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Disclaimer
This site is not intended to constitute legal advice and should not be relied upon as such. Additionally, no
attorney-client relationship has been created by your visiting and reading this site. Please consult a legal
professional before taking any action you believe may result in liability or litigation. Nothing on this site
creates an express or implied contract. While efforts are made to present only accurate and current
information, laws can and do change and interpretations vary among jurisdictions, so all information is
presented on an “as-is” basis. This site is for informational purposes only.
This site is not intended to constitute legal advice and should not be relied upon as such. Additionally, no
attorney-client relationship has been created by your visiting and reading this site. Please consult a legal
professional before taking any action you believe may result in liability or litigation. Nothing on this site
creates an express or implied contract. While efforts are made to present only accurate and current
information, laws can and do change and interpretations vary among jurisdictions, so all information is
presented on an “as-is” basis. This site is for informational purposes only.
If you do not find the answer to your question through these summaries or
related links, feel free to contact us with your question. We'll do our best to help
you find the answer you are looking for.
related links, feel free to contact us with your question. We'll do our best to help
you find the answer you are looking for.
Payment upon Separation from Employment
An employer must pay an employee who has been separated from employment, whether
by termination, discharge, quitting, resignation, lay off, or labor dispute, all wages due by
the next regular payday. This rule applies whether the employee has separated
employment voluntarily or has been discharged. An employee can request payment of the
final paycheck by mail. Commissions, bonuses, or other similar types of wages must be
paid on the next regular payday after the employer is able to calculate the amount and must
be paid to the employee unless the employer has timely notified the employee of any
forfeiture policy. North Carolina Stat. 95-25.7
Wages in Dispute
If the amount of wages due is in dispute, the employer must timely pay the wages, or that
part of the wages the employer concedes to be due, without condition. The employee
retains all remedies the employee might otherwise be entitled to regarding any balance of
wages claimed by the employee. Acceptance of a partial payment of wages by an
employee does not constitute a release of the balance of the claim. Further, any release of
the claim required by an employer as a condition of partial payment is void. North Carolina
Stat. 95-25.7A
An employer must pay an employee who has been separated from employment, whether
by termination, discharge, quitting, resignation, lay off, or labor dispute, all wages due by
the next regular payday. This rule applies whether the employee has separated
employment voluntarily or has been discharged. An employee can request payment of the
final paycheck by mail. Commissions, bonuses, or other similar types of wages must be
paid on the next regular payday after the employer is able to calculate the amount and must
be paid to the employee unless the employer has timely notified the employee of any
forfeiture policy. North Carolina Stat. 95-25.7
Wages in Dispute
If the amount of wages due is in dispute, the employer must timely pay the wages, or that
part of the wages the employer concedes to be due, without condition. The employee
retains all remedies the employee might otherwise be entitled to regarding any balance of
wages claimed by the employee. Acceptance of a partial payment of wages by an
employee does not constitute a release of the balance of the claim. Further, any release of
the claim required by an employer as a condition of partial payment is void. North Carolina
Stat. 95-25.7A
Deductions from Wages
An employer may withhold or deduct a portion of an employee's wages for any of the
following only after giving the employee written notice of the amount to be deducted seven
days prior to date of the deduction. An employer does not have to give an employee who
has been separated from employment the seven day notice.
- cash shortages,
- inventory shortages, or
- loss or damage to property
An employer is not required to have written consent from an employee to deduct wages
from an employees paycheck for a cash shortage, inventory shortage, or property damage if
the employee has been arrested or criminal process has commenced against the
employee as a result of the shortage or property damage. If the employee is not found
guilty, the employer must return the deduct amount to the employee.
An employer may withhold or deduct any portion of an employee’s wages when:
1) the employer is permitted by state or federal law,
2) when both the employer and employee are aware of the amount of the deduction and
have agreed to it and the employee has given prior written consent which (i) is signed on or
before the payday from which the deduction is to be made; (ii) indicates the reason for the
deduction; and (iii) states the actual dollar amount or percentage of wages which shall be
deducted from one or more paychecks. If the deduction is for the convenience of the
employee, the employee must have a reasonable opportunity to withdraw consent.
3) If the employee does not know the amount of the deduction and has not agreed to it in
advance, the employer must obtain written authorization from the employee which (i) is
signed on or before the payday from which the deduction is to be made; and (ii) indicates
the reason for the deduction. Prior to any deduction, the employee must (i) receive advance
written notice of the actual amount to be deducted; (ii) receive written notice of their right to
withdraw consent; and (iii) be given a reasonable opportunity to withdraw the authorization
in writing.
