Do nonprofits have to pay minimum wage?
In North Carolina, nonprofit organizations are subject to the same labor laws applying to for-profit businesses, including the requirement to pay at least the federal minimum wage. An exception to this law is volunteer work, which is work done without pay or expectation of pay. The current minimum wage in North Carolina is $7.25 per hour. This is the same as the federal minimum wage, which was last updated in 2009. Many nonprofit organizations rely heavily on volunteer work, and this allows them to provide services without having to pay for the labor. However, if a nonprofit organization does choose to hire someone, they are still obligated to pay the minimum wage. Nonprofit organizations also need to pay any non-exempt employees overtime when they work more than 40 hours a week. Additionally, North Carolina law states that employees must be given breaks for meals and rest, and they must be paid for any time that they spend on the job. Ultimately, regardless of the nonprofit status of an organization, any individuals hired in North Carolina must be paid at least the minimum wage set by the law. Nonprofit organizations must also adhere to the same labor laws as all other businesses in the state.
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