1. What is the current minimum wage for tipped workers in North Dakota?
The current minimum wage for tipped workers in North Dakota is $4.86 per hour. This is the federal minimum wage for tipped employees, as North Dakota does not have a state-specific minimum wage for tipped workers.
2. Is there a difference between the tipped minimum wage and regular minimum wage in North Dakota?
Yes, there is a difference between the tipped minimum wage and regular minimum wage in North Dakota.According to the Department of Labor, the regular minimum wage in North Dakota is $7.25 per hour. However, employers may pay a lower tipped minimum wage of $4.86 per hour, as long as the employee’s tips combined with the employer’s direct wages equals at least $7.25 an hour.
This means that tipped employees in North Dakota must receive a base rate of at least $4.86 per hour from their employer, but if their tips do not bring their total hourly earnings up to the standard minimum wage of $7.25, the employer must make up the difference.
Additionally, it is important to note that some municipalities in North Dakota have adopted higher minimum wages within their city or county limits. These local laws may override the state minimum wage and potentially impact both regular and tipped employees’ compensation.
3. How much do tipped workers make per hour in North Dakota?
As of 2021, the minimum wage for tipped workers in North Dakota is $4.86 per hour. However, if an employee’s tips combined with their wages do not equal the regular minimum wage rate of $7.25 per hour, the employer must make up the difference.
4. Has the minimum wage for tipped employees increased in North Dakota recently?
There have been recent discussions and proposals in North Dakota to increase the minimum wage for tipped employees, but as of 2021, there has not been a change in the minimum wage for tipped employees in the state. The minimum wage for tipped employees remains at $4.86 per hour, while the regular minimum wage is $7.25 per hour.
5. Are there any pending changes to the tipped minimum wage in North Dakota?
As of 2021, there are no pending changes to the tipped minimum wage in North Dakota. The current minimum wage for tipped employees is $4.86 per hour and has remained unchanged since 2013. Any changes to the minimum wage, including the tipped minimum wage, would need to be approved by the state legislature and signed into law by the governor.
6. Can a tipped worker afford a living wage in North Dakota?
It is difficult to answer this question definitively as the cost of living and tipped worker wages can vary greatly depending on factors such as location, industry, and individual circumstances. However, it is generally accepted that tipped workers in North Dakota, like those in many other states, face challenges in affording a living wage.
According to the National Low Income Housing Coalition’s Out of Reach report for 2021, a full-time worker in North Dakota would need to earn at least $14.30 per hour to afford a modest two-bedroom apartment without spending more than 30% of their income on rent. This would be challenging for many tipped workers who often earn below minimum wage and rely on tips as a significant portion of their income.
In addition to housing costs, other essential expenses such as food, healthcare, transportation, and childcare can also strain a tipped worker’s budget. According to MIT’s Living Wage Calculator for North Dakota, which takes into account these expenses along with local taxes and government assistance programs, the living wage for a single adult ranges from $10.98 per hour (for someone with no children) to $24.41 per hour (for someone with four children). The hourly wages for tipped workers in North Dakota are typically lower than these amounts and could make it difficult for them to afford their basic needs without additional support or multiple jobs.
Overall, while some tipped workers may be able to afford a living wage in North Dakota based on their individual circumstances and location within the state, many are likely struggling to make ends meet. Numerous studies have shown that tipped workers are at higher risk of poverty and economic insecurity compared to non-tipped workers due to lower hourly wages and unpredictable tip earnings. Thus, it appears challenging for most tipped workers in North Dakota to afford a living wage without additional support or increased wages.
7. How does North Dakota’s minimum wage for tipped employees compare to neighboring states?
North Dakota’s minimum wage for tipped employees is $4.86 per hour, which is significantly lower than the federal minimum wage for tipped employees of $2.13 per hour and lower than neighboring states like Minnesota ($8.15), South Dakota ($4.26 plus tips) and Montana ($8.65). Wyoming also has a lower minimum wage for tipped employees, at $2.13 per hour.
8. Are employers required to make up the difference if a tipped worker’s wages fall below the standard minimum wage in North Dakota?
No, employers are not required to make up the difference if a tipped worker’s wages fall below the standard minimum wage in North Dakota. However, if an employee’s total earnings (including tips) do not equal the state minimum wage for all hours worked, the employer is required to make up the difference. This is referred to as the “tip credit” provision, where employers can use employees’ tips towards meeting their obligation for paying the minimum wage.
9. Do cities within North Dakota have their own separate tipped minimum wage rates or is it consistent throughout the state?
Cities within North Dakota do not have their own separate tipped minimum wage rates. The state’s minimum wage for tipped employees is consistent throughout all cities.
10. Has there been any discussion of increasing the minimum wage for tipped employees in North Dakota?
There has been some discussion about increasing the minimum wage for tipped employees in North Dakota. In 2018, a ballot measure to raise the minimum wage for all workers, including tipped employees, was defeated by voters. However, there have been proposals in the state legislature to raise the minimum wage for tipped employees to match the regular minimum wage. These proposals have not yet been passed into law. Some advocates argue that increasing the minimum wage for tipped employees would help address income inequality and provide more stability for workers in the service industry. Others argue that it could lead to job loss or reduced hours for restaurant employees and impact small businesses. Overall, there is ongoing debate and discussion about this issue in North Dakota.
