View Library
Employment Law, Benefits & Compensation

Client Alert: Changes to Hiring and Termination Process Under New Administrative Rules in North Carolina

Governor Roy Cooper signed into law changes to the North Carolina Wage and Hour Act that change employer hiring and termination processes. The changes are effective immediately.


Hiring New Employees: At the time of hiring, employers must notify new employees, in writing, of the promised wages and the day and place for payment.

  • If employers already use written offer letters for all new hires, this new obligation may already be met if the offer letter states:
    • The promised wages (hourly rate or monthly/annual salary)
    • Date of payment (i.e., the second Friday and last day of the month, or such other regular payroll schedule adopted by the employer)
    • Place of the payment (describe how the regular paychecks will be delivered or how ACH transfers can be arranged).

  • If employers do not use written offer letters, they should begin utilizing a written offer process that meets the new statutory requirements.

Decrease in Wage Rate: If an employer needs to adjust an employee’s wages downward, then it must provide the employee with written notice at least one pay period prior to the change. There is no notice requirement for any upward adjustments to wages. 

Termination of Employment: Upon a termination of employment, final wages must be paid on or before the next regular payday either through the regular pay channels or by trackable mail if requested by the employee in writing, regardless of the reason for the termination of employment.

  • If the employee’s wages are regularly paid via mail, then the final paycheck may also be sent by mail without a written request. But we recommend using a trackable form of mail.

  • If an employee’s wages are regularly paid via ACH deposit or hand delivery, the final paycheck must be delivered using the same method, unless the employee agrees in writing to have it sent via trackable mail.

  • If an employee who regularly receives their paycheck through hand delivery has been terminated for cause, or may otherwise present a safety hazard to the workplace, and has not otherwise made a voluntary request to have their final paycheck mailed, we recommend that the employer take appropriate and reasonable precautions to avoid any safety risks. For example, we recommend proactively including an authorization to mail the final paycheck in the employee's other exit paperwork for them to review and sign.

If you need assistance with your company processes related to these important and immediate changes, please feel free to contact Amalie Tuffin at atuffin@hutchlaw.com, Frances-Ann Criffield at fcriffield@hutchlaw.com or Ashley Pittman at apittman@hutchlaw.com and they would be happy to assist you.

 

****

This Alert is provided for informational purposes only and is not intended to be, nor should it be construed as, legal advice on any specific matter, nor does it represent any undertaking to keep recipients advised of all relevant legal developments. This Alert does not create or constitute an invitation to create an attorney-client relationship, nor should it be construed as an advertisement or solicitation for legal services. This material may be considered Attorney Advertising in some states. Prior results do not guarantee a similar outcome.

© 2021 Hutchison PLLC

Sign Up For Updates