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Minimum Wage in North Carolina: $7.25, the $2.13 Tip Rule and Who's Covered

The minimum wage in North Carolina is $7.25 an hour as of October 2026, the same as the federal rate. Tipped employees can be paid $2.13 an hour in cash, but only if their tips bring them up to $7.25 and the employer follows the state's tip certification rules.

I've taken this from the N.C. Department of Labor's minimum wage page and the U.S. Department of Labor's state and tipped wage tables, all read in October 2026. The part employers trip over isn't the rate. It's the paperwork North Carolina demands before you can count tips toward wages at all.

North Carolina pay rates at a glance

WorkerHourly rate (as of October 2026)
Most employees$7.25
Tipped employees, minimum cash wage$2.13
Maximum tip credit$5.12
State, county and local government staff$7.25

The N.C. Department of Labor says the $7.25 state rate applies to all employees of businesses operating in the state, and also to the state itself, to county and local governments and to their instrumentalities. Agricultural and domestic employees fall under the federal minimum wage instead.

The tip credit paperwork rule

Here's what most guides leave out. The U.S. Department of Labor's tipped table notes that North Carolina doesn't permit a tip credit unless the employer gets a signed certification from each employee of the amount of tips received, either monthly or each pay period. Employers must also tell employees in advance how much cash wage they'll be paid and how much the tip credit will add.

  1. Tell each tipped employee in advance that you'll take a tip credit, and the cash wage you'll pay.
  2. Let them keep all their tips, apart from a valid tip pool.
  3. Collect a signed tip certification from each employee every month or every pay period.
  4. Keep accurate records of hours and tips.
  5. Top up any period where cash wage plus tips falls below $7.25 an hour.

Skip the signed certification and you can't count tips at all, which means you owe the full $7.25 in cash. If your servers share tips with bussers or bartenders, read my tip pooling guide before setting it up.

Overtime in North Carolina

Overtime is due after 40 hours in a week. The U.S. Department of Labor's table adds one North Carolina twist: in seasonal amusement or recreational businesses, premium pay is only required after 45 hours a week. Everyone else gets time and a half after 40. My overtime laws guide explains the exempt categories.

Stuck at $7.25 since 2010

Year (1 January)North Carolina rate
2007$6.15
2009$6.55
2010 to 2024$7.25
As of October 2026$7.25

The Department of Labor's history table shows North Carolina following the federal steps up to $7.25 and holding there since. North Carolina doesn't index its rate to inflation, so it only rises if the federal rate rises or the General Assembly changes the law.

North Carolina versus nearby states

StateMinimum wage (as of October 2026)Tipped cash wage
North Carolina$7.25$2.13
Virginia$12.77$2.13
South CarolinaNo state law, federal $7.25$2.13
TennesseeNo state law, federal $7.25$2.13
Georgia$5.15 state, federal $7.25 for covered jobs$2.13

One thing the table shows: every state around North Carolina uses the same $2.13 tipped cash wage, even Virginia with its much higher headline rate. What changes is how big the gap is that tips have to fill. In Virginia the maximum tip credit is $10.64, against $5.12 in North Carolina, so a slow week leaves a Virginia employer with a far bigger top-up to pay.

Virginia is the big gap on the map. A business with staff on both sides of the line pays each person the rate where they work, so a Virginia-based remote worker on a North Carolina payroll still gets Virginia's rate. My Virginia minimum wage guide covers its rises through 2028.

What North Carolina employers should check

  • Every non-exempt employee earns at least $7.25 for every hour worked, including training time.
  • Tipped staff have signed tip certifications on file for every month or pay period.
  • Overtime is paid after 40 hours, or 45 in seasonal amusement businesses.
  • Agricultural and domestic workers are paid under the federal rules.
  • You know whether any staff work from another state with a higher rate.

Who the state law leaves to the federal rules

North Carolina's $7.25 covers employees of businesses operating in the state, plus state, county and local government staff. The N.C. Department of Labor says agricultural and domestic employees are subject to the federal minimum wage instead. That matters for farms, nannies and home care arrangements: the rate is the same $7.25 today, but the federal rules decide who's covered, how overtime works and what records to keep. If you employ people in a home or on a farm, read the federal guidance rather than assuming the state page covers you.

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The N.C. Department of Labor runs a toll free line, 1-800-NC-LABOR, for workplace rights questions, and it's the right place to start if you're unsure how the state rules apply to your business.

My verdict

North Carolina is simple on the rate and strict on the detail. $7.25 is the number, $2.13 is the tipped cash wage, and the signed tip certification is the thing that decides whether you can use that $2.13 at all. Get the paperwork right and the rest is easy. For a wider view of state rates, see my federal minimum wage guide.

Frequently asked questions

What is the minimum wage in North Carolina?

It's $7.25 an hour as of October 2026, matching the federal rate.

What is the tipped minimum wage in North Carolina?

Employers can pay $2.13 an hour in cash if tips bring the employee to at least $7.25 and the tip credit rules are followed.

Do North Carolina tipped workers have to sign anything?

Yes. The employer needs a signed certification of tips received from each employee, monthly or each pay period, before taking a tip credit.

Is North Carolina raising its minimum wage?

No increase was scheduled in the official tables checked in October 2026. The state rate isn't indexed to inflation.

When is overtime due in North Carolina?

After 40 hours a week, or after 45 hours in seasonal amusement or recreational businesses.

Does the North Carolina minimum wage apply to government workers?

Yes. The N.C. Department of Labor says the $7.25 rate applies to the state, counties, local governments and their instrumentalities.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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