Senate Bill 673 Summary

• Increases North Carolina's minimum wage to $10.35 per hour effective January 1, 2022, and to $15.00 per hour effective January 1, 2023.

• Implements automatic annual adjustments to the minimum wage beginning September 30, 2023, based on the Consumer Price Index (CPI-I), with adjusted rates published each September 30 and effective the following January 1.

• Phases out the tipped employee minimum wage through 2025, increasing from $6.50 per hour (2022) to $9.50 (2023), $12.50 (2024), and $15.00 (2025), with tips no longer counted as wages beginning January 1, 2026.

• Repeals exemptions from minimum wage requirements for agricultural workers and domestic workers, including baby sitters and companions.

• Maintains subminimum wage provisions for full-time students, learners, apprentices, messengers, and persons with disabilities, allowing rates of 90% and 85% of the applicable minimum wage under specified conditions.