A BILL TO BE ENTITLED
AN ACT increasing the state's minimum wage to fifteen dollars per hour over five years, then annually adjusting the minimum wage automatically by increases in the cost of living; ending the subminimum wage for individuals with disabilities; amending  the subminimum wage for tipped workers; and, ending the exemption for domestic workers.
The General Assembly of North Carolina enacts:

INCREASE STATE MINIMUM WAGE OVER FIVE YEARS/REPEAL SUBMINIMUM WAGE PROVISIONS
SECTION 1.  G.S. 95‑25.3 reads as rewritten:
"§ 95‑25.3.  Minimum wage.
(a)	Every employer shall pay to each employee who in any workweek performs any work, wages of at least the following amounts:
(1)	Effective January 1, 2020, eight dollars and eighty cents ($8.80) per hour or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. § 206(a)(1), as that wage may change from time to time, whichever is higher, except as otherwise provided in this section.
(2)	Effective January 1, 2021, ten dollars and thirty‑five cents ($10.35) per hour or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. § 206(a)(1), as that wage may change from time to time, whichever is higher, except as otherwise provided in this section.
(3)	Effective January 1, 2022, twelve dollars ($12.00) per hour or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. § 206(a)(1), as that wage may change from time to time, whichever is higher, except as otherwise provided in this section.
(4)	Effective January 1, 2023, thirteen dollars and fifty cents ($13.50) per hour or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. § 206(a)(1), as that wage may change from time to time, whichever is higher, except as otherwise provided in this section.
(5)	Effective January 1, 2024, fifteen dollars ($15.00) per hour or the minimum wage set forth in paragraph 1 of section 6(a) of the Fair Labor Standards Act, 29 U.S.C. § 206(a)(1), as that wage may change from time to time, whichever is higher, except as otherwise provided in this section. Beginning September 30, 2022, and on each September 30 thereafter, the Commissioner of Labor shall calculate an adjusted minimum wage rate using the Consumer Price Index (All 29 Urban Consumers, U.S. City Average for All Items), CPI‑U, or its successor index, as calculated by the U.S. Department of Labor for the 12‑month period preceding the previous September 1. Each adjusted minimum wage rate calculated shall be published on September 30 and take effect on the following January 1.

	

	
(f)	Tips earned by a tipped employee may be counted as wages only up to the amount permitted in section 3(m) of the Fair Labor Standards Act, 29 U.S.C. 203(m), if the tipped employee is notified in advance, is permitted to retain all tips and the employer maintains accurate and complete records of tips received by each employee as such tips are certified by the employee monthly or for each pay period. Even if the employee refuses to certify tips accurately, tips may still be counted as wages when the employer complies with the other requirements of this section and can demonstrate by monitoring tips that the employee regularly receives tips in the amount for which the credit is taken. Tip pooling shall also be permissible among employees who customarily and regularly receive tips; however, no employee's tips may be reduced by more than fifteen percent (15%) under a tip pooling arrangement.
(g)	Repealed by Session Laws 2006‑259, s. 18, effective August 23, 2006."

INCREASE TIPPED EMPLOYEE MINIMUM WAGE
SECTION 2.(a)  Effective January 1, 2020, until December 31, 2020, G.S. 95‑25.3(f) reads as rewritten:
"(f)	Tips earned by a tipped employee may be counted as wages only up to the amount of five dollars ($5.00) per hour. Tip pooling is permissible among employees who customarily and regularly receive tips; however, no employee's tips may be reduced by more than fifteen percent (15%) under a tip pooling arrangement."
SECTION 2.(b)  Effective January 1, 2021, until December 31, 2021, G.S. 95‑25.3(f) reads as rewritten:
"(f)	Tips earned by a tipped employee may be counted as wages only up to the amount of six dollars and fifty cents ($6.50) per hour. Tip pooling is permissible among employees who customarily and regularly receive tips; however, no employee's tips may be reduced by more than fifteen percent (15%) under a tip pooling arrangement."
SECTION 2.(c)  Effective January 1, 2022, until December 31, 2022, G.S. 95‑25.3(f) reads as rewritten:
"(f)	Tips earned by a tipped employee may be counted as wages only up to the amount of eight dollars ($8.00) per hour. Tip pooling is permissible among employees who customarily and regularly receive tips; however, no employee's tips may be reduced by more than fifteen percent (15%) under a tip pooling arrangement."
SECTION 2.(d)  Effective January 1, 2023, G.S. 95‑25.3(f) reads as rewritten:
"(f)	Tips earned by a tipped employee may be counted as wages only up to the amount of nine dollars and fifty cents ($9.50) per hour. Tip pooling is permissible among employees who customarily and regularly receive tips; however, no employee's tips may be reduced by more than fifteen percent (15%) under a tip pooling arrangement."

REPEAL EXEMPTIONS FOR DOMESTIC WORKERS
SECTION 3.  G.S. 95‑25.14(a) reads as rewritten:
"(a)	The provisions of G.S. 95‑25.3 (Minimum Wage), G.S. 95‑25.4 (Overtime), and G.S. 95‑25.5 (Youth Employment), and the provisions of G.S. 95‑25.15(b) (Record Keeping) as they relate to these exemptions, do not apply to any of the following:
(1)	Any person employed in an enterprise engaged in commerce or in the production of goods for commerce as defined in the Fair Labor Standards Act:
a.	Except as otherwise specifically provided in G.S. 95‑25.5.
b.	Notwithstanding the above, any employee other than a learner, apprentice, student, or handicapped worker as defined in the Fair Labor Standards Act who is not otherwise exempt under the other provisions of this section, and for whom the applicable minimum wage under the Fair Labor Standards Act is less than the minimum wage provided in G.S. 95‑25.3, is not exempt from the provisions of G.S. 95‑25.3 or G.S. 95‑25.4.
c.	Notwithstanding the above, any employer or employee exempt from the minimum wage, overtime, or child labor requirements of the Fair Labor Standards Act for whom there is no comparable exemption under this Article shall not be exempt under this subsection except that where an exemption in the Fair Labor Standards Act provides a method of computing overtime which is an alternative to the method required in 29 U.S.C.S. § 207(a), the employer or employee subject to that alternate method shall be exempt from the provisions of G.S. 95‑25.4(a); provided that, persons not employed at an enterprise described in subdivision (1) of this subsection shall also be subject to the same alternative methods of overtime calculation in the circumstances described in the Fair Labor Standards Act exemptions providing those alternative methods.
(2)	Any person employed in agriculture, as defined under the Fair Labor Standards Act.
	
(4)	Any person employed as a page in the North Carolina General Assembly or in the Governor's Office.
(5)	Bona fide volunteers in medical, educational, religious, or nonprofit organizations where an employer‑employee relationship does not exist.
(6)	Persons confined in and working for any penal, correctional or mental institution of the State or local government.
(7)	Any person employed as a model, or as an actor or performer in motion pictures or theatrical, radio or television productions, as defined under the Fair Labor Standards Act, except as otherwise specifically provided in G.S. 95‑25.5.
(8)	Any person employed by an outdoor drama in a production role, including lighting, costumes, properties and special effects, except as otherwise specifically provided in G.S. 95‑25.5; but this exemption does not include such positions as office workers, ticket takers, ushers and parking lot attendants."
SECTION 4.  This act is effective when it becomes law.