Compliance Watch:

What are my rights as a salaried employee in North Carolina?

In compliance with both the Fair Labor Standards Act (FLSA) and labor regulations governing North Carolina, salaried employees are employed individuals who are receiving a fixed salary at regular intervals, typically on a biweekly or monthly basis. Certain salaried workers may also qualify for sick leave pay, and many of them meet the criteria to receive benefits as stipulated by the Family and Medical Leave Act (FMLA).

Within the salaried employee classification, some individuals are considered exempt. This category encompasses specific salaried workers, particularly those in roles such as executives, administrators, professionals possessing specialized skills or expertise, computer professionals, outside sales representatives, and highly compensated employees. However, if you are a salaried employee who does not occupy one of these designated positions, you may be classified as non-exempt, which would make you eligible to receive overtime compensation.

These are some of the basic differences between salaried and hourly employees in North Carolina, but it’s crucial to note that specific employment conditions may vary based on individual circumstances and employer policies. If you’d like to know more about North Carolina Labor Laws, you can access our guides on your rights as an hourly employee in North Carolina and penalties for breaking North Carolina labor laws.

1. Salaried employees in North Carolina who are non-exempt have the right to receive the state’s minimum wage. 
2. In North Carolina, salaried employees are covered by federal laws including the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Occupational Safety and Health Act (OSHA).
3. Non-exempt salaried employees are entitled to receive overtime compensation at a rate of 1.5 times their regular hourly rate for any hours worked beyond 40 hours in a single workweek.
4. Eligible employees have the privilege of taking unpaid leave for specific medical and family-related reasons under the provisions of the Family and Medical Leave Act (FMLA).
5. The Retaliatory Employment Discrimination Act (REDA), overseen by the Department of Labor, safeguards employees from retaliation by employers when they exercise their legal rights under various laws and circumstances.
6. All employees in North Carolina are protected from workplace discrimination based on various characteristics, including disability, national origin, ancestry, race, color, religion, gender, and military veteran status.

Some salaried employees may be exempt from overtime, but this is not the case for all salaried employees. The state follows federal guidelines to determine exemption status, which are:

1. Professionals: These individuals have acquired advanced knowledge and expertise through years of experience, which they apply to manage departments within their organization.
2. Executives: They possess advanced knowledge and expertise and have the authority to make hiring and firing decisions.
3. Computer Employees: This category includes roles such as software engineers, computer programmers, or analysts.
4. Administrative Employees: Individuals in roles related to accounting, quality control, human resources, personnel management, or labor relations are considered here.

Employers in North Carolina are prohibited from deducting wages from an employee’s wages other than for items required and specifically permitted by federal law and state law.

In North Carolina, employers must grant four hours of annual leave to employees who are parents, guardians, or acting in a parental role to school-aged children. This allows them to engage in school-related activities. However, certain conditions apply:

1. The timing of leave must be agreed upon by both the employer and the employee.
2. Employees need to submit a written leave request at least 48 hours in advance.
3. Employers can ask for written verification from the child’s school.

Employers cannot take adverse actions against employees for taking this leave. Additionally, The Family and Leave Act grants eligible employees certain rights when working for covered employers. They can take up to 12 weeks of unpaid, job-protected leave in a year for various reasons, with the possibility of extending to 26 weeks in specific cases. This leave can be taken intermittently if needed, and employees can use their accrued paid leave as well, following their employer’s policies.

In North Carolina, salaried employees have the opportunity to request flexible work arrangements through the Work Options Program. This program aims to diversify work schedules among state employees, foster increased productivity, elevate employee morale, and expand job opportunities for underrepresented groups such as women, individuals with disabilities, senior citizens, and others.

The program is managed by the State Work Options Coordinator from the Office of State Human Resources, who aids agencies in identifying suitable job-sharing positions and collaborates with the State Human Resources Director to offer various work schedule options. This may involve adjusting relevant policies, like leave or overtime, while ensuring the core intent of these policies is maintained. Additionally, the program also acknowledges the operational needs of companies and ensures that flexible work arrangements do not disrupt the usual public service hours of state offices.

