North Dakota minimum wage rates
| Category | Rate | Notes |
|---|---|---|
| Standard (most workers) | $7.25/hr | Federal FLSA floor; effective July 24, 2009; no state increase scheduled |
| Tipped employees (direct cash wage) | $4.86/hr | Confirmed from ND official wage/hour poster; tips must bring total to $7.25/hr |
NDCC § 34-06-23 — the local preemption provision
North Dakota is one of the states that expressly preempts local minimum wage ordinances. NDCC § 34-06-23 prohibits political subdivisions — cities, counties, townships — from enacting any living wage mandate greater than the applicable state minimum wage. This means that unlike states where cities such as Seattle or Denver have raised their local minimums far above the state floor, no North Dakota city or county may impose a higher local minimum wage. The statewide $7.25/hr rate applies uniformly across all North Dakota jurisdictions.
PTO treated as earned wages upon separation (NDCC § 34-14-09.2)
One of North Dakota's most notable wage provisions is NDCC § 34-14-09.2, which treats accrued paid time off (PTO) as earned wages upon separation from employment. An employer generally cannot forfeit a departing employee's accrued PTO. However, "use-it-or-lose-it" policies are permitted when: (1) the employee received advance written notice of the policy, and (2) the employee had a reasonable opportunity to use the accrued leave. Absent both conditions, accrued PTO must be paid out as wages upon separation.
Worked examples
Example 1: standard employee at minimum wage
Example 2: tipped employee
What this does not determine
- Whether a specific employer or worker category is exempt from NDCC Chapter 34-06 — verify with the ND Department of Labor and Human Rights.
- Whether a pending state legislative change has raised the minimum wage after the verification date of this page.
- Whether a specific "use-it-or-lose-it" PTO policy meets the conditions of NDCC § 34-14-09.2 — that requires reviewing the actual policy language and notice given to employees.
- North Dakota overtime rules — N.D. Admin. Code § 46-02-07-02(4) sets a 40-hour weekly threshold; overtime is governed primarily by FLSA for covered employers.
North Dakota statute and enforcement
North Dakota's minimum wage is codified in NDCC § 34-06-22. The local preemption provision is NDCC § 34-06-23. The PTO-as-wages rule is NDCC § 34-14-09.2. Final-pay rules are in NDCC §§ 34-14-02 and 34-14-03. The North Dakota Department of Labor and Human Rights enforces wage and hour laws. Employees may file wage claims at nd.gov/labor.
North Dakota vs. neighboring Minnesota
Neighboring Minnesota has a CPI-indexed minimum wage of $11.41/hr (effective January 1, 2026) applying to all employers after the small-employer distinction was eliminated January 1, 2025. North Dakota's $7.25/hr tracks the federal floor with no indexing. The $4.16/hr gap reflects Minnesota's independent wage legislation versus North Dakota's federal tracking. Both states use the 40-hour federal FLSA overtime threshold for most workers.
Sources and verification
The rate was verified from the North Dakota Legislature Century Code PDF at legis.nd.gov (Title 34, Chapter 6). The tipped minimum wage ($4.86/hr) was confirmed from the official North Dakota minimum wage and break poster. The local preemption provision is NDCC § 34-06-23, confirmed from the same Century Code source. See the site's methodology for how rates are verified before publication.