A midwestern state in the United States is named after the Indigenous Dakota Sioux. North Dakota state reflects the history of Native Americans and unique modern art. It is considered one of the best states in the U.S. because of the low crime rates, better air quality, low sales tax, good employment rates, etc.
North Dakota is famous for its rugged Badlands near Montana’s border. Theodore Roosevelt National Park has encompassed the Badlands into its 70,000 acres of land, one of the first national parks.
Aside from the scenic beauty, North Dakota’s economic growth has seen a rise of 0.2% in 2022. Just in 2022, different businesses in North Dakota created employment for 411,328 people.
With economic growth and the growth of businesses, it becomes essential to learn about the different labor laws and regulations in the state, such as the minimum wage laws. In this article, you will find all the vital information regarding minimum wage in North Dakota.
What is the Minimum Wage in North Dakota?
North Dakota employers must not offer employees a minimum wage of less than $7.25 per hour. According to the North Dakota Minimum Wage Laws, all employees, unless exempted, will receive the federal minimum wage of $7.25 per hour.
North Dakota Weekly Minimum Wage
If a North Dakota employee works full time or 40 hours a week on the minimum wage rate, they will earn a weekly minimum wage of $290.
North Dakota employees can earn a yearly minimum wage of $15,080 by earning the state minimum wage.
North Dakota Overtime Minimum Wage
According to the Fair Labor Standards Act (FLSA) and North Dakota Labor and Employment Law, employees will earn 1 and a half times their regular minimum wage for all the extra hours worked over 40 work hours a week. So, in other words, the minimum overtime pay is $10.88 per hour.
Moreover, unlike many other states, North Dakota has no specific daily hours limit for overtime.
Furthermore, if any North Dakota employer refuses to pay compensation for overtime work hours, the North Dakota Department of Labor allows employees to file an unpaid overtime claim easily.
How is North Dakota’s Minimum Wage Different from the Federal Minimum Wage?
North Dakota’s minimum wage complies with the Federal Minimum Wage ($7.25 per hour). The state’s minimum wage laws are linked with the Federal Minimum Wage Laws, for which the state cannot change the minimum wage at will.
The last time North Dakota witnessed a change in its minimum wage was in 2008, when the federal minimum wage rose by $0.70. The state’s minimum wage then increased from $6.55 per hour to $7.25 per hour.
Who Qualifies for Minimum Wage?
According to the Labor and Employment Laws of North Dakota, all employers must offer the standard minimum wage of $7.25 to the employees. An employer can only offer a lower salary if the job position or occupation falls in the exempted category.
Even minors are entitled to the state minimum wage in North Dakota, except for the following exempted occupations:
- Exempted occupations under the FLSA
- Golf course caddies
- Employees working in youth-related or educational purposes relation non-profit organizations
- Motion picture actors and extras
- Employers can pay vocational and full-time students 85% of the standard minimum wage
- Camp cooks and guides
- Inmates or jail mates who perform in or for jail, institution, state, or political reasons as needed in the imprisonment program
- Employees working as per court orders for first-time offenders to complete the imprisonment program
- Employees providing family home care, elderly care, children care, etc.
However, different cities, towns, and counties can have their own minimum wage laws that can be higher or lower than the state minimum wage. So employers should check their area’s minimum wage laws.
A subminimum wage is given to employees who are in the exempted category. According to the North Dakota Department of Labor, employers can offer employees a subminimum wage that is less than the standard minimum wage only if they acquire special permission from the department.
Moreover, employers must display North Dakota Minimum Wage posters and other state or federal labor laws posters out in the open. This is for the employees to see and stay updated about workplace labor laws and overtime pay.
Any employer who fails to display the posters correctly will get a heavy penalty or fine from the Department of Labor.
1. Tipped Employees
A tipped employee can earn a minimum wage of $4.86 per hour in North Dakota. According to the North Dakota Minimum Wage Laws, employers can utilize 33% of the minimum wage of tipped employees as “tip credit.”
“Tip Credit” is mainly the difference between the offered subminimum wage and the standard minimum wage of the tipped employee, which will be taken into consideration as tips from customers.
Although tipped employees earn less than the standard minimum wage, employers must inform them about the subminimum pay before hiring them. Employers should also maintain that service employees receive more than $30 per month in customer tips.
It is also the responsibility of the employers to ensure that tipped employees receive the standard minimum wage of $7.25 per hour after including tips. However, an employer must not count physical objects like gifts, merchandise, souvenirs, tickets, etc., as tips instead of cash tips.
2. Employees with Disabilities
Employers can pay a subminimum wage instead of the regular minimum wage to employees with disabilities, but to do so, an employer must have a legal certificate from the North Dakota Department of Labor and Human Rights.
Community rehabilitation centers can also apply for special certificates or licenses from the North Dakota Department of Labor and Human Rights for employees who do not have the ability to perform some work because of their physical or mental disability.
The licenses will also apply to anyone in an organization's training, learning, or employment process.
3. Student Workers
North Dakota employers can pay student workers a subminimum wage, but it cannot be less than 90% of the standard minimum wage. However, an employer can apply to pay less if the student worker qualifies as a learner.
4. Student Learners
Employers must have a legal certification from the North Dakota Department of Labor and Human Rights to be able to pay student learners a subminimum wage less than the standard minimum wage. However, the student learners must be registered in a career, technical education, or other similar programs.
Just like student learners, employers can also pay any learner in the organization a subminimum wage after getting a permit from the North Dakota Department of Labor and Human Rights. The learner must be involved in a technical education program, a career, or other similar categories to be qualified for this subminimum wage.
According to the North Dakota Minimum Wage Laws, apprentices should not receive a subminimum wage lesser than the standard minimum wage from the employer.
As per the North Dakota Minimum Wage Laws, employers also cannot pay any trainees less than the standard minimum wage.
Historical Change of Minimum Wage in North Dakota
The minimum wage rate in North Dakota did not change for 14 years since 2008. Although lawmakers took steps in 2021 to increase the minimum wage by $1.75 by 2022, the proposal met a dead end after some time.
So, unless the Federal Minimum Wage changes, there will likely be no change in the minimum wage of North Dakota.
Here is a list of the minimum wage change that occurred in North Dakota from 2007 to 2023:
Change in Minimum Wage
January 1, 2023
January 1, 2022
January 1, 2021
January 1, 2020
January 1, 2019
January 1, 2018
January 1, 2017
January 1, 2016
January 1, 2015
January 1, 2014
January 1, 2013
January 1, 2012
January 1, 2011
January 1, 2010
January 1, 2009
January 1, 2008
January 1, 2007
1. Are there any plans for change in North Dakota’s Minimum Wage in the future years?
Currently, the state has no plans to raise its minimum wage. But the residents of North Dakota are pressurizing the state government to increase the minimum wage to $15.00 per hour. That is why in 2021, the state lawmakers proposed a bill to gradually increase the state minimum wage to $15.00, which was to start in 2022 by raising the minimum wage to $9.00. Unfortunately, the bill did not pass the state legislature.
2. What is the Minimum Wage in North Dakota for Employees Under 18?
According to the North Dakota Minimum Wage Laws, employees under 18 and minors can earn a minimum wage of $4.25 per hour.
3. Are North Dakota Employees entitled to Breaks?
Employees who work full-time or 40 hours a week must get 30 minutes of break in between work hours. This work break will be compensated for and will be included in the 40 work hours.