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A North Carolina employment contract is a written agreement entered into by an employee and their employer to establish the working relationship between the parties. The document specifies the employee’s position, their duties and responsibilities, compensation, benefits, and time-off for vacations, holidays, and personal leave.
Having an employment contract in place ensures that the employee knows the rules of the workplace and their rights and obligations as an employee and coworker. The agreement also covers confidentiality, compliance, and how the parties may terminate the agreement, which includes whether the employment period is “at-will” or for a specific period of time.
Contents |
Types (2)
Independent Contractor Agreement – An agreement between a client and a self-employed professional.
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Subcontractor Agreement – A contract between a contractor and a subcontractor.
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Laws
- Labor Statutes: Chapter 95
- Definition of Employee: § 95-25.2(4)
- Minimum Wage: Federal Min. Wage – $7.25/hr (29 U.S.C. § 206)
- Overtime: One and a half (1.5) times the regular rate of pay (§ 95-25.4).
- Record Keeping: Employers must retain records pertaining to the Wage and Hour Act for three (3) years (13 N.C. Admin. Code 12 .0802).
At-Will Employment
Permitted? Yes, in most cases, employers may fire employees “at-will,” i.e., for any reason or no reason at all. The following is a list of the most common exceptions to the at-will rule:
- The written employment contract forbids certain reasons for termination.
- The termination violates a federal law with regard to discrimination or retaliation.
- The termination violates a state law with regard to discrimination or retaliation (Article 21).
- The termination violates a particular public policy.