North Carolina Employment and Labor Laws

Keeping up with state employment and labor laws can substantially complicate compliance efforts. Here’s what employers in North Carolina need to know.

The state of North Carolina provides a flexible legal landscape for employers, shaped by right-to-work protections and limited mandates on paid leave or pay transparency. Some regulations, however, still require strict compliance, such as the state’s OSHA-approved safety plan and E-Verify obligations for employers of a certain size.

When it comes to talent and workforce management, North Carolina-based employers need to comply with the following state employment laws: 

  • Pay equity
  • Final paychecks and PTO payouts
  • Workplace health and safety
  • Anti-discrimination and harassment

The below information was last updated September 9, 2025. It is not intended as legal advice. Also, unless otherwise noted below, the following laws predominantly apply to the private sector.

North Carolina Labor Laws 

A subset of employment law, labor law focuses on the relationships between employers, employees, and labor unions, particularly in the context of collective bargaining and workplace rights.  

Central to US labor law is the National Labor Relations Act (NLRA), which protects employees’ rights to organize, join unions, and negotiate working conditions while restricting unfair labor practices. Still, states can enact additional laws, such as Right-to-Work statutes, that influence union membership and dues requirements.
 

Is North Carolina a Right-to-Work State? 

Right-to-work states prohibit employers from requiring union membership or dues as a condition of employment (a.k.a. union security agreements).

North Carolina is one of 26 states that currently have right-to-work laws.
 

North Carolina Employment Laws 

Employment law governs the individual rights of employees and their professional relationship with their employers, such as working hours, fair wages, anti-discrimination protections, and workplace safety.
 

North Carolina Wage Laws 

North Carolina Minimum Wage The state of North Carolina mirrors the federal minimum wage rate of $7.25, including the tipped minimum wage rate of $2.13 for employees who earn tips with their base pay.

North Carolina Overtime Pay Laws

According to state law, overtime pay in North Carolina is calculated at 1.5 times the employee’s regular pay rate when working over 40 hours a week.

Note: Special rules can apply to hospital and nursing home employees working an alternative workweek.
North Carolina Pay Equity Law Under NRS 613.330, employers in North Carolina cannot discriminate against a qualified person with a disability on the basis of a disabling condition with respect to compensation or the terms, conditions, or privileges of employment.

This applies to employers with 15 or more employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year.

North Carolina Pay Transparency Law

North Carolina currently has no pay transparency laws or regulations.

North Carolina Final Paycheck Law

In North Carolina, employees who voluntarily resign from a job must receive their final paycheck by the next regular payday, unless wages are based on bonuses, commissions, or similar calculations. In such cases, the final amount must be paid on the first regular payday after those amounts can be calculated.

Involuntarily terminated employees must receive their final paycheck by the next regular payday.

North Carolina PTO Payout Laws

North Carolina doesn’t have specific PTO payout requirements, as it bases such decisions on an employer's policy.

It does, however, allow the use of "use-it-or-lose-it" policies if the employees are notified in writing of any policy that requires or results in loss or forfeiture of vacation time or pay.

 

North Carolina Leave Laws

North Carolina Paid Sick Leave (PSL) North Carolina currently has no paid sick leave laws or regulations.

North Carolina Paid Family and Medical Leave (PFML)

North Carolina currently has no PFML laws or regulations. However, employers with 50 or more employees must still comply with the federal Family and Medical Leave Act (FMLA), which provides eligible employees up to 12 weeks of unpaid leave every 12 months for various reasons.
North Carolina Maternity Leave North Carolina doesn't have a maternity leave law, as this type of leave is an employer-provided benefit. Since the state also doesn’t have a mandated PFML program, employees must instead use FMLA leave or another type of employer-provided leave. 

North Carolina Voting Leave Law

North Carolina currently has no voting leave laws or regulations.

 

North Carolina Workplace Health and Safety Management

All states must comply with federal health and safety standards overseen by the Occupational Safety and Health Administration (OSHA).  

North Carolina, however, also adopted and imposes additional, OSHA-approved regulations that are identical to those federal standards. North Carolina’s State OSHA Plan is overseen by the North Carolina Department of Labor.
 

North Carolina Work Break Laws

North Carolina currently has no work break laws or regulations.

North Carolina Harassment and Workplace Discrimination Laws

As described by the state’s Equal Employment Practices Act, employers in North Carolina are prohibited from discriminating against employees based on:

  • Race
  • Color
  • Religion
  • Sex
  • National origin
  • Age
  • Disability
  • Genetic information

North Carolina also requires employers to comply with specific anti-harassment mandates, as outlined in Title VII of the federal 1964 Civil Rights Act. Employers must, for example, have internal processes for dealing with sexual harassment, permitting employees to complain to a specific office or individual. 

The state doesn't, however, require employees to complete any harassment or discrimination training courses.
 

Other North Carolina Employment Laws 

North Carolina Non-Compete Agreement Laws North Carolina currently has no laws or regulations banning or limiting the use of non-compete agreements.

North Carolina Retirement Plan Laws

North Carolina currently has no mandatory retirement plan laws or regulations.
North Carolina Employment Verification Laws Under N.C. Gen. Stat. § 64-26, every private employer with 25 or more employees must use E-Verify. Each employer must retain a record of the E-Verify results during the individual’s employment and for one year thereafter.

This information is provided as a courtesy and may be updated at any time. It is not intended as legal guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified employment or labor attorney or advisor. 

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