In 1889, the North Dakota Constitution created the Department of Agriculture and Labor. Voters in the 1960 primary election approved a constitutional amendment authorizing the legislature to establish a Department of Labor separate from the Department of Agriculture. In 1965, the legislature created the Department of Labor. The departments functions at that time consisted of establishing and enforcing standards for wages and working conditions in the state. In 1983, the state legislature passed N.D.C.C. ch. 14-02.4, the North Dakota Human Rights Act, which authorized the Department of Labor to investigate complaints alleging discriminatory employment practices. In 1999, the state legislature added to the departments human rights responsibilities when it enacted N.D.C.C. ch. 14-02.5, the North Dakota Housing Discrimination Act, which authorized the department to investigate complaints of discriminatory housing practices. In 2000, the Human Rights Division was established within the Department of Labor. Additional amendments to the Human Rights Act were passed in 2001 authorizing the departments Human Rights Division to enforce all remaining areas protected under the Act, including public accommodations, public services, advertising for public accommodations or services and credit transactions. From its inception in 1966 until 1998, the Department of Labor was administered by a Commissioner who was elected on a no-party ballot to a term of four years. In 1995, the Legislative Assembly passed legislation making the Commissioner of Labor an appointee of the Governor effective January 1, 1999, or upon the vacancy of the office. The states last elected Commissioner, Craig Hagen, resigned his office in August of 1998. Since that time, the Commissioner of Labor has served at the pleasure of the Governor and is a member of the Governors Cabinet.
Commissioners of Labor
Orville Ike Hagen Byron Knutson Craig Hagen Tony Clark Mark D. Bachmeier1 Leann K. Bertsch Lisa K. Fair McEvers 1966-1986 1987-1990 1991-1998 1999-2000 2001-2004 2004-2005 2005-present
Department Organization
The Commissioner administers the North Dakota Department of Labor. During the 2005-07 biennium, the Commissioner had a staff of ten FTE to assist in the duties of the office. The department is divided functionally into two primary areas, administration and investigation/case
1
Mark Bachmeier also served as Interim Labor Commissioner when Craig Hagen departed in August 1998 until the appointment of Tony Clark in September 1999.
management. The departments Business Managers oversee the administrative area, which encompasses the day-to-day management of the agencys operations, budgeting, planning, and support functions. The departments Human Rights Director oversees the case management areas, which encompasses the investigation and resolution of labor and human rights complaints, research, and other related activities. The staff of the department understands that communication and education are vital, and welcome opportunities to speak to employees, employers, housing and service providers, and other citizens to help resolve concerns and help them to better understand their rights and responsibilities under labor and human rights laws. All department staff responds to public inquiries via telephone, email, and in person. In addition, all staff assist in the departments educational efforts by contributing to the development of informational brochures and other reference materials and by participating in educational presentations.
Commissioner Lisa K. Fair McEvers Administration Business Manager Administrative Assistant Office Assistant Compliance Investigator Human Rights Division Wage and Hour Division Human Rights Director Kathy Kulesa
Compliance Investigator
Compliance Investigator
Compliance Investigator
Compliance Investigator
Compliance Investigator
Report biennially to the governor and the legislative assembly concerning activities of the department. Administer the provisions of chapter 34-06 relating to wages and hours, chapter 34-07 relating to child labor, and the provisions of chapter 34-12 relating to labor-management relations. Perform duties as may be required by state law. The commissioner is also required to ensure compliance with the provisions of N.D.C.C. ch. 34-14 on Wage Collection, and receive and review applications for employment agency licenses under N.D.C.C. ch. 34-13. Additionally, the department is responsible for enforcement of the provisions of N.D.C.C. ch. 1402.4, the Human Rights Act, and N.D.C.C. ch. 14-02.5, the Housing Discrimination Act. These responsibilities include: Receiving and investigating complaints alleging discriminatory practices in the state. Educating the public regarding anti-discrimination laws. Studying the nature and extent of discrimination in the state.
The following tables summarize the departments activity relating to Claims for Unpaid Wages filed and closed during the 2005-07 biennium:
Summary of Claims for Wages, 2005-07 Biennium Claims Pending 6/30/2005 49 New Claims Filed 7/1/2005 6/30/2007 Claims Closed 7/1/2005 6/30/2007 Claims Pending 6/30/2007 595 582 62
Claims for Wages Closed, 2005-07 Biennium Claims Closed 582 Average Days to Closure Total Amount Collected 73 $187,589
Claims for Wages Closed, 2005-07 Biennium Settled without Determination 144 Settled after Determination No Merit Determination Small Claims Court for Enforcement Attorney General for Enforcement Referred to US Department of Labor Withdrawn by Claimant Dismissed2 Total Claims Closed 87 82 18 194 1 13 43 582
Claims may be dismissed for a variety of reasons including lack of jurisdiction, lack of evidence, failure of claimant to respond, etc.
