When you work, you should be paid the wages you earned. Unfortunately, some employees do not receive all of the wages they are owed.
Wage theft can take many forms. An employer may fail to pay overtime, require employees to work off the clock, withhold earned wages, make improper deductions, or fail to pay promised commissions or other compensation.
North Carolina has laws that address minimum wage, overtime, wage payment, deductions, and other employment-related pay issues. If you believe your employer has not paid you everything you are owed, our North Carolina employment lawyers can help you understand your rights and legal options.
With more than 70 years of combined experience, our North Carolina wage theft lawyers deliver more.
Wage theft generally refers to an employer’s failure to pay an employee wages that the employee has earned or is legally entitled to receive.
Wage theft can involve more than simply receiving a smaller paycheck than expected. Depending on the circumstances, it may include:
The specific laws that apply depend on how you are paid, what type of work you perform, whether you are exempt from overtime requirements, and the circumstances surrounding the unpaid wages.
Under North Carolina law, employees who are covered by overtime requirements generally must receive time and one-half their regular rate for hours worked over 40 in a workweek, unless an exemption applies.
An employer generally cannot avoid overtime obligations simply by telling an employee not to work overtime.
Some employees are exempt from overtime requirements, however. Whether an employee is properly classified as exempt depends on the applicable law and the employee’s job duties and compensation.
Employers generally must pay covered employees for time they are required to work.
Off-the-clock work may include:
Simply being told not to record the time does not necessarily eliminate an employer’s obligation to pay for compensable work time.
An employer may be violating wage laws if it fails to pay required overtime to a nonexempt employee.
Overtime is generally calculated based on hours worked during each individual workweek. An employee does not generally become entitled to overtime simply because they worked more than eight hours in one day, and working fewer hours the next day does not necessarily eliminate overtime earned during the workweek.
The way an employee is paid can also affect the overtime calculation. Hourly employees, salaried employees, tipped employees, and employees paid through commissions or other compensation structures may have different rules that apply.
Being paid a salary does not automatically mean that an employee is exempt from overtime.
Certain salaried employees may qualify for an exemption based on their job duties and compensation. Other salaried employees may still be entitled to overtime.
If you are classified as salaried but regularly work more than 40 hours without receiving overtime, it may be worth having your classification reviewed.
Off-the-clock work is work performed for an employer that is not recorded as paid working time.
For example, an employee may be asked to clock out before finishing a task, arrive early to prepare for a shift, or answer work-related messages after clocking out.
If you are required or permitted to perform work, the circumstances surrounding that time can be important in determining whether you should have been paid for it.
North Carolina law places requirements on certain deductions and withholding of wages.
Depending on the circumstances, an employer may need written authorization before making certain deductions. There are also limitations on how deductions can affect minimum wage and overtime wages.
Examples of paycheck deductions that may require review include:
Not every deduction is unlawful. The reason for the deduction, the employee’s authorization, and the amount deducted can all matter.
Tipped employees are subject to specific wage rules.
An employer generally cannot simply take an employee’s tips for itself. There are also specific rules concerning tip credits, tip pooling, and how overtime is calculated for tipped employees.
If you believe your employer is improperly keeping tips or using tips to pay wages that should otherwise be paid by the employer, your situation may warrant legal review.
It depends on the terms of the compensation arrangement and the circumstances surrounding the payment.
North Carolina law addresses promised wages, which can include certain commissions, bonuses, and other forms of compensation. Employers must also provide employees with information about promised wages and notify employees of certain changes to their promised compensation.
Questions about commissions and bonuses can become especially important when an employee leaves a job before a payment becomes due.
Employees whose employment ends generally must be paid wages that are due by the next regular payday. Certain bonuses, commissions, or other forms of compensation may be paid later when the amount becomes calculable, depending on the circumstances and applicable compensation policies.
An employer may have a written policy governing when certain promised wages are earned or paid. Whether that policy complies with applicable law can depend on the specific circumstances.
Wage disputes can arise when an employer and employee disagree about whether compensation was earned or whether a particular employee is entitled to overtime.
North Carolina law provides that when wages are disputed, an employer must generally pay the portion it concedes is due while the employee retains remedies concerning the disputed balance.
A disagreement about wages does not necessarily mean an employee has no legal claim.
North Carolina employers must provide employees with written information about promised wages at the time of hiring and generally must provide advance written notice of changes to promised wages.
An employer’s ability to change compensation can depend on whether the wages have already been earned, the terms of the compensation arrangement, and when the employer notified the employee of the change.
Documentation can be important in a wage claim.
Depending on your situation, useful evidence may include:
You should preserve records that show when you worked, how you were paid, and what your employer told you about your compensation.
Employees may have legal protections against retaliation for certain complaints or protected activities concerning wage and hour rights.
Retaliation can include termination, demotion, reduced hours, discipline, threats, or other adverse treatment.
If your employer reduced your hours, disciplined you, or fired you after you complained about unpaid wages or overtime, the timing and circumstances may be important.
Potentially. North Carolina law provides a legal avenue for employees to recover certain unpaid wages, including unpaid minimum wages, overtime compensation, and other amounts due under the Wage and Hour Act. In qualifying cases, the law may also allow recovery of liquidated damages, interest, costs, and reasonable attorneys’ fees.
Whether you have a claim depends on the type of wages involved, your employment classification, the employer’s conduct, and the circumstances of your case.
The cost of an employment lawyer depends on the circumstances of the case and the type of legal representation involved.
A wage claim may involve reviewing payroll records, calculating unpaid compensation, determining whether overtime requirements apply, examining employment policies, and communicating with the employer.
During a free case evaluation, you can discuss your situation and learn more about your potential legal options.
