North Dakota observes the 2020 federal minimum wage rate of $7.25 per hour. Although a North Dakota minimum wage increase initiative was proposed to incrementally boost the minimum wage to $15 per hour by 2021, the ballot ultimately failed. As it stands right now, the minimum wage for North Dakota will remain the same, with exceptions to tipped and other exempt employees.
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2020 Minimum Wage in North Dakota: $7.25 per hour
While the North Dakota minimum wage is $7.25 per hour, employees who make tips or work overtime may see a difference in their paycheck if calculating for a regular 40-hour workweek.
Tipped: $4.86 per hour
You are considered a tipped employee in North Dakota if you receive more than $30 per month in tips. North Dakota also reserves a tip credit of 33%, or $2.39. If you are considered a tipped employee, employers are only obligated to pay you $4.86 per hour — that is, if employees earn enough in tips to make the standard minimum wage of $7.25 per hour. North Dakota also allows employees to participate in tip pooling.
For instance, imagine that Michael was a tipped employee, and earned four dollars in tips in a one hour shift. An employer can “tip credit” Michael’s wage by $2.39. Taking away from his hourly wage, an employer will only pay Michael $4.86. However, Michael will earn this credited cash wage ($4.86), plus his four dollars in tips — equaling $8.86. If Michael did not get tipped in the shift or any subsequent hour of his shift, an employer would have to pay him the standard minimum wage of $7.25.
Weekly: $290.00 per week
A weekly income in the state of North Dakota can be calculated by first understanding how much an employee will make daily with a minimum wage. An employee will earn $58 in an eight-hour workday ($7.25 times 8). If you work a standard 40-hour, Monday-through-Friday workweek, you can now multiply this total ($58) by the five days you will work in a week — totaling $290 per week. This weekly wage does not figure in holiday pay, time off, sick days, or taxes. This weekly total also does not consider state or federal tax deductions.
Annually: $15,080 per year
An annual wage can be calculated by multiplying your weekly total ($290) by weeks there are in a year (52). This gives you a yearly income of $15,080 per year working for minimum wage in North Dakota. It should be noted again that this annual wage does not take into account holidays, sick days, time off, or state and federal taxes.
Overtime: $10.88 per hour
According to the North Dakota Minimum Wage and Work Conditions Order, “Overtime pay must be paid at one and one-half times the regular rate of pay to any employee for hours worked in excess of 40 hours in any one week.” Minimum wage workers can calculate time and a half and their overtime hourly total by dividing their standard wage ($7.25) by two, equaling $3.63. Adding this to their regular wage rate ($7.25 plus $3.63) will give you an overtime pay rate of $10.88.
North Dakota Minimum Wage Increase News
As mentioned above, the Initiative Petition to the Secretary of State, State of North Dakota proposed an increase to the minimum wage from $7.25 to $9.83 by 2019. From there, the initiative proposed another increase to $12.41 by 2020, and then to $15 per hour by January 1, 2021. Partisans in support of the petition failed to submit signatures before the deadline, and the initiative was left off the 2018 ballot — and supporters failed again in 2019 to provide names for the 2020 ballot. There is no news as to whether proponents will reintroduce the petition again.
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