North Carolina Administrative Code
Title 13 - Labor
Chapter 12 - WAGE AND HOUR
Section .0300 - WAGES
Section 12 .0307 - BONUSES, COMMISSIONS AND OTHER FORMS OF WAGE CALCULATION

(a) Employers may pay wages based on bonuses, commissions or other forms of calculation as infrequently as annually, if the employees are so notified before earning such wages.

(b) Employers shall notify employees of the employers' policies and practices concerning pay, wages based on bonuses, commissions, or other forms of wage calculation.

(c) Ambiguous policies and practices shall be construed against the employer and in favor of employees.

(d) All policies or practices relating to bonuses, commissions, or other forms of calculation wages shall address:

(e) Wages computed under a bonus, commission, or other forms of calculation policy or practice which does not establish specific earning criteria cannot be reduced or eliminated as a result of a change in policy or practice. An example of such a policy is: "Employees earn commissions of xx% on all 'sales' (where sales are not defined by the employer)." If the employer changes a policy or practice which establishes specific earning criteria, the employee is entitled to the bonus, commission or other forms of calculation wages earned under the original policy through the effective date of the change and is entitled to the bonus, commission or other forms of calculation wages earned under the new policy from the effective date forward, so long as the earning criteria are met under both policies.