{"id":140879,"date":"2024-09-23T17:25:48","date_gmt":"2024-09-23T15:25:48","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=140879"},"modified":"2025-01-08T01:14:15","modified_gmt":"2025-01-07T23:14:15","slug":"north-dakota-minimum-wage-guide","status":"publish","type":"post","link":"https:\/\/preproduction.factorialhr.com\/blog\/north-dakota-minimum-wage-guide\/","title":{"rendered":"North Dakota Minimum Wage: Guide"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">North Dakota has maintained the <\/span><b>federal minimum wage<\/b><span style=\"font-weight: 400;\"> since the <\/span><b>Fair Labor Standards Act (FLSA)<\/b><span style=\"font-weight: 400;\"> was established in 1938. The state has never set a separate, higher minimum wage rate. Despite this fact, there are still a number of <\/span><b>important considerations for employers operating within the state<\/b><span style=\"font-weight: 400;\">. Understanding the nuances of the <\/span><b>North Dakota minimum wage<\/b><span style=\"font-weight: 400;\">, including provisions for <\/span><b>tipped employees and young workers<\/b><span style=\"font-weight: 400;\">, is crucial to ensure <\/span><b>fair labor practices<\/b><span style=\"font-weight: 400;\"> and <\/span><b>compliance <\/b><span style=\"font-weight: 400;\">with both federal and state laws.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Read on to find out <\/span><b>everything you need to know<\/b><span style=\"font-weight: 400;\"> about the <\/span><b>North Dakota minimum wage<\/b><span style=\"font-weight: 400;\"> to ensure your business is <\/span><b>operating fairly<\/b><span style=\"font-weight: 400;\"> and in <\/span><b>compliance with the law<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Rates\">North Dakota Minimum Wage: Current Rates<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Act\">What Is the Fair Labor Standards Act?<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Non-Exempt\">What Is a Non-Exempt Employee<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Additional\">Additional Exemptions to the North Dakota Minimum Wage<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Who\">Who Enforces the North Dakota Minimum Wage?<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Laws\">What Other North Dakota Wage Laws Are There?<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Best\">Best Practices for Employer Wage Law Compliance<\/a>\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Factorial\">How Factorial Can Help Your Business<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/factorialhr.com\/payroll\">Centralize payroll management and get ahead<\/a>\ud83d\ude80<\/li>\n<\/ul>\n<p><a href=\"https:\/\/factorialhr.co.uk\/request-demo\"><img decoding=\"async\" class=\"aligncenter wp-image-130408 \" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-300x103.jpg\" alt=\"factorial hr software demo\" width=\"734\" height=\"252\" srcset=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-300x103.jpg 300w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-768x263.jpg 768w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value.jpg 800w\" sizes=\"(max-width: 734px) 100vw, 734px\" \/><\/a><\/p>\n<h2><b><a name=\"Rates\"><\/a>North Dakota Minimum Wage: Current Rates<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">North Dakota<\/span><span style=\"font-weight: 400;\">\u00a0adheres to the <\/span><b>federal <\/b><span style=\"font-weight: 400;\">minimum wage of <\/span><b>$7.25 per hour<\/b><span style=\"font-weight: 400;\"> for <strong>untipped workers<\/strong>, as defined by the <\/span><a href=\"https:\/\/factorialhr.com\/blog\/fair-labor-standards-act\/\"><span style=\"font-weight: 400;\">Fair Labor Standards Act<\/span><\/a><span style=\"font-weight: 400;\"> (<\/span><a href=\"https:\/\/www.dol.gov\/agencies\/whd\/flsa\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">FLSA<\/span><\/a><span style=\"font-weight: 400;\">). This federal minimum wage has remained unchanged since its last update in <\/span><b>2009<\/b><span style=\"font-weight: 400;\"> (when it was raised from <\/span><b>$5.15 per hour)<\/b><span style=\"font-weight: 400;\">. Under the federal Act, employers in North Dakota must pay eligible employees <\/span><b>at least this rate for all hours worked<\/b><span style=\"font-weight: 400;\">. They must also pay employees covered by the FLSA <\/span><b>1.5 times<\/b><span style=\"font-weight: 400;\"> their regular rate of pay for any hours worked <\/span><b>over 40 in a workweek<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In terms of the minimum wage rate for <strong>untipped workers<\/strong>, North Dakota has established a higher <\/span><b>tipped<\/b><span