Deductions from wages - North Dakota

Summary of differences between federal and state regulations

Federal regulations restrict the types of deductions that can be made from an employee’s wages or salary. Deductions can be made in certain cases, but the legality often depends on the nature and purpose of the deductions, as well as the status of the employee as exempt or non-exempt.

Under North Dakota law, legal deductions include required state and federal withholdings, any items ordered by a court, and documented payroll advances. Nothing else may be deducted without the employee’s specific written authorization.

Except for those amounts that are required under state or federal law to be withheld from employee compensation or where a court has ordered the employer to withhold compensation, an employer may withhold from the compensation due employees only for:

• Advances paid to employees, other than undocumented cash.
• A recurring deduction authorized in writing.
• A nonrecurring deduction authorized in writing, when the source of the deduction is cited specifically.
• A nonrecurring deduction for damage, breakage, shortage, or negligence must be authorized by the employee at the time of the deduction.

An employer can not deduct the costs of a medical exam or records required by the employer as a condition of employment.

State

Contact

North Dakota Department of Labor

Regulations

North Dakota Century Code §34-14-04.1, Limitations on withholdings.

www.legis.nd.gov/cencode/t34c14.pdf

North Dakota Century Code §34-01-15, Employer to pay for medical examination – penalty for violation.

www.legis.nd.gov/cencode/t34c01.pdf

Federal

Contact

Wage and Hour Division

Regulations

For non-exempt employees:

29 CFR Part 531, Wage Payments under The Fair Labor Standards Act of 1938

For exempt employees:

29 CFR Part 541, Subpart G, Salary Requirements