North Carolina Local Minimum Wage Preemption Law

NCGS 95-25.1 of the Wage and Hour Act establishes the state minimum wage and preempts any local ordinance setting a different minimum wage for private employers. The current state minimum wage matches the federal floor at $7.25 per hour for non-tipped employees, with a $2.13 cash wage for tipped employees provided tips bring total compensation to at least $7.25. Cities and counties may not impose higher minimum wages on private employers, although they may set wage floors for their own employees and certain government contractors.

Local ordinances setting a higher minimum wage on private employers are unenforceable; state Wage and Hour Act violations carry back-pay liability and penalties up to twice unpaid wages.