The North Dakota
Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. While the federal minimum wage serves as a baseline, different states, cities, and regions can adopt their own higher rates.

The current statewide rate is: $7.25 per hour for most non-exempt employees.

Compliance note: North Dakota state law officially adopts the federal minimum wage of $7.25. Furthermore, state law strictly prohibits local cities and counties from passing their own minimum wage ordinances. Therefore, despite local movements for higher wages, the $7.25 rate remains the universal standard across all cities, including Fargo, Bismarck, and Grand Forks.

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The tipped minimum wage is the lowest hourly cash wage employers are legally obligated to pay employees who customarily and regularly receive tips (defined in North Dakota as receiving more than $30.00 per month in tips).

Current tipped rates

• Minimum cash wage: $4.86 per hour 

• Maximum tip credit: $2.39 per hour

The 33% tip credit rule

Unlike federal law, North Dakota strictly limits the tip credit an employer can claim to 33% of the standard minimum wage. Therefore, the lowest base cash wage an employer can legally pay a tipped worker in North Dakota is $4.86 per hour.

The tip credit guarantee and recordkeeping

• The guarantee: if an employee’s base cash wage ($4.86) plus their actual tips do not equal at least the standard minimum wage ($7.25) for the pay period, the employer is legally required to pay the difference out of pocket.

• Mandatory records: North Dakota law explicitly requires employers to maintain written records verifying that this minimum wage threshold is met for every tipped employee, every pay period.

North Dakota overtime laws generally mirror federal FLSA standards, relying strictly on a weekly threshold rather than daily hours, but the state enforces very strict bans on "comp time" in the private sector and offers a few unique industry exceptions.

The 40-hour rule

• Non-exempt employees must be paid 1.5 times their regular rate of pay for all hours worked over 40 in a single, 7-day workweek.

Industry-specific exceptions

While standard businesses follow the 40-hour rule, North Dakota law provides specific overtime calculations for certain industries:

• Taxicab drivers: must be paid overtime only for hours worked in excess of 50 hours in a workweek.

• Hospitals and residential care establishments: By agreement with employees, these facilities can adopt a 14-day overtime period instead of the standard 7-day week. Overtime is then paid for any hours worked over 8 in a single day or over 80 total hours in the 14-day period.

• Retail commission sales: Retail employees are fully exempt from overtime if their regular pay rate exceeds 1.5 times the minimum wage ($10.88/hr) AND more than half of their monthly compensation comes from sales commissions.

North Dakota enforces a highly specific meal break law that depends entirely on how many employees are scheduled for a shift. For all other breaks, the state defaults to federal standards.

The "two-employee" meal break mandate

• If an employee is scheduled for a shift exceeding 5 hours AND there are two or more employees on duty at the same time, the employer must provide a minimum 30-minute meal break.

• Solo shifts: if an employee is working a shift alone, the employer is not legally required to provide this meal break.

• Pay rules: this meal break can be unpaid only if the employee is completely relieved of all work duties. If they must remain at a desk or answer phones while eating, it is an "on-duty" meal and must be paid.

General rest breaks

• North Dakota does not require employers to provide short rest breaks (e.g., a 10- or 15-minute coffee break).

• However, if an employer chooses to provide short breaks lasting less than 20 minutes, federal FLSA law dictates that they must be paid and counted as hours worked.

Mandatory lactation breaks (Federal PUMP Act) 

Under federal law, North Dakota employers must accommodate nursing employees:

• Employers must provide reasonable break time for an employee to express breast milk for up to one year after their child's birth.

• Employers must provide a private space, shielded from view and free from intrusion, that is not a bathroom.

The retail "Day of Rest" Law

• Retail scheduling restriction: Under North Dakota law, an employer operating a retail business cannot require an employee to work seven consecutive days. Retail employees must be granted at least 24 consecutive hours of time off in each seven-day period.

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While North Dakota does not mandate paid time off, the state heavily regulates how employers administer and pay out any voluntary leave policies they choose to offer.

Vacation leave (the mandatory payout rule)

• No state mandate: North Dakota does not require private employers to provide paid or unpaid vacation time.

• Termination payouts: If an employer chooses to offer paid vacation, it is legally considered an earned wage. Generally, employers cannot require an employee to forfeit their earned vacation upon separation; all accrued, unused vacation time must be paid out at the employee's regular rate.

• The forfeiture exceptions: An employer may legally withhold a vacation payout only if the employee voluntarily resigns AND at least one of the following applies:

  1. The employer provided written notice at the time of hiring that accrued PTO would be forfeited upon resignation.

  2. The employee was employed for less than one year.

  3. The employee failed to give at least 5 days' written or verbal notice before quitting.

Paid sick leave

• North Dakota has no state law requiring private employers to provide general paid or unpaid sick leave.

  • Note: employers with 50 or more employees must still comply with the federal Family and Medical Leave Act [FMLA], which provides up to 12 weeks of unpaid, job-protected leave for qualifying medical and family reasons.

Holidays

• Private employers in North Dakota are not legally required to provide paid holidays, unpaid time off for holidays, or premium pay (e.g., time-and-a-half) for working on a recognized holiday. Any holiday leave or extra compensation is offered strictly at the employer's discretion.

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North Dakota strictly regulates the working hours and environments for younger teens, but provides vast scheduling flexibility once a minor turns 16. The state also has highly specific guidelines for domestic employment like babysitting.

The employment and age certificate (ages 14–15)

• Minors aged 14 and 15 must have a completed Employment and Age Certificate on file before starting work.

• The minor's parent or guardian must sign this certificate. A copy must then be provided to the employer, the principal of the minor's school, and the North Dakota Department of Labor and Human Rights.

Working hours for minors 14–15- years-old

• When school is in session: * Max 3 hours per day on school days.

  • Max 8 hours per day on non-school days (e.g., Saturday).

  • Max 18 hours per week.

  • Curfew: May only work between 7:00 AM and 7:00 PM.

• When school is not in session (summer break):

  • Max 8 hours per day / 40 hours per week.

  • Curfew: May work between 7:00 AM and 9:00 PM (From June 1st through Labor Day).

Working hours for minors 16–17-years-old

• Under both North Dakota and federal law, there are no restrictions on the number of hours or the times of day that 16- and 17-year-olds can work.

Prohibited and hazardous jobs (all minors under 18)

• Federal and state laws strictly prohibit minors from working in hazardous occupations. This includes operating power-driven machinery, working in construction or manufacturing, roofing, and most commercial driving.

The "babysitting" exception

• In North Dakota, babysitting in a private home does not legally constitute "employment" (and is therefore exempt from child labor and wage laws) unless it involves 20 or more hours of work per week for 3 or more consecutive weeks.