🇺🇸 North Dakota STATE LAW – 2026 UPDATE

North Dakota Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in North Dakota

North Dakota remote work laws and employment regulations guide

Table of Contents

Click any item below to jump to the relevant section

Overview

North Dakota is generally considered business-friendly in its approach to employment regulation. According to official state sources, North Dakota follows federal employment standards in many areas while maintaining its own specific requirements in certain contexts.

General Characteristics:

  • State minimum wage (2025): $7.25/hour (matches federal minimum wage)
  • Paid sick leave: Not mandated by state law for private employers
  • State income tax: Progressive rates from 1.1% to 2.9% (2025)
  • Meal/rest breaks: Generally required for shifts exceeding 5 hours when 2+ employees on duty
  • Overtime rules: Follows federal FLSA (1.5x regular rate after 40 hours/week)
  • Workers’ compensation: Generally required; North Dakota operates a monopolistic state fund system

Note: These are general starting points only. Specific applicability depends on many factors including employer size, industry, and individual circumstances. Consult official sources and legal counsel for guidance on specific situations.

Source: North Dakota Department of Labor and Human Rights – https://www.nd.gov/labor/

Official State Agency Information

The North Dakota Department of Labor and Human Rights administers employment laws in North Dakota.

Contact Information:

  • Website: https://www.nd.gov/labor/
  • Phone: (701) 328-2660 / Toll-free: (800) 582-8032
  • Address: 600 E Boulevard Ave, Department 406, Bismarck, ND 58505-0340
  • Hours: Monday-Friday, 8:00 AM – 5:00 PM CT

Note: This agency can provide official interpretations of state law. For legal advice on how laws apply to your specific situation, consult a licensed attorney.

Major State Employment Statutes

The following statutes are commonly cited in employment matters. This is general information only and does not constitute legal interpretation.

1. North Dakota Wage and Hour Law

Statutory Citation: North Dakota Century Code (N.D.C.C.) Chapter 34-06
Official Source: https://www.ndlegis.gov/cencode/t34c06.html

General Provisions (as stated in the statute):

  • Establishes minimum wage standards aligned with federal law
  • Addresses overtime compensation requirements
  • Sets forth wage payment timing and methods
  • Provides framework for tipped employee compensation

Application to Remote Work: These provisions generally apply based on where work is physically performed. Specific applicability depends on multiple factors. Consult North Dakota DOL or legal counsel for guidance.

Source: North Dakota Department of Labor – https://www.nd.gov/labor/

2. North Dakota Human Rights Act

Statutory Citation: N.D.C.C. Chapter 14-02.4
Effective Date: Originally enacted 1983; amended periodically
Official Source: https://www.ndlegis.gov/cencode/t14c02-4.html

General Overview:

According to the North Dakota Department of Labor and Human Rights, this law generally prohibits employment discrimination based on:

  • Race
  • Color
  • Religion
  • Sex (including pregnancy, transgender status)
  • National origin
  • Age (40 or older)
  • Disability
  • Genetic information
  • Sexual orientation
  • Participation in lawful activities off employer’s premises during non-working hours

Coverage: Generally applies to employers with one or more employees for more than one calendar quarter.

Note: Actual coverage and obligations depend on specific circumstances. Employers should consult official agency guidance and legal counsel.

Source: North Dakota Department of Labor and Human Rights – https://www.nd.gov/labor/

3. North Dakota Workers’ Compensation Law

Statutory Citation: N.D.C.C. Title 65
Administering Agency: North Dakota Workforce Safety & Insurance (WSI)
Official Source: https://www.workforcesafety.com/

General Framework:

North Dakota operates a monopolistic state fund system, meaning workers’ compensation coverage must generally be obtained through WSI rather than private insurers.

Coverage: Generally required for employers before hiring their first employee, with limited exemptions.

Note: Specific coverage requirements and exemptions are detailed in statute and administrative code. Consult WSI or legal counsel for determinations.

Source: North Dakota Workforce Safety & Insurance – https://www.workforcesafety.com/

Employee Classification Standards

North Dakota’s Classification Test

According to official sources, North Dakota generally applies the Common Law Test – a multifactor analysis focusing on the degree of control exercised over the worker.

Statutory Authority: N.D.C.C. § 52-06-01 (unemployment insurance); various provisions for workers’ compensation and tax purposes
Official Guidance: North Dakota Department of Labor and Human Rights – https://www.nd.gov/labor/what-independent-contractor

Important Note: Different agencies (unemployment insurance, workers’ compensation, IRS) may apply different tests or emphasize different factors. A worker could be classified differently for different purposes.

General Framework (Common Law Test)

The North Dakota Department of Labor and Human Rights describes the Common Law Test as examining approximately 20 factors to determine the degree of control and independence in the working relationship. This is a simplified summary – actual legal application is complex and fact-specific.

Key Categories of Factors:

Control and Independence Factors

Instructions:

  • Whether the worker must comply with instructions about when, where, and how to work
  • Whether the hiring entity has the right to require compliance with instructions

Training:

  • Whether the hiring entity provides training to the worker
  • Whether training indicates the entity wants work performed in a particular manner

Integration:

  • Whether the worker’s services are integrated into the business operations
  • The more integral the services, the more likely an employment relationship

Services Rendered Personally:

  • Whether the worker must render services personally
  • Whether the worker can hire assistants or delegate work

Hiring, Supervising, and Paying Assistants:

  • Who hires, supervises, and pays any assistants
  • Whether the hiring entity or the worker controls these aspects

Continuing Relationship:

  • Whether there is a continuing relationship between parties
  • Whether work is performed at recurring intervals

Set Hours of Work:

  • Whether the hiring entity establishes set hours of work
  • Greater flexibility suggests independent contractor status

Full Time Required:

  • Whether the worker must devote full time to the hiring entity
  • Independent contractors typically control their own schedules

Doing Work on Employer’s Premises:

  • Where the work is performed
  • Work on hiring entity’s premises may indicate control

Order or Sequence Set:

  • Whether the hiring entity can require work be done in specific sequence
  • This may indicate control over methods

Oral or Written Reports:

  • Whether regular reporting is required
  • Frequency and detail of reports may indicate level of control

Payment Method:

  • Whether payment is by hour/week/month (suggests employee)
  • Or by job/commission (suggests independent contractor)

Payment of Business/Travel Expenses:

  • Who pays business and travel expenses
  • Employer payment suggests employment relationship

Furnishing Tools and Materials:

  • Who provides tools, materials, and equipment
  • Providing own tools suggests independent contractor status

Significant Investment:

  • Whether worker has significant investment in facilities
  • Independent contractors typically invest in their business

Realization of Profit or Loss:

  • Whether worker can realize profit or suffer loss
  • True independent contractors have this opportunity

Working for More Than One Firm:

  • Whether worker provides services to multiple entities
  • Multiple clients suggests independent contractor status

Making Service Available to General Public:

  • Whether worker makes services available to public
  • Independent contractors typically do

Right to Discharge:

  • The hiring entity’s right to terminate the relationship
  • At-will termination suggests employment

Right to Terminate:

  • Worker’s right to end relationship without liability
  • Independent contractors typically have contracts with specific terms

Illustrative Scenarios (For General Understanding Only)

The following scenarios are provided for general educational purposes only. They do not constitute legal determinations or classification advice. Actual classification depends on the totality of circumstances and should be evaluated by legal counsel.

