North Carolina Minimum Wage: What Employers Must Pay in 2026

Quick Answer: North Carolina's minimum wage is $7.25 per hour—the same as the federal minimum wage. North Carolina has not enacted a state minimum wage higher than the federal floor. Tipped employees can be paid $2.13 per hour if tips bring total earnings to at least $7.25. File wage complaints with the NC Department of Labor or federal DOL.

North Carolina follows federal minimum wage standards.

North Carolina Minimum Wage Rate

Current Rate

2026 Minimum Wage:

• $7.25 per hour
• Same as federal minimum
• No scheduled increases
• Follows federal FLSA

Historical Context

North Carolina has:

• Never exceeded federal minimum
• No state-mandated increases pending
• Relies entirely on federal law

No Local Minimum Wages

Unlike some states:

• North Carolina prohibits local minimum wage laws
• Cities cannot set higher minimums
• State preemption applies
• Uniform rate statewide

Tipped Employees

Tip Credit

Employers can pay:

• $2.13 per hour cash wage
• If tips bring total to $7.25+
• Must inform employee of tip credit
• Employee must retain all tips

Tip Credit Requirements

Employer must:

• Inform employee of tip credit provisions
• Allow employee to keep all tips
• Ensure total equals at least $7.25/hour
• Make up difference if tips fall short

When Tip Credit Doesn't Apply

Full minimum wage required if:

• Employee not informed of tip credit
• Tips don't bring total to minimum
• Employee performs non-tipped work over 20% of time

Tip Pooling

Rules:

• Can require tip pooling among tipped employees
• Cannot include managers or supervisors
• Cannot include back-of-house (if taking tip credit)

Who's Covered

FLSA Coverage

Federal minimum wage applies to:

• Employees of enterprises with $500,000+ annual revenue
• Employees engaged in interstate commerce
• Hospitals, schools, government agencies
• Most private sector workers

NC Wage and Hour Act

State law covers:

• Employers with 1+ employees
• Incorporates federal FLSA standards
• Enforced by NC Department of Labor

Exemptions

Common Exemptions

May not be entitled to minimum wage:

• Executive, administrative, professional employees (salaried)
• Outside salespeople
• Some agricultural workers
• Some seasonal amusement workers
• Certain student workers

Youth Minimum Wage

Under federal law:

• Workers under 20: $4.25/hour for first 90 days
• Full-time students: 85% of minimum wage (limited hours)
• Student learners: subminimum with certification

Tipped Employee Exemption

Different rate:

• $2.13 cash wage allowed
• Tips must bring to $7.25 total
• Specific requirements apply

Calculating Minimum Wage Compliance

Regular Employees

Simple calculation:

• Hours worked × $7.25 = minimum owed
• Compare to actual pay
• Shortage = violation

Tipped Employees

Weekly calculation:

• Cash wages paid
• Plus tips received
• Divided by hours worked
• Must equal at least $7.25/hour

Example

Tipped employee:

• Works 40 hours
• Paid $2.13/hour = $85.20
• Receives $200 in tips
• Total: $285.20 ÷ 40 = $7.13/hour
• Employer must pay additional $4.80

Overtime and Minimum Wage

Overtime Rate

For non-exempt employees:

• 1.5× regular rate after 40 hours
• Minimum overtime: $10.88/hour
• Based on $7.25 × 1.5

Regular Rate Calculation

Includes:

• Hourly wage
• Non-discretionary bonuses
• Commissions (prorated)
• Other regular compensation

Filing a Wage Complaint

NC Department of Labor

For state claims:

• Wage and Hour Bureau
• Phone: 1-800-625-2267
• Website: labor.nc.gov

Federal DOL

For FLSA claims:

• Wage and Hour Division
• Phone: 1-866-487-9243
• Website: dol.gov/agencies/whd

What to Include

In your complaint:

• Your information
• Employer information
• Hours worked
• Wages paid
• Pay period dates
• Supporting documentation

Penalties for Violations

Federal Penalties

FLSA violations:

• Back wages owed
• Liquidated damages (equal to back wages)
• Civil penalties up to $2,374 per violation
• Criminal penalties for willful violations

State Enforcement

NC Department of Labor can:

• Investigate complaints
• Order payment of wages
• Assess penalties
• Refer for prosecution

Common Violations

Paying Below Minimum

Violations include:

• Paying less than $7.25/hour
• Improper tip credit
• Illegal deductions below minimum
• Misclassifying employees as exempt

Tip Credit Violations

Common issues:

• Not informing employees of tip credit
• Requiring tip sharing with management
• Not making up shortfall
• Excessive non-tipped work

Off-the-Clock Work

Unpaid work issues:

• Pre-shift preparation
• Post-shift cleanup
• Required training
• Work during breaks

Common Scenarios

Scenario 1: Below Federal Minimum

Situation: You're paid $6.50/hour as a retail worker.

Analysis: Clear FLSA violation. File complaint with NC DOL or federal DOL. Entitled to back wages plus liquidated damages.

Scenario 2: Tip Credit Not Explained

Situation: Employer pays $2.13/hour but never explained tip credit.

Analysis: Tip credit invalid if employee not informed. May be entitled to full minimum wage for all hours.

Scenario 3: Deductions Below Minimum

Situation: Uniform costs deducted from paycheck, bringing hourly rate below $7.25.

Analysis: Deductions cannot reduce pay below minimum wage. Violation of FLSA.

Scenario 4: Unpaid Training

Situation: Required to attend 10 hours of unpaid training.

Analysis: If training is mandatory and job-related, time must be paid at minimum wage.

Frequently Asked Questions

What is minimum wage in North Carolina?

$7.25 per hour—the federal minimum. North Carolina has no state minimum wage above the federal floor.

Can cities in NC set higher minimum wages?

No. North Carolina prohibits local minimum wage ordinances. The rate is uniform statewide.

What is minimum wage for tipped employees?

$2.13 per hour cash wage, but tips must bring total earnings to at least $7.25/hour. Employer must make up any shortfall.

Are there any scheduled increases?

No. North Carolina follows federal minimum wage. Any increases would require federal legislation.

Can my employer deduct from my pay?

Yes, but deductions cannot reduce your effective hourly rate below $7.25. Certain deductions are also prohibited without authorization.

Where do I file a wage complaint?

NC Department of Labor (1-800-625-2267) or federal DOL Wage and Hour Division (1-866-487-9243).

Related Topics

• North Carolina Wages and Hours
• North Carolina Overtime Laws
• North Carolina Unpaid Wages
• North Carolina Employment Law Hub

Take Action

If you're being paid below minimum wage:

1. Document your hours and pay
2. Calculate if you're receiving at least $7.25/hour
3. Check if tip credit requirements were followed
4. Note any illegal deductions
5. File complaint with NC DOL or federal DOL
6. Consider consulting an employment attorney

Every worker deserves at least minimum wage for every hour worked.

Legal Disclaimer

This article provides general information about minimum wage in North Carolina and is not legal advice. Every situation is different. For advice about your specific circumstances, consult a licensed North Carolina employment attorney.

For official information:

• NC Department of Labor: https://www.labor.nc.gov | 1-800-625-2267
• U.S. Department of Labor: https://www.dol.gov/agencies/whd | 1-866-487-9243