Source: http://schillerfirm.com/law-library/employment-law/north-carolina-wage-and-hour-act/
Timestamp: 2018-03-23 20:33:46
Document Index: 531675803

Matched Legal Cases: ['§ 95', '§ 95', '§ 95', '§ 95', '§ 18', '§ 95', '§ 8', '§ 95', '§ 2', '§ 95', '§ 95', '§ 95', '§ 95', '§ 95', '§ 17', '§ 95', '§ 18', '§ 95', '§ 19', '§ 95', '§ 95', '§ 95', '§ 2', '§ 95', '§ 95', '§ 95', '§ 95', '§ 95', '§ 95', '§ 95', '§ 95', '§ 7502', '§ 95', '§ 95', '§ 95', '§ 95']

North Carolina General Statutes, Chapter 95
Article 2A – Wage and Hour Act.
§ 95-25.11. Employers’ remedies preserved.
§ 95-25.1. Short title and legislative purpose
§ 95-25.2. Definitions
(1) “Agriculture” includes farming in all its branches performed by a farmer or on a farm as an incident to or in conjunction with farming operations.
(2) “Commissioner” means the Commissioner of Labor.
(3) “Employ” means to suffer or permit to work.
(4) “Employee” includes any individual employed by an employer.
(5) “Employer” includes any person acting directly or indirectly in the interest of an employer in relation to an employee.
(6) “Establishment” means a physical location where business is conducted.
(7) “The Fair Labor Standards Act” means the Fair Labor Standards Act of 1938, as amended and as the same may be amended from time to time by the United States Congress.
(8) “Hours worked” includes all time an employee is employed.
(9) “Payday” means that day designated for payment of wages due by virtue of the employment relationship.
(10) “Pay periods” may be daily, weekly, biweekly, semimonthly, or monthly.
(11) “Person” means an individual, partnership, association, corporation, business trust, legal representative, or any organized group of persons. For the purposes of G.S. 95-25.2, G.S. 95-25.3, G.S. 95-25.14, and G.S. 95-25.20, it also means the State of North Carolina, any city, town, county, or municipality, or any State or local agency or instrumentality of government. The Government of the United States and any agency of the United States (including the United States Postal Service and Postal Rate Commission) are not included as persons for any purpose under this Article.
(12) “Seasonal food service establishment” means a restaurant, food and drink stand or other establishment generally recognized as a commercial food service establishment, preparing and serving food to the public but operating 180 days or less per year.
(13) “Seasonal religious or nonprofit educational conference center or a seasonal amusement or recreational establishment” means an establishment which does not operate for more than seven months in any calendar year, or during the preceding calendar year had average receipts for any six months of such year of not more than thirty-three and one-third percent (33 1/3 %) of its average receipts for the other six months of that year.
(14) “Tipped employee” means any employee who customarily receives more than twenty dollars ($20.00) a month in tips.
(15) “Tip” shall mean any money or part thereof over and above the actual amount due a business for goods, food, drink, services or articles sold which is paid in cash or by credit card, or is given to or left for an employee by a patron or patrons of the business where the employee is employed.
(16) “Wage” paid to an employee means compensation for labor or services rendered by an employee whether determined on a time, task, piece, job, day, commission, or other basis of calculation, and the reasonable cost as determined by the Commissioner of furnishing employees with board, lodging, or other facilities. For the purposes of G.S. 95-25.6 through G.S. 95-25.13 “wage” includes sick pay, vacation pay, severance pay, commissions, bonuses, and other amounts promised when the employer has a policy or a practice of making such payments.
(17) “Workweek” means any period of 168 consecutive hours.
(18) “Enterprise” means the related activities performed either through unified operations or common control by any person or persons for a common business purpose and includes all such activities whether performed in one or more establishments or by one or more corporate units but shall not include the related activities performed for such enterprise by an independent contractor or franchisee.
§ 95-25.3. Minimum wage
Pursuant to regulations issued by the Commissioner, certificates establishing eligibility for such subminimum wage shall be issued by the Employment Security Commission.
(f) Tips earned by a tipped employee may be counted as wages only up to the amount permitted in section 3(m) of the Fair Labor Standards Act, 29 U.S.C. 203(m), if the tipped employee is notified in advance, is permitted to retain all tips and the employer maintains accurate and complete records of tips received by each employee as such tips are certified by the employee monthly or for each pay period. Even if the employee refuses to certify tips accurately, tips may still be counted as wages when the employer complies with the other requirements of this section and can demonstrate by monitoring tips that the employee regularly receives tips in the amount for which the credit is taken. Tip pooling shall also be permissible among employees who customarily and regularly receive tips; however, no employee’s tips may be reduced by more than fifteen percent (15%) under a tip pooling arrangement.
