Disclaimer: These materials do not constitute legal advice and should not be substituted for the advice of legal counsel.

Guide last updated November 2025.

At-Will Employment

North Carolina is an at-will-employment state, which means that an employer may end the employment relationship at any time and for any reason as long as it is not an otherwise unlawful reason. Kurtzman v. Applied Analytical Industries, Inc., 347 N.C. 329, 331, 493 S.E.2d 420, 422 (1997). However, there are three recognized exceptions: (1) the existence of an employment contract for a definite term; (2) a termination that is in violation of state or federal anti-discrimination law; and (3) a termination that is in violation of state public policy. Gillis v. Montgomery Cty. Sheriff's Dep't, 191 N.C. App. 377, 380, 663 S.E.2d 447, 449-50 (2008).

"There is no specific list of what actions constitute a violation of public policy." Ridenhour v. International Business Machines Corp., 512 S.E.2d 774, 778 (1999). That said, under the public policy exception, an employee may not be terminated for refusing to violate the law at the employer's request, for engaging in a legally protected activity, or based on an activity by the employer contrary to law or public policy. Ridenhour v. International Business Machines Corp., 512 S.E.2d 774, 778 (1999).

Immigration Verification

Private employers with 25 or more employees must use E-Verify to verify a person's work authorization and retain the verification record during the person's employment and for one year thereafter. N.C. Gen. Stat. §§ 64-25, 64-26.

North Carolina agencies must also use E-Verify no later than the third working day after the hire. 25 N.C. Admin. Code 1H.0636.

Drug Testing

Employers opting to utilize drug testing must follow testing requirements defined by North Carolina statutes and North Carolina Department of Labor regulations, although such provisions do not apply to employers required to test by the federal Department of Transportation or Nuclear Regulatory Commission. N.C. Gen. Stat. §§ 95-230 to 95-235. The employer must pay all reasonable expenses associated with all drug tests not requested by the employee; however, the prospective or current employee must pay all reasonable costs associated with the retest process for positive results, including actual retesting costs, shipping expenses, and the cost of complying with chain of custody procedures. 13 N.C. Admin. Code 20.0601- 0602.

Employers are subject to civil penalties for violations of the controlled substance examination regulations. N.C. Gen. Stat. § 95-234.

The statutes and regulations do not address alcohol testing. N.C. Gen. Stat. §§ 95-231 et seq.; 13 N.C. Admin. Code §§ 20.0101 et seq.

Medical Testing

Employers may condition employment offers on medical examination results or records obtained pre-employment, but such exams must be conducted in a nondiscriminatory manner. 29 CFR § 1630.14(b). Employers with 25 or more employees may not require applicants to pay for medical examinations or records as a condition of the initial act of hiring. N.C. Gen. Stat. § 14-357.1.

Paid Leave

Generally, North Carolina employers may – but are not required to – give employees paid vacation, holiday, or sick leave (https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/promised-wages-including-wage-benefits).

The proposed Healthy Families and Healthy Workplaces Act would require employers to provide paid sick leave and paid family medical leave. H.B. 339, 2025 Gen. Assemb., 2025 Sess. (N.C. 2025); S.B. 326, 2025 Gen. Assemb., 2025 Sess. (N.C. 2025). There is also proposed legislation that would require employers who offer job-protected sick leave to allow employees to use accrued and available sick leave for attending to a family member's care for no longer than five consecutive days. H.B. 398, 2025 Gen. Assemb., 2025 Sess. (N.C. 2025).

Jury Duty Leave

It is unlawful for an employer to discharge or demote an employee because they have been called for jury duty or are serving as a grand or petit juror. N.C. Gen. Stat. § 9-32(a).

The statute establishes a civil action for "reasonable damages" sustained by a discharged or demoted employee and entitlement to reinstatement to the former position. The employee bears the burden of proof in such actions. N.C. Gen. Stat. § 9-32(b). The statute of limitations for these actions is one year. N.C. Gen. Stat. § 9-32(c).

North Carolina state law does not require an employer to provide jury duty pay. (https://www.labor.nc.gov/workplace-rights).

Voting Leave

North Carolina state law does not require employers to provide employees with leave or time off to vote.

