Compliance Watch:
What are my overtime rights in North Carolina?

June 10th 2024

Overtime laws, both at the federal and state levels, are established to protect employees by mandating employers to provide additional compensation for hours worked beyond a standard workweek. Understanding your overtime rights in North Carolina is essential to ensure your work is fairly compensated.

This article provides a comprehensive guide to the overtime rights of employees in North Carolina, from determining overtime eligibility to understanding how overtime pay is calculated, and the steps to take if employee rights have been violated.

This Article Covers

Understanding Overtime in North Carolina
Common Questions About Overtime in North Carolina
Legal Working Hours in North Carolina
Overtime Eligibility in North Carolina
    Overtime Payment Calculations in North Carolina
      Receiving Overtime Payment in North Carolina
      Violations of Overtime Law in North Carolina

      Understanding Overtime in North Carolina

      Is overtime pay mandatory in North Carolina?

      Yes, overtime pay is mandatory in North Carolina for eligible employees under the federal Fair Labor and Standards Act (FLSA). The FLSA requires covered employers to pay eligible employees overtime compensation at a rate of at least one and a half times their regular rate of pay for all hours worked over 40 in a workweek.

      When do I qualify for overtime pay in North Carolina?

      Overtime pay in North Carolina is determined based on the number of hours worked in a workweek. The state does not consider daily overtime pay. Under the FLSA, non-exempt employees are entitled to overtime pay when they work more than 40 hours in a workweek.

      How much is overtime pay in North Carolina?

      In North Carolina, overtime pay is calculated at a rate of one and a half (1.5) times the employee’s regular pay rate of pay for all hours worked over 40 in a workweek. This means that for each hour of overtime worked, eligible employees are entitled to receive their regular hourly wage plus an additional half of that wage.

      Which laws govern overtime in North Carolina?

      Overtime rights in North Carolina are governed by both federal and state laws.

      • Fair Labor Standards Act (FLSA): The FLSA is a federal law that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for all employees in the United States. Under the FLSA, eligible employees are entitled to receive overtime pay at a rate of one and a half times their regular rate of pay for all hours worked over 40 in a workweek. The FLSA also provides exemptions from overtime pay requirements for certain types of employees based on their job duties and salary level.
      • North Carolina Wage and Hour Act (NCWHA): The NCWHA is a state law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards for employees in North Carolina, the Act the provisions of the FLSA but provides additional protections or requirements for employees.

      Employers in North Carolina are required to comply with both the FLSA and NCWHA, and they must adhere to whichever law provides greater benefits or protections for employees.

      Common Questions About Overtime in North Carolina

      Do employers have to pay overtime in North Carolina?

      Yes, employers in North Carolina are required to pay overtime to eligible employees under both FLSA and NCWHA. Under these laws, non-exempt employees are entitled to overtime pay for all hours worked over 40 in a workweek. Some employees are exempt from overtime pay requirements under certain circumstances and are not entitled to overtime pay regardless of the hours they work in a workweek. Employers are responsible for accurately classifying employees as exempt or non-exempt and properly compensating them for all hours worked, including overtime hours.

      Can an employee refuse to work overtime in North Carolina?

      Employees in North Carolina have the right to refuse to work overtime. However, it is essential to understand the potential consequences and implications of refusing to work overtime. While employees have the right to refuse overtime work, refusing overtime assignments could potentially result in disciplinary action, including termination, especially if refusal to work overtime violates the company policies or employment agreements.

      Can I take comp time instead of overtime pay in North Carolina?

      In North Carolina, private sector employees cannot offer compensatory (comp) time instead of paying eligible employees overtime wages. Comp time refers to paid time off that is provided to employees in lieu of overtime pay.

      Under FLSA, private sector employers are required to pay non-exempt employees overtime wages for all hours worked over 40 in a workweek. Compensatory time cannot be substituted for overtime pay for non-exempt employees.

      Public sector employees, including employees of government agencies, certain non-profit organizations, and certain employees covered by collective bargaining agreements, may be eligible for comp time under certain conditions.

      Can I get overtime pay in North Carolina without employer approval?

      Overtime work generally requires employer approval. Employers have the authority to schedule and manage employees’ work hours, including overtime hours, based on business needs, operational requirements, and other factors. If an employee works unauthorized overtime hours without employer approval, the employer may still be required to pay the employee for the overtime hours worked. However, the employer may also take disciplinary action against the employee for working unauthorized overtime.

      Does North Carolina have double-time pay?

