What are the laws concerning overtime pay?
In North Carolina, employers must pay employees overtime when they work over 40 hours in a workweek. The overtime rate is one and a half times their regular pay for each hour over the 40-hour limit. For example, if an employee normally earns $10 per hour and works 45 hours in a week, then the employee must receive $15 per hour for the five overtime hours. For employees who are paid an annual salary, the overtime rate is calculated based on the amount of the salary and the number of hours the employee works in a week. The employee’s regular rate is determined by dividing the annual salary by the number of hours the employee is expected to work in the year. For example, if an employee is paid an annual salary of $60,000 and works an average of 40 hours a week, then the regular rate of pay is $15 per hour ($60,000/40 hours/week). The overtime rate would then be one and a half times the regular rate ($22.50 per hour). North Carolina does have certain exemptions to the overtime pay law, but it generally applies to all employees. Employers must adhere to the overtime pay law or face serious penalties, including financial fines and possible criminal charges in some cases.
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