North Dakota requires 50%+1 of tipped employees to vote for a tip pool.
North Dakota law prohibits employers from mandating tip pooling. Instead, a tip pool can only be established if a majority (50% + 1) of all tipped employees vote in favor. This distinctive requirement ensures employee consent before any tip redistribution occurs, and employers must meticulously document these votes.
ND Tip Pool Voting Requirement
Employers cannot mandate tip pooling; it requires a 50%+1 vote of tipped employees and detailed record-keeping.
What those rules do as a North Dakota shift is created.
Teambridge integrates North Dakota's unique tip pooling regulations directly into your scheduling and payroll processes. This ensures compliance from the moment a shift is planned, eliminating manual oversight and potential errors.
Prevent unauthorized tip pools
Teambridge blocks any attempt to automatically implement a tip pool without documented employee consent, ensuring the 50%+1 voting requirement is met and recorded.
Flag voting requirements
If a tip pool is proposed, Teambridge prompts administrators to initiate the required employee vote and securely store the outcome, including individual votes and dates.
Notify for re-votes
If there are significant changes to the tipped employee roster, Teambridge can flag the need to re-verify or re-vote on an existing tip pool to maintain compliance with majority consent.
Compliance, on autopilot.
Teambridge can handle the complexities of North Dakota's labor laws for you. Enter your details to see how.
North Dakota's specific requirements for establishing tip pools.
Unlike federal law, North Dakota explicitly prohibits employers from unilaterally mandating tip pooling. Any tip pooling arrangement must be voluntarily agreed upon by the majority of tipped employees, with strict documentation requirements.
N.D. Admin. Code 46-02-07-03(2)
"An employer may not require an employee to participate in a tip pool. If an employer wishes to establish a tip pool, the employer must obtain the written consent of fifty percent plus one of all employees who will participate in the tip pool. The employer shall maintain written records of the date and result of the vote, including the names of all employees who voted and the vote of each employee. If at any time an employer receives a written request from fifty-one percent or more of the employees participating in a tip pool to hold a new vote to discontinue the tip pool, the employer must hold a new vote within fourteen days."
Establishing a Tip Pool
To lawfully establish a tip pool in North Dakota, an employer must obtain the written consent of 50% plus one of all tipped employees who will participate in the pool. This means a simple majority must affirmatively vote to create the pool. The employer cannot impose a tip pool without this explicit employee approval.
Employers are required to maintain detailed written records of this vote. These records must include the date of the vote, the final result, the names of all employees who participated in the vote, and how each individual employee voted (for or against the tip pool).
Discontinuing a Tip Pool
Once a tip pool is established, employees also have a mechanism to discontinue it. If 51% or more of the employees currently participating in the tip pool submit a written request to the employer for a new vote to discontinue the pool, the employer must conduct this new vote within 14 days of receiving the request. This ensures that the tip pool continues to reflect the will of the majority of participating employees.
An exception to these rules applies to nonprofit gaming establishments, which have specific provisions related to tip handling under N.D. Admin. Code 46-02-07-03(3).
Teambridge ensures your North Dakota tip policies are always compliant.
Forget manual tracking and compliance checks. Teambridge automates the entire process of managing tip pools in North Dakota, from initial setup to ongoing adherence, so you can focus on your business.
Guided Tip Pool Implementation
When configuring tip distribution, Teambridge guides you through North Dakota's specific requirements, prompting for the necessary employee vote and record-keeping before allowing a tip pool to be activated.
Secure Record Storage
Teambridge provides a secure, auditable platform to record and store all tip pool vote documentation, including individual employee votes and dates, ensuring easy retrieval for compliance audits.
Proactive Compliance Alerts
Should your tipped employee roster change significantly, or if a request for a re-vote is indicated, Teambridge can generate alerts to ensure ongoing compliance with the 50%+1 majority rule.
Automated Fair Distribution
Once a tip pool is lawfully established, Teambridge automates the distribution of tips according to your defined, compliant rules, integrating seamlessly with payroll to ensure accurate payouts.
People also ask.
Can an employer in North Dakota require employees to participate in a tip pool?
No. North Dakota law (N.D. Admin. Code 46-02-07-03(2)) explicitly states that an employer may not require an employee to participate in a tip pool. Participation must be voluntary and approved by a majority vote of tipped employees.
What percentage of employees must agree to a tip pool in North Dakota?
To establish a tip pool, 50% plus one of all employees who will participate in the tip pool must provide written consent. This ensures a clear majority supports the arrangement.
What records must an employer keep regarding a tip pool vote?
Employers must maintain written records of the date and result of the vote. This includes the names of all employees who voted and how each individual employee voted (for or against the tip pool).
Can employees discontinue an existing tip pool?
Yes. If 51% or more of the employees participating in a tip pool submit a written request for a new vote to discontinue the pool, the employer must hold that new vote within 14 days of receiving the request.
Does this rule apply to all types of businesses?
The general rule applies broadly to employers in North Dakota. However, there is an exception for nonprofit gaming establishments, which have specific provisions under N.D. Admin. Code 46-02-07-03(3).
What is the minimum wage for tipped employees in North Dakota?
As of 2026, the state minimum wage in North Dakota is $7.25 per hour. The tipped wage is $4.86 per hour, with a maximum tip credit of $2.39 per hour. Employers must ensure that the employee's direct wage plus tips equals at least the full minimum wage.