North Dakota’s labor laws may appear straightforward, but when it comes to overtime pay, there are certain nuances that both employees and employers should be aware of. For example, paid time off like holidays or sick leave doesn’t count toward overtime, and even salaried workers may qualify for extra pay depending on their role.
Whether you’re an employee trying to understand your rights or an employer aiming to stay compliant, this guide breaks down everything you need to know about calculating overtime in North Dakota.
This Article Covers:
Understanding Overtime in North Dakota
- Which Overtime Laws Apply in North Dakota?
- How are Overtime Laws in North Dakota Different from Federal Laws?
- What is the Regular Rate of Pay in North Dakota?
- How Much is Overtime Pay in North Dakota?
- Who is Eligible for Overtime Pay in North Dakota?
- Who is Exempt from Overtime Pay in North Dakota?
Overtime for Hourly Rate and Salaried Employees in North Dakota
- How Do You Calculate Overtime for Hourly Employees in North Dakota?
- How is Overtime Calculated for Salaried Employees in North Dakota?
Overtime for Complex Pay Structures in North Dakota
- How Do You Calculate Overtime for Piece Rate or Commission Employees in North Dakota?
- How Do You Calculate Overtime with Multiple Pay Rates in North Dakota?
Additional Considerations for North Dakota Overtime
- Are there Industry-Specific Overtime Rules in North Dakota?
- Do Employees in North Dakota Get Extra Overtime Pay for Working on Sundays or Holidays?
- How can Employers Ensure Compliance with North Dakota Overtime Laws?
Understanding Overtime in North Dakota
Which Overtime Laws Apply in North Dakota?
In North Dakota, both the federal Fair Labor Standards Act (FLSA) and the North Dakota Administrative Code govern overtime pay.
Employees must be paid 1.5 times their regular rate for all hours worked over 40 in a 7-day workweek.
North Dakota also specifies that paid time off—such as holidays, vacation, or sick leave—is not included when calculating whether the 40-hour threshold has been met. This ensures overtime is calculated strictly on actual hours worked.
How are Overtime Laws in North Dakota Different from Federal Laws?
While North Dakota adheres to the FLSA’s weekly overtime standard, it introduces additional variations.
For example, certain employees—like taxicab drivers—only qualify for overtime after 50 hours in a week, not 40. Hospitals and residential care facilities can adopt a 14-day overtime period instead of the usual 7 days, provided employees receive time-and-a-half for hours worked beyond 8 in a day or 80 in two weeks.
These exceptions create more flexibility for employers while still offering workers protection under overtime law.
What is the Regular Rate of Pay in North Dakota?
In North Dakota, the “regular rate of pay” is the hourly rate an employee earns based on actual hours worked. It applies no matter how the employee is paid—whether hourly, by salary, piece rate, or commission. This regular rate is used to calculate overtime pay.
When calculating overtime, total earnings from all compensable sources are divided by the total number of hours worked in the week to determine the regular rate.
How Much is Overtime Pay in North Dakota?
New Mexico follows federal guidelines for overtime but includes unique rules for state employees. While daily overtime is not required by state law, there are additional provisions for holiday work and compensatory time.
- Weekly Overtime: All non-exempt employees, including those in state classified service, must be paid 1.5× their regular rate for hours worked over 40 in one workweek.
- Exclusions: Paid time off, sick leave, and holidays do not count toward the 40-hour threshold for overtime eligibility.
- Special Cases: Taxicab drivers receive overtime only after 50 hours/week, and hospitals or residential care establishments may adopt a 14-day period with specific conditions.
If you want to learn more, check out our guide on North Dakota overtime laws.
Who is Eligible for Overtime Pay in North Dakota?
In North Dakota, most employees are eligible for overtime pay if they work more than 40 hours in a seven-day workweek. This includes hourly and salaried employees unless they meet a specific exemption under state or federal law.
Simply being paid a salary does not automatically make someone exempt from overtime; what matters are the actual job duties performed.
Who is Exempt from Overtime Pay in North Dakota?
Some employees are not entitled to overtime due to the nature of their job or their compensation structure. These exemptions include:
- Executive, administrative, and professional employees paid on a salary or fee basis
- Agricultural workers
- Live-in domestic workers
- Employees providing 51% or more of their time in direct care at shelters or similar establishments
- Commission-based salespeople at vehicle and equipment dealerships, if not required to be on site more than 40 hours weekly
- Computer professionals paid at least $27.63/hour and using independent judgment
- Outside salespeople, if non-sales work doesn’t exceed 20% of their time
- Mechanics paid on a commission using a flat-rate system
- Retail employees earning more than 1.5× minimum wage and receiving more than half of pay from commissions (evaluated monthly)
- Announcers, news editors, and chief engineers at radio/TV stations
- Artistic professionals whose work requires creativity or talent (e.g., editors, musicians, writers, actors)
- Motor carrier employees covered under federal motor carrier exemptions
- Teachers, instructors, tutors, and lecturers
- Highly compensated employees earning $100,000+ annually with certain job duties
For further details on the exemptions, view North Dakota Minimum Wage and Work Conditions Order. It provides ways the listed employee categories can be affected.
Learn more about overtime exceptions and exemptions in North Dakota.
Overtime for Hourly Rate and Salaried Employees in North Dakota
How Do You Calculate Overtime for Hourly Employees in North Dakota?
In North Dakota, the regular rate of pay for hourly employees is the employee’s base hourly wage for actual hours worked.