Scenario 1: Software Developer – Remote Work

A North Dakota company hires a software developer to build a custom application. The developer:

  • Works from their home office in another state
  • Sets their own work hours
  • Uses their own computer and software
  • Is paid a fixed project fee
  • Provides similar services to multiple clients
  • Has a written contract specifying project deliverables
  • Can hire assistants to help with coding

General Observations: This scenario may share characteristics commonly associated with independent contractor relationships because the developer appears to have significant autonomy, uses their own equipment, serves multiple clients, and is paid per project. However, actual classification depends on all facts and circumstances, including the degree of control exercised, whether the work is part of the company’s regular business, and other factors.

This is not a determination. Classification requires comprehensive analysis by legal counsel and potentially official agency review.

Scenario 2: Customer Service Representative – Remote

A North Dakota company hires a customer service representative to handle calls. The representative:

  • Must work specific hours set by the company (9 AM – 5 PM)
  • Receives detailed training on company procedures
  • Must follow scripts and protocols provided by company
  • Uses company-provided software and equipment
  • Reports to a supervisor who monitors performance
  • Is paid hourly
  • Works exclusively for this one company
  • Cannot delegate work to others

General Observations: This scenario may share characteristics commonly associated with employment relationships because the company exercises significant control over when, where, and how work is performed, provides training, supplies equipment, and requires exclusive services.

This is not a determination. Actual classification must be made based on complete circumstances.

Remote Work Considerations

For remote workers, classification analysis may involve additional complexities:

  • Physical work location vs. business location
  • Nature of work relationship in virtual environment
  • Level of control and independence in remote setting
  • Technology and equipment ownership
  • Time tracking and supervision methods

These factors do not change the legal test but may affect how the test is applied. Classification of remote workers should be reviewed with legal counsel familiar with North Dakota law and your specific circumstances.

Potential Consequences of Misclassification

According to North Dakota DOL and other official sources, misclassification may result in:

For Employers:

  • Potential back payment of unemployment insurance taxes
  • Possible workers’ compensation premium adjustments
  • Potential wage and hour claim exposure
  • Possible penalties and interest
  • Tax implications at state and federal levels
  • Liability for unpaid employment taxes

For Workers:

  • May affect access to unemployment benefits
  • May affect workers’ compensation coverage
  • May affect wage and hour protections
  • May affect leave benefit eligibility
  • Tax implications

Note: The specific consequences depend on many factors. This is general information only.

How to Seek Guidance

Classification questions should be addressed through:

  • North Dakota Department of Labor and Human Rights: (701) 328-2660 – https://www.nd.gov/labor/
  • Independent Contractor Verification Application: Available through ND DOL for official determination
  • Employment attorney licensed in North Dakota
  • Tax professional familiar with North Dakota and federal law
  • IRS (for federal tax implications)

Minimum Wage Information

Current Rate Information (As Published by North Dakota DOL)

According to the North Dakota Department of Labor and Human Rights, the state minimum wage as of December 2025 is generally:

Minimum Wage Table

Effective Date Standard Rate Tipped Rate Notes
Current (2025) $7.25/hour $4.86/hour Matches federal minimum wage
2026 $7.25/hour $4.86/hour No scheduled increase as of December 2025

Source: North Dakota Department of Labor and Human Rights – https://www.nd.gov/labor/

Important Context: North Dakota’s minimum wage has remained at $7.25/hour since 2009, matching the federal rate. Legislative proposals to increase the minimum wage (including ballot measures for 2026) have been discussed but not enacted as of December 2025. Employers should monitor for potential changes.

Application to Remote Workers

According to general legal principles and North Dakota DOL guidance:

  • Minimum wage typically applies based on where work is physically performed
  • A worker performing work from a location in North Dakota would generally be subject to North Dakota minimum wage
  • Employer location is generally not the determining factor

However, specific situations may vary. Employers should consult North Dakota DOL or legal counsel for guidance on particular circumstances.

Local Minimum Wages

No Local Variations: North Dakota does not currently have cities or counties with minimum wages higher than the state rate. The $7.25/hour rate applies uniformly across all jurisdictions within North Dakota.

Note: This differs from some states where major cities have enacted higher local minimum wages. In North Dakota, the state rate is the applicable standard statewide.

Tipped Employee Minimum Wage

According to North Dakota law (N.D.C.C. § 34-06-22):

Tipped Minimum Wage: $4.86/hour (33% of standard minimum wage)

General Requirements:

  • Employees must regularly receive tips as part of their compensation
  • Generally must earn at least $30/month in tips to qualify for tipped wage
  • Combined tipped wage plus tips must equal at least $7.25/hour
  • If tips do not bring total compensation to minimum wage, employer must make up the difference
  • Employers generally must notify employees in advance if paying tipped wage

Example (For Illustration Only): A server works 40 hours at $4.86/hour tipped wage = $194.40 in wages If server earns $100 in tips, total = $294.40 Required minimum for 40 hours at $7.25 = $290.00 Server’s compensation meets minimum wage requirement

If server only earned $50 in tips, total would be $244.40 Employer must pay additional $45.60 to reach $290.00 minimum

Note: This is a simplified illustration. Actual calculations may involve complexities including tip pooling, service charges, and other factors. Consult North Dakota DOL or legal counsel for compliance guidance.

Special Minimum Wage Rates

North Dakota recognizes certain special minimum wage categories under federal law:

Youth Training Wage

  • Rate: $4.25/hour
  • Eligibility: Workers under age 20
  • Duration: First 90 consecutive calendar days of employment only
  • Source: Federal FLSA provision
  • Note: After 90 days or upon turning 20, standard minimum wage applies

Student Workers

  • Rate: Potentially 85% of minimum wage ($6.16/hour)
  • Eligibility: Full-time students working part-time (typically maximum 20 hours/week)
  • Requirements: Employer must obtain certification from U.S. Department of Labor
  • Common Settings: Universities, retail establishments, certain service industries
  • Note: This is a federal program with specific certification requirements

Overtime and Break Regulations

A. Overtime Standards

Governing Framework:
North Dakota follows the federal Fair Labor Standards Act (FLSA) for overtime regulations and does not have additional state-specific overtime requirements beyond federal law.

