North Carolina Overtime laws & compensation compliance analysis

North Carolina Overtime: What you need to know

The federal Fair Labor Standards Act (FLSA) is a law that sets minimum wage and overtime rates for virtually all enterprises involved in interstate activities. FLSA applies in every state, but it permits states to make laws that are more generous to employees and laws to regulate the rare cases in which federal law does not apply.
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North Carolina law requires employers to pay workers 11/2 times their regular rate of pay for every hour worked over 40 in a workweek. Since this is identical to the federal overtime requirement, the net effect of the state law is to extend overtime protections to workers not covered by the federal standard.
Note: The federal Department of Labor’s (DOL) final overtime regulations, effective December 1, 2016, have increased the salary level for exemption, will automatically update the salary threshold every 3 years going forward, and have allowed for the inclusion of nondiscretionary bonuses, incentive payments, and commissions toward as much as 10 percent of the salary threshold.
North Carolina law exempts anyone employed in a bona fide executive, administrative, or professional capacity, as defined by federal law, from overtime pay requirements.
In addition, the North Carolina law requiring overtime does not apply to (NC Gen. Stat. Sec. 95-25.14):
• Outside salespeople
• Farm workers
• Employer's immediate family
• Public employees
• Drivers, drivers' helpers, loaders, and mechanics
• Domestic servants and baby-sitters
• Live-in child care workers and live-in employees in homes for children
• Radio and television announcers, news editors, and chief engineers
• Prisoners and confined mental patients
• Models, actors, and performers
• Sailors and railroad and air carrier ...

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North Carolina Overtime Resources

Type Title
Checklists Trainees Checklist
Forms Overtime Authorization Form
Policies Overtime
White Papers What Good Is Comp Time If You Can't Take It?
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