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Latest Compliance News

North Carolina amends pay & notice rules

09/02/21

Author: ADP Admin/Tuesday, August 31, 2021/Categories: Compliance Corner

North Carolina has enacted legislation (Senate Bill 208) that amends several wage notification requirements.  The law is currently in effect as of July 8, 2021.

Background:


North Carolina law previously required employers to meet the following pay and notice requirements:

Separation pay:

Upon separation for any reason, employees must be paid all wages due on or before the next regular payday
using regular pay methods.

Hiring pay notice:

At the time of hire, employers must notify employees, in writing or verbally, of their agreed upon wages and the day and place of payment.

Wage reduction notice:

Employers must notify employees of a reduction in wages at least 24 hours in advance.


Senate Bill 208:


Senate Bill 208 noew requires employers to:

Separation pay:

Use trackable mail to provide final pay if an employee requests that method in writing.

Hiring pay notice:

The wage notification must now be provided in writing.

Wage reduction notice:

Employers must now notify employees of any pay change at least one pay period in advance and in writing. This requirement does not apply to retroactive wage increases.


Compliance Recommendations:

North Carolina employers should update their pay practices to ensure compliance with Senate Bill 208.