Statutory Authority: 29 U.S.C. § 207 (FLSA); N.D.C.C. § 34-06-04.1
Official Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/overtime

General Overtime Threshold

According to federal law as applied in North Dakota:

  • Trigger: Generally after 40 hours worked in a workweek
  • Rate: 1.5 times the regular rate of pay
  • Workweek: Fixed and recurring period of 168 hours (7 consecutive 24-hour periods)
  • Daily Overtime: North Dakota does NOT require overtime for work beyond a certain number of hours in a single day

Application to Remote Workers:
Overtime regulations typically apply based on the nature of the work and employment relationship, not work location. Remote workers performing non-exempt work would generally be subject to the same overtime requirements as on-site workers.

However, specific applicability depends on exemption status, which requires detailed analysis. See Exemptions section below.

Calculating Compensable Time

According to federal and state guidance, “hours worked” for overtime calculation purposes may include:

  • Time actually performing work duties
  • Required meetings and training
  • Time waiting to perform work (in some circumstances)
  • Short rest breaks (generally under 20 minutes)
  • Travel time in certain contexts
  • On-call time in certain circumstances

⚠️ Complex Issue for Remote Workers:

Determining compensable time for remote workers can involve additional considerations:

  • After-hours email responses: Whether responses constitute compensable work
  • On-call time at home: Degree of restrictions on employee’s activities
  • Virtual meetings outside regular hours: Whether attendance is required or voluntary
  • Off-the-clock work: Ensuring employees don’t work unreported hours
  • Commuting vs. travel time: Working from home generally eliminates commute

These determinations are fact-specific. Employers should consult wage-hour counsel for guidance on tracking and paying remote workers.

Overtime Exemptions

North Dakota recognizes exemptions from overtime requirements primarily through federal law. Common exemptions include:

Executive, Administrative, and Professional (EAP) Exemptions

To potentially qualify for exemption, employees generally must meet tests related to:

1. Salary Basis Test:
Paid a predetermined salary not subject to reduction based on quality or quantity of work performed

2. Salary Level Test (2025):

  • Federal minimum for exemption: $844 per week ($43,888 annually) as of July 1, 2024
  • Note: Salary threshold alone is insufficient for exemption
  • Source: U.S. Department of Labor regulations under FLSA

3. Duties Test:
Must perform exempt-level duties as defined in FLSA regulations

Executive Exemption

General duties description (according to federal regulations):

  • Primary duty is management of enterprise or recognized department/subdivision
  • Customarily and regularly directs work of two or more employees
  • Has authority to hire/fire or recommendations given particular weight

Important: Job title alone does not determine exemption. Actual duties must meet regulatory requirements.

Administrative Exemption

General duties description:

  • Primary duty is performance of office or non-manual work directly related to management or general business operations
  • Primary duty includes exercise of discretion and independent judgment on significant matters

Professional Exemption

Learned Professional:

  • Primary duty requires advanced knowledge in field of science or learning
  • Advanced knowledge customarily acquired by prolonged specialized instruction

Creative Professional:

  • Primary duty requires invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor

Computer Professional Exemption

Salary Options:

  • Salary: Must meet standard salary level test ($844/week minimum)
  • OR Hourly: May be paid at least $27.63/hour (2024 rate)

Duties (must perform):

  • Application of systems analysis techniques and procedures
  • Design, development, documentation, analysis, creation, testing, or modification of computer systems or programs
  • Design, documentation, testing, creation, or modification of computer programs related to machine operating systems
  • Combination of these duties requiring same level of skill

Note: This exemption does NOT apply to employees engaged in manufacture/repair of computer hardware or routine help desk support.

Outside Sales Exemption

General requirements:

  • Primary duty is making sales or obtaining orders/contracts
  • Customarily and regularly engaged away from employer’s place of business
  • No minimum salary requirement for outside sales

Important Exemption Reminders

  1. All tests must be met: Meeting salary threshold alone is insufficient
  2. Fact-specific: Classification depends on actual duties performed, not job title
  3. Narrowly construed: Exemptions are interpreted narrowly under law
  4. Remote work: Exemption analysis same for remote workers as on-site
  5. Professional guidance essential: Misclassification can result in significant liability

For classification decisions, consult:

  • Employment attorney licensed in North Dakota
  • U.S. Department of Labor Wage and Hour Division
  • North Dakota Department of Labor and Human Rights

B. Meal and Rest Break Requirements

North Dakota has specific requirements for meal breaks in certain circumstances.

Meal Break Requirements

Statutory Authority: N.D. Admin. Code § 46-02-07-02(5)
Official Source: North Dakota Department of Labor and Human Rights

General Framework (as described by North Dakota regulations):

  • Duration: At least 30 minutes
  • Trigger: Generally required for shifts exceeding 5 consecutive hours
  • Condition: When two or more employees are on duty
  • Paid/Unpaid: Generally unpaid if employee is completely relieved of all duties
  • Timing: Should occur at a reasonable time during the shift

“Completely Relieved of Duties” Requirement:

According to federal guidance, for a meal period to be unpaid:

  • Employee must be completely free from work duties
  • Employee cannot be required to remain at workstation
  • If employee performs any duties during meal period, time must be compensated
  • Example: Receptionist eating lunch while answering phones = compensable time

Application to Remote Workers

General principles:

  • Meal break requirements generally apply to remote workers performing non-exempt work
  • Employer should have policies ensuring remote workers take meal breaks
  • Documentation challenges exist for remote work compliance

Potential Challenges for Remote Work:

  • Verifying breaks are actually taken
  • Ensuring workers do not work during unpaid meal periods
  • Documenting compliance
  • Handling interruptions during breaks (customer calls, urgent emails)
  • Separating work and personal space in home environment

Employer Considerations:

  • Clear written policies on meal period requirements
  • Time tracking systems that prompt for meal breaks
  • Training for remote workers on break requirements
  • System for reporting interrupted or missed breaks
  • Regular auditing of time records

Rest Break Requirements

North Dakota Law: North Dakota does not have a state law requiring short rest breaks (sometimes called “coffee breaks” or “smoke breaks”) for adult employees.

Federal Guidance (If Employer Provides Breaks):

According to the U.S. Department of Labor:

  • Short breaks (5-20 minutes): Generally must be compensable work time if provided
  • Cannot be deducted from hours worked
  • Count toward overtime calculation
  • Employers not required to provide, but if provided, must be paid

Source: 29 C.F.R. § 785.18

Special Retail Provision

According to North Dakota law:

  • Retail employers must allow employees to take at least 24 consecutive hours off every seven days
  • This is a weekly day of rest requirement for retail industry
  • Consult North Dakota DOL for specific applicability

Resources for Wage and Hour Compliance

  • North Dakota Department of Labor and Human Rights: (701) 328-2660
  • U.S. Department of Labor Wage and Hour Division: (866) 4US-WAGE
  • WHD Website: https://www.dol.gov/agencies/whd
  • Wage and Hour Poster: Required at all worksites, available from ND DOL

Workers' Compensation Overview

Legal Framework

Statutory Authority: North Dakota Century Code Title 65
Administering Agency: North Dakota Workforce Safety & Insurance (WSI)

Contact Information:

  • Website: https://www.workforcesafety.com/
  • Phone: (800) 777-5033 or (701) 328-3800
  • Address: 1600 E Century Ave, Suite 1, Bismarck, ND 58503
  • Hours: Monday-Friday, 8:00 AM – 5:00 PM CT

North Dakota’s Unique System: Monopolistic State Fund

Important Distinction: North Dakota is one of only four states (along with Ohio, Washington, and Wyoming) that operates a monopolistic state workers’ compensation fund.