      North Carolina has no state law that mandates double-time pay for hours worked beyond certain thresholds or specific circumstances. Under the FLSA, employers must pay eligible non-exempt employees overtime at a rate of one and a half (1.5) times their regular hourly rate.

      However, some employers may offer double-time pay as an incentive or as part of employment contracts or company policies. Employees should review their employment contracts, collective bargaining agreements, or company policies to understand their rights and entitlements regarding overtime pay, including any provisions for double-time pay if applicable.

      What is working ‘off-the-clock’ in North Carolina?

      Working ‘off-the-clock’ refers to performing work-related tasks or activities for an employer without receiving compensation for the time spent. This can include tasks performed before or after scheduled shifts, during meal breaks, or during unpaid time that is not recorded or compensated by the employer. Common examples of ‘off-the-clock’ work may include:

      • Setting up equipment, preparing work materials, or cleaning up after work; any activities that are performed before or after scheduled shifts.
      • Answering work-related emails or phone calls outside scheduled work hours.
      • Attending work-related training sessions or meetings that are not compensated.
      • Continuing to work beyond scheduled hours without receiving approval or compensation for the additional time.

      What are common ways employers avoid paying overtime in North Carolina?

      While most employers in North Carolina comply with federal and state overtime pay laws, some may attempt to avoid paying overtime through various methods. Common ways employers may try to avoid paying overtime in North Carolina include:

      • Misclassifying employees as exempt: Employers may misclassify employees as exempt from overtime pay requirements by incorrectly categorizing them as executive, administrative, or professional employees, among other exemptions under the FLSA. Misclassification deprives employees of overtime pay even though they are non-exempt under the law.
      • Off-the-clock work: Employers may pressure or require employees to perform work off-the-clock, such as by asking employees to arrive early, stay late, or work through meal breaks without compensating them for the additional time worked. This practice violates wage and hour laws that require employers to accurately track and compensate employees for all hours worked, including overtime hours.
      • Manipulating work hours: Employers may manipulate work hours or timesheets to avoid paying overtime. This can include altering time records, rounding down hours worked, or failing to record all hours worked by employees.
      • Comp time instead of overtime pay: While private sector employers in North Carolina cannot offer compensatory time instead of paying overtime wages, some employers may attempt to provide comp time as a substitute for overtime pay, which is a violation of federal law.
      • Shifting work hours across pay periods: Employers may attempt to shift work hours across pay periods to avoid paying overtime. For example, they may schedule employees for fewer hours in one pay period and more hours in another pay period to keep total hours below the overtime threshold.
      • Independent contractors misclassification: Employers may misclassify workers as independent contractors rather than employees to avoid overtime pay obligations. Independent contractors are not subject to the same overtime pay requirements as employees under the FLSA.

      Can you work seven days in a row in North Carolina?

      In North Carolina, no specific state law prohibits employees from working seven days in a row. However, there are federal and state regulations that govern rest periods and overtime pay, which can affect an employer’s ability to schedule employees for consecutive days of work.

      The FLSA mandates that non-exempt employees should receive overtime pay for all hours worked over 40 in a workweek. If an employee works seven days in a workweek and the total hours worked exceed 40, the employee is entitled to overtime pay for the hours worked beyond 40 in that workweek.

      How many ten-hour days can you work in a row in North Carolina?

      North Carolina has no specific state law stipulating the maximum number of consecutive ten-hour workdays an employee can work. However, employers must comply with federal regulations regarding overtime pay and work hours.

      Under the FLSA, non-exempt employees are entitled to overtime pay for all hours worked over 40 in a workweek. This means that if an employee works more than 40 hours in a single workweek, including ten-hour workdays, they may be entitled to overtime pay for the additional hours worked beyond 40.

      What are full-time hours in North Carolina?

      Traditionally, full-time employment is commonly associated with working a standard schedule of 40 hours per week, which has been widely used by employers and is often considered the benchmark for full-time employment in many industries. However, the definition of full-time employment in North Carolina can vary depending on the employer, industry, or specific job requirements. Some employers may consider employees who work fewer than 40 hours per week as full-time.

      How many hours straight can you legally work in North Carolina?

      North Carolina has no state law that limits the number of consecutive hours an employee can work in a single shift for adults. However, federal regulations set forth by the Occupational Safety and Health Administration (OSHA) provide guidelines regarding work hours and breaks to ensure the health and safety of employees.

      Learn more about North Carolina Break Law in our detailed guide.

      Is overtime after eight hours or 40 hours in North Carolina?

