What are the requirements for overtime pay?
In North Carolina, employers must provide overtime pay at a rate of one and a half times the regular pay rate for any hours worked over forty in a workweek. This means that if an employee works 41 hours in a workweek, they must be paid for the extra hour of work at a rate of one and a half times their regular hourly pay rate. The overtime requirements also depend on the type of job. For example, in North Carolina, agricultural workers are required to be paid overtime after working 60 hours in a workweek. This is the same for domestic workers, such as housekeepers, nannies, and caregivers. Additionally, if a worker is under age 18, they are not allowed to work more than eight hours per day or 48 hours in a workweek, and are then entitled to overtime after working those hours. For most employers, if an employee is nonexempt they must be paid at time and a half for overtime. If they are considered “exempt”, however, then overtime pay does not have to be provided. Exempt employees are usually professionals, administrators, or executive level employees. It is important to note that not all employers are legally mandated to provide overtime pay. Some employers may choose to offer a salary instead of an hourly rate, in which case overtime pay is not required. Additionally, employers can use a “comp time” system, which allows an employee to clock extra hours and then take time off later on, instead of receiving overtime pay. However, this system must be agreed to by both the employer and the employee.
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