It’s a common misconception that if you’re a salaried employee, you’re automatically ineligible for overtime pay. In today’s workforce, where salaried positions are prevalent, this misunderstanding can lead to significant lost wages for hardworking individuals.
In Minnesota, the rules are more nuanced than a simple salary-vs-hourly distinction. Many salaried workers are legally entitled to overtime compensation, but they may not even realize it.
This blog post will delve into the specifics of Minnesota overtime laws for salary employees, helping you understand your rights and whether you might be entitled to extra compensation for those long workweeks.
What is the overtime law for salaried employees in Minnesota? The answer involves both state and federal regulations. Under the Minnesota Fair Labor Standards Act (MFLSA), employers are generally required to pay overtime for all hours worked over 48 in a workweek. However, most Minnesota employees are also covered by the federal Fair Labor Standards Act (FLSA), which is often more generous. The FLSA mandates overtime for hours worked over 40 in a workweek.
When both state and federal laws apply, the employee is entitled to the provisions that are more favorable to them. In the case of overtime, the 40-hour threshold of the FLSA provides greater protection than the 48-hour threshold of the MFLSA. Therefore, for most Minnesotans, the rule is clear: You are owed overtime pay for hours worked beyond 40 in a week.
The overtime rate is one and a half times your regular rate of pay. For salaried employees who are non-exempt, the regular rate of pay is calculated by converting your weekly salary to an hourly wage (by dividing the weekly salary by the number of hours the salary is intended to cover, typically 40).
The key to understanding overtime eligibility for salaried employees lies in the difference between exempt and non-exempt status. Your classification determines whether you are protected by overtime laws.
An employer cannot simply declare an employee exempt or give them a fancy title to avoid paying overtime. The employee’s actual day-to-day job responsibilities and pay structure must meet the legal requirements for an exemption. Misclassification is a common issue, and if you’ve been improperly classified as an exempt employee, you may be owed significant back pay for unpaid overtime.
If you suspect you have been misclassified, you should contact a Minneapolis overtime lawyer.
To be considered exempt from overtime, a salaried employee in Minnesota must generally meet both a salary basis test and a duties test.
How does salary work in MN? First, to be exempt, an employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of the work performed. Improper deductions from a salary can jeopardize an employee’s exempt status.
In addition to the salary basis test, there’s a salary level test. As of October 2025, under federal law, an employee must earn at least $684 per week ($35,568 annually) to potentially qualify as exempt. If a salaried employee earns less than this amount, they are automatically considered non-exempt and are eligible for overtime, regardless of their job duties.
The duties tests are more complex and are broken down into several categories:
When people ask about new salary laws, they may be referring to recent legal developments regarding overtime regulations. In April 2024, the U.S. Department of Labor issued a rule that would have significantly increased the federal salary threshold for overtime exemption in two stages—to $844 per week on July 1, 2024, and to $1,128 per week on January 1, 2025.
However, on November 15, 2024, a federal judge in Texas vacated this rule, blocking both the implemented and planned increases. As a result, the federal minimum salary threshold has reverted to $684 per week ($35,568 annually), which has been in effect since January 1, 2020.
This legal decision has created uncertainty in overtime regulations. The Department of Labor may appeal this ruling or issue new regulations in the future. Employers should stay informed about developments in this area, and employees should understand that their eligibility for overtime depends on the current legal requirements, not on rules that were proposed but blocked by courts.
Minnesota has also passed a significant pay transparency law that went into effect on January 1, 2025. This law requires employers with 30 or more employees to disclose the starting salary range and a general description of benefits and other compensation in all job postings. The salary range must be based on a “good faith estimate” and cannot be open-ended.
While this law focuses on pay transparency at the hiring stage and not directly on overtime eligibility, it represents an important piece of legislation related to salaries in the state and promotes greater fairness in compensation.
There are many myths surrounding Minnesota overtime laws for salary employees. Let’s debunk a few:
Myth: All salaried employees are exempt from overtime.
Fact: As we’ve discussed, this is false. Your eligibility for overtime depends on meeting both the salary and duties tests.
Myth: Your job title determines your exemption status.
Fact: Your actual job duties, not your title, are what matter. An employer can’t call a clerk an “administrative coordinator” to avoid paying overtime if their duties don’t meet the legal test.
Myth: If you earn a high salary, you are automatically exempt.
Fact: While there is a “highly compensated employee” test at the federal level (currently $151,164 annually), your job duties must still include performing at least one of the exempt duties of an executive, administrative, or professional employee. A high salary alone is not enough.
Myth: You can waive your right to overtime pay.
Fact: You cannot sign away your right to overtime. Any agreement to do so is legally unenforceable.
Minnesota overtime laws for salary employees can be complex, and employer non-compliance is a serious issue. What is the overtime law for salaried employees in Minnesota? It’s a question with a detailed answer, and it is crucial for employees to know their rights to ensure they are paid fairly.
If you’re a salaried employee in Minnesota and you’ve been working more than 40 hours a week without overtime pay, it’s worth investigating whether you’ve been properly classified.
How does salary work in MN? The answer to this question can have a significant impact on your pay. With ongoing legal developments regarding salary thresholds and overtime regulations, it’s important to stay informed about your rights as an employee.
If you have questions about overtime pay for salaried employees in Minnesota, or if you suspect you have been misclassified, do not hesitate to seek legal advice. An experienced Minneapolis overtime lawyer can help you understand your rights and determine if you have a claim for unpaid wages.
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