North Dakota Minimum Wage 2026: $7.25 per Hour, Tipped $4.86
North Dakota's minimum wage is $7.25 per hour in 2026, equal to the federal rate, with a $4.86 tipped cash wage under the state's 33 percent tip credit rule. Coverage, exemptions, the $30-a-month tip threshold, overtime, local preemption, and full-time earnings.
North Dakota's minimum wage is $7.25 per hour in 2026, the same as the federal minimum wage and unchanged since 2009. Unlike most states at the federal rate, North Dakota limits the tip credit to 33 percent, so tipped employees must be paid a cash wage of at least $4.86 per hour, well above the federal $2.13. No increase is scheduled, and cities cannot set their own rates.
- North Dakota's minimum wage is $7.25 per hour, equal to the federal rate
- The tip credit is capped at 33 percent, so the tipped cash wage is $4.86 with a maximum credit of $2.39
- A tipped employee is one who receives more than $30 a month in tips
- Overtime is time and a half after 40 hours; averaging across weeks is not permitted
- No city in North Dakota sets a local minimum wage
Current North Dakota Minimum Wage
North Dakota's minimum wage is $7.25 per hour under North Dakota Century Code 34-06 and the Department of Labor and Human Rights' minimum wage order. The rate has matched the federal minimum since July 2009. The US Department of Labor lists North Dakota at $7.25 in its state minimum wage table, and the state's wage and hour FAQ sets out the tipped and overtime rules that go with it.
North Dakota does not index its minimum wage, and the Legislature has not raised the state rate above the federal floor. Proposals to do so have not advanced in recent sessions. Where North Dakota differs from other $7.25 states is on tipped workers: the state caps the tip credit at one third of the minimum wage, which gives tipped employees a much higher guaranteed cash wage than in neighboring states.
North Dakota Minimum Wage vs Federal Minimum Wage
| Rate | North Dakota | Federal (FLSA) |
|---|---|---|
| Minimum wage | $7.25 per hour | $7.25 per hour |
| Tipped cash wage | $4.86 | $2.13 |
| Difference | Same as federal | Baseline |
| Last changed | See schedule below | July 24, 2009 |
When state and federal rates differ, the employer must pay the higher one for any employee covered by both laws. Because North Dakota's rate equals the federal minimum, the practical rate is $7.25 for nearly every worker, and the state law matters mainly for the employers and rules it covers that the FLSA does not. The federal rate has been $7.25 since July 24, 2009, and there is no scheduled federal increase. Our minimum wage by state guide compares every state.
Tipped Minimum Wage in North Dakota
North Dakota allows a tip credit of no more than 33 percent of the minimum wage. The Department of Labor and Human Rights' FAQ states that "the current minimum direct wage payable to a tipped employee is $4.86 per hour," which leaves a maximum tip credit of $2.39. The US Department of Labor's tipped wage table shows the same figures.
A tipped employee is one who receives more than $30 a month in tips. If the cash wage plus tips does not reach $7.25 for every hour worked, the employer must pay the difference. Employers may not take a larger credit even if tips are high, and tips remain the property of the employee.
| Item | North Dakota (2026) | Federal |
|---|---|---|
| Full minimum wage | $7.25 | $7.25 |
| Minimum cash wage for tipped employees | $4.86 | $2.13 |
| Maximum tip credit | $2.39 | $5.12 |
North Dakota Minimum Wage Increase Schedule
| Effective date | Minimum wage |
|---|---|
| 2021 | $7.25 |
| 2022 | $7.25 |
| 2023 | $7.25 |
| 2024 | $7.25 |
| 2025 | $7.25 |
| 2026 | $7.25 |
No increase is scheduled. North Dakota does not index its minimum wage, so a change requires the Legislature to amend the statute or the Department to issue a new minimum wage order, or a federal increase. None is pending as of September 2026.
Local Minimum Wages in North Dakota
No North Dakota city or county sets a local minimum wage. Fargo, Bismarck, Grand Forks, and Minot all follow the statewide $7.25 rate. Employers in the Fargo-Moorhead metro should note that Minnesota's rate across the river is $11.41 in 2026 with no tip credit.
How North Dakota Compares to Neighboring States
Employers that hire across state lines, or compete for workers with employers over the border, should know how North Dakota compares. Rates below are the US Department of Labor's figures as of July 1, 2026.
| State | 2026 minimum wage | Tipped cash wage |
|---|---|---|
| Minnesota | $11.41 | Full minimum wage (no tip credit) |
| South Dakota | $11.85 | $5.93 |
| Montana | $10.85 | Full minimum wage (no tip credit) |
| North Dakota | $7.25 | $4.86 |
Every state listed pays more than North Dakota, which is why employers near the state line often pay above the legal minimum to compete for staff. Remote employees are generally owed the minimum wage of the state where they physically work, not where the employer is based, so a North Dakota company with staff in a neighboring state must apply that state's rate to those employees.
