Compliance Watch:

What are my rights as a salaried employee in North Dakota?

Salaried employment in North Dakota is a work arrangement where an employee receives a fixed salary as their regular compensation, typically on a regular schedule, regardless of the hours worked during a week. This salary is often expressed as an annual amount. Key aspects of salaried employment in North Dakota include:

1. Consistent Salary: Salaried workers receive a steady income that doesn’t change based on their weekly work hours, unlike hourly employees who are paid based on the time worked.
2. Exempt vs. Non-Exempt Classification: Salaried employees can be categorized as either exempt or non-exempt. Exempt employees, usually in managerial or higher-level roles, aren’t typically eligible for overtime pay. Non-exempt employees, on the other hand, can receive overtime pay for hours worked beyond 40 in a week.
3. At-Will Employment: Generally, salaried employment in North Dakota is subject to at-will employment principles, meaning either the employee or employer can terminate the employment at any time, unless there’s a specific employment contract providing job security.
4. Minimum Wage Requirements: Salaried employees must be paid at least the state’s mandated minimum wage, which can change over time.
5. Employee Benefits and Rights: Salaried employees are entitled to certain benefits, such as paid leave and health insurance, depending on their employment agreement and their employer’s policies.
6. Compliance with Labor Laws: Salaried employment in North Dakota is subject to state and federal labor laws and regulations, covering aspects like wage and hour rules, workplace safety, anti-discrimination laws, and more.

These are some of the general differences between salaried and hourly employees in North Dakota, but it’s essential to note that specific employment conditions may vary based on individual circumstances and employer policies. To learn more about North Dakota Labor Laws, you can access our guides on your rights as an hourly employee in North Dakota and North Dakota overtime laws.

Salaried employees in North Dakota have certain fundamental rights and protections. These rights include:

1. Overtime Pay: Exempt salaried employees may not be eligible for overtime pay, but eligibility can vary based on job role and salary thresholds. Non-exempt salaried employees are entitled to overtime pay (1.5 times their regular rate) for hours worked beyond 40 in a workweek.
2. Workplace Safety: Salaried employees have the right to a safe and healthy work environment. Employers in North Dakota are obligated to comply with state and federal workplace safety regulations.
3. Equal Employment Opportunity: Salaried employees are protected against discrimination based on factors such as race, gender, religion, age, and disability. Employers are required to adhere to anti-discrimination laws.
4. Family and Medical Leave: Eligible salaried employees have the right to take unpaid leave under the federal Family and Medical Leave Act (FMLA) for qualifying reasons, which may include the birth or adoption of a child, a serious health condition, or caregiving responsibilities.
5. Whistleblower Protections: Salaried employees who report illegal or unethical activities in the workplace are entitled to certain legal protections. North Dakota has specific whistleblower laws in place.
6. Unemployment Benefits: In the event of job loss, salaried employees have the right to apply for unemployment benefits, subject to meeting eligibility criteria.
7. Employment Contracts: The terms and conditions of employment should be clearly outlined in employment contracts. Salaried employees have the right to review and negotiate these contracts.
8. Privacy Rights: Salaried employees have a reasonable expectation of privacy in the workplace, and their employers are generally prohibited from conducting invasive surveillance without consent or a legitimate business reason.
9. Severance Pay: While not legally required, some employers may offer severance pay to employees upon termination. The terms of such payments are often outlined in employment contracts.

Please note that specific rights and protections can vary based on individual employment situations and employer policies.

Overtime pay can be applicable to salaried employees in North Dakota, under certain circumstances, using the Fluctuating Workweek Method (FWW). This method allows for overtime calculations for employees who receive a fixed salary, even though their workweek hours may fluctuate.

Eligibility for FWW:

Employees who are paid a fixed salary and whose work week hours “fluctuate” qualify for FWW. This means that sometimes they work more than 40 hours in a week, and sometimes they work fewer hours. Here’s how the FWW method works: For instance, a salaried nonexempt employee receives a fixed salary regardless of whether they work, say, 35 or 45 hours in a week.