11. Does North Dakota have a different minimum wage for servers versus other types of tipped workers?
Yes, North Dakota has a different minimum wage for servers and other types of tipped workers. The state’s minimum wage for these workers is $4.86 per hour, as long as their tips bring their total hourly wage up to at least $9.50. If their tips do not bring them up to this amount, the employer is required to pay the difference.12. How does North Dakota’s current tipped employee minimum wage compare to federal standards and neighboring states’ rates?
As of 2021, North Dakota’s current tipped employee minimum wage is $4.86 per hour, which is lower than the federal standard of $2.13 per hour. However, if employees do not earn enough in tips to bring their total hourly pay to at least the standard minimum wage of $7.25 per hour, employers are required to make up the difference.
Some neighboring states such as Montana and Minnesota also have a two-tiered system for tipped employees with a lower minimum wage for those who receive tips. However, other states like South Dakota and Nebraska have an equal minimum wage rate for all employees, regardless of whether they receive tips or not.
It should be noted that some cities in North Dakota, such as Fargo and Grand Forks, have implemented a higher local minimum wage rate for all workers, including tipped employees. For example, in 2021, the city of Fargo has a minimum wage of $11.50 per hour while Grand Forks has a minimum wage of $11.00 per hour.
13. In North Dakota, are employers allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees?
No, North Dakota does not allow employers to use tips towards fulfilling their obligation to pay the standard minimum wage for employees. The minimum wage in North Dakota is currently $7.25 per hour and this applies to all employees, regardless of whether they receive tips or not. Employers are required to pay the full minimum wage as well as any tips received by employees belong solely to them.
14. Is there a plan to increase the tip credit percentage in North Dakota, which currently has one of the lowest rates nationwide?
I am not aware of any specific plans to increase the tip credit percentage in North Dakota. However, various groups and organizations may lobby for changes to state labor laws and regulations, so it is possible that the issue could be raised in the future. If you would like to see the tip credit percentage increased, you could reach out to your state legislators and advocate for this change.
15. Are there exemptions from paying the state’s established tip credit rate for certain industries or professions in North Dakota?
No, the tip credit rate applies to all tipped employees in North Dakota, regardless of industry or profession. However, certain industries may have their own minimum wage requirements that exceed the state’s minimum wage. Employers must always ensure that their employees are receiving at least the state’s minimum wage after taking the tip credit into account.
16. Can legislators override local laws regarding the establishment of a separate tipped worker minimum wage rate in [State?
It depends on the specific laws and regulations of [State]. In some states, the legislature may have the power to override local laws. However, in other states, local governments may have more autonomy in setting certain employment laws and regulations. It is best to consult with a legal expert or look up the specific laws in [State] to determine if legislators can override local laws regarding tipped worker minimum wage rates.
17. Has North Dakota recently adjusted its tip pooling laws affecting server wages?
As of October 2021, there have not been any recent changes to North Dakota’s tip pooling laws affecting server wages. Tip pooling is still permitted, as long as all tips are distributed among employees who “customarily and regularly” receive tips, such as servers, bartenders, and bussers. Employers are not allowed to keep any portion of tips for themselves or use them to cover business expenses.
18. How do North Dakota’s current hourly wages for non-tipped workers compare with those applied specifically to restaurant personnel?
According to the North Dakota Department of Labor and Human Rights, the current minimum wage for non-tipped workers in North Dakota is $7.25 per hour. This minimum wage also applies to restaurant personnel who do not receive tips. This is consistent with the federal minimum wage rate.
However, tipped workers in North Dakota are subject to a different hourly wage rate. The minimum wage for tipped employees in North Dakota is $4.86 per hour, as long as they receive at least $3.39 per hour in tips and their combined wages (hourly pay plus tips) equal or exceed the regular minimum wage rate of $7.25 per hour.
In comparison, the federal minimum cash wage for tipped employees is $2.13 per hour, but if their tips do not bring their total hourly earnings up to the regular minimum wage rate of $7.25 per hour, employers are required to make up the difference.
Overall, North Dakota’s current hourly wages for non-tipped workers are consistent with those applied specifically to restaurant personnel who do not receive tips. However, tipped workers in North Dakota may receive a lower hourly wage due to the expectation that they will make up the difference through tips.
19. In North Dakota, are separate restaurants and other establishments categorized differently with regards to applying differing hourly rates for employees who receive tips?
No, in North Dakota, all tipped employees must be paid at least the state minimum wage, regardless of the type of establishment they work in. The current minimum wage for tipped employees is $4.86 per hour. Tips can be used to make up the difference between the minimum wage and the regular hourly rate of $7.25 per hour. 20 Where can I access (or has anyone correlated) information about how each of the US states and territories have approached minimum wage laws for tipped workers?
One resource for information on minimum wage laws for tipped workers in the US is the Department of Labor’s Wage and Hour Division website. They have a page dedicated to Tipped Employees which includes an overview of federal minimum wage laws, as well as links to state-specific regulations.
Additionally, the National Restaurant Association has a state-by-state guide for tipped employees’ minimum wage rates and tip credit laws.
Other organizations, such as the Economic Policy Institute and National Employment Law Project, also provide data and resources on minimum wage policies for tipped workers in different states.
It is important to note that each state may have its own specific laws and regulations regarding minimum wage for tipped workers, so it is best to refer to official government websites or reputable organizations for up-to-date information.