An exempt employee in North Carolina is someone who is not entitled to overtime pay for working more than 40 hours a week. This applies to those earning at least $684 weekly ($35,568 annually) in specific roles like executive, administrative, professional, computer-related, or outside sales positions, as defined by the Fair Labor Standards Act (FLSA).

Exempt employees do not receive overtime, even if they work beyond 40 hours. Understanding the FLSA and North Carolina labor laws is crucial for compliance, as misclassification can result in costly wage disputes and legal actions. When classifying employees, employers should carefully assess their job descriptions to ensure they meet the legal criteria for exempt status.

To determine if you’re exempt of non-exempt in North Carolina, you can apply three fundamental criteria to classify your exemption status, as established by the FLSA:

1. Salary Level Test: If your annual salary exceeds $35,568 ($684 per week), you might be eligible for exempt classification.
2. Salary Basis Test: If you receive a guaranteed minimum compensation, irrespective of the actual hours worked, you might qualify for exempt status.
3. Duties Test: In addition to meeting the requirements of the first two tests, you must also perform job duties that fall under exempt categories. These duties may include executive responsibilities, which involve supervising two or more employees as a regular part of your job; professional duties, which include engaging in intellectual activities requiring specialized education and the exercise of discretion and judgment; and administrative duties, which involve carrying out supportive tasks related to significant matters, demanding discretion and judgment.

North Carolina’s minimum wage stands at $7.25 per hour. Employers must adhere to the minimum wage. However, they may offer higher compensation for specific roles.

If a salaried employee works more than 40 hours during a single workweek, they qualify to receive overtime pay at a rate that is one and a half times their usual hourly wage.

In North Carolina, deductions from an employee’s wages are generally prohibited, except under the following circumstances:

1. Government Mandates: Deductions required by government laws or regulations, such as state and federal taxes, are permissible.
2. Employee Consent: Deductions can only be made with the express written consent of the employee, provided in a separate statement. However, even with the employee’s consent, the employer must ensure that the employee continues to receive at least the minimum wage.
3. Offsets: Deductions may be implemented to offset the value of items received by the employee from the employer, even if such deductions temporarily lower the employee’s wage below the minimum wage threshold.

In North Carolina, there are several important provisions and benefits in place to safeguard and support employees:

1. Leave Entitlements: Employees have rights to various types of leave, including domestic violence leave, jury duty leave, witness leave, and military leave.
2. Minimum Wage and Overtime Pay: The Fair Labor Standards Act mandates that all hours worked must be compensated at a minimum wage rate, and extra hours should be compensated at one and a half times the regular rate as overtime pay.
3. Equal Pay and Retaliation Protection: Employees are assured of equal pay and protection against retaliation when reporting instances of discrimination or violations of labor laws.
4. Non-Discrimination and Anti-Retaliation: Employers are prohibited from discriminating against or seeking retaliation against workers in protected categories. They are also required to ensure equal pay and safeguard whistleblowers.
5. Workplace Safety: North Carolina law emphasizes workplace safety standards and regulations to protect the well-being of employees. Employers are required to provide a safe and healthy working environment, including proper training, equipment, and compliance with safety regulations to prevent accidents and injuries.
6. Earned Sick Leave: Eligible employees are entitled to earned sick leave benefits under the Earned Sick Leave Law.

Issues regarding minimum wage, concerns about receiving proper overtime compensation, matters concerning wages that encompass overtime pay, or disputes related to wages linked to tips should be reported to the United States Department of Labor.

If you find yourself facing a wage-related issue that goes against the provisions of the North Carolina Wage and Hour Act, including concerns like unpaid regular wages, your final paycheck, vacation pay discrepancies, unauthorized deductions, pay cuts, or the absence of paycheck stubs, you have the option to initiate a formal complaint process. This can be done by submitting a complaint to the Wage and Hour Bureau within the North Carolina Department of Labor.