North Carolina Minimum Wage vs Tipped Minimum Wage

North Carolina Minimum Wage vs Tipped Minimum Wage: Key Takeaways

North Carolina's minimum wage is $7.25 per hour, matching the federal minimum wage and unchanged since 2009.
Tipped employees can be paid a base cash wage of $2.13 per hour, supplemented with tips to reach at least $7.25 per hour total.
Employers must ensure total wages (base plus tips) meet minimum wage and comply with notification and record-keeping requirements.

Understanding the difference between North Carolina minimum wage and tipped minimum wage is essential for employers and employees alike.

This guide explains how wages and tips work under state law and the tip credit system in North Carolina.

For hiring compliance, see our guide on post jobs for tipped employees.

1. Overview of North Carolina Minimum Wage

As of August 2025, North Carolina’s minimum wage remains at $7.25 per hour, the same as the federal minimum wage.

This rate has not changed since 2009 and equally applies to all counties and municipalities in the state.

The minimum wage covers most employees who do not receive tips and sets the baseline for hourly compensation.

Compare pay using our restaurant wages by state resource.

2. Understanding North Carolina Tipped Minimum Wage

North Carolina law allows employers to pay tipped employees a reduced base wage of $2.13 per hour.

Common tipped roles include the cocktail server—see the cocktail server job description.

These employees are individuals who customarily receive more than $20 in tips per month.

Learn how the server minimum wage applies in practice.

The reduced wage reflects the tip credit system, where an employer credits tips toward making up the difference between the base wage and the full minimum wage.

How Tip Credit Works in North Carolina

The legally allowed tip credit is up to $5.12 per hour.

This means tipped employees must earn sufficient tips so that their total hourly pay (base wage plus tips) is at least $7.25.

If tips fall short of the required amount, the employer must pay the difference to ensure compliance.

Employer Obligations with Tip Credit

Employers planning to use the tip credit must:

Inform employees ahead of time about the tip credit provisions.
Allow employees to keep all their tips except valid tip pooling scenarios.
Maintain detailed records of tips received by each employee.
Provide employees with monthly or per pay period certifications of tips earned.

3. Tip Pooling and Its Restrictions in North Carolina

North Carolina permits tip pooling among employees who customarily receive tips, such as servers and bartenders.

Clarify responsibilities with our server job description guide.

However, tips may only be reduced by a maximum of 15% for pooling purposes.

Streamline distribution using this tip pooling template.

The intent is to ensure fairness among tip-earning employees while preserving the value of their earnings.

Define bar duties with a detailed bartender job description.

4. Legislative Efforts on Minimum Wage Changes in North Carolina

In 2023, Senate Bill 447 proposed changes aimed at gradually eliminating the tip credit by 2028.

This would require tipped employees to receive the standard minimum wage without reliance on tips to reach that threshold.

As of August 2025, these changes have not been enacted, so the existing wage and tip credit rules remain in force.

5. Ensuring Compliance with Minimum Wage Laws in North Carolina

Employers must take active steps to comply with both the minimum wage and tipped minimum wage laws:

Confirm that tipped employees’ total earnings reach at least $7.25 per hour.
Provide prior notification of tip credit use.
Keep accurate and up-to-date records of tip amounts and wages paid.
Implement lawful tip pooling without exceeding allowed deductions.
Make up any shortfall if tips do not bring total earnings to the minimum wage.

Review hiring rules with our job posting compliance guide.

6. Summary and Key Takeaways on North Carolina Minimum Wage vs Tipped Minimum Wage

North Carolina’s minimum wage stands at $7.25 per hour, unchanged for over a decade.

Tipped employees receive a base wage of $2.13 per hour plus tips that must together meet the full minimum wage.

Employers are legally required to notify workers, keep tip records, and guarantee minimum wage compliance through the tip credit system.

Legislative efforts are underway to eliminate the tip credit, but until then, existing rules govern tipped wages in the state.

For role-specific pay insights, explore updated waitress salary data.

7. Useful Government Resources for North Carolina Minimum Wage Information

01. What is the current minimum wage in North Carolina?

The current minimum wage in North Carolina is $7.25 per hour, which aligns with the federal minimum wage and has been unchanged since 2009.

02. How does the tipped minimum wage system work in North Carolina?

Tipped employees can be paid a base wage of $2.13 per hour, with the expectation that tips will bring their total hourly earnings to at least $7.25. Employers may use the tip credit to account for this difference.

03. What are employer obligations when using the tip credit?

Employers must notify employees about tip credit provisions, allow employees to keep their tips, maintain records of tips, and provide periodic certifications to employees.

04. What are the restrictions on tip pooling in North Carolina?

Tip pooling is allowed among employees who customarily receive tips, but tips may be reduced by no more than 15%. This ensures fairness while protecting employee earnings.

05. Are there any ongoing legislative efforts affecting wage laws?

Senate Bill 447 proposes to gradually eliminate the tip credit by 2028, which would require tipped employees to be paid the full minimum wage without tip reliance. However, these changes have not yet been enacted.