      Overtime pay in North Carolina is calculated based on hours worked over 40 in a workweek, rather than after eight hours in a single workday. This means that eligible employees are entitled to overtime pay for any hours worked beyond 40 in a workweek, regardless of whether those hours were worked in a single day or spread out over multiple days within the workweek.

      Does working on the weekend qualify for overtime pay in North Carolina?

      In North Carolina, working on the weekend does not automatically qualify an employee for overtime pay. Instead, overtime pay is determined based on the total number of hours worked in a workweek, regardless of whether those hours are worked on weekdays, weekends, or holidays.

      How many hours off between shifts is required in North Carolina?

      No specific state laws that mandate a minimum number of hours off between shifts for adult employees. However, certain industries or occupations may be subject to federal regulations or collective bargaining agreements establishing requirements for rest periods between shifts.

      What does ‘hours worked’ include in North Carolina?

      The term ‘hours-worked’ refers to all time that an employee is required or permitted to work, on the employer’s premises, or at a prescribed workplace, as well as any time spent performing work-related activities, regardless of whether the work is performed during regular working hours or outside of normal working hours. This includes the following:

      • Time spent performing work tasks, including productive work, meetings, training sessions, and other job-related activities.
      • Time spent waiting for work assignments, equipment, or instructions while on duty and at the workplace.
      • Time spent on-call or available to work if the employee’s freedom to engage in personal activities is restricted during that time.
      • Time spent traveling for work-related purposes, such as traveling between job sites, customer locations, or training sessions, if it occurs during regular working hours.
      • Time spent on meal breaks, rest breaks, or other short breaks that are less than 20 minutes and are designated as compensable time by the employer.
      • Time spent attending training sessions, workshops, or meetings required by the employer.

      What is the most hours a salaried employee can work in North Carolina? 

      North Carolina has no specific state law that limits the number of hours a salaried employee can work in a week. Instead, the determination of work hours for salaried employees is generally based on their employment contracts, company policies, or industry standards.

      Employers should ensure that salaried employees are properly classified as exempt or non-exempt based on their job duties and salary level to ensure compliance with overtime laws.

      Learn more about Your Rights as a Salaried Employee in North Carolina.

      What is the maximum number of hours an hourly employee can work in North Carolina?

      North Carolina has no specific state law that sets a maximum limit on the number of hours an hourly employee can work in a day or a week for adult employees (those aged 18 and older). However, while there is no maximum limit an hourly employee can work, employers must comply with federal overtime pay requirements for eligible employees who work more than 40 hours in a workweek.

      Learn more about Your Rights as an Hourly Employee in North Carolina.

      Overtime Eligibility in North Carolina

      Who is eligible for overtime pay in North Carolina?

      Eligibility for overtime pay in North Carolina is based on the classification of employees as either exempt or non-exempt. Exempt employees are not entitled to overtime pay, while non-exempt employees are entitled to overtime pay.

      Non-exempt employees are those who are paid on an hourly basis or earn a salary below a certain threshold and perform job duties that are not considered exempt under the FLSA.

      Who is exempt from overtime pay in North Carolina?

      In North Carolina, exemptions from overtime pay are primarily determined by the FLSA. The FLSA provides exemptions from overtime pay requirements for certain types of employees who meet specific criteria related to their job duties and salary levels. Some common categories of exempt employees include:

      • Salary Basis: A salaried employee must earn at least $684 weekly or $35,568 annually. Besides meeting the salary threshold, salaried employees must also meet the specific job duties requirements.
      • Executive Exemption: Employees whose primary duties involve managing the entire company or a department, regularly directing the work of at least two or more full-time employees, and having the authority to hire or fire employees or provide input into hiring, firing, or other employment decisions.
      • Administrative Exemption: Employees whose primary duties involve office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers and whose primary duties include the exercise of discretion and independent judgment concerning matters of significance.
      • Professional Exemption: Employees whose primary duties involve work that requires advanced knowledge in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction, or work that requires invention, imagination, originality, or talent in a recognized field of artistic and creative endeavor.
      • Computer Employee Exemption: Employees whose primary duties involve computer systems analysis, programming, or software engineering and who are paid on a salary or fee basis at a rate not less than a specified minimum amount per week.
      • Outside Sales Exemption: Employees whose primary duties involve making sales or obtaining orders or contracts for services or the use of facilities and who are customarily and regularly engaged away from the employer’s place of business in performing these duties.

      Can salaried employees get overtime pay in North Carolina?

