The Minimum Wage in North Dakota for the Year 2021

As the United States of America started coming out of the harrowing shadows of the coronavirus pandemic, the country introduced many new legislations to support the citizens in getting back on their feet.

Many states introduced newer minimum wage standards, to aid the general public. The minimum wage is $7.25 which is set by the federal government. It was left to state governments whether to increase the minimum wage from this given figure or keep it the same. The minimum wage in North Dakota was kept the same as prescribed by the federal government.

The minimum wage in North Dakota was last changed in 2008, where it was raised from $6.55 to $7.25; an increment of $0.70 was observed.

North Dakota Minimum Wage Increase Initiative was supposed to be balloted in 2020 but that never happened. If it had been processed the minimum wage would have been increased to $15 per hour. This new minimum wage amount was suggested by the different states after calculating it based on the consumer price index.

What is the Minimum Wage in North Dakota?

The minimum wage in North Dakota is $7.25 set by the federal government. All the employees working in the state of North Dakota come under this provision but there are some exceptions. They are:

Vocational and Full-time Students

The employer can pay the vocational or full-time students up to 85% of their minimum wage, provided that the employer holds a North Dakota Department of Labor license.

Tipped Employees

Employers are liable to pay their tipped employees a cash amount of a minimum of $2.13 per hour. The total compensation of the tipped employees must be equivalent to $7.25 per hour at the end of the shift. This amount includes the tips as well. The employer can deduct as much as $5.12 from the employee wages as a “tip credit”.

tipped employeeSource: gregcolemanlaw.com

Minors

Employees below the age of 20 are considered minor. They come under the “Youth minimum wage program”, which ensures that the workers receive a minimum wage of $4.25 per hour by their employees for the first ninety days of the job.

All the employees who fall under the Fair Labor Standard Act (FLSA) are exempted from the minimum wage standard of North Dakota.

Fair Labor Standard ActSource: pixabay.com

Many counties, towns, and cities endorse their laws for minimum wages. The amount can be more or less compared to the federal government’s minimum wage but local wage laws apply.

Is North Dakota planning to change the minimum wage after 2021?

The state of North Dakota has no plans of increasing the minimum wage amount soon. The North Dakota Minimum Wage Increase Initiative was proposed and discussed in the local assembly as well. The initiative failed miserably to appear in ballot form to get a true verdict, as the proponents of the initiative failed to submit their confirmation signatures before the deadline prescribed by the assembly.

North Dakota planning to change the minimum wageSource: wsj.com

The North Dakota Minimum Wage Increase Initiative had proposed to increase the minimum wage per hour to $15 from the year 2021. It is a possibility that this initiative will be moved again in the assembly with a new momentum but as for now, the initiative died its death as it failed to appear for the balloting process.

What is the minimum wage in North Dakota for overtime?

Any citizen of North Dakota who works over 40 hours weekly is entitled to receive a minimum wage at least 1.4 times more than the regular prescribed minimum wage as the payment for overtime. The legislative laws in North Dakota do not impose any set limit for daily overtime, as in various states employees are supposed to work over a certain number of hours to be eligible to get paid according to the overtime rate as well.

North Dakota for overtimeSource: hagehodes.com

Under the law generated by FLSA, the employees in North Dakota are assured that they will be compensated adequately for all the hours qualified as overtime. If the employer does not pay for the extra hours according to the overtime wages then the employee can file for an overtime unpaid claim with the North Dakota Department of Labor.

What should business owners do if the minimum wages increase in North Dakota?

Even though there is no plan for an increment in the minimum wages in North Dakota at the moment but it is always advisable to be prepared for an unforeseen future.

If the minimum wage rate increases in North Dakota, then a small business enterprise must ensure itself to be prepared by following these steps:

Evaluation of Budget Allocation for Wages

Determine the budget allocated for wages following the cash flow of the business. It is very important to review the revenue and expenses incurred monthly to know the exact situation of the business. According to the revenue and expense data, staffing should be done. The staff with newer minimum wages should be adjusted while keeping in mind the business condition.

Technology Upgrade

By upgrading your business in terms of technology, you can save an ample amount of time. Tasks like payroll etc. are very time-consuming, if they are shifted to automatic helpers; this will help in the reduction of time consumption along with the requirement of more staff will also go down.

upgrading your business in terms of technologySource: realestateexpress.com

Once you have upgraded your system and can do payroll yourself, then the common mistakes attributed to manual payroll calculations can also be avoided.

The time is saved which can be focused on other important aspects of the business.

Hire the Best Available Candidates

It is very important to hire the most efficient candidates available. Interview and thorough questioning of the candidates’ lands you a better chance to hire the best possible person who will prove to be valuable for the company in time to come.

Once you have found the right balance of valuable candidates; it is very important to retain them. Use effective retention strategies to keep them bonded with the company as well as work diligently for the upheaval of the company.

It is very tough for the employers who operate under the minimum wage labor laws; as it means that they are working with very little profit margin. As the cost of labor increases, they are forced to increase the price tags of their products along with reducing the employees or cutting down on any other services which get difficult to be provided in their present budget.

Hire the best available candidatesSource: forbes.com

As technology and automation replace manpower in many industries, it becomes highly unlikely that the minimum wages will see a hike. The advent of automation in the world has brought self-support machines which are considered as a one-time investment by the owners of businesses.

For example, McDonald’s plans to introduce kiosks in all of its branches in America by 2021, which means a reduction of manpower in its business premises. Similarly, other businesses are opting for automatic technology which will replace the huge force of employees.

The Biden administration has proposed an increase in the minimum wages by $15. The bill saw a lot of arguments from republicans and democrats in Congress but it went nowhere, still lying there with an uncertain future.

Final Note

The minimum wage in North Dakota might go for an increment soon as the neighboring states of Minnesota and South Dakota have increased their minimum wages which is enticing the citizens of North Dakota to demand newer increased minimum wages. As the country is coming back towards normalcy, people require increased wages to support their households and necessities to grip back their life which have already suffered a lot because of coronavirus.

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