Compliance Watch:

What are my rights as a salaried employee in Minnesota?

In Minnesota, a salaried employee is someone who regularly receives a fixed amount of compensation from their employer. Employers in Minnesota are required to pay their salaried employees on a weekly, biweekly, or monthly basis, regardless of their weekly hours worked.

Salaried employment in Minnesota can be categorized based on eligibility for overtime. The first category includes salaried employees with exempt status, such as professionals, executives, and administrative personnel. These employees are not eligible for overtime pay and receive the same compensation regardless of their weekly hours worked, even if they exceed 48 hours. On the other hand, non-exempt employees in Minnesota are entitled to overtime pay for all hours worked beyond 48 in a work week.

These are some of the general differences between salaried and hourly employees in Minnesota, but it’s important to remember that specific employment conditions may vary based on individual circumstances and employer policies. To learn more about Minnesota Labor Laws,  you can access our guides on your rights as an hourly employee in Minnesota and Minnesota salaried employees laws.

• Salaried workers in Minnesota falling within the non-exempt category are entitled to receive the state’s minimum wage.
• Minnesota’s salaried workforce is subject to federal regulations such as the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Occupational Safety and Health Act (OSHA).
• Non-exempt salaried employees are eligible to receive overtime pay at a rate of 1.5 times their regular hourly wage for any hours worked beyond 48 hours in a single workweek.
• Qualified Minnesota employees have the privilege of taking unpaid leave for specific medical and family-related reasons under the provisions of the Family and Medical Leave Act (FMLA).
• Workers in Minnesota are safeguarded against workplace discrimination based on various characteristics, including disability, national origin, ancestry, race, color, religion, gender, and military veteran status.
• Salaried employees have the entitlement to a workplace that adheres to safety standards outlined in the Occupational Safety and Health Act (OSHA), ensuring their well-being and access to necessary safety training.
• Employers in Minnesota are required to provide reasonable accommodations to salaried employees with disabilities, allowing them to perform their job duties effectively and without discrimination, as mandated by state and federal disability laws.

Yes. Certain salaried employees in Minnesota can still be eligible for overtime pay, although there are several exemptions from the overtime pay requirement.

An employee’s salaried status is determined by their actual job duties, not just their job title. Both federal and state laws have specific criteria to determine whether an employee is exempt from overtime regulations. The criteria includes the following: 

• Professionals: Possessing advanced knowledge and expertise accumulated through years of experience, which they employ to oversee departments within the organization.
• Executives: Employees who possess advanced knowledge and expertise. They also have authority over hiring and firing decisions.
• Computer Employees: Roles that require specific skills and knowledge, like software engineers, computer programmers, or analysts.
• Administrative Employees: Roles in accounting, quality control, human resources, personnel management, or labor relations.
• Highly-compensated Employees: The employees are typically office-based. Earning a total annual compensation of $107,432.

Learn more about Minnesota overtime laws.

In Minnesota, employees are not permitted to deduct wages from salaried employees, unless it has been mandated by law. Additionally, wage deductions would require employers to obtain written consent from the employee beforehand. Without this consent, deductions that are not stipulated by law are considered illegal.

According to the Department of Labor’s Wage and Hour Division, costs for uniforms and work necessities are the employer’s responsibility.

The Minnesota Fair Labor Standards Act states that employees must be provided with sufficient time for meal breaks. Employers are also required to provide breastfeeding parents with a reasonable amount of time to express milk.

Minnesota offers two types of leaves for employees: required and non-required. Required Leaves include Family and Medical Leave, Military Leave, Bone Marrow and Organ Donation Leave, School Activity and Conference Leave, Jury Duty Leave, Witness Leave, and Voting Leave, with specific eligibility criteria and protections.

Non-required leaves refer to when employers may choose to offer sick days leave, vacation leave, holiday leave, or bereavement leave based on their policies and employment contracts, with no state-level regulations for holiday and bereavement leave.