      Yes, if a salaried employee in North Carolina meets the criteria to be considered non-exempt under the FLSA, they are entitled to overtime pay for all hours worked over 40 in a workweek. Employers must note that meeting the salary threshold alone does not automatically make a salaried employee exempt from overtime pay. Salaried employees must also meet the specific job duties requirements for one of the FLSA’s exemption categories mentioned above.

      Learn more in detail about North Carolina Salaried Employees Laws and North Carolina Overtime Laws.

      Overtime Payment Calculations in North Carolina

      What is my regular rate of pay in North Carolina?

      In North Carolina, your regular rate of pay is your standard hourly rate. If you are paid on an hourly basis, your regular rate of pay is simply your hourly wage. For example, if you are paid $15 per hour, then your regular rate of pay is $15 per hour.

      If you are paid on a salary basis, your regular rate of pay is calculated by dividing your total salary for the workweek by the number of hours you worked during that week. For example, if you are paid a salary of $600 per week and you worked 40 hours, your regular rate of pay would be $15 per hour ($600 / 40 hours = $15 per hour).

      How do you calculate overtime in North Carolina?

      Overtime pay in North Carolina must be calculated at a rate of at least one and a half times the employee’s regular pay rate for each hour worked over 40 in a workweek. An employee’s regular pay rate includes all forms of compensation, such as hourly wages, salary, commissions, and certain bonuses.

      For employees who are paid on an hourly basis, the regular pay rate is simply their hourly wage. For employees who are paid on a salary basis, their regular pay rate is calculated by dividing their weekly salary by the number of hours they are normally expected to work in a week.

      To calculate overtime pay, multiply the number of overtime hours worked in a workweek by 1.5 times the regular pay rate. For example, if an employee earns $600 in a week or $15 per hour, and works 45 hours in a workwear, their overtime pay would be calculated as follows:

      Overtime pay = overtime hours x hourly rate x 1.5

      • Overtime pay = 5 hours x 15 x 1.5
      • Overtime pay = $112.50

      How is overtime taxed in North Carolina?

      Overtime wages are taxed as ordinary income for both state and federal income tax purposes. When you receive overtime pay, it is added to your regular wages and is subject to the same income tax rates and withholding as your regular pay.

      Receiving Overtime Payment in North Carolina

      How is overtime paid in North Carolina?

      Employers in North Carolina are required to pay overtime wages in the same manner as regular wages. This can include payment by cash, check, direct deposit, or any other means agreed upon by the employer and employee.

      When do I receive my overtime paycheck in North Carolina?

      The timing of when you receive your overtime paycheck depends on your employer’s payroll schedule and policies. Overtime pay is included in your regular paycheck for the pay period in which the overtime hours were worked.

      Employers in North Carolina are generally required to pay employees at regular intervals, such as weekly, biweekly, or monthly. As North Carolina does not specify a specific pay frequency, so pay periods are established by the employers.

      Violations of Overtime Law in North Carolina

      What if my employer refuses to pay me overtime in North Carolina?

      If your employer refuses to pay you overtime in North Carolina, you can initially try to resolve the issue by communicating with your employer. Politely remind them of your entitlement to overtime pay under state and federal laws.

      What is the penalty for failing to pay overtime in North Carolina?

      The penalty for failing to pay overtime wages can vary depending on the specific circumstances of the case and the severity of the violation. Some potential penalties for employers who fail to pay overtime may include:

      • Back Pay: Employers may be required to pay the employee the amount of overtime wages they were owed but not paid.
      • Liquidated Damages: In some cases, employers may be required to pay liquidated damages, which is an additional amount equal to the unpaid overtime wages.
      • Penalties: In extreme cases of wage theft and willful violation of wage and hour laws, employers may face criminal penalties, including fines and even imprisonment.

      How can I file a wage claim for overtime in North Carolina?

      To file a wage claim for unpaid overtime in North Carolina, you must gather documentation to support your claim, including records of your work hours, pay stubs, timecards, and any communication with your employer regarding overtime. You can initiate a wage complaint online with the NCDOL’s Wage and Hour Bureau.

      Can employers retaliate against employees for making a wage claim in North Carolina?

      It is illegal for employers in North Carolina to retaliate against employees for making a wage claim or asserting their rights under wage and hour laws. Retaliation can take various forms, including termination, demotion, work hours reduction, or any adverse action against an employee in response to exercising their legal rights.

      If an employer retaliates against an employee for making a wage claim or asserting their rights under wage and hour laws, the employee may take legal action. They can file a complaint with the North Carolina Department of Labor or the US Department of Labor.

      Learn more about North Carolina Labor Laws through our detailed guide.

      Important Cautionary Note

      This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.

      Most Read