Since the federal Fair Labor Standards Act (FLSA) applies to virtually all enterprises involved in interstate commerce, most Minnesota employers are covered by both state and federal law and must adhere to the stricter federal overtime standard. The federal standard requires that 11/2 times an employee's regular rate be paid for hours worked in excess of 40 during a workweek. Minnesota is less generous to employees than the federal government, requiring overtime pay only for hours worked in excess of 48 during a workweek (MN Stat. Sec. 177.23). Thus, the state provisions are applicable only to employers that are either exempt from the federal law or excluded from its coverage because they are not engaged in interstate commerce.
Minnesota law exempts anyone employed in a bona fide executive, administrative, or professional capacity from overtime pay requirements (MN Admin. Code Sec. 5200.0190, Sec. 5200.0200, and Sec. 5200.0210). Because the salary level requirement under Minnesota regulations is $250 per week, the higher federal salary threshold test will apply in every instance in Minnesota.
State regulations define an "exempt executive employee" as an employee who:
• Manages the enterprise by which the person is employed or a recognized department or subdivision thereof; and
• Customarily directs the work of two or more other employees.
Note: remember to apply the higher federal salary threshold.
State regulations define an "exempt administrative employee" as an employee who:
• Either performs office or nonmanual work directly related to management policies or general business operations, or performs functions in the ...