To calculate overtime, employers must pay 1.5 times the regular rate for any hours worked over 40 in a 7-day workweek. Unlike some other states, there are no daily overtime rules in North Dakota—only weekly.
Assume an hourly employee earns $20/hour and works 50 hours in one week:
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This calculation reflects North Dakota’s straightforward overtime structure: only hours worked beyond 40 in a week are paid at the overtime rate of 1.5 times.
How is Overtime Calculated for Salaried Employees in North Dakota?
Salaried employees in North Dakota are also entitled to overtime if they are not classified as exempt under executive, administrative, professional, or other specific exemptions.
To calculate overtime for salaried employees, North Dakota uses a defined method to convert salary to an hourly rate:
| 1. Convert Monthly Salary to Annual Salary. Example: $4,000 × 12 = $48,000/year |
| 2. Find Weekly Salary: $48,000 ÷ 52 = $923.08/week |
| 3. Determine Hourly Rate Based on Total Hours Worked That Week Example: 45 hours worked → $923.08 ÷ 45 = $20.51/hour |
| 4. Calculate Overtime (Half-Time) Half of the hourly rate × overtime hours $20.51 × 0.5 = $10.26/hour 5 overtime hours × $10.26 = $51.30 |
| 5. Total Pay for the Week: $923.08 (salary) + $51.30 (overtime) = $974.38 |
This approach ensures that salaried employees are fairly compensated for any time worked beyond 40 hours, using a half-time method that accounts for the fact that salary already covers 40 hours.
For more details, check out our guide on your rights as a salaried employee in North Dakota.
Overtime for Complex Pay Structures in North Dakota
How Do You Calculate Overtime for Piece Rate or Commission Employees in North Dakota?
In North Dakota, the overtime rate for employees paid on a piece rate or commission basis is calculated by first determining the regular rate of pay from total weekly earnings.
Method 1: Regular Rate from Total Weekly Compensation
To determine the regular rate of pay:
- Divide the total weekly compensation by the total hours worked that week.
Once the regular rate is found:
- Overtime pay = Regular Rate × 0.5 × Overtime Hours (i.e., hours beyond 40 in the week)
For example, if a commission-based employee earns $600 and works 45 hours:
- Regular Rate = $600 ÷ 45 = $13.33/hour
- Overtime Pay = $13.33 × 0.5 × 5 = $33.33
This method ensures the employee is fairly compensated for time worked, even when earnings are not tied to hourly wages.
Method 2: Flat Day or Job Rate
If an employee is paid a flat amount per job or per day, regardless of hours:
- Total all day/job rates earned in the week.
- Divide by total hours worked to determine the regular hourly rate.
- Then calculate half-time pay for hours worked beyond 40 in the week.
How Do You Calculate Overtime with Multiple Pay Rates in North Dakota?
In North Dakota, when an employee performs different jobs for the same employer at different rates of pay within the same workweek, the state uses a weighted average to calculate the regular rate for overtime.
Weighted Average Method (General Employment)
This method applies when an employee has two or more pay rates. Here’s how it’s done:
| 1. Calculate total compensation for each job:
Take an example:
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2. Add total compensation and total hours:
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3. Determine the average hourly rate:
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4. Calculate overtime pay:
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Public Sector Exception (Government Workers)
For state or political subdivision employees, there are two notable exceptions:
- Substitution (“Trade Time”): Two employees may agree to cover each other’s shifts in the same role, and those hours are not counted toward overtime, as long as the arrangement is voluntary and pre-approved by the agency.
- Different Job Roles: A government employee may work part-time in a different role for the same agency. Those hours do not count toward overtime when the work is occasional or sporadic and the role is clearly different.
These exceptions are based on federal regulations and are specific to public employers.
Additional Considerations for North Dakota Overtime
Are there Industry-Specific Overtime Rules in North Dakota?
Yes. North Dakota includes industry-specific overtime provisions in its regulations:
- Hospitals and residential care facilities can use a 14-day work period for overtime if agreed upon, with overtime owed after 8 hours in a day or 80 hours in 14 days.
- Taxicab drivers qualify for overtime only after 50 hours in a workweek.
- Commission-based mechanics and retail sales employees may be exempt if they meet specific pay structures or commission thresholds.
- Nonprofit and service industry employers can apply a tip credit of up to 33% and implement tip pooling under specific conditions.
Do Employees in North Dakota Get Extra Overtime Pay for Working on Sundays or Holidays?
No. There is no requirement in North Dakota law that mandates additional or premium pay for work done on Sundays or holidays. However, if working on a holiday causes the total weekly hours to exceed 40, overtime pay at 1.5× the regular rate would apply based on weekly hours, not the calendar day.
For more information, read our guide on what are my overtime rights in North Dakota.
How can Employers Ensure Compliance with North Dakota Overtime Laws?
To stay compliant, North Dakota employers should:
- Employers must provide employees with a pay stub or voucher that includes hours worked, pay rate, and all deductions.
- All hours worked across multiple roles under the same employer must be combined for overtime calculations.
- Employers cannot average hours across multiple weeks or pay periods to reduce or avoid paying overtime.
- If time clocks are used, any rounding must not result in underpayment of wages.
- Employers must correctly apply exemption rules for employees such as professionals, outside salespeople, and commission-based auto sales staff.
These practices are based on the North Dakota Minimum Wage and Work Conditions Order and related administrative codes.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