Minnesota is committed to offering state agency workers flexible work arrangements that align with business requirements. This forms a key component of a strategy to attract and maintain a highly competent and talented workforce. Telecommuting offers a wide range of advantages to both state agencies and their staff, which include:

• Granting employees the flexibility to carry out their duties from an approved alternative location while ensuring the delivery of high-quality services to the people of Minnesota.
• Ensuring the smooth continuation of operations, even during health and safety crises that affect agency personnel.
• Reducing the demand for office space and parking facilities.
• Minimizing harm to the environment.
• Drawing in and keeping skilled professionals from across the state and the surrounding region.

An exempt employee refers to an individual who is not entitled to receive overtime compensation for working more than 48 hours in a week. This classification applies to those who earn a minimum of $684 per week, and occupy specific job positions, such as executives, administrators, professionals, individuals in computer-related roles, or outside sales representatives.

Exempt employees do not have the right to receive overtime pay, even if they work more than 48 hours in a week. Employers need to have a thorough understanding of both the FLSA and Minnesota labor laws to ensure compliance. Misclassifying employees can lead to costly wage disputes and legal repercussions.

In Minnesota, determining whether you are classified as exempt or non-exempt involves evaluating three fundamental criteria:

• Salary Threshold Test: If your annual salary exceeds $35,568, you may be eligible for an exempt classification.
• Salary Basis Examination: Qualification for exempt status can also occur if you receive a guaranteed minimum compensation, regardless of the actual hours you work.
• Duties Assessment: Beyond the salary considerations, you must also perform job duties falling within specific exempt categories. These duties encompass executive responsibilities, such as supervising two or more employees as a regular part of your job; professional duties, which involve engaging in intellectual activities requiring specialized education and the exercise of discretion and judgment; and administrative duties, which entail carrying out supportive tasks related to significant matters, demanding discretion and judgment.

Minnesota’s minimum wage stands at $10.85 for businesses with annual revenues exceeding $500,000. For businesses that earn revenue less than $500,000 annually, the minimum wage for employees stands at $8.85. Since Minnesota’s minimum wage surpasses the federal minimum, all workers are eligible for the higher rate.

Employees below the age of 18, who are hired as trainees, are entitled to a minimum wage of $8.85 for the first 90 days of employment. Further, employees who are hired full-time as minors have the right to a minimum wage of $8.85 as well. 

In Minnesota, salaried employees who are not exempt from overtime rules are eligible for extra pay under specific conditions. To qualify for overtime compensation, these employees must work at least 48 hours within a seven-day workweek. According to state law, any additional hours worked beyond this threshold will be paid at a rate of 1.5 times their regular hourly wage.

It’s important to note that federal regulations require certain employers to provide overtime pay for hours worked beyond 48 hours per week, regardless of Minnesota’s state law, which sets the threshold at 48 hours.

In Minnesota, employers only permitted to subtract funds from an employees’ earnings under the following circumstances:

• If you fall under a union collective bargaining agreement that authorizes deductions.
• If you work as a commissioned salesperson, there are established regulations for deductions due to performance-related concerns.
• If you have willingly signed a written agreement before making a purchase or taking out a loan from your employer, allowing the cost of that transaction to be deducted from your wages.
• In cases where a court order mandates deductions to be made.

• Minnesota regulations prohibit employers from engaging in discrimination and retaliation against workers based on various protected categories. Furthermore, employers in Minnesota are required to uphold pay equity and protect individuals who report misconduct.
• Minnesota laws guarantee equal pay for comparable positions and shield employees from retaliation when they report instances of discrimination or violations of labor laws.
• Employees in Minnesota also enjoy various types of leave, including domestic violence leave, jury duty leave, witness leave, and military leave.
• Moreover, the Fair Labor Standards Act mandates that employers in Minnesota must pay the minimum wage for all hours worked and provide overtime compensation at one and a half times the regular rate for any extra hours worked.

If you have any concerns regarding employee wages, or you’re concerned about workplace safety and health hazards, it is advisable to formally file a complaint with the Minnesota Department of Labor. Additionally, if you believe that your employer has retaliated against you for any of the following reasons:

• Raising a safety or health concern,
• Reporting a workplace injury, or
• Complaining to the Occupational Safety and Health Administration (OSHA),

You can seek assistance and discuss your employment situation with the Discrimination and Retaliation Complaints staff members at Minnesota OSHA Compliance.