style=\"font-weight: 400;\"> minimum wage of <\/span><b>$4.86 per hour<\/b><span style=\"font-weight: 400;\"> (the federal rate for this category of workers is <\/span><b>$2.13 <\/b><span style=\"font-weight: 400;\">per hour). However, employers in the state must ensure that tipped employees\u2019 <\/span><b>total hourly earnings<\/b><span style=\"font-weight: 400;\"> (including tips) <\/span><b>reach or exceed <\/b><span style=\"font-weight: 400;\">the standard minimum wage of <\/span><b>$7.25 per hour<\/b><span style=\"font-weight: 400;\">. If they don\u2019t,<\/span><b> employers must make up the difference<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b><a name=\"Act\"><\/a>What Is the Fair Labor Standards Act?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">So, the North Dakota minimum wage rate is set by the Fair Labor Standards Act, but <\/span><b>what is the FLSA<\/b><span style=\"font-weight: 400;\"> exactly, and <\/span><b>who does it apply to<\/b><span style=\"font-weight: 400;\">?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><b>Fair Labor Standards Act (FLSA)<\/b><span style=\"font-weight: 400;\">, is a <\/span><b>federal law<\/b><span style=\"font-weight: 400;\"> enacted in <\/span><b>1938 <\/b><span style=\"font-weight: 400;\">that establishes <\/span><b>minimum wage, overtime pay, record-keeping, and child labor standards for workers in both the private and public sectors<\/b><span style=\"font-weight: 400;\">. The FLSA applies to <\/span><b>most employees<\/b><span style=\"font-weight: 400;\"> in the United States, and it ensures that <\/span><b>non-exempt employees <\/b><span style=\"font-weight: 400;\">are paid at least the federal minimum wage of<\/span><b> $7.25 per hour<\/b><span style=\"font-weight: 400;\"> and receive <\/span><b>overtime pay<\/b><span style=\"font-weight: 400;\"> at <\/span><b>1.5 times their regular rate<\/b><span style=\"font-weight: 400;\"> for any hours worked over 40 in a workweek.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The FLSA applies to employees of businesses that engage in <\/span><b>interstate commerce<\/b><span style=\"font-weight: 400;\"> or have <\/span><b>gross annual revenues<\/b><span style=\"font-weight: 400;\"> of at least <\/span><b>$500,000<\/b><span style=\"font-weight: 400;\">. It also covers <\/span><b>certain categories of workers<\/b><span style=\"font-weight: 400;\">, such as domestic service employees, hospital workers, and schools. While the FLSA provides <\/span><b>wage protections<\/b><span style=\"font-weight: 400;\"> for most workers, there are <\/span><b>exemptions<\/b><span style=\"font-weight: 400;\">, including certain salaried employees in <\/span><b>executive, administrative, and professional roles<\/b><span style=\"font-weight: 400;\">, as well as some <\/span><b>agricultural <\/b><span style=\"font-weight: 400;\">and <\/span><b>seasonal workers<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These standards are applied to <\/span><b>all non-exempt employees<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b><a name=\"Non-Exempt\"><\/a>What Is a Non-Exempt Employee?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One important thing to consider when talking about the North Dakota minimum wage is the <\/span><b>employment classification of your workers<\/b><span style=\"font-weight: 400;\">. In other words, whether your employees are classified as <\/span><a href=\"https:\/\/factorialhr.com\/blog\/exempt-vs-non-exempt-employees\/\"><b>exempt or non-exempt<\/b><\/a><span style=\"font-weight: 400;\"> from the requirements of the <\/span><b>Fair Labor Standards Act (FLSA)<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s break it down.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the Fair Labor Standards Act, there are<\/span><b> two types of employees<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Exempt employees<\/b><span style=\"font-weight: 400;\">. An employee who you class as being exempt from the overtime provisions of the Fair Labor Standards Act (FLSA), such as executive, professional, and administrative roles.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Non-exempt employees<\/b><span style=\"font-weight: 400;\">. An employee who you do not class as being exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and who you, therefore, must pay overtime when they work over their contracted hours.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To determine if your employees should be classified as <\/span><b>exempt or non-exempt<\/b><span style=\"font-weight: 400;\">, you need to <\/span><b>consider the following<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Salary level<\/b><span style=\"font-weight: 400;\">. Are you paying the employee more than $35,568 per year?