(g) Repealed by S.L. 2006-259, § 18, eff. Aug. 23, 2006.
§ 95-25.3A. Repealed by S.L. 2003-308, § 8, eff. July 1, 2003
§ 95-25.4. Overtime
(a) Every employer shall pay each employee who works longer than 40 hours in any workweek at a rate of not less than time and one half of the regular rate of pay of the employee for those hours in excess of 40 per week; provided that employers of seasonal amusement or recreational establishment employees are required to pay those employees the overtime rate only for hours in excess of 45 per workweek.
(b) Repealed by Laws 1991, c. 330, § 2.
§ 95-25.5. Youth employment
(a) No youth under 18 years of age shall be employed by any employer in any occupation without a youth employment certificate unless specifically exempted. The Commissioner of Labor shall prescribe regulations for youths and employers concerning the issuance, maintenance and revocation of certificates. Certificates will be issued, subject to review by the Department of Labor, by county directors of social services and such of their designees as are approved by the Commissioner; provided, the Commissioner may also issue certificates, both directly and electronically.
(a1) During the regular school term, no youth under 18 years of age who is enrolled in school in grade 12 or lower may be employed between 11 P.M. and 5 A.M. when there is school for the youth the next day. This restriction does not apply to youths 16 and 17 years of age if the employer receives written approval for the youth to work beyond the stated hours from the youth’s parent or guardian and from the youth’s principal or the principal’s designee.
(3) The prohibitions of subsection (j)(2) of this section if the youths only work at the establishment when another employee at least 21 years of age is in charge of and present at the licensed premises.”
(2) Under 18 years of age to prepare, serve, dispense or sell any alcoholic beverages, including mixed beverages.
(k) Persons and establishments required to comply with or subject to regulation of child labor under the Fair Labor Standards Act are exempt from all provisions of this section, except the certificate requirements of subsection (a), the provisions of subsection (a1), the prohibition from occupations found and declared to be detrimental by the Commissioner of Labor pursuant to subsection (b), and the prohibitions of subsection (j). In addition, employment certificates will not be issued if such person’s employment will be in violation of the applicable child labor provisions of the Fair Labor Standards Act. Such employers may also be assessed civil penalties pursuant to G.S. 95-25.23 for each violation of the provisions of this section or any regulation issued hereunder from which there is no exemption.
(l) Notwithstanding any other provision of this section, any youth who holds a North Carolina driver’s license valid for the type of driving involved may be assigned as part of his employment to drive an automobile or truck not exceeding 6,000 pounds gross vehicle weight within a 25-mile radius of the principal place of employment, provided that the youth has completed a State-approved driver-education course, and provided that the assignment does not involve the towing of vehicles. “Gross vehicle weight” includes the truck chassis with lubricants, water and full tank or tanks of fuel, plus the weight of the cab or driver’s compartment, body and special chassis and body equipment, and payload.
(m) Notwithstanding any other provision of this section, youths who are enrolled at an institution of higher education may be employed by the institution provided the employment is not hazardous. As used in this subsection, “institution of higher education” means any constituent institution of The University of North Carolina, any North Carolina community college, or any college or university that awards postsecondary degrees.
§ 95-25.6. Wage payment
Every employer shall pay every employee all wages and tips accruing to the employee on the regular payday. Pay periods may be daily, weekly, bi-weekly, semi-monthly, or monthly. Wages based upon bonuses, commissions, or other forms of calculation may be paid as infrequently as annually if prescribed in advance.
Employees whose employment is discontinued for any reason shall be paid all wages due on or before the next regular payday either through the regular pay channels or by mail if requested by the employee. Wages based on bonuses, commissions or other forms of calculation shall be paid on the first regular payday after the amount becomes calculable when a separation occurs. Such wages may not be forfeited unless the employee has been notified in accordance with G.S. 95-25.13 of the employer’s policy or practice which results in forfeiture. Employees not so notified are not subject to such loss or forfeiture.
§ 95-25.7A. Wages in dispute
(b) Acceptance of a partial payment of wages under this section 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.
§ 95-25.8. Withholding of wages
(a) An employer may withhold or divert any portion of an employee’s wages when:
(b) The withholding or diversion of wages owed for the employer’s benefit must comply with the following requirements:
(c) In addition to complying with the requirements in subsections (a) and (b) of this section, an employer may withhold or divert a portion of an employee’s wages for cash shortages, inventory shortages, or loss or damage to an employer’s property after giving the employee written notice of the amount to be deducted seven days prior to the payday on which the deduction is to be made, except that when a separation occurs the seven-day notice is not required.
