GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2023
H 1
HOUSE BILL 620
|
Short Title: Up Minimum Wages/No Subminimum or Exemptions. |
(Public) |
|
|
Sponsors: |
Representatives Harrison, Cunningham, F. Jackson, and Staton-Williams (Primary Sponsors). For a complete list of sponsors, refer to the North Carolina General Assembly web site. |
|
|
Referred to: |
Rules, Calendar, and Operations of the House |
|
April 17, 2023
A BILL TO BE ENTITLED
AN ACT increasing the minimum wage TO FIFTEEN DOLLARS PER HOUR by 2025, and then adjusting the minimum wage automatically each year by increases in the cost of living; ending the subminimum wage for persons with disabilities; phasing out the subminimum wage for tipped employees; and ending the exemption for agricultural, domestic, and incarcerated workers.
The General Assembly of North Carolina enacts:
INCREASE STATE MINIMUM WAGE/INFLATION ADJUSTMENT/REPEAL SUBMINIMUM WAGE PROVISIONS
SECTION 1.1. 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 six
dollars and fifteen cents ($6.15) 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.the following amounts:
(1) Effective January 1, 2024, 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.
(2) Effective January 1, 2025, 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.
(3) Beginning September 30, 2025, 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‑I, 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.
(b) In order to prevent curtailment of opportunities
for employment, the wage rate for full‑time students, learners,
apprentices, and messengers, as defined under the Fair Labor Standards Act,
shall be ninety percent (90%) of the rate in effect under subsection (a) above,
rounded to the lowest nickel.
(c) The Commissioner, in order to prevent
curtailment of opportunities for employment, may, by regulation, establish a
wage rate less than the wage rate in effect under section (a) which may apply
to persons whose earning or productive capacity is impaired by age or physical
or mental deficiency or injury, as such persons are defined under the Fair
Labor Standards Act.
(d) The Commissioner, in order to prevent curtailment
of opportunities for employment of the economically disadvantaged and the
unemployed, may, by regulation, establish a wage rate not less than eighty‑five
percent (85%) of the otherwise applicable wage rate in effect under subsection
(a) which shall apply to all persons (i) who have been unemployed for at least
15 weeks and who are economically disadvantaged, or (ii) who are, or whose
families are, receiving Work First Family Assistance or who are receiving
supplemental security benefits under Title XVI of the Social Security Act.
Pursuant to regulations issued
by the Commissioner, certificates establishing eligibility for such subminimum
wage shall be issued by the Division of Employment Security.
The regulation issued by the
Commissioner shall not permit employment at the subminimum rate for a period in
excess of 52 weeks.
(e) The Commissioner, in order to prevent
curtailment of opportunities for employment, and to not adversely affect the
viability of seasonal establishments, may, by regulation, establish a wage rate
not less than eighty‑five percent (85%) of the otherwise applicable wage
rate in effect under subsection (a) that shall apply to any employee employed
by an establishment that is a seasonal food service establishment.
(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 2.1. Effective January 1, 2024, until December 31, 2024, 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 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. of six dollars
and fifty cents ($6.50) per hour. Tip pooling shall also be 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 2.2. Effective January 1, 2025, until December 31, 2025, 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) 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."
SECTION 2.3. Effective January 1, 2026, until December 31, 2026, 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) twelve dollars and fifty cents ($12.50) 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 2.4. Effective January 1, 2027, until December 31, 2027, 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 twelve
dollars and fifty cents ($12.50) fifteen dollars ($15.00) 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 2.5. Effective January 1, 2028, 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 fifteen
dollars ($15.00) per hour. Beginning January 1, 2028, the minimum wage
rate of a tipped employee is the amount set under subdivision (3) of subsection
(a) of this section, and tips shall not be counted as wages. Tip pooling is
permissible among employees who customarily and regularly receive tips;
however, no employee's tips wages may be reduced by more than
fifteen percent (15%) under a tip pooling arrangement."
REPEAL EXEMPTIONS FOR AGRICULTURAL, DOMESTIC, AND INCARCERATED WORKERS
SECTION 3.1. G.S. 95‑25.14 reads as rewritten:
"§ 95‑25.14. Exemptions.
(a) The provisions of
G.S. 95‑25.3 (Minimum Wage), G.S. 95‑25.4 95‑25.4
(Overtime), and G.S. 95‑25.5 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: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;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;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;methods.
(2) Any person employed in agriculture, as defined
under the Fair Labor Standards Act;
(3) Any person employed as a domestic, including
baby sitters and companions, 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;Office.
(5) Bona fide volunteers in
medical, educational, religious, or nonprofit organizations where an employer‑employee
relationship does not exist;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;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.
(1) Any employee of a boys'
or girls' summer camp or of a seasonal religious or nonprofit educational
conference center;center.
(2) Any person employed in
the catching, processing or first sale of seafood, as defined under the Fair
Labor Standards Act;Act.
(3) The spouse, child, or
parent of the employer or any person qualifying as a dependent of the employer
under the income tax laws of North Carolina;Carolina.
(4) Any person employed in a
bona fide executive, administrative, professional or outside sales capacity, as
defined under the Fair Labor Standards Act;Act.
(5) Repealed by Session Laws 1989, c. 687, s. 2.
(6) Any person while
participating in a ridesharing arrangement as defined in G.S. 136‑44.21;G.S. 136‑44.21.
(7) Any person who is employed as a computer systems analyst, computer programmer, software engineer, or other similarly skilled worker, as defined in the Fair Labor Standards Act.
(1) Hours worked as a bona fide volunteer firefighter in an incorporated, nonprofit volunteer or community fire department.
(2) Hours worked as a bona fide volunteer rescue and emergency medical services personnel in an incorporated, nonprofit volunteer or community fire department, or an incorporated, nonprofit rescue squad.
(c) The provisions of
G.S. 95‑25.4 (Overtime), and the provisions of G.S. 95‑25.15(b)
(Record Keeping) as they relate to this exemption, do not apply to:to
the following:
(1) Drivers, drivers'
helpers, loaders and mechanics, as defined under the Fair Labor Standards Act;Act.
(2) Taxicab drivers;drivers.
(3) Seamen, employees of
railroads, and employees of air carriers, as defined under the Fair Labor
Standards Act;Act.
(4) Salespersons, mechanics
and partsmen employed by automotive, truck, and farm implement dealers, as
defined under the Fair Labor Standards Act;Act.
(5) Salespersons employed by
trailer, boat, and aircraft dealers, as defined under the Fair Labor Standards Act;Act.
(6) Live‑in child care
workers or other live‑in employees in homes for dependent children;children.
(7) Radio and television announcers, news editors, and chief engineers, as defined under the Fair Labor Standards Act.
(8) Any employee of a seasonal amusement or recreational establishment.
(d) The provisions of this Article do not apply to the State of North Carolina, any city, town, county, or municipality, or any State or local agency or instrumentality of government, except for the following provisions, which do apply:
(1) The minimum wage
provisions of G.S. 95‑25.3;G.S. 95‑25.3.
(2) The definition provisions
of G.S. 95‑25.2 necessary to interpret the applicable provisions;provisions.
(3) The exemptions of
subsections (a) and (b) of this section;section.
(4) The complainant protection provisions of G.S. 95‑25.20.
(e) Employment in a seasonal recreation program by the State of North Carolina, any city, town, county, or municipality, or any State or local agency or instrumentality of government, is exempt from all provisions of this Article, including G.S. 95‑25.3 (Minimum Wage)."
EFFECTIVE DATE
SECTION 4.1. Except as otherwise provided, this act is effective when it becomes law.