North Dakota Minimum Wage: Rate, Tipped Wage, and Local Rules

As of 2026, North Dakota's minimum wage is $7.25 per hour — the same as the federal minimum wage under the Fair Labor Standards Act (FLSA). North Dakota does not index its minimum wage to inflation and has no automatic annual increase; the rate changes only when the state legislature or Congress acts, and it has stood at $7.25 since the federal increase took effect in 2009. Because the state and federal floors are identical, North Dakota workers are entitled to at least $7.25 for every hour worked, and no city or county in North Dakota sets a higher local minimum. Always confirm the current figure with the North Dakota Department of Labor and Human Rights before relying on it, because rates can change.

The North Dakota minimum wage rate and how it compares to federal law

North Dakota's minimum wage is set in the North Dakota Century Code and in the state's minimum-wage and work-conditions rules administered by the Department of Labor and Human Rights. The state rate is currently fixed at $7.25 per hour, which is exactly the federal FLSA baseline. Many states have moved well above $7.25 — some are now above $15 — but North Dakota is one of roughly 20 states that keep their minimum wage at or pegged to the federal floor.

When the state and federal minimums are the same, the practical effect is simple: $7.25 is the number that applies to nearly all covered employees in North Dakota. If Congress ever raised the federal minimum above the state figure, the higher federal rate would control for FLSA-covered workers. Conversely, if North Dakota raised its own rate above $7.25, the higher state rate would apply. As of 2026, neither has happened, so $7.25 is the operative floor.

Tipped employees: the cash wage and tip credit

North Dakota allows employers to take a tip credit, but it is more generous to workers than the bare federal rule. Under federal law, an employer can pay a tipped employee a cash wage as low as $2.13 per hour and count tips toward the rest of the $7.25 minimum. North Dakota does not allow a cash wage that low. Instead, state rules cap the tip credit at 33% of the applicable minimum wage, meaning a North Dakota employer must pay a tipped employee a direct cash wage of at least roughly $4.86 per hour (67% of $7.25).

To use the tip credit at all, North Dakota requires that:

• The employee customarily and regularly receives tips (generally more than $30 per month in tips).
• The employee's cash wage plus tips equals at least $7.25 per hour for every hour worked. If tips fall short in a given period, the employer must make up the difference so the worker still earns the full minimum wage.
• Tips remain the property of the employee. Valid tip pools may be allowed among employees who customarily receive tips, but employers, managers, and supervisors generally may not keep employees' tips.

Because the tip-credit math depends on the current minimum wage, verify the exact cash-wage figure with the state agency if the minimum wage ever changes — 67% of the minimum is the rule, and $4.86 is simply 67% of today's $7.25.

Overtime in North Dakota

North Dakota generally follows the federal overtime standard: nonexempt employees must be paid 1.5 times their regular rate for hours worked over 40 in a workweek. North Dakota does not impose a daily overtime requirement (unlike a few states that require overtime after 8 hours in a day). The state does have some narrow industry-specific provisions, but for most workers the 40-hour weekly threshold is what matters. Overtime must be calculated on the employee's regular rate of pay, which includes most non-discretionary bonuses and commissions, not just the base hourly wage.

Scheduled increases and inflation indexing

North Dakota has no scheduled increases and no cost-of-living indexing built into its minimum wage. States like Colorado, Washington, and Minnesota adjust their minimums every January based on inflation; North Dakota does not. The only way the North Dakota rate rises is through new legislation in Bismarck or an increase in the federal minimum wage. This is why the rate has been static at $7.25 for well over a decade. Workers should not assume an automatic January bump — there is none under current law.

City and county minimum wages

North Dakota does not have any local minimum wages. No city or county — including Fargo, Bismarck, Grand Forks, or Minot — has enacted a local minimum wage above the statewide $7.25. The state minimum applies uniformly across North Dakota. If you work in North Dakota, the figure that matters is the statewide rate (or the federal rate, if higher).

Common exceptions and special categories

Several categories of workers may be treated differently under North Dakota and federal law:

• Executive, administrative, and professional employees who meet the salary and duties tests are exempt from minimum wage and overtime under the FLSA's white-collar exemptions.
• Outside salespeople and certain commissioned employees may be exempt.
• Agricultural workers and some seasonal employees may be subject to different rules.
• Independent contractors are not covered by minimum-wage law at all — but misclassification is common, and if you are economically dependent on one business and it controls your work, you may legally be an employee entitled to minimum wage regardless of your label.

If your employer claims you are exempt or a contractor, that classification can be challenged. The label on a paycheck or contract does not control; the actual nature of the work does.

How to enforce your right to the minimum wage

If you are paid less than $7.25 per hour (or, for tipped workers, if your cash wage plus tips does not reach $7.25), you can take action:

• Keep records. Track your hours worked, pay received, and tips earned. Save pay stubs, schedules, and any written communications about your wages.
• Raise it with your employer first if it is safe to do so. Sometimes underpayment is a payroll error that is quickly corrected.
• File a wage claim with the North Dakota Department of Labor and Human Rights. The agency investigates unpaid-wage and minimum-wage complaints and can help recover what you are owed.
• Consider the federal route. Because $7.25 is also the federal minimum, you may file a complaint with the U.S. Department of Labor's Wage and Hour Division, which enforces the FLSA.
• Watch the deadlines. Federal FLSA claims generally must be brought within two years (three years for willful violations). Do not wait, because back pay can be lost as time passes.

Retaliation against an employee for asserting wage rights or filing a complaint is illegal under the FLSA. An employer may not fire, demote, or punish you for claiming the minimum wage you are legally owed.

Where to confirm the current rate

The authoritative source for North Dakota's minimum wage, tip-credit rules, and wage-claim process is the North Dakota Department of Labor and Human Rights. The agency publishes the current minimum-wage and work-conditions summary and handles wage complaints. For federal rules and the FLSA baseline, consult the U.S. Department of Labor's Wage and Hour Division. Because the cash wage for tipped workers and the overall minimum can change if the legislature or Congress acts, always verify the current figures with the state agency before relying on any number you read.

Official North Dakota Sources

This page is based on North Dakota employment law. Rules and figures change — verify the current details directly with the official North Dakota sources below. This is general legal information, not legal advice.

• North Dakota Department of Labor and Human Rights — official North Dakota agency.
• Submit a Wage Claim - ND Department of Labor and Human Rights
• North Dakota Century Code Title 34 - Labor and Employment

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside North Dakota state law.