Claims for Wages Closed, 2005-07 Biennium by Basis of Claim3 Minimum Wage 6 Unpaid Wages Unpaid Overtime Unpaid Vacation Unauthorized Deductions from Pay Unpaid Commissions Unpaid Bonus Claims for Wages Closed, 2005-07 Biennium by County of Employer Adams 1 McLean Barnes Benson Billings Bottineau Bowman Burke Burleigh Cass Cavalier Dickey Divide Dunn Eddy Emmons Foster Golden Valley
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407 48 186 62 10 4
4 5 17 3 0 1 5 2 10 1 1 6 3 2 1 1 0
8 Mercer 3 Morton 0 Mountrail 2 Nelson 2 Oliver 0 Pembina 59 Pierce 171 Ramsey 3 Ransom 3 Renville 1 Richland 1 Rolette 1 Sargent 1 Sheridan 1 Sioux 2 Slope
Grand Forks Grant Griggs Hettinger Kidder LaMoure Logan McHenry McIntosh McKenzie
35 Stark 2 Steele 5 Stutsman 0 Towner 5 Traill 1 Walsh 0 Ward 0 Wells 0 Williams 2 Out of State Total Claims Closed
23 0 18 2 11 4 37 2 14 101 582
The department also resolved a number of cases through a process called Complaint Inquiry. This informal process is used mainly in instances where there may be a dispute over a final paycheck between the employer and employee, but may also be used to address other violations of law. The following chart summarizes the departments efforts regarding Complaint Inquiries: Summary of Complaint Inquiries, 2005-07 Biennium Inquiries opened 7/1/2005 6/30/2007 368 Inquiries closed 7/1/2005 6/30/2007 Inquiries pending 6/30/2007 Total Collected 7/1/2005 6/30/2007 364 4 $94,622
The number of complaint inquiries opened increased significantly during the 2005-07 biennium, increasing by approximately 75% over the previous biennium. The increase is attributed to department staff emphasizing the benefits of resolving disputes informally when possible, rather than filing a formal complaint.
Youth Employment
North Dakota Youth Employment Laws, found in N.D.C.C. ch. 34-07, were established to prevent the employment of minors at an unsuitable age, for excessive hours, and/or in unsafe or undesirable working conditions. 6
Youth Employment Laws restrict the employment of workers under the age of 16 in four ways: 1. Minimum Age - Establishes a minimum age of 14 to be employed in North Dakota. 2. Employment & Age Certificate - Requires that 14 and 15 year old workers file an Employment and Age Certificate (also known as a work permit) with the department for each job held at age 14 or 15. The permit must be signed by the minors parent or guardian, and filed with the department and the employer. In addition, the permit must be filed with the principal of the minors school if the employment occurs during the school year. The department reviews the permit to verify the employees age, the job duties being performed, and the rate of pay earned. The department also files a copy with U.S. Department of Labor for their review for compliance with federal laws. 3. Restricted Work Hours - Establishes restricted working hours for both school and summer months, including a maximum number of hours per day and per week, as well as defining times during which the employee is allowed to work. 4. Restricted Work Duties - Prohibits young workers from being employed in specific occupations determined to be hazardous. There are limited exemptions from North Dakota Youth Employment Laws that may apply to teen workers who are exempt from compulsory school attendance, employed under the direct supervision of his/her parent or guardian, working on a farm or ranch doing agricultural work, and/or working in domestic service performing services of a household nature in or about the private home of the employer. During the 2005-07 biennium, 2,769 Employment and Age Certificates were filed with the Department of Labor for 14-15 year old workers in North Dakota.
