The North Carolina General Assembly is considering a bill that would raise the state minimum wage and establish automatic annual increases based on inflation. House Bill 353 proposes a gradual increase in the minimum wage over several years, ultimately reaching $18 per hour by 2030. The bill also introduces provisions for indexing future wage increases to the Consumer Price Index to account for inflation.
Currently, North Carolina follows the federal minimum wage of $7.25 per hour. Under the proposed legislation, the state minimum wage would rise to $10 per hour in 2026, followed by annual increases of $2 per hour until 2030. Beginning in 2031, further adjustments would be made based on inflation as determined by the Commissioner of Labor.
In addition to wage increases, the bill seeks to strengthen protections for employees by revising laws related to the recovery of unpaid wages. It includes provisions requiring employers to compensate workers for unpaid wages, overtime, and other employment-related violations. The legislation also mandates that courts award liquidated damages in cases of unpaid wages, unless the employer demonstrates good faith efforts to comply with the law. Furthermore, employers found in violation would be required to cover employees’ legal fees and court costs associated with wage disputes.
Supporters of the bill argue that the wage increases are necessary to keep up with the rising cost of living and provide financial stability for workers. They emphasize that indexing the minimum wage to inflation ensures wages do not stagnate over time. Critics, however, express concerns that higher labor costs could lead to job losses, increased prices for goods and services, and financial strain on small businesses.
If passed, the legislation would take effect upon becoming law, with the first wage increase scheduled for January 1, 2026. The bill is currently under review by the General Assembly, where lawmakers will debate its potential economic impact before making a final decision.
