A North Carolina employment contract is used by employers to establish the terms and conditions of employment for a new employee. An employment contract details an employee’s responsibilities and duties as well as establishes what they will be compensated with in terms of benefits, income, and vacation time.
In North Carolina, an employment contract must have specific elements, which are an offer, an acceptance, and consideration [1] .
- Laws: Chapter 95
- Definition of Employee: According to § 95-25.2, an employee is any individual employed by an employer.
By Type
Independent Contractor Agreement
Outlines the arrangement between a contractor and a client.
Subcontractor Agreement
Allows a contractor to dictate the work a subcontractor will complete.
Non-Compete Agreement
Protects company data by restricting the activities in which an employee can engage.
Hiring in North Carolina
Before you start employing workers in North Carolina and creating employment contracts, you need to know some state labor laws and requirements.
At-Will Employment
North Carolina is an at-will employment state. There are also exceptions to the at-will employment rules.
Exceptions
- Public Policy: Yes
- Implied Contract: No
- Good-Faith Exception: No
Minimum Wage ($/hour)
North Carolina doesn’t have a state-specific minimum wage, so it defaults to the federal minimum wage of $7.25/hour [2] .
All tipped employees must receive at least $2.13/hour. If they don’t earn enough tips to make the equivalent of the federal minimum wage, the employer must pay more than $2.13/hour to make up the difference [3] .
Child Labor
North Carolina requires employment certificates for minors under 18 [4] . Employment certificates can be obtained by either the North Carolina Department of Labor or the County Director of Social Services.
Age certification is not required in North Carolina.
Payday
North Carolina does not have any payday requirements. Pay frequency may be daily, weekly, bi-weekly, semi-monthly, or monthly.
Meal and Rest Breaks
There are no minimum paid rest or meal period requirements in North Carolina.
Recordkeeping Requirements
North Carolina employers must keep certain records on file. For example, they must maintain employees’ wages/hours/payroll information for at least three years [5] . Other recordkeeping requirements include:
- Unemployment Insurance: 5 years
- Child Labor: 3 years after the individual turns 18 or leaves the position.
Sample
Download a North Carolina employment contract template in PDF or Word format below:
