Introduction to employment laws in North Dakota
Overview
North Dakota has a diverse economic landscape, ranging from agriculture and energy to healthcare and manufacturing. No matter the industry, companies hiring in North Dakota must navigate an array of federal and state laws to maintain employment-related compliance.
Understanding and complying with North Dakota employment laws is crucial for any business operating in the state. It’s vital to stay updated on changes in the law to minimize risk and protect your organization. Here’s what you need to know.
Employing in North Dakota: Key employment laws and practices
Standard work hours
In North Dakota, full-time employment is typically 30 to 40 hours per week. However, specifics can vary depending on the type of employment contract.
For instance, salaried employees usually work a set number of hours per week as part of their employment agreement. Contractual workers may have fluctuations in working hours depending on the contract terms. Self-employed professionals have flexibility with their working hours.
Minimum wage and overtime
North Dakota follows federal guidelines setting the minimum wage at $7.25 per hour.
Overtime laws in North Dakota are governed by the Fair Labor Standards Act (FLSA). Non-exempt employees are entitled to overtime pay of 1.5 times their regular rate if they work more than 40 hours in a week. This rule applies to salaried employees as well unless they fall under the exempt category. The salary threshold for exemption in North Dakota is $684 per week.
Insurance and benefits
In North Dakota, employers have specific obligations regarding insurance and benefits. These include FICA Social Security contributions, FICA Medicare contributions, unemployment insurance (both state and federal), and others.
Contribution | Rate |
FICA Social Security (Federal) | 6.20% (applied on salary up to $168,600 annually) |
FICA Medicare (Federal) | 1.45% |
Unemployment insurance (State) | 0.08% – 9.68% (applied on salary up to $43,800 annually) |
Workers’ compensation insurance | varies |
FUTA (Federal Unemployment Tax Act) | 0.60% – 6.00% |
Multiplier makes it easy to manage benefits for North Dakota employees.
Meal and rest periods
FLSA regulations dictate that all employees are entitled to short rest breaks during the workday. These breaks are generally paid and should occur in the middle of each four-hour work period.
In addition to these short rest periods, employees who work at least five continuous hours are entitled to a meal period of at least 30 minutes, unpaid as long as fully relieved of their work-related duties.
While these general guidelines apply to all industries, there may be specific regulations for certain industries or job types. For instance, employees performing strenuous physical labor may be entitled to additional rest periods. Likewise, workers on long shifts or those working at odd hours may have different break requirements.
Anti-discrimination laws
One of the core principles of North Dakota HR compliance is ensuring a discrimination-free workplace. North Dakota employment laws prohibit discrimination based on various factors, including age, religion, sexual orientation, gender, and race. This protection extends beyond hiring practices to encompass all aspects of employment, such as promotions, training opportunities, salary determination, and termination processes.
In addition to these state provisions, federal regulations like the Civil Rights Act, Americans with Disabilities Act and the Age Discrimination in Employment Act also apply to North Dakota employers. These laws forbid discrimination based on race, color, national origin, sex, disability, and age (over 40). Moreover, the North Dakota Human Rights Act further enhances protections against workplace discrimination.
Leave policies
North Dakota does not mandate paid leave, but businesses often offer vacation benefits at their discretion. Similarly, there are no state-specific rules for sick leave. For maternity, paternity, and parental leave, North Dakota follows the federal Family and Medical Leave Act (FMLA), which provides up to 12 weeks of unpaid leave.
Type of leave | Basic entitlement |
Vacation leave | Determined by employer |
Sick leave | Up to 12 weeks (FMLA) |
Maternity/paternity leave | Up to 12 weeks (FMLA) |
Bereavement leave | Determined by employer |
Military leave | Protected under USERRA |
Easily onboard employees in North Dakota?
Termination laws
Employment relationship in North Dakota is typically considered “at will,” meaning either party can end the employment relationship without notice, provided it is not discriminatory or illegal.
However, employers must pay out any accrued PTO upon termination, as it is considered wages. In terms of severance pay, North Dakota law does not require employers to provide severance packages unless stipulated in an employment contract.
In mass dismissal cases, the Worker Adjustment and Retraining Notification Act (WARN Act) mandates employers to give 60 days’ notice to impacted employees.
Safety and health
Workplace safety is governed by both federal and state laws in North Dakota. The North Dakota Department of Labor and Human Rights ensures compliance with all safety and health standards in the workplace. It’s crucial for employers to comply with these regulations to maintain a safe work environment and minimize the risk of accidents and injuries.
Each type of industry may have unique safety guidelines that must be followed. All employers are required to provide a workplace free from recognized hazards that may cause death or serious physical harm to employees.
Taxes in North Dakota
Under North Dakota employment laws, both employers and employees have tax obligations. Employer payroll contributions include unemployment insurance, FICA Social Security, FICA Medicare, and FUTA (Federal Unemployment Tax Act). Employee payroll contributions include FICA Social Security, FICA Medicare, State Tax, and Federal Tax. The exact percentages vary depending on salary amounts and other factors.
Tax type | Employer contribution | Employee contribution |
Unemployment insurance | 0.08% – 9.68% | N/A |
FICA Social Security | 6.20% | 6.20% |
FICA Medicare | 1.45% | 1.45% |
State tax | N/A | 1.95% – 2.5% |
Federal tax | N/A | Varies by income |
Managing North Dakota employees with an Employer of Record (EOR)
Navigating the complexities of North Dakota employment laws can be daunting. With its unique regulations and varying employer obligations, it’s easy for businesses to find themselves inadvertently non-compliant, potentially leading to serious legal repercussions.
Multiplier’s Employer of Record (EOR) solution enables businesses to legally and compliantly employ full-time workers in North Dakota without setting up a local U.S. entity.
With our Global Payroll Platform, you can pay your North Dakota employees and contractors on time while efficiently handling local taxes, contributions, and withholdings.
Our platform provides an all-in-one solution for hiring, onboarding, paying, and managing international employees from a single interface.
See how Multiplier can streamline your HR operations. Book a demo today.
FAQs
Full-time employment in North Dakota is generally considered to be between 30 to 40 hours per week. This definition plays a crucial role in determining employee eligibility for certain benefits and overtime pay under the federal Fair Labor Standards Act and North Dakota-specific legislation.
In North Dakota, as per the federal Fair Labor Standards Act (FLSA), non-exempt employees who work more than 40 hours in a week are entitled to overtime pay of 1.5x their regular pay rate. However, not all employees are eligible for overtime. Employees who earn more than a specified state or federal exemption threshold or perform certain executive, managerial, or specialized duties are typically exempt from overtime.
Employers in North Dakota must contribute to several federal and state programs on behalf of their employees. These include Unemployment Insurance (State), FICA Social Security (Federal), FICA Medicare (Federal), and the Federal Unemployment Tax Act (FUTA). The contribution rates vary based on factors like the employee’s salary and the employer’s status.
North Dakota follows the federal minimum wage of $7.25 per hour for private-sector employees. This is the lowest amount an employer can pay a worker for an hour of labor under state law.
North Dakota does not have laws specifying paid time off, vacation, or sick leave. However, employers often offer these benefits as part of their employment contracts or collective bargaining agreements. Public holidays are not mandatory paid days off, but many employers allow workers to take federal holidays as paid days off. Maternity, paternity, and parental leave are covered under the Family and Medical Leave Act (FMLA).
