Automatic Enrollment Implementation
Are automatic enrollment and automatic escalation permissible under law?
No
Explanation:
The state requires written authorization for any wage deferrals, preventing the implementation of automatic enrollment in voluntary retirement plans.
Relevant State Laws – N.D. Cent. Code Ann. § 34-14-04.1, § 54-52.2-01
State’s general wage withholding statute prohibits employers from withholding wages, unless such withholding is required under state or federal law, required by a court order, an advance paid to employees, or a recurring deduction authorized in writing, among other permitted deductions. N.D. Cent. Code Ann. § 34-14-04.1.
“The state or any county, city, or other political subdivision may, by contract, agree with any employee to defer, in whole or in part, any portion of that employee’s compensation and may subsequently, with the consent of the employee, fund a deferred compensation program for the employee.” N.D. Cent. Code Ann. § 54-52.2-01