Employers in Minnesota must follow the state’s overtime rules, in addition to federal overtime laws under the Fair Labor Standards Act (FLSA). These regulations ensure employees receive fair compensation for hours worked beyond the standard workweek.
This guide breaks down everything you need to know about overtime in Minnesota, including eligibility, pay calculations, and special considerations for different pay structures.
This Article Covers:
Understanding Overtime in Minnesota
- Which Overtime Laws Apply in Minnesota?
- What is the Regular Rate of Pay in Minnesota?
- How Do You Define a Workweek in Minnesota?
- How Much is Overtime Pay in Minnesota?
- Who is Eligible for Overtime Pay in Minnesota?
- Who is Exempt from Overtime Pay in Minnesota?
- Can Employers Mandate Overtime Work in Minnesota?
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Minnesota
- How Do You Calculate Overtime for Hourly Employees in Minnesota?
- How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Minnesota?
- How Do You Calculate Overtime for Salaried Employees in Minnesota?
Overtime for Complex Pay Structures in Minnesota
- How Do You Calculate Overtime Pay for Piece Rate Employees in Minnesota?
- How Do You Calculate Overtime for Flat Rate Employees in Minnesota?
Additional Considerations for Minnesota Overtime
- Can an Employee Choose Compensatory Time Instead of Overtime in Minnesota?
- Are Paid Sick Leave and Time Off Included in Overtime Calculation?
Understanding Overtime in Minnesota
Which Overtime Laws Apply in Minnesota?
Minnesota follows both state and federal overtime laws.
Under Minnesota state law, all employers must pay overtime to employees who work more than 48 hours in a seven-day period.
Federal law, however, requires certain employers—such as those engaged in interstate commerce or with annual sales over $500,000—to pay overtime for any hours worked over 40 in a week. Some industries, like hospitals, nursing homes, schools, and government agencies, must also follow federal overtime rules.
Learn more about Minnesota overtime laws.
What is the Regular Rate of Pay in Minnesota?
The regular rate of pay in Minnesota is calculated by dividing an employee’s total earnings for the week by the total hours worked.
This includes wages, certain credits like meals or lodging, and commissions. However, payments for vacation, holiday hours, or sick leave are not included in the calculation.
How Do You Define a Workweek in Minnesota?
In Minnesota, a workweek is a fixed, recurring period of 168 hours, which equals seven consecutive 24-hour days.
The workweek can start on any day of the week, but employers must be consistent. If they decide to change the start day, the change must be permanent and not just to avoid overtime pay.
How Much is Overtime Pay in Minnesota?
Overtime pay in Minnesota is at least 1.5 times an employee’s regular pay rate. It’s calculated by dividing the total pay for the week by the total hours worked, then multiplying by 1.5 for any overtime hours.
Regular Rate of Pay = Total Pay / Hours Worked
Overtime Pay = Regular Rate x 1.5
Given the Minnesota minimum wage currently set at $11.13, this would put the minimum overtime pay at:
$11.13 x 1.5 = $16.70 per overtime hour
Who is Eligible for Overtime Pay in Minnesota?
Most hourly employees in Minnesota are eligible for overtime pay, but the rules depend on state and federal laws. Salaried employees can also be eligible for overtime unless they meet specific exemption criteria outlined by the Fair Labor Standards Act (FLSA).
Who is Exempt from Overtime Pay in Minnesota?
Some employees in Minnesota are exempt from overtime pay under state and federal laws. These exemptions apply to specific job roles and employment types.
Workers who may not be eligible for overtime according to the Minnesota Department of Labor and Industry include:
- Nonprofit volunteers
- Elected officials
- Police and firefighters
- Seasonal fair, carnival, and ski facility workers (exempt from overtime only)
- Clergy working in schools, hospitals, or nonprofits run by religious organizations
- Certain agricultural workers (if paid a salary)
- Outside salespersons
- Executive, administrative, and professional employees (must meet specific job duties and salary requirements)
Other overtime exemptions under federal law include:
- Aircraft salespeople
- Airline employees
- Amusement/recreational employees in national parks/forests/Wildlife Refuge System
- Announcers, news editors, and chief engineers at major radio or TV stations
- Babysitters on a casual basis
- Boat salespeople
- Buyers of agricultural products (poultry, egg, milk, etc.)
