Rates verified and last updated on July 23, 2026
The minimum salary you can pay an exempt employee in North Carolina is $684 per week ($35,568 per year). North Carolina sets no salary threshold of its own — the state Wage and Hour Act adopts the federal FLSA exemption standards, so the federal threshold controls. Below that salary, or without passing a federal duties test, a salaried employee is non-exempt and must be paid overtime.
| Minimum exempt salary (weekly) | $684/week |
|---|---|
| Minimum exempt salary (annual) | $35,568/year |
| Highly compensated employee (HCE) threshold | $107,432/year |
| North Carolina minimum wage | $7.25/hour (tied to the federal rate) |
| Overtime for non-exempt salaried staff | 1.5x regular rate after 40 hours/week |
Employing salaried staff under $684/week? They are non-exempt — you are required to track their hours. ClockIt records time automatically and applies the 40-hour overtime rule for you.
Try ClockIt FreeIn 2024 the US Department of Labor issued a rule raising the exempt salary threshold to $844 per week (July 2024), with a scheduled jump to $1,128 per week in January 2025. In November 2024 a federal court in Texas vacated the rule nationwide. The Fifth Circuit dismissed the final appeal on May 5, 2026, and the DOL formally withdrew the rule effective May 14, 2026.
The enforced threshold in North Carolina — and every state without its own higher standard — is therefore back at the 2019 level: $684 per week. Many HR articles still show the vacated $1,128 figure; the numbers on this page were verified against the Federal Register and DOL sources on July 23, 2026.
Meeting the $684/week salary floor does not by itself make an employee exempt. The employee's actual job duties must also fit one of the federal exemption categories under 29 CFR Part 541:
Primary duty is managing the business or a department, customarily directs the work of at least two full-time employees, and has authority (or strong influence) over hiring and firing.
Primary duty is office or non-manual work directly related to management or general business operations, exercising discretion and independent judgment on significant matters.
Primary duty requires advanced knowledge in a field of science or learning, customarily acquired through prolonged specialized instruction.
Outside sales employees have no salary requirement. Computer employees can qualify as exempt on a salary of $684/week or an hourly rate of at least $27.63 per hour.
A salaried employee who earns under $684 per week — or who fails the duties test — is non-exempt. That means their hours must be tracked, and they must receive overtime at 1.5x their regular rate for hours over 40 per week. The regular rate is the weekly salary divided by the number of hours the salary is intended to cover. North Carolina has no daily overtime; the threshold is weekly.
Misclassification is expensive: employers face back overtime, liquidated (double) damages, and a two-year lookback — three years if the violation is willful. The NC Department of Labor enforces the state act, and the US DOL Wage and Hour Division enforces the FLSA.
The minimum salary for exempt (executive, administrative, or professional) employees in North Carolina is $684 per week, or $35,568 per year. North Carolina has no state-level salary threshold, so the federal FLSA threshold applies.
Yes — but that employee cannot be classified as exempt. A salaried employee earning under $684 per week is non-exempt, which means you must track their hours and pay overtime at 1.5x their regular rate for hours over 40 per week.
Salaried employees get overtime unless they are properly exempt. Exemption requires BOTH a salary of at least $684 per week AND passing a federal duties test (executive, administrative, or professional). A salary alone does not make an employee exempt.
A 2024 Department of Labor rule briefly raised the threshold to $844 per week and scheduled a jump to $1,128, but federal courts vacated it in November 2024 and the DOL formally withdrew the rule on May 14, 2026. The enforced threshold is back at the 2019 level of $684 per week — many websites still show the outdated higher figures.
The HCE exemption threshold reverted to $107,432 per year in total annual compensation. Employees at or above that level face a reduced duties test.
North Carolina's minimum wage is $7.25 per hour — state law ties it to the federal rate, unchanged since July 24, 2009. No North Carolina city or county sets a higher private-sector minimum wage; state law preempts local rates.
This page is provided for general informational purposes and is not legal advice. Wage and hour law changes frequently and can vary by city, county, industry, and employer size. Always confirm current requirements with the relevant government agency or a qualified employment attorney before making payroll decisions.
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