Minnesota State Payroll Laws for Overtime

Overtime in Minnesota is governed by both state and federal statutes. These laws serve to protect both employees and employers in regards to employee compensation for overtime. Overtime is regarded as any time that is worked in addition to or over the standard number of hours worked by an employee in a work week. Minnesota state law and federal law prohibit either an employee or employer from making agreements that would violate the overtime regulations.

What the Law States

The Minnesota Fair Labor Standards Act states that employers must pay their employees at an overtime rate for any hours worked over 48 hours in a seven-day work week. The federal Fair Labor Act applies in some circumstances if an employer operates in certain industries. Under the federal statute, employers must pay their employees an overtime rate for any hours worked over 40 hours in a seven-day work week. The federal Fair Labor Act covers employers which produce or handle goods for commerce in other states, businesses with gross annual sales over $500,000, nursing homes, hospitals, private and public schools, and federal, state and local government agencies.

Overtime is to be paid at a rate of 1.5 times the employee's rate of pay for any hours over 48 if the employer is covered by the Minnesota statute and over 40 hours if covered by the federal statute. Overtime is to be calculated on the actual number of hours worked by each employee in a seven-day work week as opposed to scheduled time. Overtime calculations cannot count sick time, holidays or vacation time.

If you feel that your employer is not adhering to the Minnesota Fair Labor Standards Act or if you feel your overtime pay is being calculated incorrectly, you have the right to contact the Department of Labor and Industry. Your first step is to contact your employer directly about your concerns to give him an opportunity to resolve those concerns. If this does not correct the issue, contact the Labor Standards Unit of the Department of Labor and Industry at (615) 284-5070 or 1-800-DIAL-DLI (1-800-342-5354).

Some employees are exempt from overtime laws, including but not limited to: certain salaried or commissioned employees, vehicle dealership employees and agricultural workers. Hospitals and other health care facilities may opt to pay overtime after eight hours per day are worked as opposed to weekly.