Hiring New Employees in North Carolina: A Legal Guide

Develop a clear job description that outlines the position's responsibilities, required qualifications, and essential functions. Ensure the description complies with North Carolina employment laws and does not contain discriminatory language. This will help attract qualified candidates and serve as documentation for the position requirements.

Advertise the position through appropriate channels such as job boards, company website, social media, or recruitment agencies. Ensure job postings comply with anti-discrimination laws and do not indicate preference based on protected characteristics (race, gender, age, etc.).

Create or update your employment application form to collect necessary information from candidates. Ensure the form complies with North Carolina laws regarding prohibited questions (such as age, marital status, etc.). Include an equal employment opportunity statement and authorization to verify information provided.

Review applications, conduct phone screenings, and schedule in-person interviews. Prepare interview questions that focus on job-related qualifications and avoid questions that could be considered discriminatory under North Carolina law.

Create a form that complies with the Fair Credit Reporting Act (FCRA) and North Carolina law to obtain the candidate's consent for background checks. The form should clearly explain what information will be checked and how it will be used in the hiring decision.

After receiving signed authorization, conduct appropriate background checks in compliance with North Carolina law. This may include criminal history, employment verification, education verification, and reference checks. Be aware that North Carolina follows the EEOC guidance on the use of criminal history in employment decisions.

Draft an offer letter that includes position title, start date, compensation, benefits, employment classification (full-time/part-time, exempt/non-exempt), and at-will employment statement. In North Carolina, employment is presumed to be at-will unless specified otherwise.

If offering more than at-will employment, draft an employment contract that clearly outlines terms of employment, duration, termination conditions, and any special provisions. Note that North Carolina generally enforces reasonable employment contracts, but courts may scrutinize restrictive covenants.

Create a non-disclosure agreement to protect company confidential information and trade secrets. Ensure the agreement is reasonable in scope and duration to be enforceable under North Carolina law, which generally recognizes properly drafted NDAs.

If necessary for the position, draft a non-compete agreement. In North Carolina, non-compete agreements must be: (1) in writing, (2) part of an employment contract, (3) based on valuable consideration, (4) reasonable as to time and territory, and (5) designed to protect a legitimate business interest. Be aware that North Carolina courts scrutinize these agreements carefully.

Present the offer to the selected candidate and negotiate any terms if necessary. Document any changes to the original offer in writing. Once terms are agreed upon, obtain the candidate's signature on the offer letter and any applicable agreements.

Ensure you're registered with the North Carolina New Hire Reporting Program if this is your first employee. All employers must report new hires to the North Carolina Directory of New Hires within 20 days of hire date.

Prepare the federal I-9 form to verify the employee's identity and authorization to work in the United States. The employee must complete Section 1 on or before their first day of work, and you must complete Section 2 within 3 business days of the employee's first day.

Provide the federal W-4 form for the employee to complete, which determines federal income tax withholding. This form must be completed before the first payroll is processed.

Provide the North Carolina state tax withholding form (NC-4) for the employee to complete. This form determines state income tax withholding and must be completed before the first payroll is processed.

Create a form for employees to authorize direct deposit of their paychecks. While not required by North Carolina law, this is a common practice. The form should include fields for bank account and routing numbers and authorization language.

Create a form to collect emergency contact information for the new employee. This should include multiple contacts and relevant medical information the employee wishes to disclose in case of emergency.

Prepare forms for the employee to enroll in company benefits such as health insurance, retirement plans, and other optional benefits. Include clear information about enrollment deadlines, coverage options, and costs.

Complete and submit the New Hire Reporting Form to the North Carolina Directory of New Hires within 20 days of the employee's start date. This can be done online through the NC Department of Health and Human Services website or by submitting a copy of the W-4 with employer information added.

Create or update your employee handbook to include company policies, procedures, and expectations. In North Carolina, it's important to include a clear at-will employment disclaimer to prevent the handbook from being construed as an employment contract. Other important policies include anti-discrimination, harassment prevention, leave policies, and workplace safety.

If this is your first employee in North Carolina, register with the North Carolina Division of Employment Security (DES) for unemployment insurance. All employers who pay at least $1,500 in wages in a calendar quarter or have at least one employee for 20 weeks in a calendar year must register.

In North Carolina, employers with three or more employees must carry workers' compensation insurance. Even if you have fewer employees, it's recommended to obtain coverage. Contact the North Carolina Industrial Commission or a licensed insurance agent to set up a policy.

Obtain and display all required federal and North Carolina workplace posters in a conspicuous location. These include posters related to minimum wage, workplace safety, equal employment opportunity, and workers' compensation. The North Carolina Department of Labor provides information on required posters.

Establish a payroll system that complies with North Carolina wage and hour laws. North Carolina requires employers to pay employees at least monthly, and provide itemized pay statements. Ensure your system correctly calculates overtime for non-exempt employees and makes appropriate tax withholdings.

Plan and conduct an orientation for the new employee to review company policies, procedures, benefits, and job expectations. Provide the employee handbook and collect signatures acknowledging receipt of policies. This is also a good time to complete any remaining paperwork and answer questions.