State Codes and Statutes

Statutes > North-carolina > Chapter_95 > GS_95-25_8

§ 95‑25.8.  Withholdingof wages.

(a)        An employer maywithhold or divert any portion of an employee's wages when:

(1)        The employer isrequired or empowered to do so by State or federal law;

(2)        When the amount orrate of the proposed deduction is known and agreed upon in advance, theemployer must have written authorization from the employee which (i) is signedon or before the payday(s) for the pay period(s) from which the deduction is tobe made; (ii) indicates the reason for the deduction; and (iii) states theactual dollar amount or percentage of wages which shall be deducted from one ormore paychecks. Provided, that if the deduction is for the convenience of theemployee, the employee shall be given a reasonable opportunity to withdraw theauthorization; or

(3)        When the amount ofthe proposed deduction is not known and agreed upon in advance, the employermust have written authorization from the employee which (i) is signed on orbefore the payday(s) for the pay period(s) from which the deduction is to bemade; and (ii) indicates the reason for the deduction. Prior to any deductionsbeing made under this section, the employee must (i) receive advance writtennotice of the actual amount to be deducted; (ii) receive written notice oftheir right to withdraw the authorization; and (iii) be given a reasonableopportunity to withdraw the authorization in writing.

(b)        The withholding ordiversion of wages owed for the employer's benefit must comply with thefollowing requirements:

(1)        In nonovertimeworkweeks, an employer may reduce wages to the minimum wage level.

(2)        In overtimeworkweeks, employers may reduce wages to the minimum wage level for nonovertimehours.

(3)        No reductions may bemade to overtime wages owed.

(c)        In addition tocomplying with the requirements in subsections (a) and (b) of this section, anemployer may withhold or divert a portion of an employee's wages for cashshortages, inventory shortages, or loss or damage to an employer's propertyafter giving the employee written notice of the amount to be deducted sevendays prior to the payday on which the deduction is to be made, except that whena separation occurs the seven‑day notice is not required.

(d)        Notwithstandingsubsections (a) and (b), above, an overpayment of wages to an employee as aresult of a miscalculation or other bona fide error, advances of wages to anemployee or to a third party at the employee's request, and the principalamount of loans made by an employer to an employee are considered prepayment ofwages and may be withheld or deducted from an employee's wages. Deductions forinterest and other charges related to loans by an employer to an employee shallrequire written authorization in accordance with subsection (a), above.

(e)        Notwithstandingsubsections (a) and (c), above, if criminal process has issued against anemployee, an employee has been indicted, or an employee has been arrestedpursuant to Articles 17, 20, and 32 of Chapter 15A of the General Statutes fora charge incident to a cash shortage, inventory shortage, or damage to anemployer's property, an employer may withhold or divert a portion of theemployee's wages in order to recoup the amount of the cash shortage, inventoryshortage, or damage to the employer's property, without the writtenauthorization required by this section, but the amount of such withholdingsshall comply with the provisions of subsection (b) of this section. If theemployee is not found guilty, then the amount deducted shall be reimbursed tothe employee by the employer.

(f)         For purposes ofthis section, a written authorization or written notice may be in the form ofan electronic record in compliance with Article 40 of Chapter 66 (the UniformElectronic Transactions Act).

(g)        Nothing in thisArticle shall preclude an employer from bringing a civil action in the GeneralCourt of Justice to collect any amounts due the employer from the employee. (1975, c. 413, s. 6; 1979, c.839, s. 1; 1981, c. 663, s. 2; 2005‑453, s. 16.)

State Codes and Statutes

Statutes > North-carolina > Chapter_95 > GS_95-25_8

§ 95‑25.8.  Withholdingof wages.

(a)        An employer maywithhold or divert any portion of an employee's wages when:

(1)        The employer isrequired or empowered to do so by State or federal law;

(2)        When the amount orrate of the proposed deduction is known and agreed upon in advance, theemployer must have written authorization from the employee which (i) is signedon or before the payday(s) for the pay period(s) from which the deduction is tobe made; (ii) indicates the reason for the deduction; and (iii) states theactual dollar amount or percentage of wages which shall be deducted from one ormore paychecks. Provided, that if the deduction is for the convenience of theemployee, the employee shall be given a reasonable opportunity to withdraw theauthorization; or

(3)        When the amount ofthe proposed deduction is not known and agreed upon in advance, the employermust have written authorization from the employee which (i) is signed on orbefore the payday(s) for the pay period(s) from which the deduction is to bemade; and (ii) indicates the reason for the deduction. Prior to any deductionsbeing made under this section, the employee must (i) receive advance writtennotice of the actual amount to be deducted; (ii) receive written notice oftheir right to withdraw the authorization; and (iii) be given a reasonableopportunity to withdraw the authorization in writing.

(b)        The withholding ordiversion of wages owed for the employer's benefit must comply with thefollowing requirements:

(1)        In nonovertimeworkweeks, an employer may reduce wages to the minimum wage level.

(2)        In overtimeworkweeks, employers may reduce wages to the minimum wage level for nonovertimehours.

(3)        No reductions may bemade to overtime wages owed.