Parental Leave

North Carolina state law requires employers to provide limited parental leave of four hours per year in order for an employee to attend or otherwise be involved in his or her child's school. This leave is applicable to parents, guardians, and persons standing in loco parentis for a school-aged child. The leave is subject to the following conditions: (1) the leave shall be at a mutually agreed upon time between the employer and the employee; (2) the employer may require an employee to provide the employer with a written request for the leave at least 48 hours before the time desired for the leave; and (3) the employer may require that the employee furnish written verification from the child's school that the employee attended or was otherwise involved at that school during the time of the leave. N.C. Gen. Stat. § 95-28.3.

An employer must provide leave to an employee whose child is under the jurisdiction of the juvenile courts to comply with a court order requiring the parent to attend a court appearance, a parental responsibility class, or a medical, surgical, psychiatric, or psychological evaluation or treatment. N.C. Gen. Stat. § 7B-2700 et seq.

Domestic Violence Leave

North Carolina prohibits employers from discharging, demoting, denying a promotion to, or disciplining an employee because the employee took reasonable time off from work to obtain or attempt to obtain relief under the state's domestic violence statutes. "Reasonable time off" is not defined by the statute. Absent emergency circumstances, the employee should follow the employer's normal leave policy, and the employer may require documentation as to the emergency that prevented compliance in advance or may require other documentation supporting the workplace absence. N.C. Gen. Stat. § 50B-5.5.

Smoking/Substance Use Laws

Employers may not discriminate against any person for the lawful use of lawful products, as long as the use occurs off the employer's premises during nonworking hours and does not adversely affect job performance, the ability to properly fulfill the responsibilities of the position in question, or the safety of other employees. N.C. Gen. Stat. § 95-28.2(b).

However, an employer may "restrict the lawful use of lawful products" by employees during nonworking hours if the restriction relates to a bona fide occupational requirement and is reasonably related to the employment activities." N.C. Gen. Stat. § 95-28.2(c)(1). Employers may also restrict the lawful use during nonworking hours if the restriction "relates to the fundamental objectives of the organization." N.C. Gen. Stat. § 95-28.2(c)(2). The employer may also discharge, discipline, or take action due to noncompliance with the employer's substance abuse-prevention program or the recommendations of substance abuse-prevention counselors who are employed or retained by the employer. N.C. Gen. Stat. § 95-28.2(c)(3).

Break Time to Express Milk

North Carolina has not enacted legislation addressing breaks for purposes of nursing or breast milk expression. However, employers must follow the federal Fair Labor Standards Act (FLSA) requirement of providing "reasonable break time" for an employee to express breast milk for a nursing child for one year after the child's birth each time the employee has a need to express milk. 29 U.S.C.A. § 218d(a)(1). The FLSA requires employers to provide a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk. 29 U.S.C.A. § 218d(a)(2). Employers that employ fewer than 50 employees are exempt from the break time requirement if compliance would result in undue hardship. 29 U.S.C.A. § 218d(c).

Break time to express milk is classified as working hours when an employee is not completely relieved of their duties during the break, but otherwise an employer need not compensate employees receiving "reasonable break time." 29 U.S.C.A. § 218d(b).

Meal/Rest Breaks

North Carolina has not enacted legislation regulating or establishing meal breaks or rest periods for private employers with the exception of certain breaks required for employees under the age of 16. Generally, breaks lasting under 30 minutes must be paid, but an employer is not required to compensate employees for breaks lasting 30 minutes or longer (https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/what-know-about-breaks).

Proposed legislation would require employers to provide 20-minute paid breaks around the middle of the workday to employees with a workday lasting for six hours or longer. H.B. 438, 2025 Gen. Assemb., 2025 Sess. (N.C. 2025).

Minimum Wage, Overtime, and Wage Recordkeeping

The applicable minimum wage is $7.25 per hour. N.C. Gen. Stat. § 95-25.3; 29 U.S.C.A. § 206. Proposed legislation could raise the minimum wage to $10.00 per hour or as much as $15.00 per hour. H.B. 786, 2025 Gen. Assemb., 2025 Sess. (N.C. 2025); S. 2013, 119th Cong. § 2 (2025).

An employer may pay tipped employees $2.13 per hour under the FLSA as long as the employee's tips bring the total hourly wage up to the state minimum wage. N.C. Gen. Stat. § 95-25.3(f); 29 U.S.C. §§ 203(m), 206; C.F.R. § 531.50.55.

