inside employee’s home without consent

Best Practices for Employees:

• Review employer’s monitoring policy
• Keep personal activity on personal devices
• Don’t use company equipment for personal matters
• Assume company equipment is monitored

Consult:

• Employment attorney for privacy concerns
• IT security professional
• Review employee handbook

Resources: See Privacy section in Part 5

Q26: Who pays for my internet and equipment when working from home?

Answer:

According to North Carolina law:

North Carolina has NO state law requiring employers to reimburse remote work expenses such as internet, phone, equipment, or utilities.

Federal Law:

• No general federal requirement either
• HOWEVER: If unreimbursed expenses cause earnings to fall below minimum wage, employer must reimburse difference (FLSA)

Employer Policy Controls:

• Whether employer reimburses depends on employer policy
• Some employers provide equipment
• Some provide stipends
• Some require employees to cover costs
• Check employee handbook or remote work agreement

If You Work for Out-of-State Employer:

• That state’s reimbursement law might apply
• States with reimbursement laws include: CA, IL, IA, MA, MN, MT, NH, NY, ND, PA, SD, WA, DC

Tax Considerations:

• Home office deduction generally NOT available for employees
• Reimbursements under “accountable plan” generally not taxable
• Consult tax professional

Consult:

• Your employer’s HR department for policy
• Employment attorney if FLSA minimum wage implicated
• Tax professional for tax treatment

Resources: See Equipment Reimbursement section in Part 6

Q27: Can my employer require me to return to the office?

Answer:

According to general employment law principles:

Generally YES, employers can require return to office, with exceptions:

Employment-At-Will:

• Most employment in NC is at-will
• Employer can change terms of employment
• Can require return to office
• Employee can quit if disagree

Exceptions:

1. Contract:

• If employment contract guarantees remote work, employer must honor
• Review your contract or offer letter

2. ADA Accommodation:

• If remote work is reasonable accommodation for disability:
  
  • Employer must engage in interactive process
  • Cannot require return to office if remote work is reasonable accommodation and no undue hardship
• Consult employment attorney

3. Retaliation:

• Cannot require return as retaliation for protected activity (discrimination complaint, wage claim, etc.)

4. Discrimination:

• Cannot require return for discriminatory reason (based on protected class)

If You Cannot Return:

• May qualify for unemployment if quit for “good cause”
• May need to request ADA accommodation
• Consult employment attorney

Consult:

• Employment attorney if believe return requirement is discriminatory or retaliatory
• EEOC: 1-800-669-4000 (for ADA accommodation questions)

Q28: Do labor laws differ if I work remotely for an out-of-state employer?

Answer:

YES, labor laws are significantly affected when you work remotely from one state for employer in another state.

General Principle:

• Employment laws generally apply based on where you physically work, not where employer is located

What This May Mean:

If You Work From North Carolina:

• North Carolina employment laws generally apply to you
• NC minimum wage, overtime rules, etc.
• NC workers’ compensation
• NC unemployment insurance (generally)
• NC income tax withholding

If You Work From Another State:

• That state’s employment laws may apply
• That state’s reimbursement requirements (if any)
• That state’s minimum wage
• That state’s paid sick leave (if any)
• That state’s income tax

Tax Complexity:

• May owe income tax to multiple states
• Employer must withhold for correct state
• No reciprocity agreements for NC

Employer Obligations:

• May need to register with your state’s agencies
• May need workers’ comp coverage in your state
• May need to comply with your state’s employment laws

⚠️ Extremely Complex: Multi-state employment has numerous compliance implications.

Consult:

• Employment attorney in your work state
• Tax professional for multi-state tax
• Your employer’s HR department

Tax Questions

Q29: Do I owe North Carolina income tax if I work remotely from NC?

General Answer:

According to general tax principles:

YES, if you physically perform work in North Carolina, your wages are generally subject to North Carolina income tax, even if your employer is located in another state.

Tax Principle:

• State income tax generally based on where work is physically performed
• Not where employer is located
• Not where you receive paycheck

Employer’s Obligation:

• Should withhold NC income tax from your wages
• Should file required NC tax reports

If Employer Not Withholding:

• You’re still responsible for NC income tax
• May need to make estimated tax payments
• File NC income tax return annually

Potential Double Taxation:

• May owe tax to both NC and employer’s state
• Credit for taxes paid to other state may be available
• No reciprocity agreements with neighboring states

⚠️ NOT TAX ADVICE: Tax situations are extremely fact-specific.

Consult:

• Tax professional (CPA or tax attorney)
• NC Department of Revenue: (877) 252-3052
• IRS: 1-800-829-1040

Resources: See Tax section in Part 5

Q30: Can I deduct home office expenses on my taxes?

General Answer:

According to IRS rules:

For Employees (W-2): Home office deduction is generally NOT available for tax years 2018-2025 due to Tax Cuts and Jobs Act.

Exception:

• Some state returns may allow (check with tax professional)
• North Carolina generally follows federal rules

For Self-Employed (1099):

• Home office deduction may be available if:
  
  • Part of home used exclusively and regularly for business
  • Home office is principal place of business
• Can deduct proportionate share of:
  
  • Mortgage interest or rent
  • Utilities
  • Insurance
  • Repairs
  • Depreciation

Methods:

• Regular method (actual expenses)
• Simplified method ($5 per square foot, max 300 sq ft)

⚠️ Complex Rules:

• “Exclusive use” requirement is strict
• Calculation can be complicated
• Documentation essential
• Audit risk if improper

⚠️ NOT TAX ADVICE

Consult:

• Tax professional (CPA, enrolled agent, tax attorney)
• IRS: 1-800-829-1040
• IRS Publication 587 (Business Use of Home)

Q31: If I work remotely for a California company while living in NC, where do I pay taxes?