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Salary basis<\/b><span style=\"font-weight: 400;\">. Do you offer them a guaranteed minimum compensation amount, regardless of the hours they actually work?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Duties<\/b><span style=\"font-weight: 400;\">: Have you contracted them to perform an exempt job duty? (Professional duties that require specialized education; executive duties such as supervising a team; or administrative duties that require the use of discretion and judgment).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Once you determine an employee\u2019s <\/span><b>classification<\/b><span style=\"font-weight: 400;\">, you will know whether or not the provisions of the FLSA, including the <\/span><b>North Dakota minimum wage<\/b>,<span style=\"font-weight: 400;\"> apply.<\/span><\/p>\n<h2><b><a name=\"Additional\"><\/a>Additional Exemptions to the North Dakota Minimum Wage<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Aside from the above, there are some <\/span><b>additional exemptions to the North Dakota minimum wage <\/b><span style=\"font-weight: 400;\">that you need to be aware of when you design your <\/span><b>compensation strategy<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s an <\/span><b>overview <\/b><span style=\"font-weight: 400;\">of these exemptions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>North Dakota minimum wage for tipped workers<\/b><span style=\"font-weight: 400;\">. North Dakota allows employers to take a tip credit, which means they can pay tipped employees less than the federal minimum wage, as long as the employee\u2019s tips bring their earnings up to at least the minimum wage. The tipped minimum wage in North Dakota is $4.86 per hour (which is 50% of the federal minimum wage of $7.25).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>North Dakota minimum wage for minors<\/b><span style=\"font-weight: 400;\">. Employers in North Dakota can pay employees under the age of 20 a minimum wage of $4.25 per hour for the first 90 consecutive calendar days of employment. After 90 days, they must be paid the full federal minimum wage of $7.25 per hour.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Student workers<\/b><span style=\"font-weight: 400;\">. You can pay full-time students working in retail, agriculture, or universities 85% of the federal minimum wage under the federal full-time student program. However, students are limited to 20 hours of work during the school term.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Agricultural workers<\/b><span style=\"font-weight: 400;\">. Many agricultural workers in North Dakota are exempt from minimum wage requirements under the Fair Labor Standards Act (FLSA). This includes family members of farm owners, small farms with less than $500,000 in sales, hand-harvest laborers, certain local seasonal workers, and range workers involved in livestock operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Independent contractors<\/b><span style=\"font-weight: 400;\">. Finally, independent contractors are not covered by federal or state minimum wage laws, as they are not considered employees under the FLSA. Employers must be careful to classify workers correctly to avoid penalties.<\/span><\/li>\n<\/ul>\n<h2><b><a name=\"Who\"><\/a>Who Enforces the North Dakota Minimum Wage?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The North Dakota minimum wage is enforced by the U.S. Department of Labor&#8217;s <\/span><a href=\"https:\/\/www.dol.gov\/agencies\/whd\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Wage and Hour Division (WHD)<\/span><\/a><span style=\"font-weight: 400;\">. Enforcement is at a federal level since the state adheres to the <\/span><b>federal minimum wage<\/b><span style=\"font-weight: 400;\"> set by the Fair Labor Standards Act (FLSA). The WHD is responsible for <\/span><b>investigating complaints<\/b><span style=\"font-weight: 400;\">, ensuring <\/span><b>compliance with wage laws<\/b><span style=\"font-weight: 400;\">, and <\/span><b>addressing violations <\/b><span style=\"font-weight: 400;\">related to<\/span><b> minimum wage<\/b><span style=\"font-weight: 400;\">, <\/span><b>overtime pay<\/b><span style=\"font-weight: 400;\">, and other <\/span><b>labor standards<\/b><span style=\"font-weight: 400;\">. Employees can file <\/span><b>complaints <\/b><span style=\"font-weight: 400;\">directly with the WHD if they believe their employer is not complying with the minimum wage laws.