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Be Ready for These New North Carolina Overtime Rules

As a Human Resources professional, one of your most important responsibilities is keeping abreast of developments in labor laws and regulations. This May will likely mark the introduction of several new rules dealing with overtime. We’ll get into more specifics in a future post, but for now, here are the basics on two new sets of regulations scheduled to take effect later this year.

Overtime Pay and Exempt/Non-Exempt Classification

Overtime pay is one and a half times an employee’s normal hourly wage. In North Carolina, this means that because the minimum wage of $7.25 per hour, the overtime minimum wage is $10.88 per hour. The new overtime rules clarify the difference between non-exempt employees, whose overtime pay falls under the rules above, and exempt employees, whose pay does not. Among the changes expected in May is an increase in the salary threshold at which employees are considered exempt. This means more of the workforce will potentially be covered under overtime regulations.

Classification of Independent Contractors

Another proposal expected to be codified in May, would reclassify some workers that are currently treated as independent contractors so they’re legally treated as employees instead. This would grant them more benefits, including eligibility for overtime pay. Among the factors that would distinguish employees from contractors is whether the work they do is “integral to the employer’s business.”

Differentiating Labor Regulations from Labor Laws

You’ll notice we keep referring to the introduction of these new rules as “likely.” That’s because the changes in regulation are implemented through executive action and not the passage of labor laws, which would be a tall order given that the midterm elections resulted in a divided Congress. That’s the same reason you’re unlikely to see more sweeping labor changes like raising the federal minimum wage or protecting workers’ right to unionize.

Nevertheless, 2023 is shaping up to be a busy year in terms of changing regulations, and Mega Force wants to help you navigate the shifting landscape. Watch this space for updates on if and when new regulations take effect. And if you’re with a Fayetteville company looking to expand your employee base, you can request candidates here.


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