October 2024

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North Carolina amends pay & notice rules

09/02/21

Author: ADP Admin/Tuesday, August 31, 2021/Categories: Compliance Corner , State Compliance Update, North Carolina

North Carolina has enacted legislation (Senate Bill 208) that amends several wage notification requirements.  The law is currently in effect as of July 8, 2021.

Background:


North Carolina law previously required employers to meet the following pay and notice requirements:

Separation pay:

Upon separation for any reason, employees must be paid all wages due on or before the next regular payday
using regular pay methods.

Hiring pay notice:

At the time of hire, employers must notify employees, in writing or verbally, of their agreed upon wages and the day and place of payment.

Wage reduction notice:

Employers must notify employees of a reduction in wages at least 24 hours in advance.


Senate Bill 208:


Senate Bill 208 noew requires employers to:

Separation pay:

Use trackable mail to provide final pay if an employee requests that method in writing.

Hiring pay notice:

The wage notification must now be provided in writing.

Wage reduction notice:

Employers must now notify employees of any pay change at least one pay period in advance and in writing. This requirement does not apply to retroactive wage increases.


Compliance Recommendations:

North Carolina employers should update their pay practices to ensure compliance with Senate Bill 208.

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