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Raleigh, 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)
Raleigh City Living Wage
$17.50/hr (city employees + contractors)
Enforcement
NCDOL + U.S. DOL

Summary

Raleigh cannot set a citywide private-sector minimum wage. N.C.G.S. § 95-25.1(b) preempts municipal wage ordinances. The North Carolina state minimum wage in N.C.G.S. § 95-25.3 matches federal FLSA at $7.25/hour. Tipped wage: $2.13/hour cash + tips equaling $7.25.

§ 95-25.1. Short title and legislative purpose; local governments preempted.

(a) This Article shall be known and may be cited as the "Wage and Hour Act." [...]

(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.

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

Full Breakdown

N.C.G.S. § 95-25.1(b), added by 2017 N.C. Sess. Laws 4 (HB 142), prohibits any county, municipality, or political subdivision from adopting wage-and-hour requirements that exceed Chapter 95, Article 2A: including local minimum wage ordinances. The North Carolina state minimum is $7.25 (N.C.G.S. § 95-25.3), tied to the federal FLSA rate. The City of Raleigh has adopted a $17.50/hour living wage for full-time City employees and for City service contractors (Raleigh City Code § 4-2003 / Council Resolution), but this does not extend to private employers operating in the city. The NC Department of Labor's Wage and Hour Bureau enforces state law; U.S. DOL Wage & Hour Division enforces federal FLSA.

Violations & Fines

NC wage-claim remedies under N.C.G.S. § 95-25.22 include unpaid wages, equal liquidated damages, and attorney's fees within a 2-year statute of limitations. Federal FLSA remedies (29 U.S.C. § 216(b)) apply concurrently.

Frequently Asked Questions

Is Raleigh's minimum wage higher than the rest of North Carolina?
Not for private workers. The state $7.25/hour rate applies. Raleigh pays its own City workers and direct contractors $17.50/hour by Council policy, but cannot extend that to private businesses.
Can Raleigh adopt its own $15 minimum wage?
No. N.C.G.S. § 95-25.1(b) expressly preempts local wage ordinances. The NC General Assembly would have to raise the state minimum or repeal the preemption.
What's the tipped wage in Raleigh?
$2.13/hour cash wage if tips bring the worker to $7.25/hour. This follows the FLSA tip credit (29 U.S.C. § 203(m)) and is mirrored in N.C.G.S. § 95-25.3(f).

Sources & Official References

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