The following tables summarize the departments activity relating to charges of employment discrimination for the 2005-07 biennium:
Summary of EEO Charges, 2005-07 Biennium Charges Pending 6/30/2005 44 New Charges Filed 7/1/2005 6/30/2007 Charges Closed 7/1/2005 6/30/2007 Charges Pending 6/30/2007 227 230 41
EEO Charges Closed, 2005-07 Biennium Charges Closed 230 Average Days to Closure Number of Charges Settled Total Amount of Settlements 138 28 $105,479
EEO Charges Closed, 2005-07 Biennium Settled Determined with No Probable Cause Determined with Probable Cause Notice of Right to Sue Issued Withdrawn by Claimant Dismissed4 Total Charges Closed 28 88 4 1 4 5 230
Charges may be dismissed for a variety of reasons including lack of jurisdiction, lack of evidence, failure of claimant to respond, etc.
Title VII of the Civil Rights Act of 1964 Americans with Disabilities Act of 1990 Age Discrimination in Employment Act of 1967 North Dakota Human Rights Act Only5
104 90 51 17
EEO Charges Closed, 2005-07 Biennium by Basis of Charge6 Age Color Disability Marital Status National Origin Pregnancy Receipt of Public Assistance Race Religion Retaliation Sex EEO Charges Closed, 2005-07 Biennium by Geographic Region Northwest North Central Northeast Southwest South Central Southeast Out-of-State
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6
59 27 100 5 9 9 4 38 3 61 93
6 39 35 12 63 74 1
All charges meeting federal jurisdiction also meet North Dakota jurisdiction . Charges may have more than one basis.
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Employment Retaliation
The Department of Labor is authorized to receive complaints alleging employment retaliation under N.D.C.C. 34-01-20, and to seek voluntary compliance with the section through informal advice, negotiation, and conciliation. Under N.D.C.C. 34-01-20, employers are prohibited from discharging, discriminating against, or penalizing an employee because the employee reports what he or she believes in good faith to be a violation of state or federal law or local ordinance; participates in an investigation, hearing, or inquiry by a public body; or refuses to perform action that he or she believes to be a violation of state or federal law or local ordinance. During the 2005-07 biennium, the department received 44 complaints of employment retaliation and closed 34. At the end of the biennium, the department had 15 pending retaliation complaints.
Housing Discrimination
The Department of Labor is authorized under N.D.C.C. ch. 14-02.5, the Housing Discrimination Act, to receive and investigate complaints alleging discriminatory housing practices. The Federal Department of Housing and Urban Development (HUD) has deemed the North Dakota law housing substantially equivalent to the Fair Housing Act, meaning that it offers at least the same protections and remedies as the federal law. The substantial equivalency status of the law allows the department to enter into work sharing agreements with HUD, which provides funding to the department in exchange for access to the departments investigative findings in housing discrimination complaints. The following tables summarize the departments activity relating to complaints alleging housing discrimination for the 2005-07 biennium: Summary of Housing Discrimination Complaints 2005-07 Biennium Complaints Pending 6/30/2005 13 New Complaints Filed 88 7/1/2005 6/30/2007 Complaints Closed 7/1/2005 6/30/2007 Complaints Pending 6/30/2007 89 12
135 38 $25,209
Housing Discrimination Complaints Closed 2005-07 Biennium Settled 38 Determined with No Probable Cause Determined with Probable Cause Referred to HUD Dismissed Withdrawn by Claimant Total Complaints Closed 34 10 0 0 7 89
Housing Discrimination Complaints Closed 2005-07 Biennium by Basis of Charge8 Age Color Disability Familial Status Marital Status National Origin Receipt of Public Assistance Race Religion 3 5 8 16 3 1 3 66 17
Monetary settlements reflect only a portion of the relief obtained by claimants in the area of housing. In addition, claimants obtained reasonable accommodations based on their disabilities, modifications to their housing units, and housing providers were required to attend instruction on housing discrimination in an effort to eradicate discrimination through education. 8 Complaints may have more than one basis.
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Retaliation Sex
7 12
Housing Discrimination Complaints Closed 2005-07 Biennium by Geographic Region Northwest North Central Northeast Southwest South Central Southeast Total Complaints Closed 2
1 9 13 38 26 89
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Other Human Rights Complaints Closed 2005-07 Biennium by Type of Discrimination Public Accommodations Public Services Credit Transactions Total Complaints Closed
40 24 0 64
Other Human Rights Complaints Closed 2005-07 Biennium Complaints Closed Average Days to Closure
64 192
Other Human Rights Complaints Closed 2005-07 Biennium Settled Determined with No Probable Cause Determined with Probable Cause Withdrawn by Claimant Dismissed Total Complaints Closed 3 51 5 1 4 64
Other Human Rights Complaints Closed 2005-07 Biennium by Basis of Charge9 Age
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13
Color Disability Marital Status National Origin Receipt of Public Assistance Race Religion Retaliation Sex Other Human Rights Complaints Closed 2005-07 Biennium by Geographic Region Northwest North Central Northeast Southwest South Central Southeast Total Complaints Closed
4 21 0 3 0 10 0 0 2
1 18 1 0 4 40 64
verification is valid only for the specific work relationship assessed. A worker wishing verification for a future work relationship must complete a separate application for that relationship. The verification process is voluntary. If an affirmative verification is offered by the department, the business involved is protected against retroactive liability that may have otherwise been incurred if the relationship is later determined to be an employment relationship.
