North Dakota overtime laws are designed to protect employees and ensure fair compensation for their work beyond regular working hours. Under the provisions of North Dakota Labor Laws, employers are required to pay eligible employees at a higher rate for any hours worked beyond the standard 40 hours per week.
This article will provide information to successfully navigate North Dakota’s overtime regulations, whether you’re an employer aiming for compliance or an employee defending your rights.
North Dakota Overtime Laws Summary
| State overtime law | Overtime applies at 1.5 times an employee’s hourly wage for any time worked over 40 hours a week |
| North Carolina minimum wage | $7.25 per hour |
| Minimum overtime wage | $10.88 per hour |
| Comp time | Allowed |
| Salary threshold for overtime exemption | $684 per week |
This Article Covers
- North Dakota Overtime Rates
- Overtime Entitlement in North Dakota
- Compensatory Time in North Dakota
- Overtime for Employees Covering Shifts in North Dakota
- Overtime for Tipped Employees in North Dakota
- Overtime Exceptions and Exemptions in North Dakota
- Penalties for Unpaid Overtime in North Dakota
North Dakota Overtime Rates
Employees in North Dakota who work more than 40 hours a week are entitled to receive overtime pay, which must be calculated at 1.5 times their regular rate of pay. Paid holidays, paid time off, and sick leave are not considered when determining overtime hours.
Since the regular minimum wage in North Dakota is $7.25 per hour, North Dakota’s overtime minimum rate is $10.88 per hour.
It’s important to note that overtime calculations should be done every week, regardless of how often an employee gets paid.
Overtime Entitlement in North Dakota
According to North Dakota overtime laws, overtime pay is required for any non-exempt employees who work more than 40 hours per week. This work week is a consistent, consecutive 7-day period chosen by an employer. However, taxicab drivers are entitled to receive overtime compensation for any hours worked beyond 50 hours in a single work week.
In the case of hospitals and residential care establishments, there is an option to establish a 14-day overtime period through mutual agreement with employees. During this period, if employees work more than 8 hours in a day or exceed 80 hours within the 14-day work period, they must be paid at a rate of at least one and a half times their regular rate of pay.
For employees who work multiple jobs under the same employer’s control, all the hours worked across these jobs must be counted towards calculating overtime.
Read more about Overtime Exceptions and Exemptions in North Dakota.
Compensatory Time in North Dakota
In North Dakota, the state or a division of the state can establish a system for compensatory time, “comp time”, calculation for its non-exempt employees. Comp time is time off given to employees as a substitute for monetary overtime payment.
Comp time can be provided as long as it meets the requirements of the Fair Labor Standards Act and the regulations set by the United States Department of Labor.
It is important to note that private sector non-exempt employees are not allowed to receive comp time.
Overtime for Employees Covering Shifts in North Dakota
In North Dakota, if two employees working for the state or a government entity have similar job duties, they can agree to swap shifts during their scheduled work hours. The employer may not count these hours towards overtime calculations for the employee covering the shift. Both employees will be treated as if they worked their regular schedules.
However, this agreement must be approved by the employer before the shift exchange occurs. Each employee has the freedom to decline participation, and their decision should be independent of any employer pressure. Additionally, the agency is not obligated to keep records of the substitute work hours in such cases.
Overtime for Tipped Employees in North Dakota
Employers in North Dakota have the option to pay tipped employees a minimum hourly wage of $4.86. However, it is crucial that the total earnings, including tips, reach or exceed the regular state minimum wage of $7.25 per hour. If the combined amount of wages and tips fall short of the regular minimum wage, the employer is obligated to compensate the employee for the difference.
Most tipped employees are eligible for overtime pay if they work more than a specific number of hours in a week. Overtime hours are compensated at 1.5 times the employee’s regular hourly wage. Their overtime rate must be determined based on the full minimum wage, rather than the lower cash wage provided by the employer.
Overtime Exceptions and Exemptions in North Dakota
Employees in North Dakota can be exempt from overtime pay if they fall under certain categories defined in labor law. These categories include executive, administrative, and professional positions.
For an employee to be considered an executive, their primary duties must involve managing the enterprise or a recognized department or subdivision within it. They must also be responsible for directing the work of two or more employees and have the authority to hire or fire employees, or their suggestions hold significant weight.
In the case of administrative employees, their primary duties should be office or non-manual work directly related to management policies or general business operations. Additionally, they must regularly exercise discretion and independent judgment in their work.
Professional employees are those whose primary duties involve work requiring advanced knowledge in a specific field of science or learning. This knowledge is typically acquired through specialized intellectual instruction and study, differentiating it from general academic education or apprenticeships. They must consistently exercise discretion and judgment in their work, which is predominantly intellectual and varied, as opposed to routine tasks.
Other exemptions include:
- An employee involved in agricultural work, which includes activities such as cultivating, raising, processing, or delivering agricultural products for sale.
- An employee who dedicates a majority (at least 51%) of their working hours to directly caring for clients in a shelter, foster care, or similar establishment.
- An employee working in domestic service who lives in the same household where they are employed.
- A salesperson in retail automotive, trailer, boat, aircraft, truck, or farm implement dealerships who earn commissions and is not required to be present on the premises for more than forty hours per week.
- A computer professional who uses their judgment and decision-making skills to design, develop, analyze, test, or modify computer programs, or is paid at least $27.63 per hour.
- An employee who regularly works outside the employer’s premises to make sales or take orders. Non-sales work should not exceed 20% of the total weekly working hours.
- A mechanic receiving payment based on a commission system using a fixed rate schedule.
- A retail worker who earns more than 1.5 times the minimum hourly wage and makes over 50% of their total monthly income from sales commissions.
- Announcer, news editor, or chief engineer for a radio or television station.
- An employee engaged in an artistic profession that involves original and creative work or relies on the employee’s invention, imagination, or talent.
- Employees of covered motor carriers as specified by the Motor Carriers Act.
- A teacher, instructor, tutor, or lecturer who is involved in educational instruction within a school or educational system.
- A highly compensated employee who earns an annualized compensation of $100,000 or more, including a salary or fee of at least $844 per week.
- An employee who offers companionship services to elderly or disabled individuals, providing fellowship, care, or protection. Household work, such as cleaning, laundry, or meal preparation, should not exceed 20% of their total working hours in a week.
Penalties for Unpaid Overtime in North Dakota
Not paying employees the appropriate wages is considered a criminal offense in North Dakota. In addition to facing civil penalties, individuals who violate wage laws can be charged with a Class B misdemeanor. Class B misdemeanors carry a maximum penalty of 30 days’ imprisonment and up to a $1,500 fine.
North Dakota law provides workers with the ability to initiate class action lawsuits against employers who fail to properly compensate their employees. There are no requirements for employees to opt in to these class actions, ensuring that all affected individuals have the opportunity to participate in seeking justice.
To protect employees, North Dakota explicitly prohibits any form of retaliation against workers who assert their rights under wage and hour laws. Employers are prohibited from taking actions such as termination, demotion, denial of promotion, or any form of discrimination against employees who exercise their right to make a claim or assert their rights under these laws.
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.
