North Carolina Raises Minimum Wage

July 14, 2006

North Carolina Governor Mike Easley has signed into law a $1 increase in the state minimum wage.  The new law, which goes into effect January 1, 2007, requires all employers in the state to pay employees at least $6.15 per hour.  An estimated 139,000 North Carolina workers will receive automatic wage increases as a result of the measure.

Because the state's successful job growth has resulted in a robust economy, Gov. Easley said that the wage hike was necessary to "help many North Carolinians cope with the rising costs of transportation, housing, healthcare, and other basic needs."  He noted that the state's economy is now driven by high paying jobs requiring higher levels of education, and that a higher minimum wage is necessary to help North Carolina shed its image as a "sleepy Southern state."

The new law ties the state's future minimum wage levels to the federal Fair Labor Standards Act.  If the federal minimum wage is raised, employees in North Carolina will receive whichever wage is higher.  The federal minimum wage is $5.15 an hour and has not been raised in nine years.

Jackson Lewis attorneys are available to assist employers in all aspects of wage compliance, including developing wage and compensation policies, classifying exempt, non-exempt and independent workers, and determining eligibility for overtime pay.  We represent employers in a wide range of agency and judicial proceedings, including class action and multiple-plaintiff litigation regarding wage and hour compliance, overtime and premium pay, recordkeeping, and paid-time-off (PTO) policies.

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