If the withholding or deduction is for the benefit of the employer (e.g., cash shortage,
damage to or loss of property), the deduction cannot reduce the employee’s resulting wage
rate below the minimum wage rate. If an employee works overtime during the effected
period, the employer may reduce the wage rate for the employee’s regular hours to the
minimum wage rate, however, the overtime rate cannot be reduced.
An employer does not have to have written authorization or give an employee notice of a
deduction if the deduction is for purposes of correcting a prior overpayment of wages or
repayment of a wage advance or a loan. An employer must have written consent from an
employee to deduct interest, fees, and other charges associated with advances or loans.
North Carolina Stat. 95-25.8; NC Admin. Code 13-12 .0305
Uniforms, Tools, and Other Equipment Necessary for Employment
North Carolina does not have any laws prohibiting an employer from requiring an employee
to purchase a uniform, tools, or other items necessary for employment.
Medical or Physical Exams, including Drug Tests, Required for Employment
North Carolina does not have any laws prohibiting an employer from requiring an applicant
or employee to pay the cost of a medical examination or the cost of furnishing any records
required by the employer as a condition of employment.
An employer may withhold or deduct a portion of an employee's wages for any of the
following only after giving the employee written notice of the amount to be deducted seven
days prior to date of the deduction. An employer does not have to give an employee who
has been separated from employment the seven day notice.
- cash shortages,
- inventory shortages, or
- loss or damage to property
An employer is not required to have written consent from an employee to deduct wages
from an employees paycheck for a cash shortage, inventory shortage, or property damage if
the employee has been arrested or criminal process has commenced against the
employee as a result of the shortage or property damage. If the employee is not found
guilty, the employer must return the deduct amount to the employee.
An employer may withhold or deduct any portion of an employee’s wages when:
1) the employer is permitted by state or federal law,
2) when both the employer and employee are aware of the amount of the deduction and
have agreed to it and the employee has given prior written consent which (i) is signed on or
before the payday from which the deduction is to be made; (ii) indicates the reason for the
deduction; and (iii) states the actual dollar amount or percentage of wages which shall be
deducted from one or more paychecks. If the deduction is for the convenience of the
employee, the employee must have a reasonable opportunity to withdraw consent.
3) If the employee does not know the amount of the deduction and has not agreed to it in
advance, the employer must obtain written authorization from the employee which (i) is
signed on or before the payday from which the deduction is to be made; and (ii) indicates
the reason for the deduction. Prior to any deduction, the employee must (i) receive advance
written notice of the actual amount to be deducted; (ii) receive written notice of their right to
withdraw consent; and (iii) be given a reasonable opportunity to withdraw the authorization
in writing.
If the withholding or deduction is for the benefit of the employer (e.g., cash shortage,
damage to or loss of property), the deduction cannot reduce the employee’s resulting wage
rate below the minimum wage rate. If an employee works overtime during the effected
period, the employer may reduce the wage rate for the employee’s regular hours to the
minimum wage rate, however, the overtime rate cannot be reduced.
An employer does not have to have written authorization or give an employee notice of a
deduction if the deduction is for purposes of correcting a prior overpayment of wages or
repayment of a wage advance or a loan. An employer must have written consent from an
employee to deduct interest, fees, and other charges associated with advances or loans.
North Carolina Stat. 95-25.8; NC Admin. Code 13-12 .0305
Uniforms, Tools, and Other Equipment Necessary for Employment
North Carolina does not have any laws prohibiting an employer from requiring an employee
to purchase a uniform, tools, or other items necessary for employment.
Medical or Physical Exams, including Drug Tests, Required for Employment
North Carolina does not have any laws prohibiting an employer from requiring an applicant
or employee to pay the cost of a medical examination or the cost of furnishing any records
required by the employer as a condition of employment.
Notice of Wage Reduction
An employer must give an employee 24-hours notice of any reduction in the employee's
wage rate. North Carolina Stat. 95-25.13
An employer must give an employee 24-hours notice of any reduction in the employee's
wage rate. North Carolina Stat. 95-25.13
Statement of Wages (Pay Stub)
An employer must furnish each employee with an itemized statement of deductions made
from that employee's wages for each pay period such deductions are made. North
Carolina Stat. 95-25.13; NC Admin. Code 13-12 .0304
An employer must furnish each employee with an itemized statement of deductions made
from that employee's wages for each pay period such deductions are made. North
Carolina Stat. 95-25.13; NC Admin. Code 13-12 .0304
Record Keeping Requirements
An employer must maintain complete and accurate records for a period of at least three
years which contain the following information for each employee in each workweek, unless
the employee is specifically exempted:
- full name;
- home address, including zip code and phone number;
- date of birth if under 20;
- occupation in which employed or job title;
- time of day and day of week the employee's workweek begins (a group of employees
working the same workweek may have one record keeping for the entire group);
- regular rate of pay;
- hours worked each workday;
- total hours worked each workweek;
- total straight time earnings each workweek;
- total overtime earnings each workweek;
- total additions to or deductions from wages;
- total gross wages paid each pay period;
- date of each payment.