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, the <\/span><a href=\"https:\/\/www.nd.gov\/labor\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">North Dakota Department of Labor and Human Rights<\/span><\/a><span style=\"font-weight: 400;\"> plays a role in <\/span><b>enforcing state wage and hour laws<\/b><span style=\"font-weight: 400;\">, including those that differ from federal requirements, such as state-specific regulations related to breaks and meal periods.<\/span><\/p>\n<h2><b><a name=\"Laws\"><\/a>What Other North Dakota Wage Laws Are There?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Although North Dakota has maintained the <\/span><b>federal minimum wage<\/b><span style=\"font-weight: 400;\"> since it was enacted in <\/span><b>1938<\/b><span style=\"font-weight: 400;\">, there are a number of notable wage laws in the state that <\/span><b>differ from federal standards<\/b><span style=\"font-weight: 400;\">. Let&#8217;s explore these <\/span><b>North Dakota wage laws<\/b><span style=\"font-weight: 400;\"> so you can <\/span><b>make sure your business is compliant<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Employee Classification<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Proper <\/span><b>employee classification<\/b><span style=\"font-weight: 400;\"> is crucial for determining wage and overtime eligibility. In North Dakota, like in the rest of the country, workers are classified as either <\/span><b>exempt or non-exempt <\/b><span style=\"font-weight: 400;\">under the <\/span><b>Fair Labor Standards Act (FLSA)<\/b><span style=\"font-weight: 400;\">. Exempt employees are generally <\/span><b>salaried <\/b><span style=\"font-weight: 400;\">and <\/span><b>not entitled to overtime<\/b><span style=\"font-weight: 400;\">, while non-exempt employees are <\/span><b>hourly <\/b><span style=\"font-weight: 400;\">and must receive <\/span><b>overtime pay<\/b><span style=\"font-weight: 400;\"> for any hours worked beyond 40 in a workweek. Misclassifying employees as exempt when they should be non-exempt can lead to costly <\/span><b>penalties and back pay claims<\/b><span style=\"font-weight: 400;\">, so it\u2019s essential to accurately assess each worker\u2019s job duties and compensation.<\/span><\/p>\n<h3><b>Overtime<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The Fair Labor Standards Act includes provisions relating to <\/span><b>employee overtime<\/b><span style=\"font-weight: 400;\">. To determine whether or not you need to<\/span><b> pay your employees <\/b><a href=\"https:\/\/factorialhr.com\/blog\/new-overtime-rules-2024\/\"><b>overtime<\/b><\/a><b> for any hours they work over their contracted working hours<\/b><span style=\"font-weight: 400;\"> you first need to determine <\/span><b>what their FLSA status is<\/b><span style=\"font-weight: 400;\">, as we saw above.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your employees are categorized as <\/span><b>exempt<\/b><span style=\"font-weight: 400;\">,<\/span> <span style=\"font-weight: 400;\">then you have <\/span><b>no obligation to pay them overtime<\/b><span style=\"font-weight: 400;\"> if they work over their contracted hours in a given week. However, if your employees are <\/span><b>non-exempt<\/b><span style=\"font-weight: 400;\"> then you <\/span><b>must pay following the FLSA\u2019s overtime rules<\/b><span style=\"font-weight: 400;\">. Essentially this means that you must pay employees covered by the FLSA <\/span><b>overtime pay <\/b><span style=\"font-weight: 400;\">for any hours worked <\/span><b>over 40 in a workweek<\/b><span style=\"font-weight: 400;\"> at a rate not less than <\/span><a href=\"https:\/\/factorialhr.com\/blog\/time-and-a-half\/\"><span style=\"font-weight: 400;\">time and a half<\/span><\/a><span style=\"font-weight: 400;\"> (one-half their regular rate of pay).<\/span><\/p>\n<h3><b>Payment of Wages Upon Termination<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When an employee is <\/span><b>terminated <\/b><span style=\"font-weight: 400;\">or <\/span><b>leaves a job voluntarily<\/b><span style=\"font-weight: 400;\"> in North Dakota, the employer must provide <\/span><b>final payment of all earned wages<\/b><span style=\"font-weight: 400;\"> by the <\/span><b>next regularly scheduled payday<\/b><span style=\"font-weight: 400;\">. Employers cannot withhold final wages or delay payments. Additionally, employers must account for any <\/span><b>unused vacation time<\/b><span style=\"font-weight: 400;\"> if it is considered part of the employee&#8217;s <\/span><b>wage package<\/b><span style=\"font-weight: 400;\"> under company policy. Ensuring <\/span><b>timely and accurate final payments<\/b><span style=\"font-weight: 400;\"> is essential to comply with state laws and avoid disputes with former employees.