Minimum Wage in North Carolina – weekly, monthly, annually

In North Carolina, the minimum hourly wage is $7.25, which is at the same level as the federal minimum wage. Over the past year, 26 states have increased their minimum wage requirements, but North Carolina wasn’t among them.

There are several banks and other companies that raised their own minimum pay as the state minimum rate is definitely not enough to make ends meet for many workers.

Some banks, such as Trust Financial, Bank of America, Fifth Third Bancorp, Wells Fargo, and Ally Financial, have all raised their hourly minimum pay to above $20 to meet competitive wage demands.

Since the start of the pandemic, companies like Walmart, Starbucks, Walgreens, and CVS Health have raised their minimum hourly wage to $15.00.

Despite these developments, there are quite a few North Carolina employees that don’t even make the state minimum pay. Exceptions include tipped workers, farm workers, some students, and more exempt categories (read more below).

North Carolina employers must pay tipped workers at least $2.13 per hour, but the employee’s hourly wage (including tips) must be no less than the state’s minimum requirement ($7.25), or the employer must compensate for the difference.

In North Carolina, tip pooling for tipped workers is allowed, but the employees must keep at least 85 percent of their tips for themselves.

Agricultural and domestic workers are exempt from North Carolina’s minimum wage regulations, as are full-time students employed by a university in a work-learn project for maximally 20 hours a week who can be paid 90% of the minimum rate (so $6.52).

North Carolina Paycheck Calculator

This North Carolina Paycheck Calculator translates hourly earnings to weekly, annual, or monthly wages.

How to use the North Carolina paycheck calculator

  1. Enter your hourly earnings.
  2. Enter your weekly hours.
  3. Then, the paycheck calculator shows you what your hourly earnings mean in annual, weekly, and monthly wages.

How does the North Carolina paycheck calculator work?

Employees who are paid by the hour may find it complicated to see how their hourly earnings relate to periodical wages like per year, month, or week.

For employees that are paid per week, two weeks, or month, that works differently. Our North Carolina paycheck calculator allows hourly workers to easily determine their annual, monthly, or weekly wages based on their hourly earnings.

Here’s how it works: the only things you need to do is put in your hourly pay and the number of hours you work per week. The paycheck calculator instantly indicates how that translates to weekly, annual, and monthly wages.

Time period Equation
Annual earnings = hourly income times
40 hours times 52 weeks
Monthly earning = annual income divided by 12 months
Weekly earnings = hourly income times 40 hours

These results are generated by multiplying your base hourly pay by the number of hours, weeks, or months you work annually, assuming you work 40 hours a week.

Minimum Wage in North Carolina

So the North Carolina minimum pay is $7.25 an hour. This relates to $58.00 a day, $290.00 a week (at 40 hours), $1256.67 a month, and $15,080.00 a year.

As said earlier, not all North Carolina employees may earn the state’s minimum hourly rate. Some categories, such as farm workers, tipped workers, nonprofit workers, and college students, may be exempt from the state’s and FLSA (Fair Labor Standards Act) regulations.

According to recent studies, nearly 40% of all American households are not earning enough to pay for their basic needs. Estimates of how much is required to support a 2-children household in North Carolina are around $38 an hour, while a single-person household needs at least $14.50 to make ends meet!

North Carolina minimum wage exemptions

In North Carolina, several employee categories are exempt from the state’s minimum wage and overtime pay regulations. The following is not a complete overview, but it lists the most common groups:

  • North Carolina business professionals, executives, and administrators are exempt from the state’s minimum wage, overtime pay, and record-keeping regulations, as are outside salespersons and some computer specialist occupations.
  • Agricultural and seasonal workers and domestic workers such as babysitters, companions, and housekeepers are also exempt.
  • Volunteers at nonprofit, educational, religious, or medical organizations and workers at youth summer camps may hold exempt status.
  • Individuals working at mental, penal, or correctional institutions may be exempt from North Carolina’s minimum wage requirements.
  • Persons working in the motion picture, theater, radio, and television production industry are exempt.
  • Tipped workers may earn $2.13 an hour, but if the worker’s hourly pay, including tips, isn’t at the state minimum level of $7.25, the employer must compensate the employee for the difference.
  • Workers under the age of 20 can be paid  $4.25 an hour (as a training wage) for the first 90 days of new employment.
  • Full-time enrolled post-secondary students may be paid 90% ($6.52) of North Carolina’s minimum hourly wage if they have a work-study job at a university for up to 20 hours per week.
  • Workers in the seafood industry and an employer’s direct family members may be exempt as well.

All North Carolina employers are obligated to display state-approved informative posters in prominent locations so their employees can learn all about state and federal minimum wage requirements and labor rights.

North Carolina overtime wage

The FLSA (Fair Labor Standards Act) orders North Carolina employers to pay employees 150 percent of their regular hourly pay for hours worked in excess of 40 per week. 150% is 1.5 times their usual hourly pay, meaning they must get paid at least $10.88 per hour for qualifying overtime hours. However, there are exceptions. This is not a full overview, but we list the most common categories:

  • Individuals working for nonprofit, educational, medical, or religious organizations are exempt from North Carolina’s overtime wage regulations.
  • Agricultural and seasonal workers, outside salespersons, and individuals working in movie pictures, television, radio, or related industries, are exempt from overtime rules.
  • White collar workers (e.g., executives, professionals, or administrators) are exempt from North Carolina’s overtime laws.
  • Volunteer firefighters, volunteer emergency medical services, and rescue workers are exempt from North Carolina minimum wage and overtime regulations.

Please note that this post doesn’t contain legal advice. If you have any questions about North Carolina’s minimum wage policies or minimum wage compliance, consult a tax professional or a tax attorney.