- tip credits;
- costs of meals,
- lodging or other facilities;
- start and end time for youth under age 18;
- youth employment certificates;
- wage deductions;
- vacation and sick leave policies;
- policies and procedures relating to promised wages; and
- any other records related to wages or hours.
North Carolina Stat. 95-25:15; NC Admin. Code 13-12 .0801; NC Admin. Code 13-12.0802
An employer must maintain complete and accurate records for a period of at least three
years which contain the following information for each employee in each workweek, unless
the employee is specifically exempted:
- full name;
- home address, including zip code and phone number;
- date of birth if under 20;
- occupation in which employed or job title;
- time of day and day of week the employee's workweek begins (a group of employees
working the same workweek may have one record keeping for the entire group);
- regular rate of pay;
- hours worked each workday;
- total hours worked each workweek;
- total straight time earnings each workweek;
- total overtime earnings each workweek;
- total additions to or deductions from wages;
- total gross wages paid each pay period;
- date of each payment.
- tip credits;
- costs of meals,
- lodging or other facilities;
- start and end time for youth under age 18;
- youth employment certificates;
- wage deductions;
- vacation and sick leave policies;
- policies and procedures relating to promised wages; and
- any other records related to wages or hours.
North Carolina Stat. 95-25:15; NC Admin. Code 13-12 .0801; NC Admin. Code 13-12.0802
Frequency of Wage Payments
An employer must pay its employees on a regularly scheduled payday either daily, weekly,
bi-weekly, semi-monthly, or monthly. Bonuses, commissions, or similar forms of wages
may be paid as infrequently as once per year if the employee is notified in advance. North
Carolina Stat. 95-25.6
An employer must pay its employees on a regularly scheduled payday either daily, weekly,
bi-weekly, semi-monthly, or monthly. Bonuses, commissions, or similar forms of wages
may be paid as infrequently as once per year if the employee is notified in advance. North
Carolina Stat. 95-25.6
Manner of Payments
An employer may select any legal form of payment, so long as payment is made in full on
the designated payday, subject to authorized deductions and legal withholdings.
Acceptable forms of payment include:
- cash,
- money order,
- negotiable checks, and
- direct deposit into an institution whose deposits are insured by the United States
government or an institution selected by the employee.
NC Admin. Code 13-12.0309
Direct Deposit
An employer may pay wages by direct deposit, so long as the employee is able to choose
the financial institution with which the wages are deposited. NC Admin. Code 13-12.0309
An employer may select any legal form of payment, so long as payment is made in full on
the designated payday, subject to authorized deductions and legal withholdings.
Acceptable forms of payment include:
- cash,
- money order,
- negotiable checks, and
- direct deposit into an institution whose deposits are insured by the United States
government or an institution selected by the employee.
NC Admin. Code 13-12.0309
Direct Deposit
An employer may pay wages by direct deposit, so long as the employee is able to choose
the financial institution with which the wages are deposited. NC Admin. Code 13-12.0309
| EmploymentLawHandbook.com |
| Your Employment and Labor Law Resource |
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Notice Requirements
An employer must:
- Notify its employees, orally or in writing at the time of hire, of the promised wage rate and
the day and place for payment;
- Make available to its employees, in writing or through a posted notice maintained in a
place accessible to its employees, employment practices and policies with regard to
promised wages.
North Carolina Stat. 95-25:13
An employer must:
- Notify its employees, orally or in writing at the time of hire, of the promised wage rate and
the day and place for payment;
- Make available to its employees, in writing or through a posted notice maintained in a
place accessible to its employees, employment practices and policies with regard to
promised wages.
North Carolina Stat. 95-25:13
| Wage Payment Laws for Private Sector Employers |
- Frequency of Wage Payments
- Manner of Payments
- - Direct Deposit
- Payment upon Separation from Employment
- - Employees who are fired, discharged, or terminated
- Employees who quit or resign
- Employees who is suspended or resigns due to a labor dispute (strike)
- Employees who are laid off
- Wages in Dispute
- Deductions from Wages
- - Cash shortages
- Damage, loss or destruction of employer property
- Dishonored or returned checks
- Uniforms
- Tools and other items necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of Wage Reduction
- Statement of Wages (Pay Stub)
- Record Keeping Requirements
- Notice Requirements
