Labor & Employment

HB 1602 changes North Dakota's public employee retirement system by closing the traditional defined benefit plan to new hires starting January 1, 2025. Instead, new permanent employees (excluding those in specific exception roles like teachers, law enforcement, or university staff) must join a defined contribution retirement plan. Existing members who joined before 2025 remain in the defined benefit plan, and political subdivisions (like cities or counties) may choose whether to participate in the new defined contribution plan. The bill clarifies that local governments are not required to offer either retirement plan, and no fees apply if they withdraw from the defined contribution system.

HB 1606 amends North Dakota's state employee sick leave policy to set a minimum of ten hours (one working day) and a maximum of one and one-half working days per month for sick leave, based on an employee's tenure. It also requires that employees with at least ten years of continuous state service receive a lump sum payment equal to one-tenth of their final salary for unused sick leave. The bill mandates that state agencies develop and submit their own sick leave policies to the Office of Management and Budget for approval, ensuring consistency across departments.

HB 1608 would require North Dakota employers to grant employees at least 24 consecutive hours of leave for rest or religious observance on Sundays or recognized religious holidays, without restricting the duration. It prohibits employers from denying such leave and mandates that the labor commissioner investigate complaints, impose a $500 fine for violations, and may refer cases to a state attorney. Employers are exempt if leave denial results from an unavoidable emergency. The bill, which failed to pass the legislature in February 2025, is a proposed policy change affecting all North Dakota employees seeking religious leave.

HB 1060 would amend North Dakota Century Code sections 65-01-15, 65-01-15.1, and 65-01-15.2 to automatically provide workers' compensation coverage for work-related injuries sustained by correctional officers. If passed, it would eliminate the need for these officers to prove their injuries were job-related to receive benefits. The bill directly affects correctional officers working in North Dakota state facilities. This change would simplify the compensation process for affected officers under the existing workers' compensation system.

Relating to an income tax deduction for cash and noncash tips received by a food or beverage service establishment employee; and to provide an effective date.