Overview of North Dakota's Minimum Wage Requirements
As of the most recent data available in 2023, the minimum wage in North Dakota is set at $7.25 per hour, which is equivalent to the federal minimum wage floor. Employers in North Dakota are required to pay premium pay after 40 hours of work in a week. This means that any hours worked over the standard 40-hour work week must be compensated at a higher rate, ensuring fair compensation for overtime work.
Interestingly, North Dakota has maintained this minimum wage rate consistently since at least 2008. This consistency has led to the state ranking 1st in the state minimum wage category from 2008 to 2023. However, it's important to note that there is no mention of any annual adjustments or set formulas for future increases in the minimum wage rate in North Dakota. This suggests that the state does not have a policy in place for automatic minimum wage increases tied to inflation or cost of living adjustments.
Understanding Local Minimum Wage Variations
The minimum wage in North Dakota is consistent across all counties, including Cass County, Burleigh County, Grand Forks County, Ward County, and Morton County. The minimum wage in these counties, as well as in cities like Fargo, Bismarck, Grand Forks, Minot, and West Fargo, is set at $7.25 per hour. This rate is in line with the current Federal Minimum Wage. The minimum wage law applies to the majority of employees in North Dakota, with a few exceptions.
These exceptions include tipped employees, certain student workers, and other exempt occupations. It is mandatory for all employers in North Dakota to display an approved North Dakota minimum wage poster in a visible location to educate employees about the minimum wage and their rights under North Dakota labor law.
Minimum Wage Eligibility and Exemptions
The Fair Labor Standards Act (FLSA) governs the minimum wage in North Dakota, which is currently set at $7.25 per hour. This applies to employees in both the private and public sectors, across federal and state governments. However, there are certain exemptions to this rule. Workers who receive tips may be paid a lower cash wage, provided their total earnings, including tips, meet or exceed the federal minimum wage. This is a common practice in the food and restaurant industry, where tipping is customary.
Another exemption applies to workers under 20 years of age. These individuals may be paid a youth minimum wage of $4.25 per hour during their first 90 consecutive calendar days of employment with an employer. This is designed to encourage employers to hire younger workers and provide them with valuable work experience. Lastly, certain full-time students, student learners, apprentices, and workers with disabilities may be paid less than the standard minimum wage. This is possible under special certificates issued by the Department of Labor.
Minimum Wage Considerations and Compliance Tips
As a food business employer in North Dakota, it's key to stay updated on the latest minimum wage legal and compliance considerations. The basic combined cash and tip minimum wage rate in North Dakota is $7.25. This means that the total amount of cash wages and tips your employees receive should not be less than this amount. The maximum tip credit against the minimum wage is 33% of the applicable minimum wage, which equates to $2.39.
After applying the maximum tip credit, you are obligated to pay your tipped employees a minimum cash wage of $4.86. However, it's important to note that the tip credit is not permitted unless you obtain from each employee, either monthly or each pay period, a signed certification of the amount of tips received. Lastly, you must notify employees in advance of the amount of cash wages they will be paid and the amount that wages will be increased using the tip credit.
FAQs
- What is the current minimum wage in North Dakota? The current minimum wage in North Dakota is $7.25 per hour.
- Are there any exemptions to the minimum wage in North Dakota? Yes, exemptions apply to tipped workers, young workers, certain students and apprentices, and workers with disabilities.
- What is the tip credit in North Dakota? The maximum tip credit against the minimum wage in North Dakota is 33% of the applicable minimum wage, which equates to $2.39.
Information Source Links
- U.S. Department of Labor
- Rich States, Poor States report
- National Low Income Housing Coalition
- North Dakota Century Code
- North Dakota Minimum Wage
- Federal Minimum Wage
Learn more about Local Food Delivery Trends and Insights
About Otter
- Increase revenue up to 10% with Marketing*
- Reduce storefront downtime by up to 50% with Live Alerts*
- Increase sales up to 50% with Digital Dine-In's QR code ordering*
- Reduce missed orders to less than 1% with Order Manager's Auto-Accept feature*
- Supercharge your food business with our all-in-one restaurant POS system*