What labor laws apply when hiring employees?

Labor Laws for Hiring Employees in North Dakota

When hiring employees in North Dakota, it is essential to comply with both federal and state labor laws to ensure proper employment practices and avoid penalties.

Key Labor Law Requirements

• Minimum Wage: As of 2026, North Dakota follows the federal minimum wage of $7.25 per hour. Employers must pay at least this amount unless higher local standards apply.
• Overtime Pay: Non-exempt employees must receive overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek, following the Fair Labor Standards Act (FLSA).
• Employee Classification: Correctly classify workers as employees or independent contractors to comply with tax withholding, unemployment insurance, and workers’ compensation requirements.
• Workplace Posters: Display required federal and state labor law posters in a visible area to inform employees of their rights.
• Child Labor Laws: Follow North Dakota’s restrictions on the employment of minors, including permitted work hours and types of work allowed.
• Hiring Documentation: Complete Form I-9 for employment eligibility verification and maintain accurate employee records as required by state and federal agencies.

Additional Operational Considerations

• Payroll Compliance: Set up payroll systems to withhold federal and state income taxes, Social Security, and Medicare contributions.
• Unemployment Insurance: Register with the North Dakota Workforce Safety & Insurance (WSI) agency to manage unemployment insurance and workers’ compensation.
• Employee Benefits and Leave: Understand state-specific leave laws, such as family leave or disability accommodations, and integrate them into your HR policies.
• Recordkeeping: Maintain employment records, including hours worked, wages paid, and hiring documents, for at least three years to meet compliance standards.

Following these labor laws and operational steps helps ensure a smooth hiring process and ongoing compliance in North Dakota.