What this means:

  • Workers’ compensation insurance MUST be obtained through WSI
  • Private insurance companies cannot sell workers’ comp policies in North Dakota
  • All covered employers must participate in the state fund
  • Coverage is guaranteed – even high-risk employers cannot be denied

Implications for Employers:

  • Cannot shop among private insurers for rates
  • Must follow WSI’s rules, classification system, and premium structure
  • May benefit from WSI’s premium dividend program
  • No employer’s liability coverage included (may need separate stop-gap coverage)

General Coverage Requirements

According to North Dakota statutes and WSI guidance, workers’ compensation coverage is generally:

Required for:

  • Most employers before hiring their first employee
  • Employers with one or more employees
  • Full-time, part-time, seasonal, and occasional workers
  • Out-of-state employers with at least 25% of payroll paid to North Dakota workers

Exemptions may include:

  • Licensed real estate brokers/agents with written independent contractor agreements
  • Newspaper delivery personnel with written independent contractor agreements
  • Certain licensed insurance agents with written agreements
  • Children of employer(s) under age 22
  • Certain sole proprietors (but can elect coverage)
  • Federal employees (covered under federal system)
  • Railroad employees (covered under federal Railroad Retirement Act)
  • Certain agricultural workers (limited exemptions)

Source: N.D.C.C. Chapter 65; WSI Employer Guide

⚠️ Note: Coverage determinations can be complex and fact-specific. Employers uncertain about their obligations should contact WSI at (800) 777-5033 or legal counsel.

Coverage Application Process

According to WSI guidance:

Timing: Must apply for coverage BEFORE hiring first employee

How to Apply:

  • Online: Through WSI’s website at workforcesafety.com
  • By fax: (701) 328-3750
  • By mail: To WSI address above

Effective Date:

  • Coverage effective when WSI receives and approves completed application
  • Postmark or fax timestamp verifies effective date
  • Certificate of Premium Payment issued after payment received

Important: Operating without required coverage can result in:

  • Penalties up to $10,000
  • Additional $100 per day for each day of violation
  • Cease and Desist order from WSI
  • Personal liability for employee injuries
  • Criminal penalties in some cases

Remote Worker Coverage Considerations

⚠️ COMPLEX AND FACT-SPECIFIC: Coverage of remote work injuries involves detailed factual analysis. The following is general background only.

North Dakota Employees Working Remotely

General Standard:
Workers’ compensation typically covers injuries that “arise out of and in the course of employment.” Application of this standard to remote workers is fact-dependent.

Factors That May Be Considered:

According to case law and administrative guidance, factors that may be relevant include:

  • Whether employee was engaged in work activity at time of injury
  • Whether injury occurred in designated work area
  • Whether injury occurred during work hours
  • Whether activity was authorized or expected by employer
  • Whether activity served employer’s interests
  • Whether employer provided equipment or designated workspace
  • Nature and extent of employer control over home workspace

⚠️ Important: This list is not exhaustive and no single factor is determinative. Each claim is evaluated based on its specific facts.

Remote Workers Outside North Dakota

Critical Issue for North Dakota Employers:

According to WSI policy and N.D. Admin. Code § 92-01-02-50.1:

If you are a North Dakota-based business and you hire employees to work in/from states other than North Dakota (example: telecommuting from another state), you must obtain workers’ compensation coverage in that state.

WSI Coverage Limitations:

  • WSI can generally only provide coverage for work performed IN North Dakota
  • Limited exception: WSI may provide coverage for ND-based employees working temporarily out-of-state (generally not more than 30 consecutive calendar days)
  • WSI cannot write coverage for employees who do not physically work in North Dakota

Employer Responsibilities:

  • Determine coverage requirements in each state where remote employees work
  • Obtain appropriate coverage in those states
  • Ensure compliance with other states’ workers’ compensation laws
  • Risk significant penalties for being uninsured in another state

Source: North Dakota Workforce Safety & Insurance – https://www.workforcesafety.com/employers/across-state-lines/

For guidance, contact:

  • WSI at (800) 777-5033
  • Workers’ compensation regulators in states where remote employees work
  • Employment attorney or HR counsel

Benefits Generally Available

According to North Dakota workers’ compensation statutes, covered workers may be eligible for:

Medical Benefits

  • All reasonable and necessary medical treatment prescribed by physician
  • Hospital care
  • Prescription medications
  • Medical equipment
  • Physical therapy and rehabilitation
  • Mileage reimbursement for medical travel
  • No co-pays or deductibles for covered treatment

Wage Replacement Benefits

Temporary Total Disability:

  • Generally 66 2/3% of employee’s average weekly wage
  • Waiting period: Benefits begin after 5 consecutive days of disability
  • Retroactive to day one if disability exceeds 4 weeks

Temporary Partial Disability:

  • Benefits when employee returns to work at reduced capacity
  • Based on difference between pre-injury and current wages

Permanent Partial Disability:

  • Benefits for permanent impairment
  • Based on medical ratings and statutory schedule

Permanent Total Disability:

  • For injuries resulting in permanent inability to work
  • Ongoing benefits at 66 2/3% of average weekly wage

Additional Benefits

  • Vocational rehabilitation services if needed
  • Death benefits for surviving dependents
  • Burial expense allowance (up to $10,000)

Note: Specific benefit amounts and eligibility depend on injury circumstances, wage calculations, and medical determinations. Consult WSI or claims administrator for individual situations.

Source: N.D.C.C. Chapter 65-05

Reporting and Claim Process

According to WSI regulations and guidance:

For Employees

1. Report injury to employer:

  • Promptly report any work-related injury or occupational disease
  • Recommended: Report in writing
  • Failure to report timely may affect claim

2. Seek medical attention:

  • Seek treatment from WSI-approved medical provider when possible
  • Emergency care: Seek immediate treatment, notify WSI/employer as soon as practical

3. File claim:

  • Complete First Report of Injury (FROI)
  • Can be filed online, by mail, or by fax
  • WSI provides claim forms and assistance

Deadlines:

  • Injury: Generally must file claim within one year of injury or two years of death
  • Occupational disease: Different time frames may apply

For Employers

1. Report to WSI:

  • Report all injuries to WSI
  • Even if no medical treatment or lost time expected
  • Better to report and later close than fail to report

2. Form to file:

  • Employer’s First Report of Injury or Occupational Disease
  • Available online at workforcesafety.com

3. Deadline:

  • Report to WSI within 7 days of notice or knowledge of injury
  • Failure to report timely may result in penalties

4. Documentation:

  • Maintain records of incident
  • Document any witness statements
  • Preserve any physical evidence if relevant

Source: WSI Employer Guide – Available at https://www.workforcesafety.com/

Penalties for Non-Compliance

According to North Dakota law:

Failure to Secure Coverage:

  • Penalty up to $10,000
  • Additional $100 per day for each day of violation
  • WSI may issue Cease and Desist order
  • Personal liability for employee injuries
  • Potential criminal penalties

Late Reporting:

  • Penalties for late reporting of injuries
  • May affect claim processing
  • Potential denial of claim if reporting extremely delayed

Premium Fraud:

  • Underreporting payroll
  • Misclassifying employees
  • Can result in substantial back premiums, penalties, and interest

Best Practices for Remote Work

The following are general recommendations compiled from various sources. They do not constitute legal requirements and may not be suitable for all situations. Consult legal counsel and safety professionals.

