North Carolina Minimum Wage 2026: $7.25 an Hour, No Increase Scheduled
North Carolina minimum wage is $7.25 an hour in 2026, the same as the federal rate since 2009. Tipped employees can be paid $2.13 cash with a $5.12 tip credit, but only with monthly tip certification. No local rates are allowed.
The North Carolina minimum wage is $7.25 per hour in 2026. The state's Wage and Hour Act ties the rate to the federal minimum wage, which has not changed since July 24, 2009, and no increase is scheduled. Tipped employees can be paid a cash wage of $2.13 per hour with a tip credit of up to $5.12, but North Carolina adds a requirement most states do not have: the employer must get a signed tip certification from each tipped employee every month or every pay period. Cities and counties cannot set their own rates.
Reviewed September 2026
Rates on this page were checked against the North Carolina Department of Labor and the US Department of Labor state minimum wage tables as of July 1, 2026. A change to the federal rate would automatically change North Carolina's. See our labor law compliance guides for other state rules.
Current North Carolina Minimum Wage
North Carolina's minimum wage is set by the state Wage and Hour Act, N.C. Gen. Stat. 95-25.3, which pegs the state rate to the federal minimum under the Fair Labor Standards Act. The North Carolina Department of Labor states plainly that "the minimum wage in North Carolina is currently $7.25 an hour."
Because the two rates are linked, North Carolina employees have not seen a minimum wage increase in more than sixteen years. Bills to raise the state rate are filed in most sessions of the General Assembly, but none has passed. The state rate can only move if Congress raises the federal minimum or the legislature amends the statute.
The state law does matter, though. It extends minimum wage coverage to employers that the FLSA does not reach, so nearly every North Carolina employee is guaranteed $7.25 through one law or the other. It also gives the state Department of Labor authority to investigate complaints and recover unpaid wages.
North Carolina Minimum Wage vs Federal Minimum Wage
| North Carolina 2026 | Federal (FLSA) | |
|---|---|---|
| Standard hourly minimum | $7.25 | $7.25 |
| Tipped cash wage | $2.13 | $2.13 |
| Maximum tip credit | $5.12 | $5.12 |
| Tip certification required | Yes, monthly or each pay period | No |
| Annual adjustment | No | No |
| Youth wage | 90 percent of minimum for under-20s in the first 90 days | $4.25 for under-20s in the first 90 days |
| Local rates allowed | No, preempted by state law | Not applicable |
The dollar figures match, so for most employers the practical difference is in enforcement and record-keeping. North Carolina's Wage and Hour Act also has its own rules on final paychecks, wage deductions, and pay notices that the FLSA does not cover.
Tipped Minimum Wage in North Carolina
Employers may pay tipped employees as little as $2.13 per hour in cash, taking a tip credit of up to $5.12, as long as tips bring the employee to $7.25 for every hour worked. The Department of Labor is explicit that this is a floor: "Employers MUST pay at least $2.13 an hour to tipped employees as long as each employee receives enough in tips to make up the difference between the wages paid and the minimum wage."
North Carolina attaches four conditions to the tip credit:
- Employees must be told in advance that the employer will take a tip credit.
- Employees must be allowed to keep all of their tips, apart from a valid tip pool among employees who customarily receive tips.
- The employer must keep accurate records of the tips each employee received.
- Those tip records must be certified by the employee, in writing, monthly or for each pay period.
Skip the certification and the tip credit is not available for that period, which means the employer owes the full $7.25 in cash wages. For a restaurant with dozens of servers this is a recurring paperwork task, and most payroll or scheduling systems can collect the certification electronically.
North Carolina Minimum Wage Increase Schedule
| Effective date | Rate | Event |
|---|---|---|
| July 24, 2007 | $5.85 | Federal step 1 |
| July 24, 2008 | $6.55 | Federal step 2 |
| July 24, 2009 | $7.25 | Federal step 3, still in force |
| 2010 to 2026 | $7.25 | No change |
There is no scheduled increase for 2027. Any future change depends on federal legislation or a state statute. Employers can watch the North Carolina Department of Labor for notices if either happens.
Local Minimum Wages in North Carolina
None. North Carolina law prohibits cities and counties from setting a minimum wage that differs from the state rate, so Charlotte, Raleigh, Durham, and Asheville all use $7.25. Local governments can set higher wages for their own employees and contractors, and several have adopted living wage policies for those workers, but those policies do not apply to private employers.
