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Paying overtime – federal law

The federal Fair Labor Standards Act requires some employers to pay overtime for all hours worked in excess of 40 per workweek. These employers include:

  • employers that produce or handle goods for interstate commerce;

  • businesses with gross annual sales of more than $500,000; and

  • hospitals and nursing homes, personal care assistant (PCA) and community first services and supports (CFSS) agencies, private and public schools, federal, state and local government agencies.

Paying overtime – Minnesota law

The Minnesota Fair Labor Standards Act requires employers to pay overtime for all hours worked over 48 per workweek, unless the employee is exempt under Minnesota Statutes 177.23, subdivision 7.

Overtime pay must be at least 1.5 times the employee's regular rate of pay. This is calculated by dividing the total pay in any work week by the total number of hours worked in that week.

Overtime is based on actual hours worked in a seven-day workweek, so holiday hours, vacation time and sick leave are not counted.

For more information

Contact us at dli.laborstandards@state.mn.us, 651-284-5075 or 800-342-5354.