It is common for employees to work beyond their regular hours. Under Minnesota labor laws, employers must properly compensate workers for overtime hours to remain compliant with both state and federal regulations.
Minnesota overtime laws require employers to pay overtime for hours worked over 48 hours in a workweek. However, many employees are also protected by federal law, which requires overtime pay after 40 hours per week.
Understanding overtime pay in Minnesota, eligibility rules, and exemptions is essential for both employers and employees. This guide explains how overtime in Minnesota works, including pay rates, exemptions, and compliance requirements.
Minnesota Overtime Laws Summary
| State overtime law | Overtime applies at 1.5x regular pay after 48 hours per week |
| Federal FLSA overtime rule | Overtime applies at 1.5x regular pay after 40 hours in a workweek |
| Minnesota minimum wage | $11.41 per hour |
| Overtime wage for minimum wage workers | $17.12 per hour |
| Comp time instead of overtime pay | Allowed only for the public sector |
| Salary threshold for exemption | $684/week |
This Article Covers
- Minnesota Overtime Pay Rates
- Overtime Entitlement in Minnesota
- Overtime Exemptions in Minnesota
- Comp Time Instead of Overtime Pay in Minnesota
- Overtime Pay for Tipped Employees in Minnesota
- Overtime Pay for Salaried Employees in Minnesota
- Overtime Pay for Commissioned Employees in Minnesota
- Penalties for Violating Minnesota Overtime Laws
Minnesota Overtime Pay Rates
Overtime pay rates in Minnesota are set at 1.5 times an employee’s regular hourly rate for all hours exceeding 48 in a week. However, employees covered by the federal Fair Labor Standards Act can receive overtime pay for all hours worked over 40 in a workweek.
Minnesota overtime pay rates are as follows:
| Minimum Hourly Wage | Minimum Overtime Rate | |
| Minnesota (statewide) | $11.41 | $17.12 |
| Training wage (<20 years, first 90 days) | $9.31 | $13.97 |
| Minneapolis | $16.37 | $24.56 |
| St. Paul | $14.25-$16.37 (based on employer size) | $21.38-$24.56 (based on employer size) |
Higher local minimum wages in Minneapolis and St. Paul lead to higher overtime pay rates in those cities.
Learn more about your overtime rights in Minnesota.
Overtime Entitlement in Minnesota
According to Minnesota overtime laws, non-exempt employees who work more than 48 hours in a seven-day period (week) must be entitled to overtime pay, regardless of whether they are full-time or part-time, how they get paid, and whether or not they receive tips.
Minnesota employees classified as non-exempt by the FLSA rules can receive overtime pay for all hours worked over 40 in a workweek under federal law. Employees who earn less than $684/week are generally considered non-exempt, unless they meet the job duties-based exemption criteria.
What counts as hours worked under Minnesota law?
“Hours worked” includes training time, waiting time, shorter rest breaks (fewer than 20 minutes), and any other time an employee must be at work, as per Minnesota law. However, holiday hours, vacation time, and sick leave are not counted for overtime purposes.
Overtime Exemptions in Minnesota
Not all employees qualify for overtime pay under overtime laws in Minnesota. Employees earning at least $684/week ($35,568 annually) and performing exempt duties under the FLSA are considered exempt from overtime pay.
Minnesota also has state-specific exemptions, especially in agriculture and seasonal industries. Common exempt roles include:
- Executives, administrators, professionals
- Outside salespersons
- Certain agricultural workers, including minors under 18 and those earning at least $838.64 a week
- Seasonal resident or day-camp workers
- Non-profit work volunteers
- Elected officials and some government employees
- Police or fire protection employees
- Taxicab drivers
- Independent babysitters
- Seasonal workers at carnivals, circuses, fairs, or ski facilities
- Minors under 18 working fewer than 20 hours per week in municipal recreational programs
- State natural resource managers
- Transportation workers, regulated by federal law
- Seafarers, including pilots, sailors, engineers, radio operators, guards, and stewards
- Employees living in and supervising children at authorized county home school residences
- Religious workers serving in schools, hospitals, or nonprofits
Comp Time Instead of Overtime Pay in Minnesota
Under Minnesota overtime rules, compensatory time (comp time) is allowed for public sector employees, including employees of the State of Minnesota and local political subdivisions. Eligible public employees must receive 1.5 hours of comp time for every overtime hour worked over 48 in a week.
Overtime Pay for Tipped Employees in Minnesota
Minnesota does not allow tip credits, which is a key difference from federal law.
This means:
- Employers must pay the full minimum wage ($11.41/hour) to tipped employees
- Tips are earned on top of the wage
Overtime pay for tipped workers must be calculated at a rate of 1.5 times their regular wage for each overtime hour worked. Regular wages cannot be less than the state’s minimum wage.
Overtime Pay for Salaried Employees in Minnesota
Some salaried employees in Minnesota are entitled to overtime. A salaried employee is someone who receives a fixed amount of pay regardless of how many hours they work each week.
To determine their overtime rate, employers must divide the employee’s salary by the number of hours that the salary compensates for. This will give the employee’s regular rate of pay. Then, take the regular rate and multiply it by the overtime hours worked and the standard overtime rate of 1.5 per hour.
Regular hourly rate = Salary / Total hours the salary covers
Overtime rate = 1.5 x Regular rate
Overtime pay = Overtime rate x Number of overtime hours
Under Minnesota law, overtime only applies after 48 hours in a week. However, those covered by the FLSA can receive overtime after 40 hours.
Learn how to calculate overtime in Minnesota, or use our overtime calculator to calculate overtime hours and pay.
Overtime Pay for Commissioned Employees in Minnesota
For commissioned employees, overtime pay in Minnesota is calculated differently.
Total earnings in a week = (Hourly rate x Hours worked) + Commission amount
Regular rate = Total earnings / Total hours worked
Overtime rate = 0.5 × Regular rate (since straight pay already included)
This means that if an employee worked 55 hours in a week at the state’s minimum wage rate of $11.41 and earns a $50 commission in a week, here is how their overtime pay would be calculated for that week:
Hours worked: 55
Base pay: 55 × $11.41 = $627.55
Commission added: $627.55 + $50 = $677.55
Regular rate of pay: $677.55 / 55 hours = $12.32/hour
Half‑time overtime rate for commissioned employees: $12.32 / 2 = $6.16/hour
Overtime hours = 55 – 48 = 7 hours
Overtime pay = $6.16 × 7 hours = $43.12
The amount of overtime premium will vary depending on the employee’s hourly rate, hours worked, and commission earned.
Penalties for Violating Minnesota Overtime Laws
If an employer fails to provide proper wages or overtime pay, employees can file a complaint with the Minnesota Department of Labor and Industry for investigation and legal action.
Under Minnesota’s wage theft law, employers can face penalties depending on the amount of wages stolen within any six‑month period:
- $500-$1,000: Up to one year in jail, fines up to $3,000, or both
- $1,000-$5,000: Up to five years in prison, fines up to $10,000, or both
- More than $5,000: Up to ten years in prison, fines up to $20,000, or both
- More than $35,000: Up to 20 years in prison, fines up to $100,000, or both
If an employer doesn’t pay employees on time, employees can also file a lawsuit in Small Claims Court for disputes of $15,000 or less (no attorney needed) and the District Court for disputes over $15,000.
Employers also cannot retaliate against, punish, or terminate an employee for asserting their rights to overtime compensation or seeking remedies. In addition to any other remedies provided by law, employers can be liable for a civil penalty of $700 to $3,000 for each such offense.
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.