In practice, market wages across most of North Carolina are well above $7.25. Employers competing for staff in the Triangle or Charlotte typically start hourly roles far higher, which is why the minimum wage matters most in tipped work and for very small employers.
Who Is Covered and Who Is Exempt
The state Wage and Hour Act covers most private employers in North Carolina. The Department of Labor notes that agricultural and domestic employees are subject to the federal minimum wage rather than the state one, which matters only in the rare cases where the two laws would treat them differently.
Categories that are commonly exempt from the state minimum wage include:
- Employees of a business with annual sales below the FLSA threshold that also qualify for a state exemption
- Certain agricultural and domestic workers, who fall under federal rules
- Bona fide executive, administrative, professional, and outside sales employees who meet the federal duties and salary tests (these are exempt from overtime and, in most cases, minimum wage as salaried workers)
- Employees of seasonal amusement or recreational establishments, who have a 45-hour overtime threshold rather than 40
Whether a salaried employee qualifies as exempt depends on the FLSA tests, not the job title. See exempt vs non-exempt employees for the three tests and the current $684 per week salary threshold.
Overtime and the Minimum Wage
North Carolina follows the federal overtime rule: 1.5 times the regular rate for hours over 40 in a workweek, with the seasonal amusement exception at 45 hours. There is no daily overtime.
For a minimum wage employee working 45 hours:
- 40 hours at $7.25 = $290.00
- 5 overtime hours at $10.88 (1.5 times $7.25) = $54.38
- Weekly gross pay = $344.38
For tipped employees, overtime is calculated on the full minimum wage, not the $2.13 cash wage. The overtime rate is $10.88, and the employer may still apply the $5.12 tip credit to each overtime hour. Use the overtime calculator for other rates, and see overtime pay laws by state for the federal rules.
What a Minimum Wage Worker Earns in North Carolina
| Schedule | At $7.25 |
|---|---|
| 40-hour week | $290.00 |
| Month (173.33 hours) | $1,256.64 |
| Year (2,080 hours) | $15,080 |
Those are gross figures. Convert any rate with the salary to hourly calculator, and see what gross pay includes for tips, overtime, and deductions.
Employer Compliance Checklist
- Pay at least $7.25 for every hour worked, including time spent in training, waiting, or travelling between job sites during the day.
- If you take a tip credit, collect signed tip certifications from every tipped employee monthly or each pay period, and keep them with payroll records.
- Tell tipped employees in writing that a tip credit will be taken and that they keep their tips.
- Calculate overtime on the full $7.25 rate for tipped employees, not on $2.13.
- Record hours worked to the minute. A time card calculator or time tracking software makes weekly totals and overtime automatic.
- Post the North Carolina Wage and Hour Act notice, and keep payroll records for at least three years under state and federal rules.
Accurate Hours for Every North Carolina Employee
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Frequently Asked Questions
What is the minimum wage in North Carolina in 2026?
$7.25 per hour, the same as the federal minimum wage. It has not changed since 2009.
Is North Carolina raising the minimum wage in 2027?
No increase is scheduled. The state rate is tied to the federal rate, and neither Congress nor the General Assembly has passed an increase.
What is the tipped minimum wage in North Carolina?
$2.13 per hour in cash, with a tip credit of up to $5.12. The employer must obtain a signed tip certification from the employee monthly or each pay period, or the credit is lost.
Can Charlotte or Raleigh set a higher minimum wage?
No. State law preempts local minimum wage ordinances for private employers. Local governments can set higher pay only for their own workers and contractors.
Does North Carolina have a training wage?
Employers may pay employees under 20 years old 90 percent of the minimum wage during their first 90 consecutive days of employment, and the federal youth wage of $4.25 applies in the same window for FLSA-covered employers. After 90 days, or once the employee turns 20, the full $7.25 applies.
Do small businesses have to pay $7.25 in North Carolina?
Almost all do. The state Wage and Hour Act covers employers that the FLSA does not, so the combination reaches nearly every private employer in the state.
How much is North Carolina minimum wage per year?
$15,080 for a full-time employee working 2,080 hours, before taxes.
Is overtime calculated on $2.13 for tipped employees?
No. Overtime is 1.5 times the full minimum wage, or $10.88 per hour. The tip credit can still be applied to overtime hours.
For a comparison with every other state, see minimum wage by state.