An Unhappy 16th Anniversary for the Minimum Wage in North Carolina
Source: Susan Romaine
On July 24, North Carolina hit the 16-year mark with no adjustment in its minimum wage. During that time, the cost of living soared – for rent, utilities, childcare, transportation, and other necessities – while the state’s minimum wage remained frozen at the $7.25/hour federal floor set in 2009. What was once framed as a baseline for low-wage work is now a poverty wage, translating to $15,080 annually. It is below what it takes for a single worker (let alone a worker supporting a family) to make ends meet anywhere in the state. Many of North Carolina’s minimum-wage workers are employed in service and care-centered roles such as food preparation, leisure and hospitality, home health, and childcare; and employees in these sectors are disproportionately women, Black, and Hispanic.
Despite strong, bipartisan public support for raising the minimum wage in North Carolina, the Republican-controlled General Assembly has refused to act on even modest proposed changes. Republican lawmakers cite “burdensome mandates” that will raise costs, shutter small businesses, and drive jobs away despite real-world results that tell a very different story in the 30 states and the District of Columbia that have raised their minimum wage above the federal baseline.
Year after year, proposed wage hikes for North Carolina workers vanquish in committee, as is the expected fate for this session’s Fair Minimum Wage Act, introduced as House Bill 353, that calls for a gradual and reasonable increase from the current $7.25 an hour to $18 an hour by 2030. The bill requires that beyond 2030 the minimum wage would be adjusted for inflation.
“This inaction in the General Assembly is incredibly short-sighted from a policy, economic, and moral standpoint,” says Mark Marcoplos, owner of Marcoplos Construction, founding member of Orange County Living Wage (OCLW), and former Orange County Commissioner. “A living wage that lifts workers out of poverty reduces dependence on government programs, injects more money into local economies, increases productivity, and promotes better health – especially for children.”
“Covering living expenses and saving a bit for the future”
Joshua Moore knows first-hand about the benefits of a living wage. His employer, Carrboro-based Gray Squirrel Coffee Company, pays all employees a living wage. The “reliable, steady” income that he earns at Gray Squirrel is enough to cover his day-to-day living expenses. Last year, his employer also began offering a stipend which can go toward the purchase of health insurance, which Moore does with the help of a third-party broker. As a singer, songwriter, and guitarist, Moore supplements income from his day job by performing around town, the gig money going toward savings.
Which is all to say, Moore is “managing.” He’s not flush with cash; nor does he describe himself as stressed out by finances. He prefers to “interact with a budget” in his head than to “crunch numbers” in a spreadsheet; and he is very intentional about where and how often he spends his hard-earned dollars.
Using Moore’s definition of a living wage, he is earning “the reasonable amount of money to cover all living expenses and still save a little bit for the future.” For Gray Squirrel employees, that is $19.80 an hour using OCLW’s version of the Universal Living Wage Formula, almost triple the minimum wage. As family size goes up, so does the living wage. Each adult in a family of two parents and two kids would need to work full-time and earn at least $23.40 per hour to afford the basics, according to the Living Income Standard for North Carolina.
“Elections matter”
If the General Assembly continues to kick the living-wage can down the road, are there other pathways to reform? If you are fortunate enough to live in one of the 25 states or the District of Columbia offering citizen-initiated ballot measures, then yes. In November 2024, for example, voters in Alaska, California, Massachusetts, and Missouri bypassed their state legislature and placed on the ballot citizen initiatives calling for an increase in the minimum wage. Two of those ballot measures (in Alaska and Missouri) were approved by the voters. Unfortunately, North Carolinians cannot bring legislation to a public vote through a citizen initiative. Under state law, that power resides solely with the General Assembly, leaving no recourse for frustrated voters eager for change.
Due to preemption laws, cities and towns across the state also have their hands tied. Preemption occurs when a higher level of government (such as a state legislature) limits or prevents a lower level of government (such as a town or city council) from acting on a particular issue – whether it be worker protection, climate change, racial equity, immigration reform, or public health. Among the 25 states with preemption, Republican-led states implement it the most aggressively, using the tool to prevent local governments in blue-leaning urban areas from advancing their own agendas.
North Carolina is a case in point. No matter how high the local cost of living nor how broad the public support, cities and towns are blocked by the state from setting their own minimum wage. That’s why you may hear of a $20 minimum wage in Seattle or a $19 minimum wage in Denver … but not in Charlotte, Durham, Raleigh, or Winston-Salem. Not until we get rid of our preemption laws.
Simply put, the quickest path to reform is the midterm elections. If we want a higher minimum wage, we need to elect state legislators who support one. “Democrats in the General Assembly have consistently introduced legislation to increase wages for working North Carolinians,” says Representative Allen Buansi. “Every Democratic lawmaker has signed legislation to increase our minimum wage to $15 per hour. But it will take getting Democrats in the majority in the General Assembly to get this legislation even considered, heard in committee and voted on. Elections matter.”
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Let’s get to work flipping seats and replacing legislators who are not listening to the will of the people or the needs of hard-working families. As a first step, get connected with your County’s Democratic Party. For Orange County residents, subscribe here to receive information about events, volunteer opportunities, relevant issues, and voting in the upcoming municipal elections.