What are the overtime laws?

In North Carolina, employers must abide by the federal overtime laws. All nonexempt workers in North Carolina are entitled to overtime pay when they work more than 40 hours in a workweek. Employees must be paid time-and-a-half their standard hourly rate for any time worked beyond the 40-hour threshold. The employer must pay overtime for all hours worked in excess of 40 hours in a workweek unless another form of overtime compensation, such as comp time, is agreed upon in writing by the employer and employee. Overtime is calculated using a seven-consecutive-day period. In North Carolina, if the employee works more than 40 hours in this period, they must be paid overtime for all hours worked beyond the 40-hour threshold. Some employers may use a 14-consecutive-day period for calculating overtime, although this is not required by North Carolina law. Employers must also pay a minimum wage, and employees must be paid for all overtime worked. The minimum wage in North Carolina varies depending on whether the employee is considered exempt or nonexempt, and whether the employer is not covered or covered by the Fair Labor Standards Act. An exempt employee is one who is not covered by the overtime provisions of the FLSA. Employers must also keep accurate records of the number of hours worked by employees, whether they are paid time-and-a-half or not. Employers should also have a policy in place that clarifies how they will pay overtime. North Carolina laws stipulate that overtime must be paid at least semi-monthly.

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