North Dakota adheres to federal minimum wage at $7.25/hr, with unique tipped wage calculation and strict tip pool voting rules.
North Dakota's wage and hour framework largely mirrors federal standards but introduces specific nuances for tipped employees and tip pooling. Employers must navigate a distinctive tipped wage calculation and a mandatory voting process for tip pools, ensuring compliance with both state and federal regulations.
ND minimum wage $7.25 + 33% tipped + tip pool voting
N.D.C.C. 34-06-22 — $7.25/hr adopts federal. Tipped $4.86 (33% of state minimum — distinctive percentage). Tip credit $2.39. N.D. Admin. Code 46-02-07-03(2) — tip pool voting requirement: 50% +1 of tipped employees must vote in favor; employer cannot require pool. Nonprofit gaming exception for 4 or fewer tipped employees.
What those rules do as a North Dakota shift is created.
Teambridge automatically applies North Dakota's minimum wage and tipped wage rules, ensuring your labor costs and payroll calculations are compliant from the moment a shift is scheduled. Our system accounts for the unique tipped wage percentage and monitors for tip pool requirements.
Prevents non-compliant tip pools
Teambridge prevents the creation or enforcement of tip pools that have not been affirmatively voted for by 50% +1 of the affected tipped employees, or if the employer attempts to mandate a pool, ensuring compliance with N.D. Admin. Code 46-02-07-03(2).
Flags insufficient tipped wages
If a tipped employee's combined direct wage ($4.86/hr) and tips do not meet the full state minimum wage of $7.25/hr for any pay period, Teambridge flags the shortfall and prompts for a make-up payment to ensure the employee receives at least the minimum wage.
Optimizes tip credit application
Teambridge automatically applies the maximum permissible tip credit of $2.39/hr, ensuring that employers pay the correct direct wage of $4.86/hr to tipped employees while optimizing payroll costs within state guidelines.
Deploy North Dakota wage & hour compliance for your business.
Teambridge handles the complexity of North Dakota's unique tipped wage calculations and tip pool requirements, so you can focus on your business.
North Dakota minimum wage and unique tipped employee rules.
North Dakota's minimum wage laws are primarily governed by state statute, which adopts the federal minimum wage, and specific administrative rules for tipped employees and tip pooling.
N.D.C.C. § 34-06-22 — Minimum wage; federal minimum wage adopted.
The minimum wage for all employees in North Dakota is the federal minimum wage as prescribed by 29 U.S.C. § 206(a)(1). This currently sets the state minimum wage at $7.25 per hour.
N.D. Admin. Code § 46-02-07-03(2) — Tip pools and tipped employee wages.
An employer may pay a tipped employee a direct wage of not less than 33% of the state minimum wage, provided that the employee receives at least the state minimum wage when direct wages and tips are combined. The maximum tip credit an employer can take is $2.39 per hour. Furthermore, an employer may not require or mandate a tip pool. A tip pool can only be established if more than 50% of the tipped employees subject to the pool vote in favor of its implementation. An exception exists for nonprofit gaming operations with four or fewer tipped employees, where different pooling rules may apply.
Minimum Wage Rate
North Dakota law explicitly ties its minimum wage to the federal minimum wage. This means that any changes to the federal rate are automatically adopted by North Dakota. As of 2026, this rate remains $7.25 per hour for most employees, consistent with the Fair Labor Standards Act (FLSA).
Tipped Employee Wages and Tip Pooling
North Dakota has a distinctive approach to tipped employees. The direct wage an employer must pay to a tipped employee is set at a precise 33% of the state's minimum wage. This results in a direct wage of $4.86 per hour, with a maximum tip credit of $2.39 per hour. Critically, North Dakota law prohibits employers from mandating tip pools. For a tip pool to be legally implemented, a majority (more than 50%) of the tipped employees who would participate in the pool must affirmatively vote to establish it. This protects employee autonomy regarding their tips, with a limited exception for small nonprofit gaming operations.
How Teambridge keeps your North Dakota operations compliant.
Teambridge integrates North Dakota's specific wage and hour rules directly into your scheduling and payroll processes, eliminating manual checks and reducing compliance risk.
Automatic minimum wage application
Teambridge ensures that all non-tipped employees are scheduled and paid at or above the current North Dakota minimum wage of $7.25/hr, automatically adjusting for any future federal rate changes adopted by the state.
Precise tipped employee direct wage
For tipped employees, Teambridge defaults to the state-mandated direct wage of $4.86/hr, applying the correct $2.39/hr tip credit, and monitors total compensation to guarantee the combined direct wage and tips meet the $7.25/hr minimum.
Enforced tip pool voting requirements
Our platform includes mechanisms to document and verify employee votes for tip pool establishment. Teambridge will prevent the implementation of any tip pool that lacks the required 50% +1 employee approval, safeguarding against non-compliant practices.
Audit-ready wage and hour logs
All wage calculations, tip credits, and tip pool statuses are meticulously logged and auditable within Teambridge, providing comprehensive records to demonstrate compliance with North Dakota's wage and hour laws.
People also ask.
What is the current minimum wage in North Dakota?
As of 2026, the minimum wage in North Dakota is $7.25 per hour. North Dakota law adopts the federal minimum wage, so this rate matches the federal standard.
How is the tipped minimum wage calculated in North Dakota?
North Dakota law requires employers to pay tipped employees a direct wage of not less than 33% of the state minimum wage. With the state minimum wage at $7.25/hr, the direct tipped wage is $4.86/hr. The employer can take a maximum tip credit of $2.39/hr, provided the employee's combined direct wage and tips equal at least $7.25/hr.
Can an employer require a tip pool in North Dakota?
No, an employer in North Dakota cannot require or mandate a tip pool. A tip pool can only be established if more than 50% (a majority) of the tipped employees who would be subject to the pool vote in favor of its implementation. This rule is outlined in N.D. Admin. Code § 46-02-07-03(2).
What happens if a tipped employee's wages and tips don't meet the minimum wage?
If a tipped employee's combined direct wage and tips do not reach the full state minimum wage of $7.25 per hour for a pay period, the employer is legally obligated to make up the difference to ensure the employee earns at least the minimum wage.
Are there any exceptions to the tip pool voting rule?
Yes, N.D. Admin. Code § 46-02-07-03(2) includes a limited exception for nonprofit gaming operations with four or fewer tipped employees, where different rules for tip pooling may apply.
Does North Dakota have different minimum wages for cities or counties?
No, North Dakota does not currently have local minimum wage ordinances. The state minimum wage of $7.25 per hour applies uniformly across all cities and counties within the state.