Provisions governing overtime pay can be found at N.C. Gen. Stat. § 95-25.4. Generally, if an employee works more than 40 hours, they must be compensated for the excess hours at a rate of one and one-half times the regular rate of pay at which they are employed. Agricultural employees, among others, are exempt from the overtime pay requirements. N.C. Gen. Stat. § 95-25.14.

Every employer must make and keep a record containing particular employee information, including the employee's name, home address, and job title, among other pieces of information. 13 N.C. Admin. Code 12.0801. Employers also must make and keep a record containing wage and pay data for a period of not less than three years. 13 N.C. Admin. Code 12.0802.

Final Payments

North Carolina law provides that employees whose employment is discontinued for any reason shall be paid all wages due on or before the next regular payday either through the regular pay methods or, if the employee makes a written request, by trackable mail.

Wages based on bonuses, commissions, or other forms of calculation shall be paid on the first regular payday after the amount becomes calculable when a separation occurs.

Wages may not be forfeited unless an employee has been notified in accordance with N.C. Gen. Stat. 95-25.13 of the employer's policy or practice, which results in forfeiture. Employees who are not notified are not subject to such loss or forfeiture. N.C. Gen. Stat. § 95-25.7.

Unemployment Insurance

Unemployment insurance benefits provide income to individuals who have lost work through no fault of their own. To be eligible, applicants must be able to work, available to work, and actively seeking a new job. Earned wages over the prior 15 months also impact eligibility for benefits. Those who qualify may receive up to $350 a week for 12 weeks (https://www.des.nc.gov/am-i-eligible-unemployment).

Unemployment benefits are administered by the Division of Employment Security, and additional information regarding the benefits may be accessed at des.nc.gov/.

Workers' Compensation

North Carolina's Workers' Compensation Act is administered by the North Carolina Industrial Commission. N.C. Gen. Stat. § 97-2. Employees who suffer: (1) accidental injury arising out of and in the course of their employment; or (2) disease naturally and unavoidably from the accident may be eligible to receive several types of benefits under the Act. N.C. Gen. Stat. §§ 97-2(6), 97-2 et seq.

Under the Act, a workplace injury must be immediately, or as soon as practicable, reported in writing to the employer. Failing to report an injury in a timely manner may result in a denial of benefits. N.C. Gen. Stat. § 97-22.

The North Carolina Retaliatory Employment Discrimination Act prohibits discrimination or the taking of retaliatory action (discharge, suspension, demotion, retaliatory relocation of an employee, or other adverse employment action taken against an employee in the terms, conditions, privileges, and benefits of employment) against an employee because they in good faith do, or threaten, to take certain actions enumerated in the Act, including the filing of a claim under the Act. N.C. Gen. Stat. §§ 95-240, -241.

Child Labor

All children under 18 years of age must be issued a youth employment certificate in order to be employed in any occupation absent a specific exemption. N.C. Gen. Stat. § 95-25.5(a). No children under 18 years of age can work in occupations that have been declared hazardous by the Department of Labor without exemption under the Fair Labor Standards Act or otherwise found and declared to be detrimental by the Commissioner of Labor following a public hearing. N.C. Gen. Stat. § 95-25.5(b).

Children less than 14 years of age: Work is generally not permitted for children under 14 years of age except when working for the child's parents, participating in the home delivery of newspapers, or modeling or acting in a movie or theater production (https://www.labor.nc.gov/workplace-rights/youth-employment-rules/work-hour-limitations-youths).

Children 14 to 15 years of age: Work may be performed in retail businesses, food service establishments, service stations, and offices of other businesses. Children in this age range are not permitted to work in manufacturing, mining, on construction sites, or with power-driven machinery. (https://www.labor.nc.gov/workplace-rights/youth-employment-rules/work-hour-limitations-youths).

Employers that hold ABC permits are generally not allowed to employ children under 15, although there is an exception for children 14 and older who: (1) have the written consent of a parent or guardian; and (2) will be employed to work for a purpose unrelated to alcoholic beverages. N.C. Gen. Stat. § 95-25.5(j).

Children 16 to 17 years of age: Employment cannot take place between 11 p.m. and 5 a.m. for children enrolled in grades 12 or lower when school will be held the next day, absent permission from parents and the principal. (https://www.labor.nc.gov/workplace-rights/youth-employment-rules/hazardous-and-detrimental-occupations-youths).