Sub-minimum Wage
The Commissioner of Labor may issue special licenses under N.D.C.C. 34-06-15, which provides that an individual whose productive capacity is impaired by physical or mental disability or who is a student or learner enrolled in a career or technical education or related program may be employed at a wage less than the established state minimum wage. Licenses may be issued directly to individuals or special licenses may be issued to nonprofit community rehabilitation programs for the disabled. Licenses are issued for a period of one year. During the 2005-07 biennium, 2,107 individuals worked under sub-minimum wage licenses issued by the department to 19 community organizations offering rehabilitation programs. This represents a significant increase over the 1,465 individuals employed in the previous biennium. No licenses were issued to individuals or vocational students during the 2005-07 biennium. Many businesses participated in providing employment opportunities for workers with disabilities. Examples of participating businesses during the 2005-07 biennium included schools, banks, hotels, restaurants, hospitals, hardware stores, nursing homes, and thrift stores. The types of work 15
performed included janitorial, housekeeping, food preparation, assembly, grounds keeping/lawn care, sanitation, mail sorting, office assisting, wood working, and waste recycling.
Public Inquiry
The Department of Labor strives to be an accessible resource for the citizens of North Dakota. During the 2005-07 biennium, the department responded to 18,293 telephone, 904 email, and 568 in-person inquiries from citizens. The department tracks direct contacts with the public through a Contact Management software application. Staff log each contact, its source (telephone, email, or in-person), and the nature of the inquiry. The application logs the date and time of each contact. The following table summarizes the departments public contacts during the 2005-07 biennium by topic. Wage & Hour includes contacts relating to labor standards issues such as breaks, overtime, child labor, wage payments, and vacation. Discrimination includes contacts relating to discrimination in employment, housing, public accommodations, public services, and credit transactions. Other includes contacts relating to employment agencies, independent contractor status, non-compete clauses, references, sub-minimum wage, and unions. Referrals includes contacts that the department refers to other state or federal agencies, such as Job Service North Dakota, Workforce Safety and Insurance, the Office of State Tax Commissioner, the U.S. Department of Labor, the IRS, OSHA, and the U.S. Employee Benefits Security Administration. Public Contacts, 2005-07 Biennium by Topic Wage and Hour 13,494 Discrimination Other Referrals to Other Agencies Posters Requested Brochures Requested 3,061 414 2,694 854 140
Public Education
The department believes strongly that working proactively to develop relationships between the department and North Dakota citizens is essential to effective public service. The department works hard to accomplish this by being an accessible resource to citizens, by developing and distributing resource materials relating to labor and human rights, and by providing presentations to groups throughout the state on labor and human rights topics. Agency staff conducted forty informational presentations to groups and hosted exhibit booths to distribute information at seven events during the 2005-07 biennium. In addition, the department produced a Public Service Announcement on housing discrimination which was aired via television in July 2005 and again in February 2007. 16
The department continues to service its web site, which provides improved access to informational materials and complaint processes, and expanded coverage of the functions of the Human Rights Division.
Administration
The administrative responsibilities of the department include staffing, procurement, budgeting, accounting, fiscal management, information technology, records management and risk management. The departments Business Managers work directly with and under the supervision of the Commissioner to oversee these functions.