To calculate the overtime pay using FWW:

• Determine the hourly rate by dividing the weekly salary by the total number of hours worked. In this example, if the weekly salary is $1,000 and the employee worked 50 hours:
  • $1,000 / 50 = $20 per hour.
• Calculate the overtime compensation for hours worked over 40 in a week. The employee is entitled to overtime pay at a rate of 1.5 times the regular hourly rate.
  • $20 per hour x 1.5 = $30 for each overtime hour worked.
• Determine the total overtime compensation by multiplying the overtime rate ($30) by the number of overtime hours worked. In this example, if the employee worked 10 overtime hours:
  • $30 x 10 overtime hours = $300.

So, in this scenario, the employee would be entitled to receive $100 in overtime pay in addition to their fixed salary for that week. It’s important to note that the Fluctuating Workweek Method is a specific approach to calculating overtime and may not apply to all salaried employees. It’s crucial for both employers and employees to understand the applicability of this method and ensure compliance with labor laws and regulations in North Dakota.

In North Dakota, employers can make certain deductions from the wages of salaried employees under specific conditions. These conditions are outlined in state labor laws. Here’s an overview of when employers can deduct wages from salaried employees:

1. Advances Paid to Employees: Employers can deduct advances that were paid to employees, except for undocumented cash.
2. Recurring Deductions Authorized in Writing: If an employee provides written authorization, employers can make recurring deductions from their wages. This may include deductions for items like health insurance premiums or retirement contributions.
3. Non Recurring Deductions Authorized in Writing: Non Recurring deductions from an employee’s wages are allowed when the source of the deduction is cited specifically in writing. For example, if an employee makes a one-time donation to a charity and provides written authorization for the deduction from their wages, this would be allowed.
4. Non Recurring Deduction for Damage, Breakage, Shortage, or Negligence: If an employee is responsible for damage, breakage, shortage, or negligence in the workplace, a nonrecurring deduction can be made from their wages. However, this deduction must be authorized by the employee at the time of the deduction. In other words, the employee must agree to the deduction when the specific incident occurs.

It’s essential for employers to follow North Dakota labor laws and have written authorization from employees for deductions, whether recurring or nonrecurring.

In North Dakota, salaried employees are subject to certain regulations regarding breaks and leaves. Here’s an overview:

1. Meal Breaks: Employers must provide employees, including salaried employees, with an unpaid 30-minute meal break when they are scheduled to work more than 5 hours, and when there are two or more employees on duty. This break is intended to allow employees to have a meal and is unpaid.
2. Rest Breaks: Unlike some states, North Dakota does not have additional requirements to provide rest breaks. Rest breaks are typically shorter breaks that allow employees a brief respite during their workday.
3. Paid Breaks: According to federal regulations, if breaks are provided and the break lasts less than 20 minutes, it must be paid. This means that short breaks, typically 20 minutes or less, are considered part of the workday and employees are compensated for them.
4. 24-Hour Rest Period: Retail employers in North Dakota must allow their employees to have at least 24 consecutive hours off from work in every seven-day period. This ensures that employees have a day of rest each week.
5. Religious Accommodations: Retail employers must grant an employee’s request for time off to attend worship services once a week, unless certain conditions apply, such as substantial economic burden or significant burden on other employees. Employers are expected to make reasonable efforts to accommodate such requests.

