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Minimum Wage: 4 Facts About North Dakota's Minimum Wage

By    |   Wednesday, 27 Jan 2016 05:20 PM

North Dakota adheres to the federal minimum wage of $7.25 per hour, even as many cities and states are opting to raise their own minimums to provide workers with a living range. However, despite this low pay threshold, many entry level employees are still finding prosperity in the state.

Here are four facts about the minimum wage in North Dakota.

1. Despite a comparably low minimum wage, personal income is rising quickly in North Dakota. According to data from the Bureau of Economic Analysis, the median annual salary in the state has more than doubled over the past decade, to about $53,000 as of 2013, The Daily Caller noted. In addition, the state ranks third in per capita income, behind only Washington, DC, and Connecticut.

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2. Employees who earn tips in North Dakota make a minimum wage of $4.86 per hour, according to Nolo. According to federal and state laws, employers can count 33 percent of earned tips toward minimum wage, allowing them to pay wait staff and other employees who earn tips a lower hourly wage than the federal minimum.
http://www.nolo.com/legal-encyclopedia/north-dakota-laws-tipped-employees.html

3. Many cities in North Dakota report an “effective minimum wage” of about twice the federal level, according to Watchdog.org North Dakota Bureau. These high paying entry level positions in the state – for example, Walmart employee or fast food cashier – are a function of supply and demand. There simply aren’t enough people to fill these roles, forcing employers to pay more. As a result, the oil fields of North Dakota are often referred to as “boomtown,” with many Americans traveling there to earn more than they otherwise could.

4. Although wages are higher than average in North Dakota, many workers are still not earning a living wage. The Massachusetts Institute of Technology has calculated the living wage for a variety of familial configurations in each state based on the average costs for housing, food, medical care, child care, transportation, and other expenses.

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At minimum wage, even a single person with no children would be unable to afford the most basic standard of living in the state. The common entry level pay of $14 would only be considered a living wage for single adults, or for two adults both working with one or two children. Single parents and families where one parent stays home would need to make substantially more money to survive without aid in North Dakota.

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North Dakota adheres to the federal minimum wage of $7.25 per hour, even as many cities and states are opting to raise their own minimums to provide workers with a living range. However, despite this low pay threshold, many entry level employees are still finding prosperity.
minimum wage, facts, North Dakota
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2016-20-27
Wednesday, 27 Jan 2016 05:20 PM
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