For Employers:

  • Develop clear remote work policies and procedures
  • Consider providing ergonomic equipment or guidance for home offices
  • Document remote work locations and setups
  • Establish injury reporting procedures specific to remote work
  • Provide safety training for remote workers
  • Verify workers’ compensation coverage for all remote work locations
  • Consider home office safety inspections or self-assessment checklists
  • Maintain clear policies on work hours and duties
  • Use time tracking systems to document when employees are working

For Employees:

  • Set up dedicated work area separate from personal living space
  • Follow employer safety guidelines for home office
  • Document work location and setup
  • Report injuries promptly and accurately
  • Maintain clear work hour boundaries
  • Keep workspace free from hazards
  • Use ergonomic equipment and practices
  • Immediately report any unsafe conditions

Other Leave Entitlements

Paid Sick Leave

North Dakota Law: North Dakota does NOT have a state law requiring private-sector employers to provide paid or unpaid sick leave.

What this means:

  • Private employers are generally not required by state law to provide sick leave
  • Many employers voluntarily offer sick leave as a benefit
  • If offered, employers must follow their own stated policies
  • No state-mandated accrual rates, usage rules, or carryover requirements

Public Sector Employees:

State and local government employees typically receive structured sick leave benefits:

  • Accrual generally starts from first day of employment
  • Minimum accrual rate often 8 hours per month (varies by years of service)
  • Can typically accumulate sick leave indefinitely
  • May receive payout of portion of unused sick leave upon retirement (typically 10% if employed 10+ years)

Source: North Dakota Human Resource Management Services policies for public employees

Family and Medical Leave

Federal Protection: Family and Medical Leave Act (FMLA)

Employer Coverage:

  • Private employers with 50 or more employees
  • Public agencies (federal, state, local government) regardless of size
  • Public and private elementary and secondary schools regardless of size

Employee Eligibility:

  • Worked for employer at least 12 months (need not be consecutive)
  • Worked at least 1,250 hours during 12 months before leave
  • Work at location where employer has 50+ employees within 75 miles

Leave Entitlement:

  • Up to 12 weeks of unpaid, job-protected leave per year for:
    • Birth and care of newborn child
    • Placement of child for adoption or foster care
    • Care for spouse, child, or parent with serious health condition
    • Employee’s own serious health condition
    • Qualifying exigency arising from family member’s military service
  • Up to 26 weeks per year to care for covered servicemember with serious injury/illness

Key Protections:

  • Job restoration to same or equivalent position
  • Continuation of group health benefits
  • Protection from retaliation

North Dakota-Specific Considerations:

  • FMLA applies in North Dakota same as nationwide
  • North Dakota does not have additional state family leave law expanding on FMLA
  • Remote workers: FMLA eligibility based on where employee reports and worksite employee count

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fmla

Vacation Leave

North Dakota Law: North Dakota does NOT require private employers to provide paid or unpaid vacation leave.

General Principles:

  • Vacation is generally considered a fringe benefit
  • If offered, employers must comply with their stated policies and employment contracts
  • Many employers offer vacation as recruitment/retention tool

Accrual and Carryover:

  • No state requirements for how vacation accrues or carries over
  • Employers may set own policies, including:
    • Accrual rates
    • Caps on accrual
    • “Use it or lose it” policies (subject to certain limitations)
    • Carryover rules

Payout Upon Termination:

According to North Dakota law:

  • Accrued, unused vacation is generally considered earned wages
  • Must typically be paid out upon termination
  • Exception: Employer may have policy stating accrued vacation not paid out if:
    • Policy clearly communicated at start of employment
    • AND employee resigns without at least 5 days’ notice
    • OR employee worked less than one year

Public Sector:

  • State/local government employees typically receive structured annual leave
  • Accrual rates typically 8-16 hours per month based on years of service
  • Usually can carry over up to 240 hours annually
  • Unused annual leave typically paid out upon termination

Other Types of Leave

Bereavement Leave

North Dakota Law: NOT required for private employers

  • No state mandate to provide paid or unpaid bereavement leave
  • Many employers voluntarily provide 2-5 days
  • If offered, must follow stated policy

Jury Duty Leave

North Dakota Law: Employers must allow time off for jury duty

  • Cannot threaten, coerce, or terminate employee for jury service
  • NOT required to pay employees during jury duty
  • Employees receive $25/day from court
  • Employers cannot require use of vacation time

Source: N.D.C.C. § 27-09.1-17

Military Leave

Federal Law: Uniformed Services Employment and Reemployment Rights Act (USERRA)

  • Applies to all employers regardless of size
  • Protects employees called to active duty
  • Up to 5 years cumulative leave (with exceptions)
  • Job restoration rights
  • Health insurance continuation up to 24 months
  • Protection from discrimination

North Dakota: No additional state military leave requirements beyond USERRA

Voting Leave

North Dakota Law: No specific voting leave statute

  • State encourages employers to accommodate voting
  • No mandate for paid or unpaid time off
  • Many employers voluntarily allow time to vote
  • Polls typically open 7 AM – 7 PM in North Dakota

Domestic Violence Leave

North Dakota Law: No specific domestic violence leave requirement

Related Protections:

  • Human Rights Act prohibits discrimination
  • Crime victims may have protections under other laws
  • Some employers voluntarily provide domestic violence leave

Resources for Leave Information

Anti-Discrimination Laws

North Dakota Human Rights Act

Statutory Authority: N.D.C.C. Chapter 14-02.4
Administering Agency: North Dakota Department of Labor and Human Rights
Official Source: https://www.nd.gov/labor/

Protected Characteristics

According to the North Dakota Human Rights Act, discrimination is generally prohibited based on:

  • Race
  • Color
  • Religion
  • Sex (including pregnancy, childbirth, related conditions, and transgender status)
  • National origin
  • Age (40 or older)
  • Physical or mental disability
  • Genetic information
  • Sexual orientation
  • Marital status
  • Status with regard to public assistance
  • Participation in lawful activity off the employer’s premises during nonworking hours (unless conflicts with business interests)

Employer Coverage

North Dakota Human Rights Act:

  • Generally applies to employers with one or more employees for more than one calendar quarter
  • Significantly broader coverage than federal laws (which often require 15 or 20 employees)

Federal Laws:

  • Title VII (race, color, religion, sex, national origin): 15+ employees
  • ADA (disability): 15+ employees
  • ADEA (age): 20+ employees
  • GINA (genetic information): 15+ employees

Important: North Dakota law provides broader coverage than federal law for small employers.

