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According to the North Carolina Department of Labor, the minimum wage rate for 2024 was fixed at $7.25 per hour. It aligns with the federal minimum wage and any changes in the wage structure would depend on future legislative actions or federal updates.
North Carolina does not have a separate state minimum wage law that sets a higher rate. On the same note, the minimum cash wage for tipped employees in North Carolina is $2.13 per hour, provided their tips bring their total earnings to at least the minimum wage of $7.25 per hour.
Like all other states, non-exempt employees in North Carolina are entitled to overtime pay at 1.5 times their regular hourly rate for hours worked over 40 in a workweek.
Minimum Wages in North Carolina Cities
Here’s a table with the minimum wage rates of 2024 for non-tipped and tipped employees in various cities in North Carolina.
| City | Non-Tipped Employees | Tipped Employees |
|---|---|---|
| Charlotte | $7.25 | $2.13 |
| Raleigh | $7.25 | $2.13 |
| Greensboro | $7.25 | $2.13 |
| Durham | $7.25 | $2.13 |
| Winston-Salem | $7.25 | $2.13 |
| Fayetteville | $7.25 | $2.13 |
| Cary | $7.25 | $2.13 |
| Concord | $7.25 | $2.13 |
| Jacksonville | $7.25 | $2.13 |
| Gastonia | $7.25 | $2.13 |
| Burlington | $7.25 | $2.13 |
| Huntersville | $7.25 | $2.13 |
| Apex | $7.25 | $2.13 |
| Indian Trail | $7.25 | $2.13 |
| Mooresville | $7.25 | $2.13 |
| Goldsboro | $7.25 | $2.13 |
| Wilson | $7.25 | $2.13 |
| Lumberton | $7.25 | $2.13 |
| Kannapolis | $7.25 | $2.13 |
| Mint Hill | $7.25 | $2.13 |
| Statesville | $7.25 | $2.13 |
| Hickory | $7.25 | $2.13 |
| Shelby | $7.25 | $2.13 |
| Cornelius | $7.25 | $2.13 |
| Graham | $7.25 | $2.13 |
| Southern Pines | $7.25 | $2.13 |
| Bessemer City | $7.25 | $2.13 |
| Elon | $7.25 | $2.13 |
Threshold For Employees Exempt
The Fair Labor Standards Act divides employees into two main types that determine the wage and overtime requirements:
- Non-exempt employees have to be paid at least minimum wage, and they are eligible for overtime pay at a rate of 1.5 times their regular hourly rate if they work more than 40 hours a week. These are typically hourly employees and lower-salary jobs.
- For an exempt employee, their hours worked will not cause the minimum wage to bind their compensation. Plus, they are not allowed to receive overtime pay.
The threshold for employees’ exempt is at least a minimum of an annual $43,888 yearly wage ($844/week).
Typically, professional, executive, and administrative employees are examples of types of exempt employees. Their minimum salary levels may rise over time as state minimums for wages increase to be better differentiated in classification distinctions.
For example, the least annual compensation that will be considered exempt will be $1,128 per week on January 1st, 2025. Also, the HCEs (Highly Compensated Employees) salary cap will be $151,164 per year.
Changes like this will force employers to pay salaries high enough to meet new minimums or classify workers as non-exempt in order to be paid overtime.
Historical Data of North Carolina Minimum Wages
North Carolina accepted the federal rate of $1.25 an hour in 1966 and has adopted each subsequent federal increase post that. After the rate held steady at $5.15 from 1997 to 2007, it was raised in stages to $7.25 in 2009, where it remains today.
North Carolina has seen growing advocacy for raising the minimum wage to match living costs, yet the minimum remains tied to the federal level.
This table includes selected years and their corresponding minimum wage rates in North Carolina
| Time Period | Year | Minimum Wage |
|---|---|---|
| 1968-1970 | 1968 | $1.15 |
| 1971-1973 | 1971 | $1.30 |
| 1974-1975 | 1974 | $1.60 |
| 1976-1977 | 1976 | $2.00 |
| 1978-1979 | 1978 | $2.30 |
| 1980-1981 | 1980 | $3.10 |
| 1982-1984 | 1982 | $3.35 |
| 1985-1989 | 1985 | $3.35 |
| 1990-1991 | 1990 | $3.80 |
| 1992-1995 | 1992 | $4.25 |
| 1996-1997 | 1996 | $4.75 |
| 1998-1999 | 1998 | $5.15 |
| 2000-2006 | 2000 | $6.15 |
| 2007-2008 | 2007 | $6.65 |
| 2009-2023 | 2009 | $7.25 |
| 2024 | 2024 | $7.25 |
Exemptions in Minimum Wages of North Carolina
In North Carolina, certain employees are exempt from minimum wage, overtime, youth employment, and recordkeeping requirements under the North Carolina Wage and Hour Act (NCWHA). Key exemptions include:
- Federal commerce employees: Some FLSA-defined commerce-related roles may still be subject to certain federal requirements.
- Agricultural workers: Defined under the FLSA.
- Domestic workers: Including babysitters and companions.
- State pages & volunteers: Pages in the General Assembly, bona fide volunteers, and family dependents of employers.
- Correctional & mental institution workers: Includes those confined within institutions.
- Entertainment workers: Models, actors, and performers in media productions.
- Special positions: Camp staff, seasonal workers, and seafood industry employees.
- Executive & professional roles: FLSA-defined executives, administrators, professionals, and sales roles.
- Computer specialists: Analysts, programmers, and software engineers.
- Rideshare participants: As per state ridesharing laws.
- Emergency volunteers: Firefighters and rescue personnel.
