Important changes for NC employers regarding employee pay

On July 8, 2021, Governor Roy Cooper signed Senate Bill 208 – which changes certain
provisions of the North Carolina Wage and Hour Act (NCWHA).


Employers should be aware of the following key changes:
Employers must notify their employees, in writing at the time of hiring, of the
promised wages and the day and place for payment. Before this amendment, an
employer could provide notice orally.


Employers must notify employees, in writing, at least one pay period prior to any
changes in promised wages. North Carolina law formerly required only 24 hours’
notice.


Employers must send final paychecks either through regular pay channels or, an
employee may request in writing that their last paycheck be sent by trackable
mail. Final wages are still due on or before the next regular payday, and wages
based on bonuses, commissions or other amounts that cannot be calculated by the
next regular payday must be paid on the first regular payday after they become
calculable. Senate Bill 208 modifies these requirements so that an employee’s
request for final payment by mail must be in writing, and the paycheck so requested
must be sent by the employer in “trackable mail.”

The North Carolina Department of Labor has not released updated regulations or
guidance to correspond with the amended provisions.

 


If you have questions or need assistance with the amended provisions to the NCWHA, contact employment team members Nicole Gardner, Erin Ball or Jackie Kinni.