Prohibited Actions

According to the North Dakota Human Rights Act and federal laws, prohibited discriminatory actions may include:

  • Refusing to hire
  • Discharge or termination
  • Unequal compensation
  • Denial of promotions or advancement opportunities
  • Unequal terms, conditions, or privileges of employment
  • Harassment creating hostile work environment
  • Retaliation for opposing discrimination or participating in investigations

Note: This is not an exhaustive list. Specific situations require legal analysis.

Application to Remote Workers

General Principles:

  • Anti-discrimination protections generally apply to remote workers same as on-site workers
  • Geographic location of employee typically does not affect protections
  • Virtual workplace subject to same anti-discrimination and harassment prohibitions
  • Employers responsible for preventing/addressing harassment in remote work settings

Remote Work Considerations:

  • Communications via email, chat, video meetings subject to anti-discrimination laws
  • Virtual harassment (inappropriate messages, comments, images) prohibited
  • Reasonable accommodations may involve remote work technology, schedules, or setup
  • Access to opportunities, training, advancement should be equitable regardless of work location

Reasonable Accommodations

For Disability (ADA and North Dakota Law)

General Requirement:
Employers generally must provide reasonable accommodations for qualified individuals with disabilities unless doing so would cause undue hardship.

Accommodation Examples (may include):

  • Modified work schedules or part-time schedules
  • Reassignment to vacant position
  • Modification of equipment or devices
  • Appropriate adjustment or modification of examinations/training
  • Provision of qualified readers or interpreters
  • Remote work (may be accommodation in appropriate circumstances)

For Remote Workers:

  • Accessible technology and software
  • Ergonomic home office equipment
  • Modified communication methods
  • Adjusted video meeting requirements
  • Flexible scheduling

Interactive Process:

  • Employee and employer should engage in interactive dialogue
  • Identify limitations and potential accommodations
  • Select effective accommodation that doesn’t impose undue hardship

Note: Accommodation obligations are fact-specific. Consult with disability rights attorney or contact agencies below for guidance.

For Pregnancy (Pregnancy Discrimination Act and North Dakota Law)

General Principles:

  • Pregnancy, childbirth, and related medical conditions must be treated same as other temporary disabilities
  • If employer provides accommodations for other temporary conditions, must provide for pregnancy-related conditions
  • Cannot force pregnant employee to take leave if able to perform job

Possible Accommodations:

  • Light duty assignments
  • Modified work schedules
  • More frequent breaks
  • Remote work options
  • Ergonomic modifications

For Religious Observances (Title VII and North Dakota Law)

General Requirement:
Employers generally must reasonably accommodate sincerely held religious beliefs and practices unless doing so would cause undue hardship.

Accommodation Examples:

  • Flexible scheduling for religious observances
  • Voluntary shift swaps
  • Job reassignments
  • Modifications to dress code
  • For remote workers: Flexibility for prayer times, religious holidays

Harassment Prevention

Legal Standard:
Harassment based on protected characteristics is prohibited when it creates a hostile work environment or results in adverse employment action.

Hostile Work Environment generally requires:

  • Unwelcome conduct based on protected characteristic
  • Conduct severe or pervasive enough to create intimidating, hostile, or offensive environment
  • Conduct objectively offensive (reasonable person standard)
  • Employer knew or should have known and failed to take appropriate corrective action

For Remote Work Settings:

  • Virtual communications (email, chat, video) subject to same standards
  • “Camera-on” policies should consider privacy, religious dress, disability needs
  • Monitoring/surveillance should be applied consistently without discrimination
  • Social virtual events should be inclusive

Employer Responsibilities:

  • Clear anti-harassment policies
  • Training for all employees, including remote workers
  • Effective complaint procedures
  • Prompt investigation and appropriate corrective action
  • Prevention and awareness programs

Complaint Process

Employees who believe they have experienced discrimination have multiple options:

Option 1: North Dakota Department of Labor and Human Rights

Process:

  1. Complete Equal Employment Opportunity Questionnaire/Affidavit
  2. Submit to ND Department of Labor and Human Rights
  3. Department investigates
  4. Attempts informal resolution
  5. If unresolved, may proceed to formal hearing or court

Deadline: Generally 300 days from date of discrimination

Contact:

  • Phone: (701) 328-2660 / (800) 582-8032
  • Website: https://www.nd.gov/labor/
  • Address: 600 E Boulevard Ave, Dept 406, Bismarck, ND 58505-0340

Option 2: U.S. Equal Employment Opportunity Commission (EEOC)

Process:

  1. File charge online or by phone
  2. EEOC investigates
  3. May mediate settlement
  4. May issue Right to Sue letter
  5. Employee may file lawsuit in federal court

Deadline: Generally 180 days from discrimination (300 days in states with state agency)

Contact:

Note: Filing with ND Department of Labor and Human Rights often automatically cross-files with EEOC.

Option 3: Private Lawsuit

In some circumstances, employees may file lawsuit in court:

  • After exhausting administrative processes
  • After receiving Right to Sue letter from EEOC
  • Within time limits specified in Right to Sue letter

Consult employment attorney for guidance on litigation options and deadlines.

Retaliation Protections

North Dakota and Federal Law prohibit retaliation against employees who:

  • Oppose discriminatory practices
  • File discrimination complaints
  • Participate in investigations or proceedings
  • Request reasonable accommodations

Protected Activities:

  • Filing internal complaint
  • Filing charge with ND Department of Labor or EEOC
  • Testifying in investigation or proceeding
  • Discussing discrimination concerns with supervisor/HR

Prohibited Retaliatory Actions:

  • Termination
  • Demotion
  • Pay reduction
  • Undesirable reassignment
  • Other adverse employment actions

Note: Retaliation claims can proceed even if underlying discrimination claim is unsuccessful.