(d) Notwithstanding subsections (a) and (b), above, an overpayment of wages to an employee as a result of a miscalculation or other bona fide error, advances of wages to an employee or to a third party at the employee’s request, and the principal amount of loans made by an employer to an employee are considered prepayment of wages and may be withheld or deducted from an employee’s wages. Deductions for interest and other charges related to loans by an employer to an employee shall require written authorization in accordance with subsection (a), above.
(e) Notwithstanding subsections (a) and (c), above, if criminal process has issued against an employee, an employee has been indicted, or an employee has been arrested pursuant to Articles 17, 20, and 32 of Chapter 15A of the General Statutes for a charge incident to a cash shortage, inventory shortage, or damage to an employer’s property, an employer may withhold or divert a portion of the employee’s wages in order to recoup the amount of the cash shortage, inventory shortage, or damage to the employer’s property, without the written authorization required by this section, but the amount of such withholdings shall comply with the provisions of subsection (b) of this section. If the employee is not found guilty, then the amount deducted shall be reimbursed to the employee by the employer.
(g) Nothing in this Article shall preclude an employer from bringing a civil action in the General Court of Justice to collect any amounts due the employer from the employee.”
§ 95-25.9. Repealed by S.L. 2005-453, § 17, eff. Oct. 1, 2005
§ 95-25.10. Repealed by S.L. 2005-453, § 18, eff. Oct. 1, 2005
§ 95-25.11. Employers’ remedies preserved
(a) Repealed by S.L. 2005-453, § 19, eff. Oct. 1, 2005.
(b) Nothing in this Article shall preclude an employer from bringing a civil action in the General Court of Justice to collect any amounts due the employer from the employee.
§ 95-25.12. Vacation pay plans
No employer is required to provide vacation pay plans for employees. However, if an employer provides these promised benefits for employees, the employer shall give all vacation time off or payment in lieu of time off in accordance with the company policy or practice. Employees shall be notified in accordance with G.S. 95-25.13 of any policy or practice which requires or results in loss or forfeiture of vacation time or pay. Employees not so notified are not subject to such loss or forfeiture.”
§ 95-25.13. Notification, posting, and records
(3) Notify employees, in writing or through a posted notice maintained in a place accessible to its employees, at least 24 hours prior to any changes in promised wages. Wages may be retroactively increased without the prior notice required by this subsection; and.
(4) Furnish each employee with an itemized statement of deductions made from that employee’s wages under G.S. 95-25.8 for each pay period such deductions are made.
§ 95-25.14. Exemptions
(4) Any person employed as a page in the North Carolina General Assembly or in the Governor’s Office;
(1) Any employee of a boys’ or girls’ summer camp or of a seasonal religious or nonprofit educational conference center;
(5) Repealed by Laws 1989, c. 687, § 2.
(1) Drivers, drivers’ helpers, loaders and mechanics, as defined under the Fair Labor Standards Act;
(e) Employment in a seasonal recreation program by the State of North Carolina, any city, town, county, or municipality, or any State or local agency or instrumentality of government, is exempt from all provisions of this Article, including G.S. 95-25.3 (Minimum Wage).
§ 95-25.15. Investigations and inspection of records; notice of law
With respect to any provision of this Article under which the employer is covered, the Commissioner or the Commissioner’s designated representative may inspect such places and such records, make transcriptions of any and all such records, question employees and investigate such facts, conditions, practices, or matters as are necessary to determine whether the employer has violated said provision of this Article.
With respect to the provisions of G.S. 95-25.6 through 95-25.12 (Wage Payment) as those provisions apply to persons covered by the Fair Labor Standards Act, the Commissioner or his designated representative shall have no authority under this subsection unless the Commissioner or his designated representative has received a complaint from an employee of the covered establishment.”
(b) Except as otherwise provided in this Article, every employer subject to any provision of this Article shall make, keep, and preserve such records of the persons employed by the employer and of the wages, hours, and other conditions and practices of employment which are essential to the enforcement of this Article and are prescribed by regulation of the Commissioner, except that the Commissioner shall have no authority to prescribe records for the State of North Carolina, a city, town, county or other municipality or agency or instrumentality of government.
(c) A poster summarizing the major provisions of this Article shall be displayed in every establishment subject to this Article.
§ 95-25.16. Enforcement
(d) Subsection (c) of this section applies only to those states that extend comity to this State.
