Under North Dakota's overtime law, an employer must pay each employee overtime in the amount of 11/2 times the employee's regular pay rate for hours worked in excess of 40 per 7-day workweek (ND Admin. Code Sec. 46-02-07-02).
Overtime need only be computed for actual hours worked. Overtime must be calculated each workweek regardless of the length of the pay period. North Dakota does not require that overtime be paid for hours worked in excess of 8 per day or on weekends (although union contracts often require overtime pay for such work). Vacation days, paid holidays, or sick days (time not worked) do not need to be included in an overtime computation. Nonexempt employees in the private sector cannot be granted compensatory time in lieu of monetary overtime compensation.
Note: Taxi drivers are entitled to overtime pay after 50 hours worked in a week. Hospitals and residential care establishments may adopt, by agreement with their employees, a 14-day overtime period instead of the usual 7-day workweek, if the employees are paid at least time-and-one-half their regular rate for hours worked over 8 in a day or 80 in the 14-day work period, whichever is the greater number of overtime hours.
Because the federal Fair Labor Standards Act (FLSA) applies to virtually all enterprises involved in interstate commerce, most North Dakota employers are covered by the federal law. Employers that are covered by both state and federal law must comply with the law that sets the higher standard of protection for employees. While North Dakota and federal law are similar, there are some major differences between North Dakota's overtime exemption regulations and the federal regulations.