It’s important for both employers and salaried employees in North Dakota to be aware of these regulations and ensure compliance with state and federal labor laws. Salaried employees are also subject to certain regulations regarding leaves, which can include various types of leave, such as sick leave, family and medical leave, and military leave. Here’s an overview of leave regulations in the state:

1. Sick Leave: North Dakota does not have a state law that mandates employers to provide paid or unpaid sick leave to their employees. However, some employers may offer sick leave as part of their benefits package or employment agreements. Additionally, under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to unpaid leave for certain medical and family-related reasons.
2. Family and Medical Leave: Salaried employees in North Dakota may be eligible for leave under the federal Family and Medical Leave Act (FMLA). FMLA provides eligible employees with up to 12 weeks of unpaid leave per year for specific family and medical reasons, such as the birth or adoption of a child, a serious health condition, or to care for a family member with a serious health condition. Employers with 50 or more employees are generally covered by FMLA.
3. Military Leave: The Uniformed Services Employment and Reemployment Rights Act (USERRA) is a federal law that provides job protection and reemployment rights to employees who need to take leave for military service. Salaried employees in North Dakota are entitled to the protections afforded by USERRA.

Yes, salaried employees in North Dakota can request flexible work arrangements. Flexible work arrangements, such as telecommuting, flexible hours, or compressed workweeks, can provide employees with the opportunity to adjust their work schedules to better fit their needs, such as childcare, personal commitments, or other factors. While North Dakota labor laws do not mandate specific requirements for flexible work arrangements, employers may choose to offer these options as a part of their employment policies. Salaried employees can typically discuss such arrangements with their employers and request modifications to their work schedules, as long as they can fulfill their job responsibilities and meet the needs of the employer. It’s important for salaried employees to communicate with their employers and work together to establish clear expectations and terms for any flexible work arrangement. Employers have the discretion to approve or deny these requests based on business needs, but many are open to considering such arrangements to promote work-life balance and job satisfaction.

Exempt status, in the context of employment law in North Dakota, refers to a classification of employees who are exempt from certain labor law protections, particularly those related to overtime pay. Exempt employees are not eligible for overtime pay under the Fair Labor Standards Act (FLSA) and state labor laws. Instead, they typically receive a fixed salary regardless of the number of hours worked and are exempt from overtime regulations. To qualify for exempt status, employees must meet specific criteria:

1. Salary Basis: Exempt employees must be paid on a salary basis. This means they receive a predetermined salary that does not vary based on the quantity or quality of work performed.
2. Salary Level: Exempt employees must earn a minimum salary that meets or exceeds the threshold set by state and federal labor laws. As of January 2024, the minimum salary threshold for exempt employees in North Dakota is $684 per week.
3. Duties Test: Exempt employees must perform specific job duties that fall into exempt categories, such as executive, administrative, professional, or outside sales roles. The nature of their job responsibilities must meet certain criteria outlined in the FLSA.

Implications of Exempt Status:

1. Overtime Exemption: Exempt employees are not entitled to overtime pay. This means they are not compensated at an increased rate for hours worked beyond the standard 40 hours in a workweek.
2. Fixed Salary: Exempt employees receive a fixed salary, which is typically not subject to deductions for partial-day absences or reductions in work performed.
3. Job Responsibilities: Exempt employees often have roles that involve higher levels of responsibility, decision-making, and management. They may be professionals, managers, or individuals with specialized skills.
4. Salaried Pay: Exempt employees are usually paid on a salaried basis, meaning they receive a regular, predetermined salary, regardless of the actual hours worked.

It’s essential for employers to correctly classify their employees as exempt or nonexempt to comply with labor laws.

Please note that this table provides a general overview of the differences between exempt and non-exempt employees in North Dakota. Specific details may vary depending on individual employment contracts, industry standards, and changes in labor laws. It’s crucial to stay informed about the latest regulations to ensure compliance.