<\/span><\/p>\n<h3><b>Meal and Rest Break Requirements<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">According to North Dakota law, employees working <\/span><b>shifts longer than five hours <\/b><span style=\"font-weight: 400;\">must be provided with at least a <\/span><b>30-minute unpaid meal break<\/b><span style=\"font-weight: 400;\">. Employees must be completely<\/span><b> relieved of all work duties<\/b><span style=\"font-weight: 400;\"> during this period.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While North Dakota does not require employers to offer <\/span><b>short rest breaks<\/b> (20 minutes or less)<span style=\"font-weight: 400;\">, if employers do provide them, they must be counted as <\/span><b>paid time<\/b><span style=\"font-weight: 400;\">. This <\/span><b>differs from federal law<\/b><span style=\"font-weight: 400;\">, which does not mandate meal or rest breaks.<\/span><\/p>\n<h3><b>Timekeeping and Record-Keeping<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Finally, employers in North Dakota must <\/span><b>maintain detailed and accurate records <\/b><span style=\"font-weight: 400;\">to comply with both <\/span><b>state and federal labor laws<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specifically, employers must keep detailed records of <\/span><b>employee wages, hours worked, <\/b><span style=\"font-weight: 400;\">and any <\/span><b>overtime payments <\/b><span style=\"font-weight: 400;\">for at least<\/span><b> three years<\/b><span style=\"font-weight: 400;\">. This includes recording the <\/span><b>exact time <\/b><span style=\"font-weight: 400;\">when employees<\/span><b> begin and end their shifts, meal breaks<\/b><span style=\"font-weight: 400;\">, and any<\/span><b> overtime hours <\/b><span style=\"font-weight: 400;\">worked.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, employers must maintain records that detail <\/span><b>employee information<\/b><span style=\"font-weight: 400;\">, including <\/span><b>full names, Social Security numbers, addresses, dates of birth for employees under 19, and wage rates<\/b><span style=\"font-weight: 400;\">. These records should be readily accessible in the event of an <\/span><b>audit <\/b><span style=\"font-weight: 400;\">by the U.S. Department of Labor or in response to <\/span><b>wage claims<\/b><span style=\"font-weight: 400;\"> by employees.<\/span><\/p>\n<h2><b><a name=\"Best\"><\/a>Best Practices for Employer Wage Law Compliance<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">And that\u2019s pretty much everything you need to know about the North Dakota minimum wage! All that remains is to <\/span><b>ensure that your business complies with these requirements<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To help you out, we have put together a series of <\/span><b>best practices for employer wage law compliance<\/b><span style=\"font-weight: 400;\">. That way, you can protect your business and foster a <\/span><b>positive and compliant work environment<\/b><span style=\"font-weight: 400;\"> for your employees.<\/span><\/p>\n<h3><b>Understand the Minimum Wage<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Firstly, as an employer in the <em>Flickertail State<\/em>, it\u2019s crucial to <\/span><b>stay updated on North Dakota minimum wage rates<\/b><span style=\"font-weight: 400;\">. These are set by federal law and can <\/span><b>vary based on employee status<\/b><span style=\"font-weight: 400;\">. In addition, familiarize yourself with the <\/span><b>minimum wage requirements for your specific industry<\/b><span style=\"font-weight: 400;\"> to ensure you\u2019re paying your employees the correct amount.<\/span><\/p>\n<h3><b>Classify Employees Correctly<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Secondly, make sure you properly classify your employees as either <\/span><a href=\"https:\/\/factorialhr.com\/blog\/exempt-vs-non-exempt-employees\/\"><span style=\"font-weight: 400;\">exempt or non-exempt<\/span><\/a><span style=\"font-weight: 400;\"> under the FLSA. This classification determines whether you must offer <\/span><b>overtime pay<\/b><span style=\"font-weight: 400;\">. Carefully <\/span><b>review the duties and responsibilities of each employee<\/b><span style=\"font-weight: 400;\"> to determine their <\/span><b>exempt or non-exempt status<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Implement Accurate Payroll Practices<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Thirdly, maintain <\/span><b>accurate and up-to-date payroll records<\/b><span style=\"font-weight: 400;\"> so that your payroll calculations are always processed correctly. Regularly <\/span><b>review your payroll records<\/b><span style=\"font-weight: 400;\"> to identify any inconsistencies or errors. Use <\/span><a