(c)        In addition tocomplying with the requirements in subsections (a) and (b) of this section, anemployer may withhold or divert a portion of an employee's wages for cashshortages, inventory shortages, or loss or damage to an employer's propertyafter giving the employee written notice of the amount to be deducted sevendays prior to the payday on which the deduction is to be made, except that whena separation occurs the seven‑day notice is not required.

(d)        Notwithstandingsubsections (a) and (b), above, an overpayment of wages to an employee as aresult of a miscalculation or other bona fide error, advances of wages to anemployee or to a third party at the employee's request, and the principalamount of loans made by an employer to an employee are considered prepayment ofwages and may be withheld or deducted from an employee's wages. Deductions forinterest and other charges related to loans by an employer to an employee shallrequire written authorization in accordance with subsection (a), above.

(e)        Notwithstandingsubsections (a) and (c), above, if criminal process has issued against anemployee, an employee has been indicted, or an employee has been arrestedpursuant to Articles 17, 20, and 32 of Chapter 15A of the General Statutes fora charge incident to a cash shortage, inventory shortage, or damage to anemployer's property, an employer may withhold or divert a portion of theemployee's wages in order to recoup the amount of the cash shortage, inventoryshortage, or damage to the employer's property, without the writtenauthorization required by this section, but the amount of such withholdingsshall comply with the provisions of subsection (b) of this section. If theemployee is not found guilty, then the amount deducted shall be reimbursed tothe employee by the employer.

(f)         For purposes ofthis section, a written authorization or written notice may be in the form ofan electronic record in compliance with Article 40 of Chapter 66 (the UniformElectronic Transactions Act).

(g)        Nothing in thisArticle shall preclude an employer from bringing a civil action in the GeneralCourt of Justice to collect any amounts due the employer from the employee. (1975, c. 413, s. 6; 1979, c.839, s. 1; 1981, c. 663, s. 2; 2005‑453, s. 16.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_95 > GS_95-25_8

§ 95‑25.8.  Withholdingof wages.

(a)        An employer maywithhold or divert any portion of an employee's wages when:

(1)        The employer isrequired or empowered to do so by State or federal law;

(2)        When the amount orrate of the proposed deduction is known and agreed upon in advance, theemployer must have written authorization from the employee which (i) is signedon or before the payday(s) for the pay period(s) from which the deduction is tobe made; (ii) indicates the reason for the deduction; and (iii) states theactual dollar amount or percentage of wages which shall be deducted from one ormore paychecks. Provided, that if the deduction is for the convenience of theemployee, the employee shall be given a reasonable opportunity to withdraw theauthorization; or

(3)        When the amount ofthe proposed deduction is not known and agreed upon in advance, the employermust have written authorization from the employee which (i) is signed on orbefore the payday(s) for the pay period(s) from which the deduction is to bemade; and (ii) indicates the reason for the deduction. Prior to any deductionsbeing made under this section, the employee must (i) receive advance writtennotice of the actual amount to be deducted; (ii) receive written notice oftheir right to withdraw the authorization; and (iii) be given a reasonableopportunity to withdraw the authorization in writing.

(b)        The withholding ordiversion of wages owed for the employer's benefit must comply with thefollowing requirements:

(1)        In nonovertimeworkweeks, an employer may reduce wages to the minimum wage level.

(2)        In overtimeworkweeks, employers may reduce wages to the minimum wage level for nonovertimehours.

(3)        No reductions may bemade to overtime wages owed.

(c)        In addition tocomplying with the requirements in subsections (a) and (b) of this section, anemployer may withhold or divert a portion of an employee's wages for cashshortages, inventory shortages, or loss or damage to an employer's propertyafter giving the employee written notice of the amount to be deducted sevendays prior to the payday on which the deduction is to be made, except that whena separation occurs the seven‑day notice is not required.

(d)        Notwithstandingsubsections (a) and (b), above, an overpayment of wages to an employee as aresult of a miscalculation or other bona fide error, advances of wages to anemployee or to a third party at the employee's request, and the principalamount of loans made by an employer to an employee are considered prepayment ofwages and may be withheld or deducted from an employee's wages. Deductions forinterest and other charges related to loans by an employer to an employee shallrequire written authorization in accordance with subsection (a), above.

(e)        Notwithstandingsubsections (a) and (c), above, if criminal process has issued against anemployee, an employee has been indicted, or an employee has been arrestedpursuant to Articles 17, 20, and 32 of Chapter 15A of the General Statutes fora charge incident to a cash shortage, inventory shortage, or damage to anemployer's property, an employer may withhold or divert a portion of theemployee's wages in order to recoup the amount of the cash shortage, inventoryshortage, or damage to the employer's property, without the writtenauthorization required by this section, but the amount of such withholdingsshall comply with the provisions of subsection (b) of this section. If theemployee is not found guilty, then the amount deducted shall be reimbursed tothe employee by the employer.

(f)         For purposes ofthis section, a written authorization or written notice may be in the form ofan electronic record in compliance with Article 40 of Chapter 66 (the UniformElectronic Transactions Act).

(g)        Nothing in thisArticle shall preclude an employer from bringing a civil action in the GeneralCourt of Justice to collect any amounts due the employer from the employee. (1975, c. 413, s. 6; 1979, c.839, s. 1; 1981, c. 663, s. 2; 2005‑453, s. 16.)