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How to Hire Employees In North Dakota

Hiring in North Dakota for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in North Dakota:

Establishing a local entity: Creating a legal entity in North Dakota allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with North Dakota’s labor laws, helping you hire in North Dakota without navigating the complex legal landscape yourself.
Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet North Dakota’s labor regulations while offering competitive employee benefits.
Hiring independent contractors: Hiring independent contractors can be more cost-effective, but North Dakota has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in North Dakota.

Complying with North Dakota specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in North Dakota, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good To Know

North Dakota has experienced significant economic growth in recent years, largely due to its oil and gas industry.

The state consistently maintains one of the lowest unemployment rates in the United States, reflecting a robust job market.

North Dakota is a right-to-work state, meaning employees are not required to join a union or pay union dues as a condition of employment.

Apart from energy, North Dakota is a leading producer of agricultural products, including wheat, barley, and sunflowers, contributing significantly to its economy.

Key Things to Know About Hiring in North Dakota

Labor Laws in North Dakota

Working Hours in North Dakota

North Dakota has specific employment and labor laws governing working hours, designed to protect employees’ rights and ensure fair compensation. Whether you’re hiring local employees or working with an Employer of Record (EOR), it's essential to understand the state's regulations around working hours to ensure compliance.

1. Standard Workweek and Overtime

Standard Work Hours: A standard workweek in North Dakota typically consists of 40 hours.

Overtime Regulations: Employees are entitled to overtime pay at one and one-half times their regular rate for hours worked over 40 in a workweek. Exemptions apply based on job duties and salary.

2. Meal and Rest Breaks

Meal Breaks: Employees working shifts exceeding five hours are entitled to a 30-minute meal break, which can be unpaid if the employee is completely relieved of duties.‍
Rest Breaks: Short rest breaks under 20 minutes are not mandated but must be paid if provided.

Minimum Wage in North Dakota

As of 2024, the minimum wage in North Dakota is $7.25 per hour. Employers must comply with federal and state regulations for fair pay.

Overtime in North Dakota

Non-exempt employees are entitled to overtime pay at one and one-half times their regular rate for hours worked over 40 in a workweek. Certain employees, such as those in executive, administrative, or professional roles, may be exempt from overtime requirements.

Onboarding New Hires in North Dakota

We can help you get your new employee started in North Dakota fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Taxes For North Dakota

Payroll taxes in North Dakota are deductions employers must take from employees’ wages and remit to the state. These taxes fund various state programs and services, including unemployment benefits and disability insurance.

State Income Tax: Withheld from employees' wages, ranging from 1.1% to 2.9%, depending on income levels.

Unemployment Insurance Tax: Paid by employers, with rates ranging from 0.08% to 9.68%, based on the employer's experience rating.

Payroll Cycle in North Dakota

Employers in North Dakota must pay employees at least once per calendar month on regular, pre-designated paydays. A check stub or voucher indicating hours worked, pay rate, and deductions must be provided.

Looking to grow your team in North Dakota?

Stay Compliant: Navigate North Dakota’s complex labor laws with ease.

Affordable Solution: Reduce costs with a budget-friendly EOR option.

Top-Tier Benefits: Access competitive North Dakota and federal employee benefits for a stronger team.

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North Dakota Employment Taxes

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in North Dakota. Understanding these obligations is essential for compliance.

Employer Tax Contributions

Employers are responsible for contributions like unemployment insurance taxes, ranging from 0.08% to 9.68%.

Employer payroll contributions are generally estimated at an additional 0.08% - 9.68% on top of the employee salary in North Dakota.

Employment Tax Type	Tax Rate
Unemployment Insurance Tax	0.08% - 9.68%

Employee Tax Contributions

Employee tax contributions are generally estimated at 1.1% - 2.9% of employee salary in North Dakota.

Employee Payroll Tax Contribution	Tax Rate
State Income Tax	1.1% - 2.9%

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in North Dakota tailored to your needs.

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Benefit Requirements for Employers in North Dakota

North Dakota does not mandate benefits such as health insurance or retirement plans. However, offering a robust benefits package can improve employee satisfaction and retention. Learn more about employee benefits.

Employee Benefits for North Dakota

Competitive benefits are essential for attracting and retaining top talent in North Dakota. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our North Dakota packages include:

Pension or 401(K)
Vision Insurance
Life Insurance
Medical Insurance
Dental Insurance
Health Savings Plan (HSA)
Flexible Spending Account (FSA)

Paid and Unpaid Leave Policies in North Dakota

Family and Medical Leave

Eligible employees can take up to 12 weeks of unpaid leave under the federal FMLA.

Military Leave

Unpaid leave for National Guard or Reserves service is protected under federal law.

Jury Duty Leave

Employees are entitled to unpaid leave for jury duty, with protection against retaliation.

Voting Leave

Employers are encouraged, though not required, to provide voting leave.

Bone Marrow and Organ Donation Leave

State employees may take up to 20 days of leave for donation purposes, verified by a physician.

It’s Easy To Manage Benefits For Employees In North Dakota With Playroll

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Employment Termination Protocols in North Dakota

Hiring Employees in North Dakota with an employer of record

Discuss how an EOR handles onboarding, including setting up compliant employment contracts, registering for taxes, and managing benefits like North Dakota's superannuation system (if applicable).

The employer of record is responsible for:

Employment Compliance: Ensure all employment contracts comply with North Dakota's labor laws and regulations, including proper classification of employees.
Payroll Management: Calculate, process, and distribute employee salaries in accordance with North Dakota's payroll laws, including deductions for taxes and social security contributions.
Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with North Dakota's legal requirements.
Benefits Administration: Provide mandatory employee benefits as required by North Dakota's labor laws, such as health insurance, pension contributions, and statutory leave.

Employer of Record for North Dakota

Guide to Hiring Employees in North Dakota