North Carolina Adjustments Separation Fee Necessities And Employer-Discover Necessities For Worker Wages – Employment and HR
North Carolina is changing severance payment requirements and employer’s reporting requirements for employee wages
August 13, 2021
Seyfarth Shaw LLP
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On July 8, 2021, North Carolina Governor Roy Cooper signed Senate Bill 208, which changes the requirements for: (i) final wage payment to severed workers; and (ii) notice provided by the employer to employees of their wages. SB 208 amends the North Carolina, NC Gen. Stat. § 95-25.1 ff. By the following changes:
- The change requires an employer to pay final wages to severed workers through their regular wage channels, unless the employee requests in writing that the final payment be made by trackable mail.
- The change requires an employer to provide at the time of recruitment: (i) promised wages; and (ii) the date and place of payment.
- The amended law now requires an employer to notify an employee of at least one wage period in writing before each change to an employee’s wage commitment. However, as in the previous version of the law, wages can be increased retrospectively without the required prior written notice.
Effects for employers:
- Employers can no longer meet their obligation to terminate by verbally announcing the wage commitment at the start of employment; the termination must be made in writing.
- Employers can no longer meet their obligation to notify employees about changes in their wages by posting such changes in a location accessible to the employees. Instead, employers must inform employees in advance in writing.
- Changes in remuneration can no longer be announced 24 hours before the change; rather, written notification must be given one payment period before any change. It should be particularly emphasized that the obligation to notify applies to both wage increases and wage cuts. In practice, however, employers have little risk that employees will be illegally terminated in the event of a late announcement of a raise (less than one pay period in advance), as workers receiving a raise are unlikely to be concerned about the timing of such notification .
The changes are effective immediately.
The content of this article is intended to provide general guidance on the subject. Expert advice should be sought regarding your specific circumstances.
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