Overview The North Carolina Department of Labor is charged with promoting the “health, safety, and general well-being” of more than 4 million workers in the state. The Wage and Hour Bureau of the North Carolina Department of Labor enforces the Wage and Hour Act of North Carolina.[1] This Act and its amendments protect employees by providing requirements regarding: (1) minimum wage; (2) overtime requirements; (3) wage (including bonus and commission) payments; (4) payments of promised benefits such as vacation pay; (5) child labor; and (6) recordkeeping. The majority of all North Carolina employees are covered by the North Carolina Wage and Hour Act (NCWHA), subject to a few…
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Fourth Circuit: Arbitration Agreement in Employee Handbook Not Binding
A recent decision by the United States Court of Appeals for the Fourth Circuit ruled that a North Carolina employee suing under federal and North Carolina law for wage and hour violations was not required to participate in arbitration despite an arbitration clause in her employee handbook.[1] The Fourth Circuit acknowledged that North Carolina law would ordinarily bind the employee via implied consent to the clause, but she signed an acknowledgement form upon receipt of the handbook that expressly stated the handbook provisions did not constitute a binding contract. Rose Lorenzo, an employee of Prime Communications, LP, managed a…
