75-02-01.2-51 Disregarded income.

1. The department shall establish an employment incentive, and an employment incentive limit, to reasonably encourage household members to earn income. 2. If permitted under subsection 3, income must be disregarded, as an employment incentive, in determining the cash grant amount. a. The greater of one hundred eighty dollars or twenty-seven percent of the household's monthly gross earned income, except earnings of any child who is a full-time elementary or high school student, is disregarded as a standard employment expense allowance. The amount remaining is net earned income. b. Any net earned income that exceeds the income incentive limit is treated as countable earned income. c. A portion of net earned income that is equal to or less than the income incentive limit may be disregarded, under this subdivision, in determining countable earned income. (1) If an applicant has earned income in the month of application or the month after the month of application, at least fifty percent of the net earned income may be disregarded for six months beginning the month in which the earned income is first budgeted. 36 (2) If a recipient has earned income, at least thirty-five percent of the net earned income may be disregarded for months seven through nine beginning the month earned income is first budgeted. (3) If a recipient has earned income, at least twenty-five percent of the net earned income may be disregarded for months ten through twelve after the month earned income is first budgeted. (4) If a recipient has earned income, no net earned income may be disregarded under this subdivision after the twelfth month after the month earned income is first budgeted. (5) Individuals that have received a full twelve months of the incentive known as the time-limited percentage are not eligible for this incentive again unless the individual has been off assistance for twelve or more months. d. An employed household member who receives an employment incentive disregard for a period of at least six consecutive months is provided employment incentive disregards of at least fifty percent for the first six months beginning the month in which the income is first budgeted, at least thirty-five percent for months seven through nine, at least twenty-five percent for months ten through twelve, and none thereafter. e. An employed household member who receives an employment incentive disregard for a period of less than six consecutive months is, upon reemployment, provided employment incentive disregards as if the member had not received employment incentive disregards. f. If an employed household member, who is receiving the employment incentive disregard, voluntarily terminates employment and is unable to show good cause for failure or refusal to participate, the employment incentive disregard cycle continues as if the household member was employed. g. If any nondisregarded income remains, a health insurance premium, or paid child or spousal support, if applicable, may be disregarded. h. If any nondisregarded income remains, child and dependent care costs that are employment-related or a combination of employment-related and education or training-related may be disregarded. 3. An income disregard is available if the eligible employed individual previously received assistance, has not received temporary assistance for needy families at least twelve months or has not completed the twelve month earned income employment incentive disregard cycle, including months in which the earned income disregard was unavailable because: a. No payment was made because the calculated cash grant was less than ten dollars; or b. The household voluntarily requested termination of assistance for the primary purpose of avoiding completion of the earned income employment incentive disregard cycle or any part of that cycle. 4. Nonhousehold member deduction for stepparent and minor parent budgeting, if applicable, may be made. History: Effective December 9, 1996; amended effective July 1, 1997; January 1, 2003; January 1, 2009; January 1, 2011; January 1, 2017; April 1, 2024; April 1, 2026. General Authority: NDCC 50-09-02, 50-09-25 Law Implemented: NDCC 50-09-02, 50-09-29 37