§ 95-25.17. Wage and Hour Division established
The Commissioner of Labor is charged with enforcement of this Article. The Commissioner shall appoint a Wage and Hour Director and any other employees the Commissioner deems necessary for enforcement of this Article. The Commissioner shall continue to prescribe the powers, duties, and responsibilities of the Director and employees engaged in the administration of this Article.
§ 95-25.18. Legal representation
It shall be the duty of the Attorney General of North Carolina, when requested, to represent the Department of Labor in actions or proceedings in connection with this Article.
§ 95-25.19. Rules
§ 95-25.20. Records
Files and other records relating to investigations and enforcement proceedings pursuant to this Article, or pursuant to Article 21 of this Chapter with respect to Wage and Hour Act violations, shall not be subject to inspection and examination as authorized by G.S. 132-6 while such investigations and proceedings are pending. Nothing under this section shall impede the right to discovery under G.S. 1A-1, Rules of Civil Procedure.
§ 95-25.21. Illegal acts
(c) Any person who violates this section shall be guilty of a Class 2 misdemeanor.
(d) The court, in any action brought under this Article may, in addition to any judgment awarded plaintiff, order costs and fees of the action and reasonable attorneys’ fees to be paid by the defendant. In an action brought by the Commissioner in which a default judgment is entered, the clerk shall order attorneys’ fees of three hundred dollars ($300.00) to be paid by the defendant.
The court may order costs and fees of the action and reasonable attorneys’ fees to be paid by the plaintiff if the court determines that the action was frivolous.
(e) The Commissioner is authorized to determine and supervise the payment of the amounts due under this section, including interest at the legal rate set forth in G.S. 24-1, from the date each amount first came due, and the agreement to accept such amounts by the employee shall constitute a waiver of the employee’s right to bring an action under subsection (b) of this section.
(g) Prior to initiating any action under this section, the Commissioner shall exhaust all administrative remedies, including giving the employer the opportunity to be heard on the matters at issue and giving the employer notice of the pending action.
§ 95-25.23. Violation of youth employment; civil penalty
(a) Any employer who violates the provisions of G.S. 95-25.5 (Youth Employment) or any regulation issued thereunder, shall be subject to a civil penalty not to exceed two hundred fifty dollars ($250.00) for each violation. In determining the amount of such penalty, the appropriateness of such penalty to the size of the business of the person charged and the gravity of the violation shall be considered. The determination by the Commissioner shall be final, unless within 15 days after receipt of notice thereof by certified mail with return receipt, by signature confirmation as provided by the U.S. Postal Service, by a designated delivery service authorized pursuant to 26 U.S.C. § 7502(f)(2) with delivery receipt, or via hand delivery, the person charged with the violation takes exception to the determination, in which event final determination of the penalty shall be made in an administrative proceeding pursuant to Article 3 of Chapter 150B and in a judicial proceeding pursuant to Article 4 of Chapter 150B.
§ 95-25.23A. Violation of record-keeping requirement; civil penalty
(a) Any employer who violates the provisions of G.S. 95-25.15(b) or any regulation issued pursuant to G.S. 95-25.15(b), shall be subject to a civil penalty of up to two hundred fifty dollars ($250.00) per employee with the maximum not to exceed one thousand dollars ($1,000) per investigation by the Commissioner or his authorized representative. In determining the amount of the penalty, the Commissioner shall consider:
§ 95-25.23B. Civil penalty collection
The Commissioner may file in the office of the clerk of the superior court of any county a certified copy of an assessment, either unappealed from or affirmed in whole or in part upon appeal, of a civil money penalty under G.S. 95-25.23 or G.S. 95-25.23A. Upon such filing, the clerk shall enter judgment in accordance with the unappealed or affirmed portion of the assessment and shall notify the parties. Such judgment shall have the same effect, and all proceedings in relation to the judgment shall thereafter be the same, as though the judgment had been rendered in a suit duly heard and determined by the superior court of the General Court of Justice.
§ 95-25.24. Restraint of violations
The General Court of Justice has jurisdiction and authority upon application of the Commissioner to enjoin or restrain violations of this Article, including the restraint of any withholding of payment of unpaid wages, minimum wages, or overtime compensation found by the court to be due to employees under this Article (except sums which employees are barred from recovering, at the time of the commencement of the action to restrain the violations, by virtue of the applicable statute of limitations).
§ 95-25.25. Construction of Article and severability
This Article shall receive a liberal construction to the end that the welfare of adult and minor workers may be protected. If any provisions of this Article or the application thereof to any person or circumstance is held to be invalid, such invalidity shall not affect the provisions or application of the Article which can be given effect without the invalid provision or application, and to this end the provisions of this Article are severable.