What are the consequences of not paying employees the minimum wage?
If employers in North Carolina fail to pay employees the minimum wage, they face serious consequences. Most notably, employees can file a wage claim with the North Carolina Department of Labor (NCDOL). Once the NCDOL has been notified of the potential violation, they can investigate the matter and order the employer to pay the owed wages to their worker. Additionally, employers who are found in violation of wage and hour laws can face civil and criminal penalties. These penalties can include fines ranging from $1,000 to $20,000, plus any wages owed to the employee. Employers can also be liable for damages if the employee incurred any losses due to the violation. These losses can include lost wages, emotional distress, and punitive damages. In some cases, employers may also be subject to litigation, which can be a costly and time-consuming process. Finally, employers who fail to pay their workers the minimum wage may face additional penalties or sanctions from the state. Depending on the circumstances, the employer may be subject to citations, penalties, and/or an injunction to prevent further violations. Overall, employers in North Carolina must adhere to all wage and hour laws to ensure they are treating their employees fairly and providing them with the wages they are legally entitled to. Failing to pay the minimum wage can result in serious consequences and possibly put the employer at risk of litigation.
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