Legislation
The department introduced five agency bills during the 2007 legislative session in addition to its budget. Four of the five bills were passed either as proposed by the department or with only minor amendments. 1. HB 1070 Amended N.D.C.C. 34-07-15 to define the term schoolweek as a period of beginning on Sunday and ending on Saturday. The previous definition had a period running from Monday through Sunday. The change was requested to be more consistent with federal child labor provisions regarding the schoolweek, which also begin on Sunday and end on Saturday. The purpose was to make compliance easier for employers, while providing the same protection for young employees. 2. SB 2074 Amended N.D.C.C. 14-02.5-13 of the Housing Discrimination Act to clarify that the department has the right to require attendance of a witness or the production of information by a witness, and if the witness fails or refuses to appear, that the department has the authority to issue subpoenas for the purpose of investigating a complaint. The amendments also address the fees and mileage due to a witness who appears to provide testimony and what the consequence may be if a person refuses to appear or produce the requested evidence. 3. SB 2075 Amended and clarified definition of subsection 6 of N.D.C.C. 14-02.4.02, by adding the words which is not in direct conflict with the essential business related interests of the employer to the definition. This amendment was somehow overlooked in 1993 when other statutes under N.D.C.C. ch. 14-2.4 were amended adding the same language. The intent is to make all provisions in the chapter consistent for the lawful activity protected category of the Human Rights Act. 4. SB 2076 Amended N.D.C.C. 14-02.4-22 of the Human Rights Act to authorize that the department may require attendance of a witness or the production of information by a witness, and if the witness fails or refuses to appear, that the department has the authority to issue subpoenas for the purpose of investigating a complaint. The amendments also address the fees and mileage due to a witness who appears to provide testimony and what the consequence may be if a person refuses to appear or produce the requested evidence. 17
5. SB 2110 Failed to pass. The bill proposed clarification on what constitutes an individual item for an authorized deduction, and how and when a deduction must be authorized. The bill also proposed clarification that employers may deduct contributions under automatic contribution plans if the plans were authorized under the federal Pension Protection Act of 2006. There were also a number of bills proposed which could have affected the department, however all but one of them failed. House Bill 1454 passed, raising the minimum wage in North Dakota for the first time since 1997, with an effective date of July 24, 2007. The new statutory provision, found in N.D.C.C. 34-06-22, superseded the departments administrative rule which reflected the states minimum wage.
Trends
Wage and Hour
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The number of Claims for Unpaid Wages increased over 10% during the 2005-07 biennium. The average number of days claims were pending increased from 61 to 73 days. The types of claims filed most often include claims for: unpaid wages, unpaid vacation and unauthorized deductions.
Human Rights
Employment The overall number of employment discrimination charges filed with the department increased slightly during the 2005-07 biennium. The 227 charges filed during the 2005-07 biennium represent an increase of 4 cases or approximately a 2% increase from the previous biennium. Charges filed on the protected categories of disability, sex, and retaliation continue to be the most numerous types of claims made. Housing The overall housing discrimination charges filed with the department during the 2005-07 biennium increased by 22 complaints or approximately 33%. The housing area had the largest number of cause findings, as well as a high proportion of claims settled through the conciliation process. The housing program area has also dramatically improved its average number of days to closure, down from 207 days in the 2003-05 biennium to 135 days in the 2005-07 biennium. Public Services, Public Accommodations, and Credit Transactions The number of new complaints filed in this area decreased during the 2005-07 biennium, decreasing by 22 complaints, or approximately 26%. The decrease follows a large increase in filings in the previous biennium, and the fluctuation was expected as the department only first began accepting complaints in this area in 2001. The majority of the complaints pertained to the protected categories of disability and race and/or color.
Funding
Funding for the department is primarily from the General Fund as appropriated by the State Legislature. The department receives federal funds under two work-sharing contracts, one with the Equal Employment Opportunity Commission and one with the Department of Housing and Urban Development. The following table summarizes the departments appropriation and actual expenditures for the 2005-07 biennium: Appropriation $1,135,861 $324,343 $1,460,204 Actual Expenditures $1,073,777 $270,260 $1,344,037
The departments appropriation was comprised of $961,239 in general funds and $498,965 in federal spending authority, while expenditures consisted of $954,349 in general funds and $389,688 in federal funds.
Posters
Minimum Wage & Work Conditions Summary Poster Fair Housing in North Dakota Poster
Brochures
Wage & Hour and Equal Employment Laws: Most Commonly Asked Questions and Their Answers Youth Employment in North Dakota: State & Federal Laws & Regulations Employment Applications and Interviews: Important Information for Employers & Employees Sexual Harassment in the Workplace: Important Information for Employers & Employees Understanding Housing Discrimination Laws in North Dakota Human Rights Protections in North Dakota: An Overview of Discrimination Laws & Remedies Housing Related Advertisement: Guidelines on How to Advertise Without Violating Housing Discrimination Laws 20
How to File a Discrimination Complaint in North Dakota: A Guide for Those Who Believe They Have Been Discriminated Against
Telephone:
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