What are the rules for paying salary employees overtime?
In North Carolina, salary employees who work more than 40 hours per week must be paid one and a half times their regular rate of pay for any overtime hours worked. Overtime pay is usually calculated by multiplying the employee’s regular hourly rate by 1.5 and then multiplying that number by the number of overtime hours worked. Some companies may choose to pay employees time and a half for hours worked on a holiday or on a weekend. It is important to note that salaried employees must still be paid the state’s minimum wage rate, regardless of the number of hours worked. For example, if an employee is paid an annual salary of $30,000, they must still be paid the North Carolina minimum wage rate for any hours worked over 40 in a given week. Additionally, North Carolina employers cannot average an employee’s hours over two or more weeks to avoid paying overtime. This is known as a “rolling average” and is illegal in the state of North Carolina. Finally, it is important to remember that some employees may be exempt from the overtime pay rules due to their job type or job duties. If you are unsure of whether your employees are eligible for overtime pay, it is best to consult with an attorney or other legal professional to make sure you are in compliance with the law.
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