- Companions for the elderly
- Country elevator workers (rural)
- Criminal investigators receiving availability pay
- Domestic employees who live in
- Domestic workers
- Employees in national parks, amusement, or recreation facilities
- Farm implement salespeople
- Federal criminal investigators
- Firefighters working in small (less than 5 firefighters) public fire departments
- Fishing industry workers
- Forestry employees of small (less than 9 employees) firms
- Fruit & vegetable transportation employees
- Government employees
- Highly compensated employees earning at least $107,432 per year
- Homeworkers making wreaths
- Houseparents in non-profit educational institutions
- Independent contractors (under specific conditions)
- IT personnel earning at least $27.63 per hour
- Livestock auction workers
- Local delivery drivers and driver’s helpers
- Lumber operations employees of small (less than 9 employees) firms
- Motion picture theater employees
- Newspaper delivery workers
- Newspaper employees of limited circulation newspapers
- Police officers working in small (less than 5 officers) public police departments
- Radio station employees in small markets
- Railroad employees
- Seamen on American vessels
- Seamen on other than American vessels
- Sugar processing employees
- Switchboard operators
- Taxicab drivers
- Television station employees in small markets
- Truck and trailer salespeople
- Volunteers in religious, non-profit, charitable, or educational organizations
- Workers in maple syrup production
- Youth employed as actors or performers
- Youth employed by their parents
Employers in Minnesota must ensure that employees meet the “duties test” for exemptions, meaning job titles alone don’t determine exemption status. Employers are also required to inform employees in writing if they are classified as exempt.
Can Employers Mandate Overtime Work in Minnesota?
Yes, employers in Minnesota can require employees to work mandatory overtime. However, they must follow both state and federal labor laws, including paying the required overtime rate for eligible employees.
There are however certain restrictions to how many hours minors can work. Children ages 14 and 15 can only work between 7am and 9pm and cannot work more than 8 hours a day or 40 hours a week. Once they turn 16, they cannot work after 11 p.m. on nights before school or before 5 a.m. on school days.
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Minnesota
For the examples we’ll be looking at below, we’ll be assuming the employee falls under state law, requiring overtime pay if they work more than 48 hours in a seven-day period.
How Do You Calculate Overtime for Hourly Employees in Minnesota?
To understand how to calculate overtime for hourly employees in Minnesota, let’s take a look at this example:
John is an hourly employee and earns $12 per hour. He has worked 52 hours in a specific week and is eligible to earn overtime pay. To determine his overtime wages, we can use the following steps:
If John earns $12.00 per hour, that would automatically be their regular rate of pay. |
To do this, multiply the regular pay rate by 1.5. Given the example, John’s overtime rate would be: ($12.00 x 1.5 = $18.00 per overtime hour). |
John worked 52 hours in a week. Given the overtime conditions in Minnesota, overtime pay will be given for work hours beyond 48 in a workweek. The overtime hours John worked will then be: (52 hours – 48 hours = 4 overtime hours). |
Multiply John’s overtime hours by the overtime rate. The overtime pay that John will be entitled to will become: (4 hours x $18.00 = $72.00). |
The employer must pay 1.5 times the regular rate for hours over 48. The regular rate changes if the employee gets extra compensation or incentives during the week.
How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Minnesota?
To calculate the regular rate for an employee who works at two or more different hourly rates in Minnesota, you’ll need to add up their total earnings for the workweek and divide that amount by the total number of hours worked.
Let’s look at an example to understand this further. If an employee earns $1600 from two different jobs during a workweek and works 50 hours in total, their overtime pay can be calculated as follows:
To get the regular pay rate, divide total weekly earnings by total hours worked: ($1,600 ÷ 50 = $32.00 regular rate per hour). |
Next, multiply the regular hourly rate by 1.5 to get the additional overtime premium: ($32.00 × 1.5 = $48.00 overtime premium per hour). |
Since overtime applies after 48 hours, the employee worked 2 overtime hours: (50 – 48 = 2 hours). |
Multiply the overtime premium by the number of overtime hours: ($48.00 × 2 = $96.00 total overtime pay). |
How Do You Calculate Overtime for Salaried Employees in Minnesota?