To determine whether you are categorized as exempt or non-exempt in North Dakota involves evaluating your job duties, salary, and other relevant factors. In North Dakota, these classifications usually align with the federal Fair Labor Standards Act (FLSA) guidelines.  Here’s a guide for ascertaining your classification:

• Exempt vs. Non-Exempt Categorization:
  • Exempt Employees: Exempt employees do not qualify for overtime pay. Typically, they are salaried employees exempt from minimum wage and overtime regulations, based on job roles and salary levels.
  • Non-Exempt Employees: Non-exempt employees are entitled to at least the minimum wage for all hours worked and overtime pay at 1.5 times their regular rate for hours worked beyond 40 in a workweek.
• Job Responsibilities and Classification: The central criterion for determining your status as exempt or non-exempt is your job duties. The FLSA acknowledges various exemption categories, including common ones like:
  • Executive: Usually, those overseeing other employees, having hiring/firing authority, and exercising discretion and independent judgement.
  • Administrative: Employees performing office or non-manual work directly related to the employer’s management or general business operations.
  • Professional: Individuals with specialized knowledge, e.g., doctors, lawyers, or accountants.
• Salary Threshold: To meet exempt status, you generally need to be salaried and earn a minimum salary set by the FLSA. This threshold can change, so it’s crucial to consult current federal and state regulations for the latest information.

The minimum wage requirement for salaried employees in North Dakota is as follows:

• The minimum wage in North Dakota is $7.25 per hour. North Dakota does not have a training wage.

For employees who receive tips, there are specific regulations:

• An employee who customarily and regularly receives more than $30 per month in tips may be paid a minimum direct wage of $4.86 per hour, subject to certain conditions. However, the tips earned, when combined with the direct wage paid by the employer, must equal the full minimum wage of $7.25 per hour for all hours worked. Employers are obligated to maintain written records confirming that tipped employees receive at least the full minimum wage for all hours worked when tips and the direct wage are combined.

In North Dakota, salaried employees who are not exempt from overtime are entitled to receive overtime pay when they work more than 40 hours in a work week (as defined by their employer). Overtime pay should be calculated at a rate of 1.5 times their regular pay for the extra hours worked. It’s important to note that this calculation must be done on a weekly basis, regardless of the length of the pay period, with a few exceptions for hospitals or residential care establishments, which may have a 14-day overtime period. Overtime calculations should only consider actual hours worked. Time spent on vacation days, paid holidays, or sick days (time not worked) should not be factored into the overtime computation. Additionally, it’s crucial to understand that non-exempt employees in the private sector cannot receive compensatory time off as an alternative to receiving monetary overtime compensation. In other words, they should be paid overtime in cash for the additional hours worked beyond the 40-hour workweek.

In North Dakota, with the exception of required withholdings under state or federal laws or court-ordered withholdings, employers are allowed to make specific deductions from the compensation of salaried employees. These permissible deductions include:

1. Advances: Employers can withhold advances that have been paid to employees, except in cases involving undocumented cash transactions.
2. Recurring Deductions: Deductions that are recurring and have been authorized in writing by the employee are permissible. This might include regular contributions to retirement accounts or health insurance premiums.
3. Non Recurring Deductions: Non Recurring deductions are allowed if they are authorized in writing by the employee, and the specific reason for the deduction is cited. For example, a one-time deduction for a uniform purchase could be made if the employee has provided written consent.
4. Deductions for Damage, Breakage, Shortage, or Negligence: If an employer wishes to make a nonrecurring deduction for issues like damage, breakage, shortages, or negligence, it must be authorized by the employee at the time when the deduction is being made. In other words, the employee should provide consent for these deductions when the need arises.

It’s important to note that these permissible deductions should be made in accordance with written agreements or authorizations from the employee. This means that employees must be aware of and consent to these deductions, ensuring transparency and fairness in the compensation process.

