If an employee in NC works thirty-five hours in a given week and takes an 8 hour vacation day does that employee get paid for 3 hours of overtime?

No. The reason is that overtime is based on hours worked, not hours paid. Let me know if you have any other questions.

I understand that this is a law for all states.

Question, Can an employer "choose" to pay overtime for hours paid over 40?
Result of above example: 32hrs worked, 8hrs vacation, 3hrs OT.
Can an employer choose to do this?

Thanks

Yes, an employer can choose to count all time paid, instead of all time worked, for OT purposes. But they are not required to under Federal law or the law of any state.

Here's the scenario. You have hourly employees who were moved into salaried non-exempt status, and you also have salaried exempt employees who moved to salaried non-exempt.

The question is...can you allow holiday and vacation pay to count toward overtime calculation for the salaried employees who moved into the salaried non-exempt class, but not the hourly employees who moved into the salaried non-exempt class. If not, can you please provide the law to substantiate?

Yes, you can.

It's not that I can provide a law that says you can; it's that there is no law that says you can't.