## Recovering unpaid wages in North Carolina When North Carolina employers don't pay what they owe, workers have **multiple recovery paths** with strong remedies — including liquidated damages, attorney's fees, and sometimes treble damages. ## What counts as "unpaid wages" Beyond just unpaid hourly wages: **Direct compensation:** - Hourly wages - Salary - Overtime (1.5x for 40+ hours/week under FLSA) - Bonuses promised in writing - Commissions earned - Severance promised in contract **Earned but unpaid:** - Final paycheck after termination - Vacation / PTO payout (state-dependent) - Reimbursable expenses - Accrued sick pay (state-dependent) - Tip pools / tip credits - Off-the-clock work - Travel time - Training time - Mandatory pre-shift / post-shift activities - Meal break interruptions **Wage-theft tactics:** - Misclassifying as exempt to avoid OT - Misclassifying as 1099 contractor - Off-the-clock work demands - Auto-deductions for meal breaks not actually taken - Improper deductions - Tipping violations - Final-paycheck withholding - Bouncing checks - "Comp time" instead of OT (illegal in private sector) ## Three main recovery paths **1. State labor department complaint** (no lawyer needed): - Free / low-cost - Department investigates - Conciliation often works - Final decision often appealable to court - ${s.name} Department of Labor or Wage & Hour Division **2. Federal Department of Labor (FLSA claims):** - Wage & Hour Division - Investigates federal violations (minimum wage, OT, FLSA) - Often pursues large multi-employee cases - Recovers back wages on behalf of employees **3. Private lawsuit** (with attorney): - Individual or class action - ${s.name} state court or federal court - Liquidated damages available - Attorney's fees recovered (key economic incentive) - More remedies than agency action ## Federal damages — FLSA **Standard remedies:** - **Unpaid wages** (back pay) - **Liquidated damages** = equal to unpaid wages (DOUBLE recovery) - Defendant must show good faith + reasonable belief to avoid - Default is to award full liquidated damages - **Attorney's fees + costs** to prevailing plaintiff - **Pre-judgment interest** (sometimes) **Statute of limitations:** - 2 years for ordinary violations - 3 years for willful violations ## ${s.name} state-law damages **State laws often EXCEED federal:** - Some states: triple / treble damages for willful violations - Some states: statutory penalties per violation - Some states: longer statutes of limitations - Some states: penalties for late final paychecks - Some states: penalties for paystub violations **${s.name} should be checked for:** - Final paycheck deadlines (immediate / next payday / 72 hours) - Late-payment penalties - Liquidated damages multipliers - Attorney's fees provisions - Statute of limitations - Paystub requirement penalties ## Common claim types **Misclassification:** - Exempt vs non-exempt - Independent contractor vs employee - Test varies by jurisdiction - Reclassification = back OT + unpaid wages **Off-the-clock work:** - Pre/post-shift activities - Meal break interruptions - Email / phone work outside hours - Travel between worksites - Booting up computers **Overtime violations:** - Salary alone doesn't make exempt - Half-time method abuse - Workweek manipulation - Joint employer issues **Tip violations:** - Tip pool with managers / non-tipped employees - Tip credit on non-tip work ("80/20" rule) - Service charges retained as tips **Final paycheck:** - Late = state penalties (sometimes per day) - Withholding for damaged property - Withholding for advances - Improper deductions **Wage deductions:** - Uniform / equipment costs - Cash register shortages - Customer walkouts - Damaged property (limited) ## Class action / collective action potential **Wage-and-hour cases often involve groups:** - FLSA collective actions (29 U.S.C. § 216(b)) — opt-in - ${s.name} class actions — opt-out - Combined claims often filed together - Settlements common (employers want to limit exposure) - Class members get checks; counsel gets attorney fees ## Retaliation protection **Both federal and ${s.name} law prohibit retaliation:** - For complaining about wages - For filing wage complaint - For testifying about wage violations - For participating in investigation **Retaliation = separate claim** with its own damages. ## Evidence to preserve - **Pay stubs** (every one) - **W-2s / 1099s** - **Time records** (yours, employer's) - **Schedules / shift records** - **Employee handbook** - **Offer letters / contracts** - **Performance reviews mentioning hours** - **Texts / emails about scheduling / pay** - **Witnesses** - **Phone records** (after-hours work) - **Computer login records** (if accessible) ## Strategic considerations **Agency vs litigation:** - Agency: free, less money, slower, less control - Litigation: faster sometimes, full damages, attorney's fees, more control - Many attorneys take on contingency **Pre-suit demand:** - Often resolves cases (especially clear violations) - Demand letter triggers attorney attention - Provides settlement leverage - Sets up bad faith if no response **Whose money:** - Most employers' insurance doesn't cover wage claims - Direct hit on employer's pocket - Personal liability for owners (sometimes) - Successor liability for buyers (sometimes) ## What you should do If you're owed wages by an North Carolina employer: gather your evidence (especially pay stubs + time records), figure out approximate amount owed, and consult an employment / labor attorney. Most North Carolina wage attorneys offer free consultations and work on contingency. State labor department is also free option. Small amounts (<$5,000) may justify small-claims court. --- *This guide is general information about North Carolina and federal wage law as of mid-2026 and is not legal advice. Wage claims are technical. Talk to a licensed North Carolina employment attorney about your specific situation.*