Understanding your rights under North Carolina Leave Laws is important for both employees and employers. Whether it’s about vacation time, sick leave, or other absences, knowing the rules can help you avoid confusion and make better decisions. This guide explains the basics of PTO in North Carolina leave laws, how vacation time is earned, the rules around sick leave, and what to expect for jury duty, military service, and more. We’ll also highlight how tools like the Day Off app can help you manage and track your time off more effectively. By the end, you’ll have a clear picture of how PTO works in North Carolina and what you need to know under state and federal laws.
Paid Time Off (PTO) in North Carolina
Vacation Leave Quota
In North Carolina, there is no legal requirement for employers to provide vacation days, whether paid or unpaid. However, it is common practice in the private sector for employees to receive about 10 days of paid vacation after completing one year of service. The specifics of paid time off (PTO) can vary based on factors like industry, location, and the employee’s tenure with the company.
If employers choose to offer vacation leave, they must ensure it aligns with state law, company policy, and any employment contracts.
Accrual
While North Carolina does not mandate an accrual system for vacation days, many companies opt to implement one. Employers can design their own systems for accruing vacation time, whether it be daily, weekly, semi-monthly, or monthly increments, typically based on the pay period. Although North Carolina does not have a mandatory payday requirement, pay periods can range from daily to monthly. Employers may also set a cap on the amount of vacation time employees can accumulate, but employees must be informed of such policies in writing.
Roll Over (Carry Over, Brought Forward)
North Carolina allows “use-it-or-lose-it” vacation policies. These policies require employees to forfeit unused vacation time after a specified period, such as the end of the year. For such policies to be valid, employees must be informed in writing. If they are not notified, they cannot lose accrued vacation time.
Statutory Provisions Addressing Vacation Pay
While employers are not required to offer vacation pay, those who do must adhere to the terms outlined in their vacation policy. This policy should cover how vacation is earned or accrued, the possibility of rolling over unused vacation time, the conditions under which vacation leave must be taken, and the circumstances under which employees might lose their vacation pay upon termination. It should also specify whether vacation pay can be substituted for time off.
Payment of Accrued, Unused Vacation on Termination
Whether an employee is entitled to payment for accrued, unused vacation upon termination depends on the employer’s policy or employment contract. Employers can establish policies that deny payment of accumulated vacation time under certain conditions, such as failing to provide a two-week notice or not being employed on a specific date. However, these conditions must be clearly communicated to employees in advance. If the company policy or contract specifies that vacation pay will be paid upon termination, the employer is obligated to do so. If no such policy exists, the employer must still pay out any accrued vacation time to the departing employee.
Sick Leave in North Carolina
Federal Law - Leave Quota
Federal law mandates 12 weeks of unpaid, job-protected sick leave under the Family and Medical Leave Act (FMLA), which applies to North Carolina as it does in other states. To qualify for FMLA benefits, employees must have been employed for at least 12 months and have worked at least 1,250 hours in the previous year. They must also work at a location where the company employs at least 50 people within a 75-mile radius. The FMLA allows eligible employees to take up to 12 weeks off for personal medical reasons, to care for a close family member with a serious illness, or for maternity or paternity leave. Employers may offer additional sick leave benefits beyond the federal requirements.
North Carolina State Laws
There are no additional state laws in North Carolina that require employers to provide paid or unpaid sick leave beyond the federal FMLA requirements. However, if an employer decides to offer sick leave benefits, they must adhere to the terms outlined in the employment contract or employee handbook, which could create a legal obligation to provide such benefits.
Payout
Sick leave in North Carolina is unpaid.
Maternity, Paternity, FMLA in North Carolina
Federal Law
Under the FMLA, eligible employees are entitled to 12 weeks of unpaid, job-protected leave for maternity or paternity reasons. The Pregnancy Discrimination Act (PDA) further protects pregnant employees from discrimination in all areas of employment, including hiring, firing, pay, job assignments, promotions, and leave.
Additional State Laws in North Carolina
North Carolina does not have additional laws regarding maternity or paternity leave beyond what is provided by the FMLA and PDA. The state does, however, allow parents or guardians up to four hours of unpaid leave under the Small Necessities Law (also known as Parental Involvement Leave) to attend their child’s school-related activities.
Payout
Maternity and paternity leave in North Carolina are unpaid.
Bereavement Leave in North Carolina (Funeral Leave)
North Carolina does not require employers to provide bereavement leave, whether paid or unpaid. However, many employers offer at least two days of leave for this purpose. If an employer provides bereavement leave, they must follow their established bereavement policy.
Payout
Bereavement leave in North Carolina is typically unpaid.
Jury Duty Leave in North Carolina
Employers in North Carolina must provide unpaid time off for employees who are summoned for jury duty. Employees must inform their employers within a reasonable period of time after receiving a jury summons to be granted leave. Employers are prohibited from firing, threatening, penalizing, or punishing employees for fulfilling their jury duty obligations.
Payout
Employers are not required to pay employees for time spent on jury duty. However, some employers choose to compensate their employees for this civic duty. Jurors in North Carolina receive $12.00 per day from the court, although this amount is considered minimal.
Military Leave in North Carolina
Federal Law
The Uniformed Services Employment and Reemployment Rights Act (USERRA) is a federal law that applies to all U.S. employers. It protects employees who are called to active duty, including those in the U.S. Armed Forces, Reserves, and National Guard. USERRA provides reinstatement rights, protection from discrimination, and up to five years of unpaid leave for military service. It also ensures that employees can continue their group health care benefits for up to 24 months during their leave.
North Carolina State Law
In addition to USERRA, North Carolina provides unpaid leave to members of the National Guard activated by the state governor. Employers must reinstate employees returning from active duty to their former job or a similar one with equivalent seniority, status, and salary. For active duty lasting less than 30 days, employees must apply to return to work within five days. For longer service, they must apply within 14 days.
Payout
Military leave in North Carolina is generally unpaid. Employers are not required to provide paid leave for military service, but USERRA requires that military leave be treated comparably to other types of leave.
Voting Leave in North Carolina
North Carolina does not have a law requiring employers to provide time off for voting. If an employer chooses to allow employees time to vote, they may decide whether or not to compensate them for it.
Payout
Voting leave is unpaid in North Carolina.
North Carolina State Holidays for 2024
North Carolina law does not require private employers to provide paid or unpaid leave for holidays. However, most employers offer at least seven paid holidays. There is no legal obligation for employers to offer holiday pay, and employees are not entitled to premium pay for working on holidays unless eligible for overtime pay.
North Carolina officially observes 12 state holidays.