General Tax Answer:

This is a complex multi-state tax situation. Generally:

North Carolina Income Tax:

• If you physically work from North Carolina, NC income tax generally applies
• NC taxes based on where work is performed

California Income Tax:

• California has “source income” rules
• Generally, if you don’t perform services in California, California doesn’t tax wages
• HOWEVER, California has complex rules—consult tax professional

Federal Income Tax:

• Same regardless of state
• IRS withholding applies

What Employer Should Do:

• Withhold NC income tax (where you work)
• Generally NOT withhold CA income tax (if you don’t work in CA)
• Verify with multi-state tax professional

Tax Credits:

• If taxed by both states, credit for taxes paid to other state may be available
• Prevents (or minimizes) double taxation

⚠️ CRITICAL: This is extremely simplified. Multi-state tax is highly complex.

You MUST consult:

• Multi-state tax professional (CPA or tax attorney)
• NC Department of Revenue: (877) 252-3052
• California Franchise Tax Board: 1-800-852-5711

Do NOT rely on this general information for tax filing.

Q32: Am I responsible for paying self-employment tax if classified as contractor?

General Answer:

According to IRS rules:

YES, if you are properly classified as independent contractor (receive 1099-NEC), you are generally responsible for self-employment tax.

Self-Employment Tax:

• 15.3% of net self-employment income
• Comprises:
  
  • 12.4% for Social Security
  • 2.9% for Medicare
• Applies to net earnings over $400

This Replaces:

• Employee’s share of FICA (7.65%)
• Employer’s share of FICA (7.65%)
• As contractor, you pay both shares

Payment:

• Made through quarterly estimated tax payments (Form 1040-ES)
• Deadlines: April 15, June 15, Sept 15, Jan 15

Tax Deductions:

• Can deduct business expenses (reduces net income)
• Can deduct half of self-employment tax (on income tax)
• May have other deductions available

State Income Tax:

• Also responsible for NC income tax on self-employment income
• File on Schedule C

If Misclassified:

• If you’re actually employee misclassified as contractor:
  
  • Paying excess taxes
  • May file IRS Form SS-8 for determination
  • May be entitled to refund

⚠️ NOT TAX ADVICE

Consult:

• Tax professional (CPA, enrolled agent, tax attorney)
• IRS: 1-800-829-1040
• NC DOR: (877) 252-3052

Discrimination and Complaints

Q33: What should I do if I experience discrimination at work?

Steps to Consider:

1. Document Everything:

• Dates, times, locations of incidents
• What was said/done
• Witnesses
• How you were treated differently
• Impact on you (adverse actions)

2. Follow Internal Procedures (if safe to do so):

• Report to supervisor (if not the harasser)
• Report to HR
• Follow company complaint procedure
• Keep copies of all complaints and responses

3. File External Complaint:

EEOC (Equal Employment Opportunity Commission):

• Must file within 180 days (300 days in some states)
• Phone: 1-800-669-4000
• Online: https://publicportal.eeoc.gov/Portal/Login.aspx
• Offices in Charlotte and Raleigh

NC Civil Rights Division (for state/local government employees):

• Phone: (919) 431-3093
• Website: https://www.oah.nc.gov/civil-rights-division

4. Consult Attorney:

• Employment attorney can evaluate claims
• Attorney’s fees available if you win
• Strict deadlines apply
• NC Bar Referral: (800) 662-7660

⚠️ Deadlines Are Critical: EEOC complaints generally must be filed within 180-300 days. Do NOT delay.

⚠️ Retaliation Protections: Law prohibits retaliation for filing discrimination complaints, but document everything.

Resources: See Anti-Discrimination section in Part 5

Q34: Can I be fired for filing a discrimination complaint?

Answer:

According to federal anti-discrimination laws:

NO, employers cannot retaliate against you for:

• Filing EEOC charge or discrimination complaint
• Participating in discrimination investigation
• Opposing discriminatory practices
• Testifying in discrimination proceeding

What Is Retaliation:

• Termination
• Demotion
• Salary reduction
• Unwarranted discipline
• Negative performance reviews
• Hostile treatment
• Any action that would dissuade reasonable person from making complaint

Protection Applies Even If:

• Original discrimination complaint not proven
• You were wrong about discrimination
• As long as complaint made in good faith

If You Experience Retaliation:

• File retaliation complaint with EEOC
• Retaliation is separate violation
• Strict deadlines apply (180-300 days generally)
• Consult employment attorney immediately

Document:

• Complaint you filed
• Timeline of events
• Adverse actions taken after complaint
• Witnesses

Consult:

• Employment attorney IMMEDIATELY
• EEOC: 1-800-669-4000
• NC Bar Referral: (800) 662-7660

Q35: Is remote work harassment/discrimination covered by the same laws as in-office?

Answer:

YES, according to federal anti-discrimination laws (Title VII, ADA, ADEA, etc.):

Anti-discrimination and anti-harassment laws apply equally to remote workers as to on-site workers.

Protected From:

• Discrimination based on protected classes (race, sex, religion, national origin, age, disability, etc.)
• Harassment creating hostile work environment
• Retaliation for opposing discrimination

Forms Remote Harassment May Take:

• Offensive emails or messages
• Inappropriate comments on video calls
• Exclusion from meetings or opportunities
• Discriminatory work assignments
• Unwanted sexual advances via technology

Employer Obligations:

• Prevent and address harassment
• Investigate complaints
• Take corrective action
• Cannot treat remote workers differently based on protected class

For Remote Workers:

• Document electronic communications
• Save offensive emails/messages
• Screenshot inappropriate content
• Note witnesses to video call incidents
• File complaints same as on-site workers

Consult:

• Employment attorney
• EEOC: 1-800-669-4000
• Follow internal complaint procedures