Who Is Covered and Who Is Exempt
North Dakota's minimum wage and work conditions order covers most employers. Exemptions from the state minimum wage include:
- Bona fide executive, administrative, and professional employees
- Agricultural workers
- Employees paid on straight commission
- Certain volunteers and workers at nonprofit camps
- Employees covered by specific federal exemptions
North Dakota permits a lower rate for some student and learner categories only with Department approval. Because the state and federal rates are equal, the federal FLSA tests usually decide who is exempt; our exempt vs non-exempt guide walks through them.
Overtime and the Minimum Wage
North Dakota requires time and a half after 40 hours in a workweek. The state FAQ adds two useful clarifications: the workweek is "a fixed and regularly recurring period of 168 hours," and "averaging hours over two or more weeks is not permitted." That matters for biweekly payroll, where a 45-hour week followed by a 35-hour week still produces 5 overtime hours.
Here is what a 45-hour week costs at the North Dakota minimum wage under the 40-hour rule:
| Line | Hours | Rate | Pay |
|---|---|---|---|
| Regular hours | 40 | $7.25 | $290.00 |
| Overtime hours | 5 | $10.88 (1.5x) | $54.38 |
| Gross pay for the week | 45 | $344.38 |
Overtime must be calculated on the employee's regular rate, which includes shift differentials and non-discretionary bonuses, not just the base wage. See our guide to overtime pay laws in the US and use the overtime calculator to check a specific week.
What a Minimum Wage Worker Earns in North Dakota
| Basis | Hourly | Weekly (40 hours) | Monthly (173.33 hours) | Annual (2,080 hours) |
|---|---|---|---|---|
| Full minimum wage | $7.25 | $290.00 | $1,256.64 | $15,080.00 |
| Tipped cash wage only | $4.86 | $194.40 | $842.38 | $10,108.80 |
These are gross figures before taxes and deductions, and they assume a full 40-hour week with no unpaid time off. A tipped employee's total pay must reach at least the full minimum wage row once tips are added. To convert a different hourly rate, use the salary to hourly calculator, and see our explainer on gross pay for what is included before deductions.
Employer Compliance Checklist
- Pay at least $7.25 per hour for every hour worked, including training, meetings, and time spent waiting or on call at the workplace
- If you take a tip credit, give written notice, track tips by pay period, and make up any shortfall to $7.25
- Display the required state and federal minimum wage posters where employees can see them
- Pay overtime at 1.5 times the regular rate after 40 hours in a workweek, and never average hours across weeks
- Keep accurate time records for at least three years; a time card calculator helps verify weekly totals before payroll runs
- Review exempt classifications against the salary and duties tests; a job title alone does not make an employee exempt
- Check the labor law compliance hub for related state rules on breaks, leave, and final pay
Frequently Asked Questions
What is the minimum wage in North Dakota in 2026?
$7.25 per hour, the same as the federal minimum wage. It has not changed since 2009.
What is the tipped minimum wage in North Dakota?
$4.86 per hour in cash wages. North Dakota caps the tip credit at 33 percent of the minimum wage, so the maximum credit is $2.39.
Who counts as a tipped employee in North Dakota?
An employee who receives more than $30 a month in tips.
Is North Dakota raising the minimum wage?
No increase is scheduled as of September 2026. The state does not index its rate.
Does Fargo have a higher minimum wage?
No. All North Dakota cities follow the statewide $7.25 rate.
Can an employer average hours over two weeks to avoid overtime in North Dakota?
No. The state requires overtime for hours over 40 in each fixed 168-hour workweek, and averaging across weeks is not permitted.
How much does a full-time minimum wage worker earn in North Dakota?
$290 a week and $15,080 a year before taxes at $7.25 per hour, based on 2,080 hours.
Sources
- North Dakota Department of Labor and Human Rights, Wage and Hour FAQ
- North Dakota Department of Labor and Human Rights, Minimum Wage
- US DOL, Minimum Wages for Tipped Employees
- US DOL, State Minimum Wage Laws (July 1, 2026)
- US Department of Labor, Minimum Wages for Tipped Employees
Reviewed September 2026
Rates and rules on this page were checked against the US Department of Labor's state minimum wage tables (effective July 1, 2026) and the North Dakota sources listed above. Minimum wage laws change through legislation, ballot measures, indexing, and court decisions. Confirm the current rate with the state labor agency before setting pay, and see our labor law compliance guides for related rules.
Track Every Hour at the Right Rate
HiveDesk records clock-in and clock-out times, breaks, and overtime automatically so timesheets match the minimum wage and overtime rules that apply to each employee. $5/user/month, all features included, 14-day free trial.