North Dakota Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)

Explore the latest updates and stay compliant with North Dakota labor laws in 2025, including minimum wage, overtime, and employee rights.

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FAQs
What is the minimum wage in North Dakota in 2025?

In 2025, the minimum wage in North Dakota will remain at $7.25 per hour. This rate aligns with the federal minimum wage and has not changed since it was last set. North Dakota does not have a state-mandated minimum wage higher than the federal level, and there are no anticipated increases for 2025 based on the current information available. 

What is the minimum wage for tipped employees in North Dakota?

For tipped employees in North Dakota, the minimum wage is set at $7.25 per hour, with a maximum tip credit of $2.39 allowed. This means employers can pay tipped employees as little as $4.86 per hour if tips bring their total earnings to at least the standard minimum wage.

Is North Dakota an at-will state?

Yes, North Dakota is an at-will employment state. This means that, in the absence of a specific employment contract, both employers and employees can terminate the employment relationship at any time and for any lawful reason without prior notice. 

Termination Flexibility: Employers can fire employees for almost any reason that is not illegal, and employees can resign for any reason without facing legal consequences.

Exceptions to At-Will Employment: While at-will employment provides significant flexibility, there are important exceptions:

  • Discrimination: Employers cannot terminate employees based on protected characteristics such as race, gender, age, or disability.
  • Retaliation: Employees are protected from being fired for asserting their rights, such as filing a workers’ compensation claim or participating in investigations.
  • Breach of Contract: If an employee has a written contract that specifies the terms of employment, the employer must adhere to those terms. Violating these terms can lead to claims of wrongful termination.

Public Policy Exceptions: Employees cannot be terminated for reasons that violate public policy, such as refusing to engage in illegal activities or exercising rights granted under state or federal law.

Does North Dakota require overtime pay?

Yes, employers in North Dakota are required to pay overtime to non-exempt employees. According to the Fair Labor Standards Act (FLSA), employees must be compensated at a rate of 1.5 times their regular hourly wage for any hours worked over 40 hours in a workweek.

Overtime Rate: The overtime pay rate is calculated as 1.5 times the employee’s regular rate of pay. For example, if an employee earns $7.25 per hour (the minimum wage), their overtime rate would be approximately $10.88 per hour.

Non-Exempt Employees: Most employees are considered non-exempt and are entitled to overtime pay. However, certain categories of employees may be classified as exempt from overtime requirements, including:

  • Executive, administrative, and professional employees
  • Outside salespersons
  • Some computer professionals

A workweek consists of seven consecutive days, and only hours worked beyond 40 in that period qualify for overtime pay.

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