Wage Payment Law Summaries
North Dakota, Wage Payment Law Summaries
North Dakota's wage payment law is located in the North Dakota Century Code at Title 34, Chapter 34-14. The full text of the law is available beginning at Wages-Hours ¶35-46,001 .
DEFINITIONS
“Employer” means every person, firm, partnership, association, corporation, limited liability company, receiver or other officer of a court of the state, and any agent or officer of any kind of the above-mentioned classes, employing any person in North Dakota (Sec. 34-14-01).
COVERAGE
North Dakota's wage payment law covers every person, firm, partnership, association, corporation, limited liability company, receiver or other officer of a court of the state, and any agent or officer of any kind of the above-mentioned classes, employing any person in North Dakota (Sec. 34-14-01).
WHAT THE EMPLOYER MUST DO
Form of payment.- Wages must be paid in lawful money of the United States; with checks, as that item is used in Ch. 41-03, drawn on banks or credit unions convenient to the place of employment; with direct deposit (see below); or, at the election of the employee when offered by the employer, by delivery to the employee of a stored value card that meets the requirements of this section. A stored value card that is used by an employer to pay wages must be issued by a federally insured bank or credit union. The value of the funds underlying a stored value card that is used by an employer to pay wages must be a deposit that is insured by the FDIC or National Credit Union Administration. Before paying wages by delivering a stored value card to an employee, an employer must have deposited with the issuer funds in an amount at least equal to the wages due from the employer to each employee whose wages are being paid through a stored value card and any account fees that are charged to the employer by the issuer (Sec. 34-14-02, as amended by H. 1347, L. 2005, effective August 1, 2005).
Frequency of payment.- Every employer must pay all wages due to employees at least once each calendar month on regular agreed paydays designated in advance by the employer (Sec. 34-14-02, as amended by H. 1382, L. 2003).
Payment upon discharge.- Whenever an employee is discharged or terminated from employment by an employer, separates from employment voluntarily or is suspended from employment voluntarily, or is suspended from work as the result of an industrial dispute, the employee's unpaid wages or compensation becomes due and payable at the regular paydays established in advance by the employer for the periods worked by the employee. When an employer discharges or terminates an employee, the employer must pay those wages to the employee by certified mail at an address designated by the employee or as otherwise agreed upon by both parties. If the employer fails to pay the wages within the stated time, the employee may charge and collect wages in the sum agreed upon in the contract of employment for each day the employer is in default until the employer has paid in full, without rendering any service, except the employee will cease to draw wages or salary 30 days after the default (Sec. 34-14-03, as amended by H. 1183, L. 2001).
State employees.- An employee with at least 10 continuous years of state employment is entitled to a lump sum payment equal to one-tenth of the pay attributed to the employee's unused sick leave accrued under this section. An employee's years of state employment must be deemed continuous if, under the official personnel policy of an agency, unit, or entity, the employee's work is terminated because of a reduction in force and the employee is reinstated in any agency, unit, or entity within two years, or if the employee is placed on voluntary leave status without pay and the leave lasts no longer than two years for education purposes, or one year for any other voluntary leave without pay. The pay attributed to the accumulated, unused sick leave must be computed on the basis of the employee's salary or wage at the time the employee leaves the employ of the state and at the rate of one hour of pay for each hour of unused sick leave (Sec. 54-06-14, as amended by S. 2106, L. 2003).
Dispute over wages.- In case of a dispute over wages, the employer must give written notice to the employee of the amount of wages less whatever the employee owes the employer that it concedes to be due and must pay the amount without condition within the time set by North Dakota's wage payment law, provided that acceptance by the employee of any payment does not constitute a release as to the balance of the claim (Sec. 34-14-04).
Direct deposit.- Employees may be paid by direct deposit in the financial institution of the employee's choice (Sec. 34-14-02, as amended by H. 1382, L. 2003).
