Final paycheck laws in North Carolina dictate when and how employers must pay employees their final wages, whether voluntary or involuntary, upon termination of employment. Both employers and employees must understand these laws to ensure compliance and avoid legal issues.
Employers who understand these laws can avoid penalties for non-compliance, while employees who know their rights can ensure they receive all wages owed to them promptly. Here is a short guide to North Carolina’s final paycheck law, when and how a terminated employee can expect a final paycheck, and when to call an experienced employment lawyer for help.
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North Carolina Termination Pay Laws
According to the North Carolina Department of Labor and state law, when a worker’s employment ends, they should receive all the wages owed to them on the next regular payday. Employees who aren’t informed about this policy or practice will not forfeit any money owed by their employer.
When Are Final Paychecks Due?
In North Carolina, the process of receiving final paychecks is the same, regardless of whether the termination is voluntary or involuntary. When an employee’s job ends, they can expect to receive all wages they’re owed by the next regular payday. This clear timeline can help employees plan their finances accordingly. This final paycheck may be delivered through regular pay channels or by mail if requested by the employee.
What Should Be Included in a Final Paycheck?
A final paycheck in North Carolina should include:
- Payment for all hours worked up to the termination date at the agreed-upon rate;
- Any accrued and unused vacation time that the employee is entitled to receive; and
- Payment for any bonuses earned but still need to be paid.
In North Carolina, employers can deduct taxes, Social Security, and Medicare from an employee’s final paycheck as required by law. Additionally, deductions authorized by the employee, such as contributions to retirement plans or health insurance premiums, may also be deducted. However, deductions not legally required or permitted by the employee, such as for damages or losses, are generally not allowed. You should consider contacting an employment lawyer if you are a terminated employee and believe your employer owes you money or if your final paycheck contains improper deductions.
Consequences for Non-Compliance with North Carolina Final Pay Laws
Failure to comply with these laws can lead to severe consequences. Here’s what employers and employees need to know.
Penalties for Employers
Employers who fail to pay final wages on time or in full may face penalties, including fines imposed by the North Carolina Department of Labor. The fine amount can vary depending on the circumstances of the violation, with repeat or intentional violations likely resulting in higher fines.
Legal Options for Employees
Employees who have yet to receive their final paycheck on time or in full have legal options to address the situation:
- File a complaint. Employees can file a complaint with the North Carolina Department of Labor. The Department will investigate the complaint and take appropriate action to ensure compliance with final paycheck laws.
- File a lawsuit. If the Department of Labor’s intervention is unsuccessful or the employee seeks additional remedies, they can file a lawsuit in civil court against their employer. In a civil lawsuit, the employee can seek remedies such as back pay, interest on unpaid wages, and attorney’s fees.
If an employer is found to be non-compliant with North Carolina’s final paycheck laws, employees may be entitled to the following remedies:
- Back pay. These are payments for any wages not paid on time or in total and are calculated based on the wages owed to the employee.
- Interest on unpaid wages. Employees may also be entitled to receive interest on any unpaid wages. State law typically determines the interest rate and accrues from the date the wages are due.
- Attorney’s fees. Employees may sometimes receive attorney’s fees if they prevail in legal action against their employer. The employer would be responsible for paying the employee’s legal costs to pursue the claim.
If you believe your employer has withheld a final paycheck or has failed to pay the correct amount, contact a North Carolina employment law attorney as soon as possible.
Contact Our North Carolina Employment Attorneys Today
Leaving a job is not always a pleasant experience, but employees have the right to receive their final paycheck promptly and for the correct amount. Give EMP Law a call if you believe a former employer still needs to provide you with a final paycheck, as the law requires. Our experienced Winston-Salem and Charlotte attorneys have a proven record of success in employment law matters and bring years of experience to every case. Call us at (336) 724-2828 or submit our online contact form to schedule a consultation today.
Michael provides compassionate, diligent, and creative legal services that are tailored to meet each client’s specific needs. His experience relating to clients from diverse backgrounds makes him well suited for representing his clients across a broad range of legal areas. He practices in the areas of employment law and family law, and is experienced in criminal law.
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