North Dakota Narrows Scope of Permitted Paycheck Deductions
Author: Rena Pirsos, XpertHR Legal Editor
Effective August 1, 2013, the types of payroll deductions that North Dakota employers will be permitted to make will become more limited under amended rules. +N.D.C.C. § 34-14.04.1. Other than amounts employers are required to withhold by state or federal law or court order, employers will be permitted to deduct only the following from employee paychecks:
- Advances paid to employees, other than undocumented cash;
- A recurring deduction authorized by an employee in writing;
- A nonrecurring deduction authorized by an employee in writing, if the source of the deduction is specifically noted; and
- A nonrecurring deduction for damage, breakage, shortage or negligence, if authorized by the employee at the time of the deduction.
Current rules are a bit broader, allowing employers to make deductions for:
- Required state and federal taxes;
- Court-ordered amounts (e.g., for wage garnishments);
- Compensation for documented cash advances made to an employee; and
- Deductions the employee has authorized in writing.
Additional Resources
Employee Compensation > Minimum Wage: North Dakota > Deductions from Pay