UP MINIMUM WAGES/NO SUBMINIMUM OR EXEMPTIONS.

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View NCGA Bill Details2021
Senate Bill 673 (Public) Filed Wednesday, April 7, 2021
AN ACT INCREASING THE REGULAR MINIMUM WAGE TO FIFTEEN DOLLARS PER HOUR BY 2023, INCREASING AND PHASING OUT THE TIPPED EMPLOYEE MINIMUM WAGE THROUGH 2025, PROVIDING FOR INFLATIONARY ADJUSTMENTS TO THE MINIMUM WAGE BASED UPON INCREASES IN THE CONSUMER PRICE INDEX, REPEALING THE SUBMINIMUM WAGE FOR SPECIFIED WORKERS, AND REPEALING EXEMPTIONS FROM THE MINIMUM WAGE FOR AGRICULTURAL AND DOMESTIC WORKERS.
Intro. by Nickel, Murdock, Foushee.

Status: Ref To Com On Rules and Operations of the Senate (Senate action) (Apr 8 2021)

SOG comments (2):

Identical bill

Substantively identical to H 612, filed 4/20/21.

Identical bill

Identical to H 891, filed 5/4/21.

Bill History:

S 673

Bill Summaries:

  • Summary date: Apr 9 2021 - View Summary

    Section 1

    Current law, GS 95-25.3(a), sets the minimum wage that every employer must pay to each employee who performs any work during any workweek at the higher of $6.15 per hour or the minimum wage set forth in 29 USC 206(a)(1) (the Fair Labor Standards Act, which may change with time), except as otherwise provided in the statute.

    This act increases the state's minimum wage in three phases. Effective January 1, 2022, sets the minimum wage at the higher of $10.35 per hour or the minimum wage set forth in 29 USC 206(a)(1). Effective January 1, 2023, sets the minimum wage at the higher of $15.00 per hour or the minimum wage set forth in 29 USC 206(a)(1). Beginning September 1, 2023, requires an annual adjustment by the Commissioner of Labor, calculated as specified. 

    Eliminates the remaining content of GS 95-25.3, except existing subsection (f), which permits tipped employees to have tips counted as wages up to a certain federally specified limit. 

    Section 2

    Further amends GS 95-25.3, setting a statutory cap on the amount of tips earned by tipped employees that can be counted as wages at $6.50 per hour. Eliminates employee notice and employer record keeping requirements. Effective January 1, 2022, until December 31, 2022. Gradually increases the statutory cap, further amending the statute effective for the following specified terms: $9.50 per hour, effective January 1, 2023, until December 31, 2023; $12.50 per hour, effective January 1, 2024, until December 31, 2024; and $15.00 per hour, effective January 1, 2025. Further amends the statute, effective January 1, 2026, setting the minimum wage rate of a tipped employee at the amount set by the Commissioner of Labor as annually adjusted, with no tips counted as wages. Bars reducing an employee's wages under a tip pooling arrangement. 

    Section 3

    Amends GS 95-25.14 to no longer exclude the following individuals from the provisions of GS 95-25.3 (Minimum Wage); GS 95-25.4 (Overtime); GS 95-25.5 (Youth Employment); and GS 95-25.15(b) (Record Keeping): (1) any persons employed in agriculture, as defined by federal law; and (2) any person employed as a domestic, including baby sitters and companions, as defined by federal law. Makes clarifying and technical changes.