What is the penalty for not paying employees the minimum wage?

In North Carolina, employers who fail to pay their employees the minimum wage may be subject to civil and criminal penalties. Under North Carolina’s Wage and Hour Law, employers must pay their employees at least the applicable federal or state minimum wage, whichever is higher. Any employers found to be in violation of this law may be fined up to $1,000, or face up to 120 days in jail, for their first offense, depending on the severity of the violation. For any subsequent offenses, employers may be fined up to $2,500 or face imprisonment of up to 12 months. Furthermore, employers could be liable to pay the underpaid wages and may be prohibited from doing business in the state. In addition, a court may order the employer to pay restitution to the affected employees and may also order that the employer to post a bond or deposit to cover any future wage payments. To avoid penalties, employers should ensure they comply with all wage and hour laws and regulations, and pay their employees the applicable minimum wage. Employees who believe they are not being paid the minimum wage may contact the North Carolina Department of Labor and submit a wage claim.

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What is the penalty for not paying employees the minimum wage?

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