Hiring New Employees in North Dakota: A Legal Guide

Develop a clear job description that outlines the position's responsibilities, required qualifications, and essential functions. Ensure the description complies with North Dakota employment laws and does not contain discriminatory language. This will serve as the foundation for your hiring process.

Advertise the position through appropriate channels and collect Employment Application Forms from candidates. North Dakota is an employment-at-will state, but your application should still avoid questions about protected characteristics (race, religion, age, etc.) to prevent discrimination claims.

Create an application form that collects necessary information while complying with North Dakota employment laws. Avoid questions about protected characteristics. Include authorization for reference checks and a statement that employment is at-will unless otherwise specified in writing.

Review applications and conduct interviews based on job-related criteria. Document your selection process to demonstrate non-discriminatory hiring practices. North Dakota prohibits discrimination based on race, color, religion, sex, national origin, age, disability, and other protected characteristics.

Before making a job offer, obtain a signed Background Check Authorization Form from the candidate. North Dakota follows the Fair Credit Reporting Act (FCRA) requirements for employment background checks. Ensure you provide proper disclosure and obtain written authorization before conducting checks.

Create a form that complies with FCRA requirements, including clear disclosure that a background check will be conducted for employment purposes and obtaining the applicant's written authorization. This must be a standalone document, not buried in other paperwork.

Prepare a formal offer letter outlining the position, compensation, benefits, start date, and employment conditions. Specify that employment is at-will unless you intend to create a contract for a specific term. Include any contingencies such as background checks or drug testing.

If offering employment beyond at-will status, draft an employment contract specifying the term of employment, grounds for termination, compensation, benefits, and other terms. North Dakota generally enforces employment contracts, but ensure terms are clear and not overly restrictive.

Draft an NDA to protect your company's confidential information. In North Dakota, NDAs are generally enforceable if they're reasonable in scope and duration. Clearly define what constitutes confidential information and the employee's obligations regarding this information.

If necessary, draft a non-compete agreement. North Dakota has strict limitations on non-compete agreements under N.D. Cent. Code § 9-08-06, which generally voids contracts restraining lawful trade. However, limited exceptions exist for the sale of goodwill or dissolution of partnerships. Consider using non-solicitation provisions instead, which may be more enforceable.

Complete Form I-9 Employment Eligibility Verification within 3 days of the employee's start date. Examine original documents proving identity and work authorization. Store I-9 forms separately from personnel files. North Dakota employers must comply with federal I-9 requirements.

Have the employee complete Form W-4 (federal) and the North Dakota state tax withholding form. North Dakota uses its own state withholding form (ND-1) that determines state income tax withholding.

Collect the Direct Deposit Authorization Form if the employee wants direct deposit. North Dakota law (N.D. Cent. Code § 34-14-02) requires employers to pay wages at least once each calendar month. Ensure your payroll system complies with state requirements for minimum wage ($7.25/hour, matching federal) and overtime.

Create a form that collects the employee's banking information for direct deposit purposes. While North Dakota doesn't require employers to offer direct deposit, if you do, you'll need proper authorization from employees.

Complete the New Hire Reporting Form and submit to North Dakota's New Hire Reporting Center within 20 days of hire. This is required under N.D. Cent. Code § 34-15-03 to help with child support enforcement.

Complete the form with the required information including employee's name, address, SSN, and date of hire, along with employer information. This can be submitted online through the North Dakota New Hire Reporting Center.

Provide Benefits Enrollment Forms for health insurance, retirement plans, and other benefits. North Dakota doesn't mandate specific benefits beyond those required federally, but if you offer benefits, provide clear information about eligibility, enrollment periods, and coverage details.

Create forms for each benefit program you offer, clearly explaining options, costs, and enrollment deadlines. Include acknowledgment of receipt of benefit information and summary plan descriptions as required by ERISA for certain benefits.

Have the employee complete an Emergency Contact Information Form. While not legally required in North Dakota, this is a best practice for workplace safety and emergency response.

Create a simple form collecting names and contact information for individuals to contact in case of workplace emergency involving the employee.

Give the new employee your company's Employee Handbook and have them sign an acknowledgment of receipt. The handbook should cover workplace policies, procedures, and expectations, including anti-discrimination policies, leave policies, and disciplinary procedures that comply with North Dakota law.

Ensure your handbook includes all relevant policies and complies with North Dakota and federal employment laws. Key areas to address include at-will employment disclaimer, anti-discrimination policies, leave policies (including FMLA if applicable), workplace safety, and disciplinary procedures. Have it reviewed by legal counsel familiar with North Dakota employment law.

Ensure you have workers' compensation coverage through North Dakota Workforce Safety & Insurance (WSI), the state's exclusive provider. All employers in North Dakota with one or more employees must have workers' compensation coverage under N.D. Cent. Code § 65-01-01.

Post all required federal and North Dakota employment posters in a conspicuous location. These include minimum wage, workplace safety, equal employment opportunity, and unemployment insurance notices. North Dakota-specific posters can be obtained from the North Dakota Department of Labor and Human Rights.

Schedule and conduct an orientation session to introduce the new employee to your workplace, policies, procedures, and safety protocols. Document the orientation to demonstrate compliance with training requirements, particularly for safety-related matters.