Minimum Wage in North Dakota 2025: Complete Guide for Employers and Workers

What is the North Dakota Minimum Wage in 2025?

The minimum wage in North Dakota remains $7.25 per hour in 2025, matching the federal minimum wage rate. Unlike many states that have implemented higher minimum wage standards, North Dakota follows the federal minimum wage without additional state-specific increases. This rate applies to most employees working within the state’s borders, though certain exemptions exist for specific worker categories.

For employers and workers navigating North Dakota’s wage landscape, understanding the current minimum wage requirements is crucial for compliance and fair compensation practices. The Peace Garden State’s approach to minimum wage reflects its alignment with federal standards while maintaining considerations for various employment sectors.

Current North Dakota Minimum Wage Rates

Standard Minimum Wage

North Dakota’s state minimum wage rate is $7.25 per hour, which is the same as the current Federal Minimum Wage rate. This rate has been in effect since 2009 when the federal minimum wage was last increased.

Key Rate Information:

• Regular employees: $7.25 per hour
• Last updated: 2009 (following federal increase)
• Annual salary equivalent: Approximately $15,080 for full-time work (40 hours/week, 52 weeks/year)

Comparison with Federal Standards

North Dakota operates under a “federal follows” system, meaning the state adopts whatever federal minimum wage is currently in effect. Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.

Understanding North Dakota Wage Laws

Coverage and Applicability

The minimum wage applies to most employees in North Dakota, with limited exceptions including tipped employees, some student workers, and other exempt occupations. The state’s wage laws generally mirror federal Fair Labor Standards Act (FLSA) provisions while addressing specific local employment conditions.

Exempt Categories

Several employee categories may be subject to different wage standards:

Student Workers: Full-time students working in certain capacities may be eligible for subminimum wage rates under specific federal provisions.

Employees with Disabilities: Workers with documented disabilities may be paid below minimum wage through special certificates, following federal guidelines.

Tipped Employees: While North Dakota doesn’t have separate tipped minimum wage rates like many states, tipped workers must still receive the full minimum wage when tips don’t bring their hourly compensation to the required level.

Historical Context of North Dakota Minimum Wage

Recent Changes and Timeline

The North Dakota minimum wage was last changed in 2008, when it was raised $0.70 from $6.55 to $7.25. This increase aligned the state with the federal minimum wage increase that took effect in July 2009.

Long-term Trends

Historically, State Minimum Wage Rate for North Dakota reached a record high of 7.25000 in January of 2010 and a record low of 1.25000 in January of 1969. This data illustrates the state’s wage progression over more than five decades.

The stability of North Dakota’s minimum wage at $7.25 reflects the state’s approach of following federal standards rather than implementing independent state increases.

Future Outlook and Proposed Changes

Legislative Considerations

There are no current plans for a North Dakota minimum wage increase. However, measures aimed to gradually increase the minimum wage to $15.00 are increasingly being considered by the North Dakota state government.

Recent legislative sessions have seen discussions about potential wage increases, though none have been enacted into law. In January 2023, state lawmakers introduced a bill to raise the minimum wage, indicating ongoing political interest in wage policy reform.

Economic Factors

Several factors influence North Dakota’s minimum wage discussions:

Cost of Living: North Dakota’s relatively lower cost of living compared to coastal states affects wage policy considerations.

Labor Market Conditions: The state’s oil boom and agricultural economy create unique employment dynamics that influence wage discussions.

Business Community Input: Employer organizations and small business advocates participate in policy discussions regarding wage changes.

Employer Compliance Requirements

Mandatory Posting Requirements

North Dakota employers must display current wage and hour information in workplaces. The required state and federal posters are available on our website free of charge at nd.gov/labor/education-and-other-resources.

Record Keeping Obligations

Employers must maintain accurate records of:

• Hours worked by each employee
• Wages paid
• Deductions made
• Employment dates and positions

Payroll Best Practices

Successful compliance requires:

Regular Audits: Review payroll practices quarterly to ensure minimum wage compliance.

Training Programs: Educate management staff on current wage requirements and labor law changes.

Documentation Systems: Maintain comprehensive records of all wage-related decisions and calculations.

Legal Updates: Stay informed about potential legislative changes affecting wage requirements.

Regional Wage Comparisons

Neighboring States

North Dakota’s minimum wage compares to neighboring states as follows:

• Minnesota: Higher than federal minimum wage
• Montana: Adjusted annually for inflation
• South Dakota: Follows federal minimum wage
• Wyoming: Uses federal minimum wage

National Context

While North Dakota maintains the federal minimum wage, eleven states and Washington, D.C. have minimum wages of $15.00 or more as of 2025. This places North Dakota among states with lower minimum wage rates nationally.

Federal Contractor Considerations

Special Federal Requirements

On Jan. 1, 2025, Executive Order 14026 will raise the minimum wage rate for federal contractors to $17.75 per hour. This significantly higher rate applies to employees working on federal contracts within North Dakota.

Federal contractors must ensure compliance with:

• Higher minimum wage rates for contract work
• Prevailing wage requirements where applicable
• Proper classification of contract versus regular employees

Economic Impact and Analysis

Cost of Living Considerations

North Dakota’s minimum wage purchasing power varies by region within the state. Urban areas like Fargo and Bismarck may present different cost pressures compared to rural communities.

Industry-Specific Impacts

Different sectors experience varying effects from minimum wage policies:

Agriculture: Seasonal and temporary workers represent significant portions of the agricultural workforce.

Energy Sector: Oil field workers typically earn well above minimum wage, reducing direct impact.

Service Industries: Restaurants, retail, and hospitality sectors employ many minimum wage workers.

Healthcare: Entry-level positions in healthcare facilities may start at minimum wage levels.

Worker Rights and Resources

Employee Protections

North Dakota workers have rights to:

• Receive at least minimum wage for all hours worked
• File complaints about wage violations
• Access information about wage and hour laws
• Receive overtime compensation when applicable

Filing Complaints

Workers experiencing wage violations can:

1. Contact the North Dakota Department of Labor and Human Rights
2. File federal complaints with the U.S. Department of Labor
3. Seek legal assistance for wage and hour violations
4. Document all wage-related communications and records

Frequently Asked Questions

See Also: What is the Minneapolis Minimum Wage 2025

Conclusion

North Dakota’s minimum wage in 2025 remains at $7.25 per hour, reflecting the state’s alignment with federal wage standards. While this rate provides baseline compensation protection for workers, ongoing discussions about potential increases indicate evolving perspectives on wage policy within the state.

For employers, maintaining compliance with current wage requirements while staying informed about potential changes remains essential. Workers should understand their rights and available resources for addressing wage-related concerns.

As economic conditions and political priorities continue evolving, North Dakota’s minimum wage landscape may experience changes in coming years. Both employers and employees benefit from staying informed about current requirements and potential policy developments affecting wage standards in the Peace Garden State.