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Charlotte, NC Employment Preemption: Minimum Wage Preemption (2026)

Heavy Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

State Minimum Wage
$7.25/hr (NCGS § 95-25.3)
Tipped Wage
$2.13/hr cash + tips
Preemption Statute
N.C.G.S. § 95-25.1(b)
Enabling Law
2017 N.C. Sess. Laws 4 (HB 142)
Charlotte City Wage
$22.00/hr (city employees only)

Summary

Charlotte cannot set a citywide private-sector minimum wage. N.C.G.S. § 95-25.1(b) preempts local wage ordinances. North Carolina's state minimum wage matches the federal FLSA rate of $7.25/hour. Tipped wage: $2.13/hour cash + tips equaling $7.25.

(d) The provisions of this Article supersede and preempt any ordinance, regulation, resolution, or policy adopted or imposed by a unit of local government or other political subdivision of the State that regulates or imposes any requirement upon an employer pertaining to compensation of employees, such as the wage levels of employees, hours of labor, payment of earned wages, benefits, leave, or well-being of minors in the workforce. This subsection shall not apply to any of the following:

(1) A local government regulating, compensating, or controlling its own employees.

(2) Economic development incentives awarded under Chapter 143B of the General Statutes.

(3) Economic development incentives awarded under Article 1 of Chapter 158 of the General Statutes.

(4) A requirement of federal community development block grants.

(5) Programs established under G.S. 160D-1311. (1937, c. 409, s. 2; 1979, c. 839, s. 1; 2016-3, 2nd Ex. Sess., s. 2.1; 2017-4, s. 1; 2023-134, s. 5.9(a).)

Source: N.C.G.S. § 95-25.1(b) — PreemptionView official code

Full Breakdown

North Carolina General Statute § 95-25.1(b) provides that 'no county, municipality, or other political subdivision of the State may enact local wage and hour requirements that exceed those established in this Article [Wage and Hour Act, N.C.G.S. Ch. 95, Article 2A], including, but not limited to, local minimum wage requirements.' This was added by 2017 N.C. Sess. Laws 4 (HB 142) as a follow-on to the bathroom-bill compromise, replacing the broader 2016 HB 2 preemption. The North Carolina state minimum wage in N.C.G.S. § 95-25.3 is set at $7.25/hour, identical to the federal FLSA rate. The City of Charlotte pays its own municipal workforce a higher living wage (currently $22.00/hour effective FY 2024-25 per City Council action), but this does not extend to private employers. The NC Department of Labor's Wage and Hour Bureau enforces state law; U.S. DOL enforces federal FLSA.

Violations & Fines

NC wage-claim remedies under N.C.G.S. § 95-25.22 include unpaid wages plus equal liquidated damages and attorney's fees. Claims may be filed with the NC Department of Labor or pursued in court within 2 years. Federal FLSA remedies (29 U.S.C. § 216(b)) apply in parallel.

Frequently Asked Questions

Is the minimum wage higher in Charlotte than the rest of NC?
Not for private employers. The state $7.25/hour rate applies citywide. Charlotte pays its own City employees $22/hour by Council policy, but cannot extend that to private businesses.
Can Charlotte pass a $15 minimum wage?
No. N.C.G.S. § 95-25.1(b) expressly preempts local wage ordinances. Only the NC General Assembly can raise the state minimum above $7.25.
What is the tipped minimum wage in Charlotte?
$2.13/hour cash wage as long as tips bring the worker to $7.25 (NCGS § 95-25.3(f), incorporating the FLSA tip credit). NC's tip-credit rules track federal FLSA.

Sources & Official References

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