Federal Department of Labor's FairPay Overtime Initiative

Under the new federal FairPay rules, workers earning less than $23,660 a year -- or $455 a week -- are guaranteed overtime protection. Learn more on the federal Department of Labor Web site.

Navigating Minnesota, federal minimum-wage and overtime exemptions

Minnesota flag In the areas of minimum wage and overtime, there is dual regulation by the state of Minnesota and by the federal goverment. If an employment situation falls within the jurisdiction of both state and federal law, then the employer must comply with the state or federal law that sets the higher standard.

For Minnesota employers and employees that fall within the jurisdiction of both state and federal law, the federal overtime statute and regulations have set the higher standard.

However, when federal regulations that amend the exemptions from overtime for executive, administrative, professional, computer, highly compensated and outside sale employees went into effect Aug. 23, 2004, for certain employment situations, Minnesota's overtime laws and regulations set the higher standard.

United States flag Consequently, it is possible under the new federal regulations that an employer is no longer obligated to pay an employee overtime, but is obligated to pay an employee overtime in accordance with state law.

To ensure overtime compliance, employers that fall within the jurisdiction of both state and federal law need to be familiar with both the state and federal overtime statutes and regulations, and determine which provides the higher standard.

In an effort to provide assistance and guidance to Minnesota employers and employees, the Minnesota Department of Labor and Industry has developed a recommended analysis for employers and employees to follow when determining whether their employment situations are exempt of non-exempt from federal and state minimum wage and overtime laws.