If an employee in Minnesota is paid a weekly salary, their regular hourly rate is calculated by dividing the salary by the number of hours it covers. For example:
- If an employee earns $350 per week for a 35-hour workweek:
|
Regular hourly rate = ($350 ÷ 35 hours )= $10.00 per hour Overtime pay = (1.5 x $10.00) = $15 per overtime hour for any hours worked beyond 48 |
- If an employee earns $375 per week for a 40-hour workweek:
|
Regular hourly rate = ($375 ÷ 40 hours )= $9.38 per hour Overtime pay = (1.5 x $9.38) = $14.07 per overtime hour for any hours worked beyond 48 |
For salaries covering more than a week (such as monthly or semimonthly salaries), the weekly salary must be determined first:
- Monthly salary: Multiply by 12 and divide by 52
For example: $1,560 per month → $1,560 × 12 ÷ 52 = $360 per week
- Semi Monthly salary: Multiply by 24 and divide by 52
For example: $780 per semi-month → $780 × 24 ÷ 52 = $360 per week
Once the weekly salary is found, the hourly rate is calculated the same way as above. Employers in Minnesota may also calculate the rate by dividing the monthly salary by the number of working days in the month and then by the hours worked per day, as long as the rate is at least the minimum wage.
Overtime for Complex Pay Structures in Minnesota
How Do You Calculate Overtime Pay for Piece Rate Employees in Minnesota?
If an employee in Minnesota is paid by the piece, their regular hourly rate is calculated by adding up all earnings for the week, including piece-rate pay, bonuses, and any additional wages (such as pay for waiting time). This total is then divided by the number of hours worked that week to determine the hourly rate.
For overtime, the worker must be paid an extra half of this hourly rate for every hour worked beyond 40 in a week.
Let’s take an example to understand this further.
A worker earns $523 for 48 hours of productive work at a piece rate. To compute their overtime pay, follow these steps:
Divide the total weekly earnings by the total hours worked: $523 ÷ 50 = $10.46 (regular rate per hour) |
Multiply the regular hourly rate by 0.5 to determine the overtime rate: $10.46 × 0.5 = $5.32 (overtime rate per hour) |
Since overtime is required for hours beyond 48, the worker’s overtime hours are: 50 – 48 = 2 overtime hours |
Multiply the overtime rate by the number of overtime hours: $5.32 × 2 = $10.46 (total overtime pay) |
How Do You Calculate Overtime for Flat Rate Employees in Minnesota?
A flat rate for extra work in Minnesota is not considered overtime pay. If an employee is paid a set amount for a special job performed during overtime hours—without considering how long it actually takes—that payment must be included in the regular pay rate calculation. However, none of it counts as overtime compensation under the law.
Example:
- An employee is paid $12 per hour for regular hours.
- For extra hours beyond the regular schedule, they receive $18 per hour.
- If they complete a special task outside their regular hours, they are given a flat $108 (equal to 6 hours of pay at $18 per hour), no matter how long it takes.
Even though this flat rate is higher than their usual pay, it does not replace overtime pay, which must be calculated separately based on actual hours worked beyond 48 hours per week.
Additional Considerations for Minnesota Overtime
Can an Employee Choose Compensatory Time Instead of Overtime in Minnesota?
Private-sector employees must be paid overtime and cannot receive extra time off instead of overtime pay. However, public-sector employers may offer “comp time” (paid time off instead of overtime pay) if both the employer and employee agree and certain conditions are met.
Are Paid Sick Leave and Time Off Included in Overtime Calculation?
No, paid sick leave and time off do not count toward overtime calculations. Only actual hours worked are used to determine overtime. Here’s what to keep in mind:
- Sick leave, vacation, and holiday hours are not included in overtime calculations.
- Overtime is based on a seven-day workweek, not the length of the pay period.
- Employers cannot average hours over multiple weeks to avoid paying overtime.
- The workweek must be consistent once set by the employer.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