Whistleblower Protections

North Dakota Century Code § 34-01-20:

Employers generally cannot take disciplinary action against employees who report violations or suspected violations of:

  • Federal, state, or local law
  • Rules or regulations
  • Misuse of public resources

Protected Reporting:

  • Reports made in good faith
  • To employer, government agency, or law enforcement
  • Regarding violations that create substantial and specific danger to public health or safety

Remedies:

  • Reinstatement
  • Back pay
  • Restoration of benefits
  • Attorneys’ fees

Deadline: Generally must file complaint within 300 days

Resources for Discrimination Issues

North Dakota Resources:

Federal Resources:

Legal Assistance:

  • Legal Services of North Dakota: (701) 746-9947 / https://legalassist.org/
  • State Bar Association Lawyer Referral: (701) 255-1404
  • Private employment attorneys: Consult local bar association

Tax Information

North Dakota State Income Tax

Tax Structure

Type: Progressive income tax with graduated rates
Administering Agency: North Dakota Office of State Tax Commissioner
Official Source: https://www.tax.nd.gov/

2025 Tax Brackets (for single filers):

Taxable Income Tax Rate
$0 – $47,450 1.1%
$47,450 – $115,300 2.04%
$115,300 – $213,050 2.27%
$213,050 – $458,350 2.64%
Over $458,350 2.9%

Note: Brackets differ for married filing jointly and other filing statuses. Verify current rates with North Dakota Tax Commissioner.

Standard Deduction (2025):

  • Single: $15,050
  • Married Filing Jointly: $30,100
  • Head of Household: $22,575

Source: North Dakota Office of State Tax Commissioner

Remote Work Tax Considerations

General Principle: Physical Presence

Key Concept: For individual income tax purposes, taxation is generally based on where the work is physically performed.

Scenario 1: North Dakota Employer, Employee Works in North Dakota

  • Employee subject to North Dakota income tax
  • Employer withholds North Dakota income tax
  • Straightforward taxation

Scenario 2: North Dakota Employer, Employee Works in Another State

  • Employee may owe income tax to state where they physically work
  • Employee may need to file nonresident return in work state
  • May create nexus/withholding obligations for employer in other state
  • North Dakota may also tax if employee is ND resident
  • Potential for tax credits to avoid double taxation

Scenario 3: Out-of-State Employer, Employee Works in North Dakota

  • Employee generally owes North Dakota income tax
  • Out-of-state employer may have ND withholding obligations
  • Depends on employer’s nexus with North Dakota

⚠️ Complex Issues:

  • Convenience of employer rules (some states)
  • Reciprocal agreements (North Dakota has limited agreements)
  • Tax credit calculations
  • Apportionment of income
  • Multiple state filing requirements

Professional Guidance Essential: Multi-state tax situations require consultation with tax professionals familiar with both states’ laws.

Employer Tax Obligations

Unemployment Insurance Tax

North Dakota Job Service administers unemployment insurance.

Coverage:

  • Employers with payroll in North Dakota generally must register
  • Required if: pay $1,500+ in wages in calendar quarter OR employ one or more persons for 20+ weeks

Tax Rate:

  • Variable based on experience rating
  • New employers: Assigned standard rate
  • Rates adjusted annually based on claims history
  • Check with ND Job Service for current rates

Contact:

Workers’ Compensation Premiums

North Dakota Workforce Safety & Insurance (WSI)

Funding: Employer-funded through premiums (not a tax per se, but mandatory contribution)

Rate Determination:

  • Based on employee classification codes
  • Experience rating affects premiums
  • Industry risk level
  • Claims history

For remote workers: Premium classification may depend on type of work performed, not location.

Contact: (800) 777-5033 / https://www.workforcesafety.com/

Business Nexus and Tax Obligations

Sales Tax

North Dakota Sales and Use Tax:

  • 5% state rate
  • Local jurisdictions may add up to 3.5%
  • Applies to retail sales of tangible personal property and certain services

Remote Sellers:

  • Economic nexus threshold: $100,000 in sales OR 200 transactions in North Dakota
  • Remote sellers meeting threshold must collect and remit sales tax

Source: North Dakota Office of State Tax Commissioner – https://www.tax.nd.gov/

Corporate Income Tax

Rate: 1.41% to 4.31% graduated rates (2025)

Nexus Considerations:

  • Having employees working in North Dakota may create nexus
  • Could trigger corporate income tax filing requirements
  • May affect sales tax obligations
  • Consult tax professional for nexus determinations

Federal Tax Considerations

Employer Responsibilities

Regardless of work location, employers generally must:

Social Security and Medicare (FICA):

  • Withhold 6.2% for Social Security (up to wage base)
  • Withhold 1.45% for Medicare (no wage limit)
  • Pay matching employer portion
  • Additional 0.9% Medicare tax on high earners (employee portion only)

Federal Income Tax:

  • Withhold based on employee’s W-4
  • Deposit taxes according to IRS schedule
  • File quarterly Form 941
  • Provide annual W-2

Federal Unemployment Tax (FUTA):

  • Pay 6.0% on first $7,000 of wages
  • Credit available for state unemployment taxes (typically reduces to 0.6%)

Source: IRS – https://www.irs.gov/businesses/small-businesses-self-employed/employment-taxes

Home Office Deduction

For Employees:

  • Home office deduction for employees generally eliminated by Tax Cuts and Jobs Act (2018-2025)
  • Limited exceptions for certain government officials, Armed Forces reservists

For Self-Employed/Independent Contractors:

  • May deduct qualified home office expenses
  • Must meet regular and exclusive use test
  • Must be principal place of business or used to meet clients/customers

Consult tax professional for specific eligibility and calculation methods.

Tax Resources

North Dakota Resources:

Federal Resources:

Professional Assistance:

  • Licensed CPA (Certified Public Accountant)
  • IRS Enrolled Agent
  • Tax attorney
  • ND Society of CPAs Referral: https://www.ndscpa.org/

Resources

North Dakota State Agencies

North Dakota Department of Labor and Human Rights

  • Website: https://www.nd.gov/labor/
  • Phone: (701) 328-2660 / (800) 582-8032
  • Address: 600 E Boulevard Ave, Dept 406, Bismarck, ND 58505-0340
  • Services: Wage and hour, discrimination, employment law information

North Dakota Workforce Safety & Insurance (WSI)

  • Website: https://www.workforcesafety.com/
  • Phone: (800) 777-5033
  • Address: 1600 E Century Ave, Suite 1, Bismarck, ND 58503
  • Services: Workers’ compensation coverage, claims, safety programs

Job Service North Dakota

  • Website: https://www.jobsnd.com/
  • Phone: (701) 328-4995
  • Services: Unemployment insurance, job listings, workforce development

North Dakota Office of State Tax Commissioner

North Dakota Secretary of State

  • Website: https://sos.nd.gov/
  • Phone: (701) 328-2900
  • Services: Business formation, UCC filings, trademarks

Federal Agencies

U.S. Department of Labor – Wage and Hour Division

U.S. Equal Employment Opportunity Commission (EEOC)

  • Website: https://www.eeoc.gov/
  • Phone: 1-800-669-4000
  • TTY: 1-800-669-6820
  • Services: Discrimination complaints, employer guidance

Internal Revenue Service (IRS)

  • Website: https://www.irs.gov/
  • Phone: 1-800-829-1040 (individuals) / 1-800-829-4933 (businesses)
  • Services: Tax information, forms, publications

Occupational Safety and Health Administration (OSHA)

Legal Assistance

Legal Services of North Dakota

  • Website: https://legalassist.org/
  • Phone: (701) 746-9947 / (800) 634-5263
  • Services: Free legal assistance for qualifying low-income individuals

State Bar Association of North Dakota – Lawyer Referral

  • Website: https://www.sband.org/
  • Phone: (701) 255-1404 / (800) 472-2685
  • Services: Attorney referrals for employment law, business law

Required Workplace Posters

Employers must display certain posters at worksites. Free posters available from:

North Dakota Posters:

Federal Posters:

  • Available at: https://www.dol.gov/agencies/whd/posters
  • Fair Labor Standards Act (FLSA)
  • Equal Employment Opportunity (EEO)
  • OSHA Job Safety and Health
  • Employee Polygraph Protection Act
  • Family and Medical Leave Act (if applicable)
  • USERRA

Note for Remote Workers: Employers should provide electronic access to required posters for remote employees who don’t regularly visit physical worksites.

