North Carolina Minimum Wage: Rate, Tipped Wage, and Local Rules

As of 2026, North Carolina's minimum wage is $7.25 per hour for most employees, the same as the federal minimum wage under the Fair Labor Standards Act (FLSA). This is not a coincidence: North Carolina's wage statute, N.C. Gen. Stat. § 95-25.3, expressly ties the state minimum wage to the federal rate. The law sets the state minimum at $6.15 per hour or the federal minimum wage, whichever is higher. Because the federal floor has been $7.25 since July 2009, that higher figure controls, and North Carolina workers are entitled to at least $7.25 for every hour worked. There is no separate, higher state rate and no automatic inflation increase built into North Carolina law.

How North Carolina's minimum wage works

North Carolina is one of many states whose minimum wage simply mirrors the federal baseline rather than exceeding it. The practical effect is that if Congress raises the federal minimum wage, North Carolina's rate rises with it automatically, because the statute always points to "the minimum wage set forth in the Fair Labor Standards Act." If the federal rate were ever lowered below $6.15, the state's $6.15 floor would kick in, but that is a hypothetical scenario.

This structure matters for two reasons. First, North Carolina workers do not benefit from the steadily rising minimums seen in states like California, New York, or Washington. Second, any future increase depends on action in Washington, D.C., not in Raleigh, unless the General Assembly amends the statute. Several bills to raise North Carolina's minimum wage have been introduced over the years, but none has become law, so $7.25 remains the operative number.

No scheduled increases or inflation indexing

Unlike a growing number of states, North Carolina does not index its minimum wage to inflation or the Consumer Price Index, and it has no pre-scheduled step increases on the books. The rate stays at $7.25 until either Congress raises the federal minimum or the North Carolina legislature changes state law. Workers and employers should not expect an annual bump on January 1, because there is no mechanism in current law that produces one.

The tipped wage and tip credit

North Carolina allows employers to pay tipped employees a lower direct cash wage and count a portion of tips toward the minimum wage. This is called a tip credit. The lowest cash wage an employer may pay a tipped employee in North Carolina is $2.13 per hour, the same as the federal floor, provided the employee's tips make up the difference so that total earnings reach at least $7.25 per hour.

If a tipped worker's cash wage plus tips does not average at least $7.25 per hour in a given workweek, the employer must make up the shortfall. The tip credit is never allowed to push a worker's effective hourly pay below the full minimum wage.

North Carolina law attaches specific conditions to the tip credit. Under N.C. Gen. Stat. § 95-25.3(f), an employer may use the tip credit only if:

• The employer keeps accurate and complete records of the tips each employee reports;
• The employee is notified in advance that the employer intends to take a tip credit;
• All tips are retained by the employee, except where there is a valid tip-pooling arrangement among employees who customarily and regularly receive tips.

North Carolina defines a "tipped employee" as someone who customarily and regularly receives more than $20 a month in tips. Note that this $20 threshold is lower than the $30-a-month figure used under federal law, so a worker who might not be "tipped" federally could still be treated as tipped under North Carolina's definition. If an employer fails to meet the recordkeeping or notice requirements, it loses the right to the tip credit and must pay the full $7.25 cash wage.

Tip pooling and service charges

Valid tip pools in North Carolina may be shared only among employees who customarily receive tips, such as servers, bussers, and bartenders. Managers, supervisors, and owners generally may not share in a tip pool. Mandatory service charges added to a customer's bill are treated differently from voluntary tips; a service charge that the employer keeps or distributes at its discretion is not the employee's tip and may count as the employer's gross receipts rather than as a tip for tip-credit purposes. Because the rules around mandatory charges and pooling can be technical, workers who are unsure should review their pay records carefully.

Are there any city or county minimum wages in North Carolina?

No. North Carolina preempts local minimum wage ordinances for private employers. State law bars cities and counties from setting their own minimum wage, mandating wage levels, or otherwise regulating the compensation private employers must pay. This means there is a single statewide minimum wage of $7.25, and no Charlotte, Raleigh, Durham, Greensboro, or Asheville rate that exceeds it. Local governments can set pay policies for their own public employees, but they cannot impose a higher minimum on private businesses operating within their borders. As a result, the rate is uniform across all 100 counties.

Who is covered, and common exceptions

Most employees in North Carolina are covered by the state minimum wage, but the Wage and Hour Act recognizes several categories that are treated differently:

• Tipped employees, as described above, may receive a $2.13 cash wage plus tips.
• Full-time students and youth may, in limited circumstances and with proper authorization, be paid a subminimum training or student wage under federal certificate programs.
• Employees of certain seasonal amusement or recreational establishments may be exempt from minimum wage and overtime requirements.
• Executive, administrative, and professional employees who meet the duties and salary tests are exempt from both minimum wage and overtime as "white-collar" exempt workers.
• Independent contractors are not covered, though misclassification of employees as contractors is unlawful.

How overtime fits in

Minimum wage and overtime are separate but related protections. North Carolina's Wage and Hour Act generally requires overtime pay of one and one-half times the employee's regular rate for hours worked over 40 in a workweek, mirroring the federal FLSA standard. (Seasonal amusement and recreational establishments use a 45-hour weekly threshold under state law.) North Carolina does not require daily overtime after 8 hours, unlike a few states such as California. The regular rate used to calculate overtime can never be based on less than the $7.25 minimum wage.

How to enforce your right to minimum wage

If you believe you have been paid less than $7.25 per hour, or that an improper tip credit left you below the minimum, you can take action:

• Keep your own records. Track hours worked, your cash wage, tips received, and any deductions. Save pay stubs and schedules.
• Raise it with your employer. Sometimes underpayment is a payroll error that can be corrected quickly.
• File a complaint with the North Carolina Department of Labor. The agency's Wage and Hour Bureau investigates unpaid minimum wage and overtime claims under the state Wage and Hour Act.
• Consider a federal claim. Because North Carolina's rate equals the federal rate, many violations also breach the FLSA, which the U.S. Department of Labor's Wage and Hour Division enforces and which allows recovery of back wages plus liquidated (double) damages.
• Act promptly. Wage claims are subject to a statute of limitations (generally two years under North Carolina's Wage and Hour Act, and two to three years under the FLSA), so do not delay.

Where to confirm the current rate

Wage figures can change when Congress acts, and definitions are occasionally updated, so always verify the current numbers before relying on them. The authoritative state source is the North Carolina Department of Labor (NCDOL), Wage and Hour Bureau, which publishes the current minimum wage, tipped wage, and overtime rules. For the federal baseline, consult the U.S. Department of Labor's Wage and Hour Division. As of 2026 both the state and federal minimum wage stand at $7.25 per hour, but confirming the figure directly with NCDOL is the safest way to be certain it has not changed.

Official North Carolina Sources

This page is based on North Carolina employment law. Rules and figures change — verify the current details directly with the official North Carolina sources below. This is general legal information, not legal advice.

• North Carolina Department of Labor — official North Carolina agency.
• How and Where to File a Wage Complaint (NC DOL Wage and Hour Bureau)
• North Carolina General Statutes Chapter 95 (Labor)

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside North Carolina state law.