Overtime Laws Minnesota Department of Labor Industry Labor

Overtime Laws Minnesota Department of Labor & Industry Labor Standards 433 Lafayette Road North St. Paul, MN 55155

Overtime Laws Minnesota Fair Labor Standards Act requires employers to pay overtime for all hours worked in excess of 48 hours per workweek.

Overtime Laws Federal Fair Labor Standards Act requires some employers to pay overtime for all hours worked in excess of 40 hours per workweek.

Federal Fair Labor Standards Act = excess of 40 hours per workweek. Employers include: • Businesses that produce or handle goods for interstate commerce. • Businesses with gross annual sales of more than $500, 000.

Federal Fair Labor Standards Act = excess of 40 hours per workweek. Employers include: • Businesses that were covered before 4/1/1990, under the $250, 000 and now $362, 5000 retail & services dollar volume test. • Other Businesses: ü Hospitals & Nursing Homes, Assisted Living. ü Private & Public School ü Federal, State & Local government agencies.

What is the overtime rate? • Overtime rates must be at least one and onehalf the employee’s regular rate of pay. $7. 50 x’s 1. 5 = $10. 50 $11. 45 x’s 1. 5 = $17. 18

Who must pay? • Overtime pay is not discretionary. • Both State & Federal laws prohibit any agreement to not pay overtime to employees.

Who must Pay? All firms must pay MINNESOTA’s overtime wage regardless of: (48 hrs. ) • Firm’s size, location or gross sales • Method of compensation (hourly, salary, commission, piece rate or other) • Designations such as part-time, temporary, seasonal, or contract.

How are hours counted? • All hours the employee is required to be on the premises -whether working or not, are counted. • Not actual meal periods. • Holiday hours, vacation time or sick leave are not counted in figuring overtime hours.

How are hours counted? • Workweek any consecutive 7 -day period that the employer chooses. • Workweeks can not vary once chosen. • Computed on a workweek basis regardless of length of pay period. • Hours worked may not be averaged over the pay period. • Hours worked may not offset shorter workweeks.

How are hours counted? Continued……. • Hospitals, nursing homes & other health care facilities – Choice to pay OT after 8 hours per day, – and after 80 per two-week period.

How are hours counted? Continued……. • Employees working more than one job under the control of the same employer must have all hours worked counted toward overtime.

How are hours counted? Continued……. • Employees working for more than one employer cannot have all hours worked in the workweek pay periods count toward overtime.

Who is exempt from receiving Overtime? • Executive, administrative or professional employees who meet the salary and duty requirement of the Labor Dept. rules • Retail or service employees paid on a commission basis if the regular rate of pay exceeds one and one-half times the minimum wage ($9. 23)

Who is exempt from receiving Overtime? • Outside salesperson Vehicle Dealership Employees • Sales person, parts person or mechanic who sells or services automobiles, trailers, trucks or farm implements and is paid on a commission or incentive basis

Rest Periods • Minnesota law does not require an employer to give any specific amount of time for breaks. • Employers are required by law to allow an employee to use the nearestroom facility once every 4 hours. • A sufficient time to eat a meal once every 8 hours.

Rest Period - Meal Break • Need not be paid time unless it is less than 20 minutes long. • Need not be paid unless employer requires the employee to eat while working.

Where do I go with questions about overtime after 40 hours? MN Dept. of Labor & Industry Labor Standards. 443 Lafayette Road N. St. Paul MN 55155 Toll free: 1 -800 -342 -5354 Phone: (651) 284 -5005 Fax: (651) 284 -5740 www. doli. state. mn. us/laborlaw. html