Deductions from wages.- Every employer must withhold from the compensation due employees those amounts that are required by state or federal law to be withheld and may deduct advances paid to employees, other than undocumented cash, and other individual items authorized in writing by the employees (Sec. 34-14-04.1).
Wage statements.- Every employer must furnish to an employee each pay period a check stub or pay voucher that indicates hours worked, the rate of pay, required state and federal deductions, and authorized deductions (NDAC 46-02-07-02.10, amended effective March 1, 1998).
Vacation pay upon separation.- Paid time off, which includes annual leave, earned time, personal days or any other provisions of the employment relationship intended to provide compensation as vacation, is considered wages upon separation from employment. If the paid time off is available for use at the time of separation from employment, the employer must pay the employee for that time at the regular rate of pay earned by the employee prior to separation (NDAC 46-02-07-02.12, amended effective March 1, 1998).
NOTICE
Dispute over wages.- In case of a dispute over wages, the employer must give written notice to the employee of the amount of wages less whatever the employee owes the employer that it concedes to be due (Sec. 34-14-04).
ENFORCEMENT
The Commissioner of Labor or his or her deputy enforces North Dakota's wage payment law (Sec. 34-14-05, as amended by H. 1466, L. 1997).
Assignment of claims/Claims for unpaid wages due.- The Commissioner of Labor or his or her deputy has the power and authority to take assignment of wage claims and related claims for relief for penalties and has the power and authority to prosecute actions for the collection of the claims on behalf of persons who, in the judgment of the commissioner or his or her deputy, are entitled to the services and who, in his or her judgment, have claims that are valid and enforceable in the courts (Sec. 34-14-08; and Sec. 34-14-09, as amended by H. 1466, L. 1997). Effective August 1, 2009, an employee may file a claim for wages due under the state's wage collection or minimum wage and hour laws with the department not later than two years from the date the wages are due. This provision also provides that wages are due at each regular payday immediately following the work period during which wages were earned (Sec. 34-14-09, amended by H. 1099, L. 2009, enacted March 19, 2009, and effective August 1, 2009).
WHO TO CONTACT
Contact the Commissioner of Labor at State Capitol, 13th Floor, 600 E. Boulevard Ave., Bismarck, ND 58505. Telephone: (701) 328-2660 or 1-800-582-8032. Fax: (701) 328-2031. E-mail: labor@pioneer.state.nd.us.
RECORDKEEPING
Inspection of records.- The Commissioner of Labor and his or her authorized representatives have the right to enter places of employment for the purpose of inspecting records (Sec. 34-14-05, as amended by H. 1466, L. 1997).
PENALTIES
Failure to pay wages.- Any employer who willfully refuses to pay the wages due and payable when demanded as in North Dakota's wage payment law, or who falsely denies the amount of wages due, or that the same is due with intent to secure for itself or any other person any discount upon the indebtedness, or with intent to annoy, harass, or oppress, or hinder, or delay, or defraud the person to whom the indebtedness is due, is guilty of an infraction. Any employee who falsifies the amount due himself or who willfully attempts to defraud the employer is guilty of an infraction (Sec. 34-14-07), which is punishable by a maximum fine of $500 (Title 12.1, Ch. 12.1-32, Sec. 12.1-32-01).
In addition to his or her right to recover unpaid wages as provided in North Dakota's wage payment law, every employee is entitled to recover from his or her employer (Sec. 34-14-09.1):
interest on the unpaid wages from the date the wages are due until payment is made in full;
an amount equal to double the employee's unpaid wages, if, within one year preceding the date the wages are due, the employer has, on separate occasions, been subject to, and found liable for, two previous wage claims under the provisions of North Dakota's wage payment law; or treble the employee's unpaid wages, if, within one year preceding the date the wages are due, the employer has, on separate occasions, been subject to, and found liable for, three or more previous wage claims under the law.
The provisions regarding additional penalties outlined above do not apply to wage claims arising under the federal Railway Labor Act or to wage claims arising under contested application of collective bargaining agreements (Sec. 34-14-09.1).
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