Frequently Asked Questions

General Questions

Q: Does North Dakota have special laws for remote workers?

A: Generally no. North Dakota employment laws typically apply the same to remote workers as to on-site workers, based on where the work is physically performed. Specific situations may vary.

Q: If I’m a remote worker living in North Dakota but working for an out-of-state company, which state’s laws apply?

A: Generally, laws apply based on where you physically perform the work. For North Dakota residents working remotely in North Dakota:

  • North Dakota minimum wage would typically apply
  • North Dakota workers’ compensation may be required
  • Tax obligations likely exist in both North Dakota and employer’s state (consult tax professional)
  • Specific situations require legal and tax guidance

Wages and Hours

Q: What is North Dakota’s minimum wage for 2025 and 2026?

A: $7.25 per hour for both years (matching federal minimum wage). Tipped employees may be paid $4.86 per hour if tips bring total to at least $7.25. No scheduled increases as of December 2025, but legislative changes possible.

Q: Does North Dakota require overtime pay for remote workers?

A: Generally yes, if the worker is non-exempt under FLSA. Overtime (1.5x regular rate) required after 40 hours per workweek, regardless of work location. Exemptions may apply based on job duties and salary.

Q: Are remote workers entitled to meal breaks in North Dakota?

A: Generally yes, if working shifts exceeding 5 hours and when 2 or more employees are on duty. Break must be at least 30 minutes and can be unpaid if employee is completely relieved of duties. Employers should have policies ensuring remote workers take required breaks.

Classification

Q: How do I know if I’m an employee or independent contractor in North Dakota?

A: North Dakota generally uses the Common Law Test examining about 20 factors related to control and independence. Key considerations include:

  • Degree of control over how work is performed
  • Who provides tools and equipment
  • Method of payment
  • Ability to work for others
  • Investment in business

Classification affects taxes, benefits, and legal protections. Consult North Dakota Department of Labor or legal counsel for determinations. Independent Contractor Verification Application available through ND DOL.

Q: Can remote workers be classified as independent contractors?

A: Possibly, but classification depends on actual working relationship, not work location. Being remote doesn’t automatically make someone an independent contractor. All classification factors must be considered. Misclassification can result in significant penalties.

Workers’ Compensation

Q: Are remote workers covered by North Dakota workers’ compensation?

A: Generally yes, if working from North Dakota for a North Dakota employer with required coverage. However:

  • Coverage depends on facts of each injury (whether arose out of and in course of employment)
  • Home office injuries are fact-specific determinations
  • WSI evaluates each claim individually

For employees working remotely from other states: North Dakota employers generally must obtain coverage in the state where employee physically works.

Q: What if I’m injured while working from home in North Dakota?

A: Report the injury to your employer immediately and seek medical attention if needed. File First Report of Injury with WSI. Coverage determination will be based on specific facts:

  • Were you engaged in work activity?
  • Did injury occur in designated work area?
  • Was activity within scope of employment?

Each claim is evaluated individually. Contact WSI at (800) 777-5033 for guidance.

Leave and Benefits

Q: Does North Dakota require paid sick leave?

A: No, not for private-sector employers. North Dakota does not mandate paid or unpaid sick leave. Federal FMLA may provide unpaid leave for qualifying situations. Many employers voluntarily provide sick leave.

Q: Am I entitled to paid vacation in North Dakota?

A: Not by state law. Vacation is typically a voluntary benefit. If your employer offers vacation:

  • They must follow their stated policies
  • Accrued vacation generally considered earned wages
  • Usually must be paid out upon termination (with limited exceptions)

Q: Does North Dakota have paid family leave?

A: No state paid family leave program. Federal FMLA provides up to 12 weeks unpaid leave for qualifying employees with qualifying employers. Some employers voluntarily provide paid parental leave.

Discrimination and Harassment

Q: Are remote workers protected from discrimination?

A: Yes. Anti-discrimination laws apply to remote workers same as on-site workers. Prohibited discrimination includes actions based on race, color, religion, sex, national origin, age, disability, and other protected characteristics under North Dakota and federal law.

Q: Can harassment occur in a remote work environment?

A: Yes. Harassment via email, video meetings, chat platforms, and other virtual communications is prohibited. Employers must prevent and address harassment in remote settings same as physical workplaces.

Q: How do I report discrimination or harassment as a remote worker?

A: Follow your employer’s complaint procedures first. If unresolved, you can file complaints with:

  • North Dakota Department of Labor and Human Rights: (701) 328-2660
  • EEOC: 1-800-669-4000
  • Consult employment attorney for guidance

Generally 300 days to file charge with ND agency.

Taxes

Q: Do I pay North Dakota income tax if I work remotely from North Dakota?

A: Generally yes, if you are a North Dakota resident or perform work while physically in North Dakota. Tax obligations can be complex for multi-state situations. Consult tax professional.

Q: If I live in North Dakota but work remotely for a company in another state, do I pay taxes in both states?

A: Potentially. Generally:

  • North Dakota taxes residents on all income
  • Other state may tax income for work performed there (depends on state)
  • Tax credits may prevent double taxation
  • Consult CPA or tax professional familiar with both states

Q: Does my employer need to withhold North Dakota income tax?

A: Generally yes, if you perform work in North Dakota. Employers should verify withholding obligations with North Dakota Office of State Tax Commissioner and consult tax professionals for multi-state situations.

General Compliance

Q: What posters must be displayed for remote workers?

A: Same posters as for on-site workers. For remote-only workers, employers should provide electronic access to required posters. Required posters include state (minimum wage, human rights, workers’ comp) and federal (FLSA, EEO, etc.) posters.

Q: Where can I get more information specific to my situation?

A: This guide provides general information. For specific situations:

  • Legal questions: Employment attorney
  • Tax questions: CPA or enrolled agent
  • Workers’ comp: WSI at (800) 777-5033
  • Wage/hour: ND Department of Labor at (701) 328-2660
  • Discrimination: ND Department of Labor or EEOC

Others

South Dakota
Montana
Minnesota
Wyoming
Nebraska

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.