As a reminder, North Carolina state law requires employers to provide written notice at least one pay period before decreasing employee compensation from July 8, 2021, to allow employees to decide whether to continue working under the new pay conditions.
Employers should remember:
- Advance Notice: Employers must notify employees in writing at least one pay period before any salary reduction takes effect.
- No Retroactive Reductions: Employers cannot retroactively reduce already-earned wages or benefits.
- Minimum Wage Compliance: Salary reductions cannot bring an employee’s pay below the minimum wage of $7.25 per hour.
- Prospective Changes: Any reduction in pay must be prospective from the time of notification.
Employers should ensure compliance with these requirements to avoid potential penalties, including paying workers the difference between their previous and new salaries for up to one pay period.
For additional information:
NC DOL – Changes or Reduction in Wages
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