Reducing Pay in NC

Document created by 1002067 on Jan 6, 2015Last modified by 1002067 on Jan 29, 2015
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Employers planning to reduce an employee’s pay are required by NC Wage and Hour Law to give the employee written notice of such.   The law (NCGS 95-25.13) requires this written notification to be at least 24 hours in advance of the reduction being made, not 24 hours in advance of issuing the paycheck reflecting the reduction.

 

If employees experience a permanent unilateral reduction in pay of more than 15% and resign from employment, they will be eligible for unemployment benefits because such is considered by the Employment Security Act of North Carolina as “leaving with good cause attributable to the employer.”  If, however, an employee resigned due to a pay reduction of more than 15%, which was the result of a rule or procedure violation, the employee would not be eligible for unemployment benefits (CAI does not normally recommend reducing employee pay in conjunction disciplinary measures).

 

For more information about North Carolina Wage & Hour Laws and other NC Department of Labor Regulations, go to http://www.ncleg.net/gascripts/statutes/statutelookup.pl?statute=95 or contact CAI's Advice and Resolution team at 919-878-9222 or 336-668-7746.

 

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