What are the state overtime requirements?
Employees covered by the overtime provisions of the
Minnesota fair labor standards act must be paid at least one and one-half times their regular
wage rate for any hours over 48 in a work week.
What are the federal overtime requirements?
Employees covered by the overtime provisions of the
federal Fair Labor Standards Act (FLSA) must be paid at least one and one-half times their
regular wage rate for any hours over 40 in a work week. Note the primary difference between the
substance of the state and federal overtime laws, which is that employees covered by the federal
law must be paid overtime (time and a half) for all hours over 40 in a work week, whereas
employees covered only by the state law must be paid overtime only after 48 hours.
Under federal Department of Labor "Fair Pay" regulations that went into
effect in 2004, workers earning less then $455 per week ($23,660 per year) are
guaranteed overtime protection under federal law.
Does federal law or state law limit the absolute amount of overtime an employer can require?
Nothing in federal or state law limits the amount of overtime that can be required, as long as
the employer pays the required wage. In the case of an individual employee, there could be factors
such as the accommodation of a disability or discrimination against members of certain groups in
the assignment of overtime that could be relevant, but generally, what overtime laws require is
just the payment of the appropriate wage.
Are employees covered by the state law, the federal law, or both?
The federal law covers all employees of establishments that have at least $500,000 in gross
receipts per year. Furthermore, any employee of an establishment that does not meet the $500,000
minimum is covered if that employee’s individual work involves transactions that in some way
touch interstate commerce. The way these provisions are interpreted, most employees are covered
by the federal law. For example, under interpretations used by the Department of Labor, any
employee that conducts business with interstate telephone calls or the U.S. Mail may be covered
by the federal statute, irrespective of the size of the employer.
The state law is broader and covers the great majority of employees in Minnesota who are not
specifically exempt. Therefore, unless they fit into one of the specific exemptions, most people
who work in Minnesota are covered by both the state and federal law.
What are the state and federal exemptions from coverage?
Many of the specific exemptions from overtime requirements are the same in federal and state
law. Some exemptions are broad, such as the one that applies to executive, administrative, and
professional employees, which appears in both state and federal law. Some are narrow, such as
the federal exemption of employees who work at home making evergreen wreaths.
For more information about exemptions, see the U.S. Department of Labor web
site for FairPay Fact Sheets by
occupations and exemptions.
Can an employee be given compensatory time off instead of overtime pay?
Private-sector employees who are covered by the federal and state laws cannot be offered
compensatory time off in lieu of overtime pay. There are, however, provisions in both state and
federal law allowing many public employers to offer their employees "comp time" by agreement in
some circumstances in lieu of overtime pay.
Must an employer pay an employee extra for Sunday or holiday work?
Neither state nor federal law requires employers to pay a higher rate to employees who work
on Sundays or holidays. Again, provisions relating to these issues are generally matters of policy
or agreement, rather than legal requirements.
Who enforces overtime laws?
Overtime laws are enforced by the Minnesota
Department of Labor and Industry and the U.S.
Department of Labor.
August 2014