Under North Dakota state law, employees are provided with various benefits and protections related to Equal Employment Opportunity (EEO), diversity, and employee relations:

1. Fair Employment Practices: The North Dakota Human Rights Act (NDHRA) applies to employers in the state with one or more employees for a significant portion of the year and to employers with at least one employee working in the state. This act prohibits discrimination based on various protected characteristics, including race, color, national origin, religion, sex (including pregnancy and related disabilities), disability (both physical and mental), age (40 years or older), marital status, public assistance status, and engaging in lawful off-duty activities that do not directly conflict with the employer’s essential business-related interests. The NDHRA also specifically addresses sexual harassment, considering it a form of illegal discrimination. The NDHRA also safeguards employees from retaliation if they oppose any unlawful discriminatory practices, file complaints, provide testimony, assist, or participate in investigations, hearings, or litigation related to the act.
2. Equal Pay: North Dakota’s Equal Pay for Men and Women Act mandates that men and women receive equal pay for comparable work when jobs have similar requirements regarding skill, effort, and responsibility. Exceptions to this requirement are allowed for wages determined by seniority systems, production quantity or quality-based earnings, merit systems, or factors other than gender, such as education, training, or experience.
3. Pregnancy Accommodation: Under the NDHRA, covered employers are obligated to provide reasonable accommodations to qualified individuals due to pregnancy. A reasonable accommodation should not excessively disrupt normal business operations, threaten the health and safety of the individual or others, contradict essential business necessities, or impose an undue hardship on the employer.
4. Whistleblower Protections: North Dakota law prohibits employers from retaliating against employees for various actions, including refusing to perform actions they believe are illegal, reporting violations or suspected violations of laws or regulations to the employer, a government agency, or law enforcement, and participating in investigations, hearings, or inquiries.
5. Family and Medical Leave: Under the North Dakota Family and Medical Leave Act, eligible employees are entitled to up to 16 weeks of unpaid leave during any 24-month period for certain family or medical reasons. This includes the birth or adoption of a child, the care of a seriously ill family member, or an employee’s own serious health condition. The employer must maintain the employee’s group health insurance during the leave period.
6. Workers’ Compensation: North Dakota has a workers’ compensation system in place to provide benefits to employees who are injured or become ill on the job. This system covers medical expenses, lost wages, and vocational rehabilitation for eligible employees.
7. Unemployment Benefits: Employees who become unemployed through no fault of their own may be eligible for unemployment benefits in North Dakota. This program provides temporary financial assistance to individuals who are actively seeking new employment.

These points highlight various employee benefits and protections in North Dakota, ranging from family and medical leave to workplace safety. Understanding and adhering to these laws and regulations is essential for employers and employees to maintain a harmonious and lawful work environment.

Reporting violations to authorities or labor departments in North Dakota typically involves contacting the appropriate agency or department responsible for addressing the specific violation. Below are the steps to report various types of violations in North Dakota:

• Wage and Hour Violations (e.g., Minimum Wage, Overtime): If you believe your employer has violated wage and hour laws, including minimum wage or overtime requirements, you can contact the North Dakota Department of Labor and Human Rights. They oversee wage and hour regulations.
  • North Dakota Department of Labor

• Workplace Safety Violations (OSHA): If you have concerns about workplace safety violations, you can report them to the North Dakota OSHA program. They are responsible for enforcing workplace safety and health standards.
  • North Dakota OSHA

• Discrimination and Harassment Violations: To report violations related to workplace discrimination or harassment, you can contact the North Dakota Department of Labor and Human Rights. They handle complaints related to discrimination, including those based on race, gender, age, or other protected characteristics.
  • North Dakota Department of Labor and Human Rights

• Whistleblower Protections Violations: If you believe you are facing retaliation or adverse actions for whistleblowing or refusing to engage in illegal activities at your workplace, you can contact the North Dakota Department of Labor and Human Rights or the federal Occupational Safety and Health Administration (OSHA), as appropriate.
  • North Dakota Department of Labor and Human Rights

• Workers’ Compensation Violations: For issues related to workers’ compensation, including denials or disputes regarding claims, you can contact the North Dakota Workforce Safety and Insurance (WSI).
  • North Dakota Workforce Safety and Insurance (WSI)

These agencies will typically investigate the reported violations and take appropriate actions to address them. Remember that your rights as an employee are protected, and reporting violations is an essential step in maintaining a fair and lawful workplace.