href=\"https:\/\/factorialhr.com\/blog\/best-payroll-software\/\"><span style=\"font-weight: 400;\">payroll software<\/span><\/a><span style=\"font-weight: 400;\"> to <\/span><b>streamline your payroll processes <\/b><span style=\"font-weight: 400;\">and <\/span><b>minimize errors<\/b><span style=\"font-weight: 400;\">. You should also create a <\/span><a href=\"https:\/\/factorialhr.com\/blog\/payroll-checklist\/\"><span style=\"font-weight: 400;\">payroll checklist<\/span><\/a><span style=\"font-weight: 400;\"> to keep you on track during each payroll cycle. That way, you won\u2019t miss any important steps, such as <\/span><b>verifying employee hours, ensuring correct pay rates <\/b><span style=\"font-weight: 400;\">and <\/span><b>calculating <\/b><a href=\"https:\/\/factorialhr.com\/blog\/comprehensive-guide-to-employer-payroll-taxes\/\"><b>payroll tax deductions<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Track Overtime Hours<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In addition, make sure you accurately <\/span><b>track overtime hours<\/b><span style=\"font-weight: 400;\"> worked by non-exempt employees. Implement a system for employees to report overtime hours, such as using <\/span><a href=\"https:\/\/factorialhr.com\/blog\/time-card-calculator\/\"><b>timesheets<\/b><\/a><b> or electronic timekeeping systems<\/b><span style=\"font-weight: 400;\">. Make sure you calculate and pay overtime at the correct rate.<\/span><\/p>\n<h3><b>Provide Meal and Rest Breaks<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Another important aspect to consider is breaks. Make sure you provide non-exempt employees with <\/span><b>meal and rest breaks<\/b><span style=\"font-weight: 400;\"> as defined by state law (see above). Make sure employees have access to <\/span><b>designated break areas<\/b><span style=\"font-weight: 400;\"> and take <\/span><b>mandated breaks<\/b><span style=\"font-weight: 400;\"> throughout their workday.<\/span><\/p>\n<h3><b>Maintain Accurate Records<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Finally, it&#8217;s important to <\/span><b>maintain accurate and up-to-date records of all employee work hours and wages<\/b><span style=\"font-weight: 400;\"> in order to comply with recordkeeping requirements. Using <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-record-management-software\/\"><span style=\"font-weight: 400;\">employee record management software<\/span><\/a><span style=\"font-weight: 400;\"> can make this easier. These systems help you maintain <\/span><b>accurate and reliable records<\/b><span style=\"font-weight: 400;\"> so that you can focus on other important parts of your business while staying compliant with North Dakota wage law.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/\"><img decoding=\"async\" class=\"alignnone wp-image-145096 size-full\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/12\/20105457\/Blog-banner-general.png\" alt=\"Factorial HR software banner\" width=\"1921\" height=\"908\" srcset=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2020\/12\/20105457\/Blog-banner-general.png 1921w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2020\/12\/20105457\/Blog-banner-general-300x142.png 300w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2020\/12\/20105457\/Blog-banner-general-1024x484.png 1024w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2020\/12\/20105457\/Blog-banner-general-768x363.png 768w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2020\/12\/20105457\/Blog-banner-general-1536x726.png 1536w\" sizes=\"(max-width: 1921px) 100vw, 1921px\" \/><\/a><\/p>\n<h2><b><a name=\"Factorial\"><\/a>How Factorial Can Help Your Business<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Ensuring <\/span><b>compliance with North Dakota wage laws<\/b><span style=\"font-weight: 400;\"> is crucial for employers to avoid potential penalties and legal disputes. Factorial can help you navigate the complexities of North Dakota\u2019s employment guidelines and <\/span><b>streamline your entire payroll process<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><b>Features <\/b><span style=\"font-weight: 400;\">of <\/span><a href=\"https:\/\/factorialhr.com\/payroll\"><span style=\"font-weight: 400;\">Factorial\u2019s payroll solution<\/span><\/a><span style=\"font-weight: 400;\"> that can help ensure <\/span><b>North Dakota wage law compliance<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automated payroll calculations<\/b><span style=\"font-weight: 400;\">. Accurately calculate wages, including overtime and tipped wages, based on North Dakota and federal laws.