Overtime Laws in New Minnesota

The state of Minnesota introduced a statewide increase in the minimum wage rate and continues to navigate a unique threshold that differs from federal law. While most employers must follow the federal 40-hour rule to pay overtime wages, Minnesota’s state law sets the trigger at 48 hours per week for overtime. This applies to all businesses not covered by the Fair Labor Standards Act (FLSA). Additionally, new laws regarding job posting transparency and employee breaks took effect in 2025.

Overview of Minnesota Overtime Laws 2026

The state of Minnesota has its own overtime laws that coexist with the federal FLSA. While the federal rules demand overtime pay for all hours worked beyond 40 per workweek, Minnesota has set the limit at 48 hours. 

Employers are free to comply with either of the laws till the time they provide greater protection to the employees. For most businesses engaged in interstate commerce or having an annual revenue of $500,000, the federal 40-hour rule applies. Meanwhile, small, local businesses not covered by the FLSA must follow the state’s 48-hour rule for overtime pay.

In either case, overtime is paid at a rate of 1.5X an employee’s regular wage.

Key Highlights: 

• Overtime rate: 1.5X the employee’s regular hourly rate.
• Weekly overtime: 
  • 40-hour workweek threshold for workers covered by federal law
  • Overtime kicks in after 48 hours in a workweek for those not covered by the federal FLSA
• Daily overtime: No separate daily overtime requirement.
• Exemptions: Employees exempt under the federal FLSA (executive, administrative, professionals, outside sales) are similarly exempt under state law.
• Recordkeeping: Employers must maintain accurate records of hours worked and wages paid, and ensure correct overtime calculations under both federal and state law.

Here are the key updates affecting overtime and employment law in Minnesota for 2026:

Eligibility for Overtime in Minnesota

An employee’s eligibility for overtime is based on whether they belong to the exempt or non-exempt category. 

• Non-exempt employees are entitled to receive overtime pay. They are those who’re either paid on an hourly basis or receive a salary that is less than the state/federal minimum salary threshold. 
• Exempt employees, on the other hand, must meet specific salary and duties tests to be classified under this category. They must receive a salary of at least $684/week and perform duties that are executive, administrative, or professional in nature. Although job titles alone do not determine exempt status in the state of Minnesota.

Federal vs. Minnesota Overtime Rules

Minnesota follows a dual-layer system. This means employers must understand both federal and state rules and comply with them accordingly. For instance, Mike works 45 hours a week at $20/hour. Under federal law, she earns 40 hours of regular pay ($800) and 5 hours of overtime pay ($150), making her weekly total $950. 

Under state law, overtime is due for hours worked over 48 in a week at 1.5X the regular rate for those not covered by FLSA. Though most employers in Minnesota follow the federal 40-hour rule. 

This table highlights the key difference between federal vs. state overtime rules. 

Exemptions in Minnesota

Minnesota follows the federal exemptions and has its own set of rules as well. The list of exemptions is as follows. 

Here are Minnesota’s overtime exemptions organized as detailed one-liners (updated with authentic government sources):

• Executive Employees: Individuals who manage a department or enterprise, supervise at least two full-time employees, have hiring/firing authority, and earn at least $844 weekly (Minnesota maintains the July 2024 threshold following the November 2024 federal court ruling) qualify as exempt.
  
• Administrative Employees: Workers performing office/non-manual work directly related to business operations or management policies who exercise independent judgment on matters of significance and meet the Minnesota minimum salary threshold are classified as exempt.
  
• Professional Employees: Individuals whose work requires advanced knowledge in specialized fields (law, medicine, accounting, engineering), who possess relevant professional degrees or licenses, and who meet salary requirements are exempt from overtime; teachers, doctors, and clergy working in schools, hospitals, or nonprofits operated by religious organizations are automatically exempt.
  
• Computer/IT Professionals: Employees performing systems analysis, programming, software engineering, or IT management who earn at least $844 weekly are exempt.
  
• Agricultural Workers (Salaried): Farm workers earning a guaranteed weekly salary at or above Minnesota’s threshold (approximately $844/week) are exempt from overtime requirements.
  
• Agricultural Workers (Hourly): Hourly farm workers are entitled to overtime pay at 1.5 times their regular rate for hours worked over 48 in a workweek under Minnesota state law (higher threshold than federal 40-hour standard); federal FLSA exempts most agricultural workers from overtime entirely.
  
• Outside Salespersons: Employees who primarily conduct sales away from an employer’s premises qualify for the outside sales exemption.
  
• Seasonal Workers: Employees at seasonal fair, carnival, and ski facility workers (overtime exempt only) are exempt from overtime pay.
  
• Vehicle Dealership Employees: Vehicle salespeople and service employees paid on a commission or incentive basis may qualify for exemption under specific circumstances.
  
• Minnesota’s 48-Hour Threshold: Minnesota’s state law applies only to employees not covered by federal FLSA and sets overtime threshold at 48 hours per workweek (vs. federal 40 hours); vacation, sick leave, and holiday pay do not count toward the 48-hour threshold, only physical hours worked. Employers must comply with the stricter requirement between federal and state law.

Employer Obligations and Employee Rights

Employers in Minnesota have many legal obligations that they must fulfill to ensure fair labor practices. 

• Timely Payment: Make timely payments to all employees, typically at least once every 31 days.
• Recordkeeping: Maintain proper and accurate records of hours worked and wages paid for each employee.
• Employee Notice: At the start of employment, provide a written notice that details the employee’s pay rate, pay schedule, and employment status, including overtime pay or exemption from overtime.
• Workplace Protections: Provide a safe working environment and comply with both state and federal laws regarding breaks, leave, and anti-discrimination.
• Penalties: Employers who violate wage laws can be liable for back pay, liquidated damages, and other penalties as mentioned in state laws.