NC’s Labor Department recovers more than $3.5 million in unpaid wages, setting new record

The recovery helped workers in 89 of North Carolina’s 100 counties and represented a significant increase over the previous fiscal  year, when $2.5 million was recovered.

Farley said the recovered wages are more than numbers on a page – they’re peace of mind for those workers who were owed compensation.

“It represents a worker who can now afford to pay rent or make a mortgage payment. A parent who can cover childcare costs, it’s a family that can buy groceries, pay utility bills, and handle those unexpected expenses that come up in everyday life,” said Farley.

The top industry for wage recoveries this year is retail services, followed by restaurants and bars and the medical sector.

From 2016 to 2022, the recovery rate held steady at about $1.2 million in wages recovered annually.

Kisha Scotton, bureau chief for the Wage and Hour Division, says the Department of Labor has recently been working to strengthen and streamline its operations to better respond to workers and understand employment practices.

“Our investigators examine payroll records, time records, and documentation to verify hours worked, pay rates, and whether workers received all wages due,” Scotton said.

Investigators also review employment classifications to determine whether workers have been properly designated as exempt or non-exempt.

When violations are identified, the division works to calculate how much a worker is owed, and guide employers toward corrective action. Scotton said the overwhelming majority of employers want to do the right thing.

“When mistakes happen, our goal is to achieve compliance through education, communication, and fair enforcement,” said Scotton. “We are committed to creating a level playing field where businesses that follow the law are not disadvantaged by those that do not.”

State law does provide for employers to face fines, but Farley says the goal is really to help individuals get wages they may be owed.

“One of the things that’s changed since I’ve been commissioner is that we are more aggressive about pursuing litigation on behalf of the workers of North Carolina when there’s wage theft,” said Farley.

But not all cases are easily resolved. In March 2026, the North Carolina Justice Center reached a $305,000 settlement on behalf of 99 agricultural workers who came to the United States from Mexico through an H-2A visa program.

In that class action, the farmworkers alleged their Four Oaks employer paid them less than the hourly wage promised in the H-2A job contract, violating state and federal wage and hour laws. These cases often go unreported because agricultural workers fear retaliation or losing their temporary visas.

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This year’s recovery of $3.7 million by the NC Department of Labor represents 2,199 complaints that the division was able to substantiate. And that number is expected to grow next year.

The recently passed state budget included additional resources for the Department of Labor. Farley said they are in the process of determining where those funds can be most effective. The Wage & Hour Bureau currently has just eight case analysts and 15 investigators.

North Carolina workers who believe they are the victim of wage theft can call 1-800-NC-LABOR or contact the department through its website: https://www.labor.nc.gov/.