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Time and attendance tracking<\/b><span style=\"font-weight: 400;\">. Ensure accurate record-keeping for hours worked, breaks, and overtime to meet <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-time-tracking\/\"><span style=\"font-weight: 400;\">legal requirements<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customizable wage settings<\/b><span style=\"font-weight: 400;\">. Adjust settings for various worker classifications, such as exempt, non-exempt, and tipped employees, to maintain compliance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Comprehensive reporting tools<\/b><span style=\"font-weight: 400;\">. Generate <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-record-management-software\/\"><span style=\"font-weight: 400;\">detailed reports<\/span><\/a><span style=\"font-weight: 400;\"> on employee hours, wages, and compliance metrics to stay audit-ready.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employee classification<\/b><span style=\"font-weight: 400;\">. Properly classify workers and manage different wage rates for exempt, non-exempt, and seasonal employees.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automated final pay processing<\/b><span style=\"font-weight: 400;\">. Ensure timely and accurate payment of final wages when an employee leaves, as required by North Dakota law.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Real-time updates on North Dakota wage laws<\/b><span style=\"font-weight: 400;\">. Stay up to date with any changes in federal and state wage regulations to ensure ongoing compliance.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Ultimately, with all these tools at your disposal, you can <\/span><b>automate and streamline your entire payroll process<\/b><span style=\"font-weight: 400;\">, keep updated on any <\/span><b>updates<\/b><span style=\"font-weight: 400;\"> to the North Dakota minimum wage, and foster a <\/span><b>positive and compliant work environment <\/b><span style=\"font-weight: 400;\">for all.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>North Dakota has maintained the federal minimum wage since the Fair Labor Standards Act (FLSA) was established in 1938. The state has never set a separate, higher minimum wage rate. Despite this fact, there are still a number of important considerations for employers operating within the state. Understanding the nuances of the North Dakota minimum<a href=\"https:\/\/preproduction.factorialhr.com\/blog\/north-dakota-minimum-wage-guide\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":80,"featured_media":140882,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[146],"tags":[],"class_list":["post-140879","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-hr"],"acf":{"topics":"payroll"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>North Dakota Minimum Wage: Guide | Factorial<\/title>\n<meta name=\"description\" content=\"Employer&#039;s guide to the North Dakota minimum wage: rates, exemptions, additional state wage laws and best practices for employer compliance\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"North Dakota Minimum Wage: Guide\" \/>\n<meta property=\"og:description\" content=\"Employer&#039;s guide to the North Dakota minimum wage: rates, exemptions, additional state wage laws and best practices for employer compliance\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preproduction.factorialhr.com\/blog\/north-dakota-minimum-wage-guide\/\" \/>\n<meta property=\"og:site_name\" content=\"Factorial\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.linkedin.com\/company\/factorialhr\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-09-23T15:25:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-07T23:14:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/09\/23171204\/North-Dakota-minimum-wage-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cat Symonds\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@factorialhr\" \/>\n<meta name=\"twitter:site\" content=\"@factorialhr\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cat Symonds\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/north-dakota-minimum-wage-guide\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/north-dakota-minimum-wage-guide\/\"},\"author\":{\"name\":\"Cat Symonds\",\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/#\/schema\/person\/4ebd3e0d92175b5ddd09603f442b8632\"},\"headline\":\"North Dakota Minimum Wage: Guide\",\"datePublished\":\"2024-09-23T15:25:48+00:00\",\"dateModified\":\"2025-01-07T23:14:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/north-dakota-minimum-wage-guide\/\"},\"wordCount\":2359,\"publisher\":{\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/#organization\"},\"articleSection\":[\"Legal &amp; 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