Staying compliant in North Dakota often starts with understanding meal and rest break requirements.
State requirements can interact with federal standards, and in some areas, local rules may layer on additional obligations for employers.
North Dakota’s wage and hour laws are largely aligned with federal standards, offering a straightforward compliance landscape for employers.
The state follows the federal minimum wage, does not require paid sick leave, and places much of the responsibility for policies like PTO and reimbursements on employers themselves.
Whether you manage employees directly or work with an Employer of Record (EOR) like HireArt, understanding North Dakota’s employment requirements ensures consistent, lawful, and transparent practices across your organization.
This blog is based on information available to HireArt as of October, 2025. HireArt does not provide tax, accounting or legal advice. This material has been prepared for informational purposes only, and should not be relied on for, tax, legal or accounting advice. Consult your own tax, legal and accounting advisors before engaging in any related activities or transactions.
North Dakota follows the federal minimum wage rate.
Employers must pay at least $7.25 per hour, in accordance with the Fair Labor Standards Act (FLSA). The state does not set a higher minimum wage, and local governments are preempted from establishing their own wage ordinances.
Employers must follow the higher applicable rate between state and local law.
North Dakota does not have a statewide paid sick leave requirement.
Employers are free to establish their own policies regarding accrual, usage, and carryover of sick time. Any employer-provided leave policies should be clearly documented and communicated to employees in writing.
Employers should also verify whether any local policies exist, though North Dakota has few, if any, municipal leave ordinances.
North Dakota maintains a uniform statewide standard for wage and hour laws.
There are no city or county ordinances that exceed state labor requirements. This simplifies compliance for employers, allowing them to apply a consistent set of rules across all North Dakota worksites.
North Dakota law does not mandate meal or rest breaks for adult employees.
Employers should instead follow internal company policies, collective bargaining agreements (CBAs), or FLSA guidelines. While not required, providing reasonable break periods can improve employee wellbeing and productivity.
Whether accrued paid time off (PTO) must be paid at termination depends on the employer’s written policy or employment contract.
North Dakota law generally enforces an employer’s established policy unless accrued vacation time is considered earned wages. Clear and consistent policies help avoid confusion and potential disputes upon termination.
Reimbursement practices in North Dakota are policy-driven, meaning employers set their own standards.
There is no general statute requiring reimbursement for business-related expenses. Employers should implement clear written policies covering reimbursable items—such as travel, mileage, or remote work costs—to ensure fairness and prevent misunderstandings.
Employers must provide detailed wage information and ensure timely payment of final wages.
Accurate and timely payments are key to maintaining compliance and employee trust.
North Dakota applies both federal and state economic-realities tests to determine whether a worker is an employee (W-2) or an independent contractor (1099).
When an employer maintains significant direction or control over how work is performed, the individual should be classified as an employee. Misclassification can result in back pay, tax liability, and penalties under both state and federal law.
HireArt acts as an Employer of Record (EOR) to help employers navigate compliance in North Dakota. Through HireArt, companies can:
By partnering with HireArt, employers can reduce administrative complexity, safeguard compliance, and deliver a consistent and transparent employment experience for their North Dakota workforce.
