Knowing the ins and outs of the North Dakota employee separation process is the key to ensuring your organization isn’t exposed to unnecessary legal risk. Because employee termination laws and employer obligations vary between states, keeping track of the laws can get confusing.
Here’s an employee separation checklist and guide to North Dakota’s final paycheck requirements, separation notices, severance agreements, reporting employee termination, and withdrawing registration to do business in the state.
North Dakota Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in North Dakota
North Dakota requires that separated employees receive all due wages on the next scheduled payday. The requirement is the same, whether they were fired or resigned. Upon termination, all earned, unused leave must be paid out.
However, employers may withhold payment for unused leave if an employee voluntarily resigns, provided certain conditions are met: the employee was informed of this policy at hiring, has worked less than a year, and has given fewer than five days’ notice.
Final paychecks must be sent by certified mail to the employee’s designated address, or delivered as otherwise agreed by both parties. Employers who fail to comply with these wage payment requirements may be liable for the unpaid wages plus an additional 30 days’ wages at the employee’s regular pay rate.
2. Firing Employees in North Dakota
Firing employees in North Dakota is a simple process, thanks to the state’s at-will employment policy. Unlike other states, employers have no obligation to provide any kind of separation notice upon termination.
3. Severance Agreements in North Dakota
When employers in North Dakota execute claims releases with their employees, they must clearly specify the claims being released under both federal and state laws. Employees may waive state law claims under the North Dakota Human Rights Act, North Dakota Equal Pay Act, North Dakota’s minimum wage and overtime laws, and leave laws. Ensure that the release only covers claims arising before the agreement’s effective date, not future claims.
Furthermore, employers should be mindful of federal regulations, particularly the NLRB’s 2023 McLaren decision that restricts the use of non-disparagement and confidentiality provisions in severance agreements.
4. Reporting Employee Termination in North Dakota
When an employee has an Income Withholding for Support Order (“IWO”), promptly report the employee’s termination to the child support agency, court, or attorney that issued the IWO. Employers may register for online reporting with the Federal Office of Child Support Enforcement here.
Alternatively, you may report an employee’s termination by completing the Notification of Employment Termination or Income Status section of the IWO. Fax or mail it to the child support agency that issued it. You will need the following information:
- Employee Name
- Employee Case Identifier
- Last Known Home Address
- New Employer Address (if known)
- Date of Employee Separation
5. Withdraw Registration to do Business in North Dakota
If separating from your last North Dakota employee ends your business dealings in the state, you may formally withdraw your business registration in the state. For-Profit Corporations, Non-Profit Corporations, and Limited Liability Companies (LLCs) should apply for a Certificate of Withdrawal using North Dakota’s online portal.
Stay Compliant with North Dakota Employee Separation Requirements
Becoming familiar with North Dakota’s Employee Separation Agreement requirements is the key to complying with employee rights and mitigating legal liability to your organization.
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Looking for employee separation laws for a different state? Our interactive map makes it easy to find all employee termination requirements by state.
