The Employer’s 2024 Guide to Hiring Employees in North Dakota

Nicole Rothstein

If you have a North Dakota business and are looking to grow your team, you’re in the right place. This 2024 guide provides seven steps to take when hiring employees in North Dakota.

    If you are a new employer, there are several tasks to tackle before hiring your first employee. First is acquiring a Federal Employment Identification Number (FEIN), which is necessary to hire employees, pay taxes, and apply for business permits.

    You must also register your business with the Secretary of State in North Dakota. Registration details and forms required may differ based on the business entity type (single-member LLC versus S corp, for example). More information can be found on the North Dakota New Business Registration site.

    Additionally, you’ll need two types of insurance. Unemployment insurance is required to cover qualifying individuals who are out of work (through no fault of their own) while they search for another job. See North Dakota’s Employer Guide to Unemployment Insurance for additional information.

    Your North Dakota business is required to have workers’ compensation insurance coverage in cases of workplace-related injury or illness. North Dakota Workforce Safety & Insurance can help you establish a safe workplace and support injured workers.

    State and federal law also require North Dakota employers to display certain labor law posters throughout their workplace. The specified posters can be found on the North Dakota Department of Labor website and the U.S. Department of Labor website.

    2. Understand employee rights

      Understanding federal and state employment laws and the rights your workers have in North Dakota are important responsibilities for an employer.

      North Dakota’s minimum wage is the same as the federal minimum wage: $7.25 per hour. For non-exempt employees, hours worked per week exceeding 40 hours should be paid an overtime rate equal to time-and-a-half of the employee’s regular wages. Also, in most situations where shifts exceed five hours, workers must be given a 30-minute break for meals.

      State law requires that employees be paid at least once per calendar month. All final wages are due to an employee on the regularly scheduled payday, and any unused paid time off is paid out to the employee at the normal rate of pay.

      Additionally, North Dakota has laws against discrimination. Protected categories include race, ethnicity, sex, national origin, religion, and disability. This law applies not just to hiring but also in regard to promotions.

      North Dakota law also specifies working conditions for minors, particularly those between 14 and 16 years of age. This includes a limit on the number of work hours allowed per week, as well as restrictions on tasks deemed hazardous—such as roofing, driving, and operating machinery.

      3. Know your needs

        It might be obvious that you need assistance, but have you determined specific details for your job opening? Start by making a list of the roles and responsibilities you would like to have filled. Consider what skills and experience are required, if employees should be full-time or part-time, and if remote workers or independent contractors may qualify.

        Take inventory of what your business will offer in exchange for the skills and experience you require. Unsure about compensation? Check out this useful formula for determining the perfect salary for new employees.

        Businesses can also make themselves more attractive to candidates by offering sought-after benefits such as healthcare, paid time off, a 401(k) match, flexible work schedules, and wellness programs. Consider working with Gusto to provide affordable health and financial benefits to your team.

        Use these details to create an accurate and compelling job description to share via online job boards, social media networks, professional groups, and by word of mouth.

        4. Consider your company culture

          Company culture is complex. The way you set up office space, your reporting structure, and the flexibility you offer to employees all play a role. Do you know which type of company culture your business falls under? Learn more about the four main types of company culture and check out examples of each type.

          A positive company culture can have your employees feeling excited to come to work, grow your customer loyalty, and improve your bottom line. It can also be an excellent way to improve recruitment and retention. Once you’ve assessed your company culture (which should include surveying employees about their experience and perception), find out how to improve the culture at your business.

          Communicating your culture externally is key when it comes to recruiting. Include relevant information on your website, social media presence, and in your job descriptions. Consider company culture as you evaluate candidates, too. Increase your chances of finding an employee who fits well by providing applicable assessments, following up on references, allowing time for current employees to talk with candidates, and including culture-relevant questions in your interviews.

          5. Establish effective screening, offering, and onboarding processes

            A successful hiring process includes several steps. Whether you’re hiring your first employee or adding more, you should carefully plan and document strategies for screening and offering positions to applicants, as well as onboarding new employees.

            Gusto has all the tools you need in one place to build and grow your team. Find, welcome, and support new employees from the start with extensive hiring options that include personalized offer letters and an onboarding checklist.

            Also, check out our blog to help with things like deciding which interview questions to ask, creating a job offer letter, negotiating salary, and building a great onboarding experience. Make your efforts even easier with these six hiring email templates, including rejection, offer, and welcome emails.

            6. Complete paperwork

              Every part of running a business comes with its share of paperwork, and hiring is no exception. After hiring a new employee, they will need to complete an I-9, Employment Eligibility Verification. This form is required to verify the identity and employment authorization of all citizens and noncitizens in the United States.

              Additionally, new hire reporting must be completed within 20 days of an employee’s first day. Employers have an obligation to report new workers to the North Dakota Department of Human Services for child support purposes.

              Many companies also choose to have employees sign off on their own paperwork and documentation, such as an employee handbook, employee contracts, benefits documents, and nondisclosure agreements.

              7. Prepare for payroll

                While it’s an important part of hiring workers, payroll can be an overwhelming task for new employers. Luckily, Gusto is well-versed on the subject of payroll and offers many helpful resources.

                We’ve created hourly and salary paycheck calculators to assist you in navigating the world of payroll, including federal and state taxes. These pages have information and links specific to North Dakota and also include explanations on topics such as the Federal Insurance Contributions Act, Medicare and information to include on a pay stub.

                New employees are required to complete a W-4, Employee’s Withholding Certificate. The information on this form is critical for calculating the correct amount to withhold in federal income taxes from employees’ pay. The W-4 should be kept on file and updated any time a major life event happens that impacts taxes, such as marriage, divorce, or the birth of a new child.

                The state also provides useful information on income tax withholding in North Dakota.

                From Bismarck to Grand Forks, running a business in North Dakota is a big accomplishment that comes with many responsibilities. We hope this 2024 hiring guide provides you with tools and resources to support your hiring processes. Check out our comprehensive offerings of products and services to continue growing your business.

                Nicole Rothstein Nicole Rothstein covers a variety of topics related to finance, small business advocacy, and workforce and regional development. In addition to writing for and managing several blogs and publications, she has worked closely with federations, chambers of commerce, nonprofits, small businesses and financial institutions to create impactful content marketing strategies.
                Back to top