The various restrictions for places of work dealing with minors, as well as restrictions on the hours of the day the minor may work, may be found at N.C. Gen. Stat. § 95-25.5.

Gun Laws

The state allows all private premises, such as an employer, to prohibit the carrying of a concealed handgun by posting a conspicuous notice or via the statement of a person in legal possession or control of the premises. N.C. Gen. Stat. § 14-415.11(c)(8). However, there is no other affirmative restriction on employees maintaining concealed handguns in their vehicles. N.C. Gen. Stat. § 14-415.

Additional Laws and Regulations

Retaliatory Employment Discrimination Act

This North Carolina act prohibits discrimination or taking of retaliatory action (discharge, suspension, demotion, retaliatory relocation of an employee, or other adverse employment action taken against an employee in the terms, conditions, privileges, and benefits of employment) against an employee who in good faith does or threatens to file a claim or complaint, initiate any inquiry, investigation, inspection, proceeding or other action, or testify or provide information to any person with respect to enumerated statutes including the Workers' Compensation Act, Wage and Hour Act, Occupational Safety and Health Act of North Carolina, and others. N.C. Gen. Stat. §§ 95-240, -241.

Equal Employment Practices Act (EEPA)

North Carolina's EEPA provides that it is the public policy of the state to "protect and safeguard the right and opportunity of all persons to seek, obtain, and hold employment without discrimination or abridgment on account of race, religion, color, national origin, age, sex, or handicap by employers which regularly employ 15 or more employees." The state's Human Relations Commission in the Civil Rights Division of the Office of Administrative Hearings has the authority to receive, investigate, and conciliate EEOC charges. N.C. Gen. Stat. § 143-422.1 et seq.

Proposed legislation would repeal the Human Relations Commission's authority under N.C. Gen. Stat. § 143-422.3 in post-enactment cases, reducing the Commission's duties. S.B. 257, 2025 Gen. Assemb., 2025 Sess. (N.C. 2025). Another bill would add a section to N.C. Gen. Stat. § 143-422 to prohibit discrimination based on pregnancy, childbirth, or other pregnancy-related conditions. H.B. 940, 2025 Gen. Assemb., 2025 Sess. (N.C. 2025).

Persons with Disabilities Protection Act

North Carolina prohibits employers with 15 or more full-time employees within the state (but not domestic or farm workers at the employer's home or farm) from failing to hire or consider for employment, failing to promote, discharging, or otherwise discriminating against qualified persons with a disability due to their disability. An employer also cannot require an applicant to identify whether he or she is disabled prior to a conditional offer of employment, although employers may invite applicants to volunteer this information in order to act affirmatively on their behalf. N.C. Gen. Stat. § 168A.

Proposed legislation would broaden the Act's protection to include reasonable accommodations for an employee's pregnancy, childbirth, or related conditions. H.B. 940, 2025 Gen. Assemb., 2025 Sess. (N.C. 2025); S.B. 588, 2025 Gen. Assemb., 2025 Sess. (N.C. 2025).

Employers are not required to make accommodations that would impose undue hardship. Undue hardship is determined through various facts, such as the nature and cost of the accommodations, financial resources of the facility, number of employees and type of operations, and effect on expenses, financial resources, and operations. N.C. Gen. Stat. § 168A-3 et seq.

Genetic Information and Medical Status Issues

North Carolina prohibits discrimination in employment on the basis that an applicant or employer possesses sickle cell or hemoglobin C trait, that a person has requested genetic testing or counseling services, or due to genetic information being obtained concerning the person or a member of the person's family. N.C. Gen. Stat. §§ 95-28.1, 95-28.1A.

The state also prohibits discrimination in continued employment on the basis of HIV infection or having the AIDS virus and prohibits AIDS virus infection testing for determining suitability for continued employment. However, the statute's protections are limited. Employers can test for the AIDS virus infection in pre-employment and annual medical screens. Employers are not prohibited from denying employment to an applicant, making a reassignment, or terminating employment based on a positive HIV test if the HIV-positive status would pose a significant risk to the employee, the public, or coworkers or if the person could not perform normally assigned duties. N.C. Gen. Stat. § 130A-148.