🇺🇸 Minnesota Overtime Laws — 2026 UPDATE

Overtime Laws in Minnesota 2026: Pay Rates, Exemptions & Tax Deduction (2026)

⚠️Informational only — not legal or tax advice.

Guide for Minnesota overtime laws 2026

Last verified: March 1, 2026

Next scheduled review: June 1, 2026

Overtime in Minnesota 2026

Table of Contents

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Minnesota Overtime Laws at a Glance (2026)

Minnesota Overtime Laws — At a Glance (2026)
Details
Overtime threshold (state law) 48 hours per workweek
Overtime threshold (federal FLSA) 40 hours per workweek (applies to most MN employers)
Applicable threshold The threshold more favorable to the employee applies — for most FLSA-covered workers: 40 hours/week
Overtime pay rate 1.5× regular rate of pay
Double time Not required under Minnesota or federal law
Daily overtime No — overtime is weekly only
State minimum wage (2026) $11.41/hour (statewide)
Minneapolis minimum wage (2026) $16.37/hour
Exempt salary threshold (2026) Federal: $684/week ($35,568/year) — Minnesota does not set a higher threshold for EAP exemptions
State enforcement agency Minnesota Department of Labor and Industry (DLI), Labor Standards Division
Federal enforcement U.S. DOL Wage and Hour Division
Overtime tax deduction (federal) Up to $12,500/year (2025–2028) — FLSA-covered workers only
Minnesota state income tax on overtime Yes — Minnesota does not conform to the federal overtime deduction (as of 2026)
Statute of limitations 2 years FLSA (3 if willful); no separate Minnesota filing period specified

Governing law: Minnesota Statutes § 177.25 (Minnesota Fair Labor Standards Act); Fair Labor Standards Act, 29 U.S.C. § 207 Last verified: March 1, 2026

Does Minnesota Have Its Own Overtime Law?

Minnesota has its own overtime law under the Minnesota Fair Labor Standards Act (MFLSA), codified at Minnesota Statutes §§ 177.21–177.35. Under state law, employers must pay overtime for all hours worked over 48 per workweek at a rate of at least 1.5 times the employee’s regular rate of pay.

However, this does not mean most Minnesota workers only receive overtime after 48 hours. The federal Fair Labor Standards Act (FLSA) also applies to a large share of Minnesota employers — including any business with annual gross sales exceeding $500,000, as well as hospitals, nursing homes, schools, and government agencies. The FLSA requires overtime after 40 hours per workweek. When both laws apply, the standard more favorable to the employee governs.

In practice: most Minnesota workers are entitled to overtime after 40 hours per workweek under the FLSA. The 48-hour Minnesota threshold serves as the minimum floor for employers not covered by the FLSA.

Key features of Minnesota’s overtime law compared to federal law:

The MFLSA applies to all employers in Minnesota regardless of gross annual revenue. The FLSA, by contrast, only applies to employers meeting certain coverage thresholds (e.g., $500,000 in annual gross sales, or enterprise-level coverage). This means a small employer not covered by the FLSA is still required to pay overtime — but at the 48-hour threshold under Minnesota law rather than the 40-hour federal threshold.

Both laws set the same overtime pay rate: at least 1.5 times the employee’s regular rate of pay. Neither requires daily overtime or double-time pay.

State statute: Minnesota Statutes § 177.25 — https://www.revisor.mn.gov/statutes/cite/177.25 Federal statute: Fair Labor Standards Act, 29 U.S.C. § 207 — https://www.dol.gov/agencies/whd/overtime

How Overtime Pay Is Calculated in Minnesota

What Is a “Workweek”?

Under both the FLSA and Minnesota law, a workweek is a fixed, regularly recurring period of 168 consecutive hours (seven consecutive 24-hour periods). The employer may designate any day and time as the start of the workweek.

Each workweek stands alone. An employer cannot average hours across two or more workweeks to avoid overtime. If an employee works 50 hours in week one and 30 hours in week two, overtime is owed for the first week.

Holiday hours, vacation time, and sick leave are not counted toward overtime hours under Minnesota law — only actual hours worked are used.

Sources: Minnesota Statutes § 177.25; 29 C.F.R. § 778.104–778.105

Which Overtime Threshold Applies to You?

Minnesota Overtime Threshold — FLSA vs. State Law
Employer type Overtime after
Employer covered by FLSA (most businesses with $500K+ in annual sales, hospitals, schools, government) 40 hours/week
Employer NOT covered by FLSA (smaller employers, certain exempt categories) 48 hours/week under Minnesota law

When in doubt about which threshold applies, employees covered by the FLSA are subject to the 40-hour standard, which is more favorable than the 48-hour state threshold.

Source: Minnesota Department of Labor and Industry — https://www.dli.mn.gov/overtime

What Counts as the “Regular Rate of Pay”?

The regular rate of pay is not always the same as the base hourly wage. Under Minnesota Rules 5200.0130 and 29 C.F.R. § 778.108, the regular rate is calculated by dividing total weekly pay by total hours worked in that week. It includes:

  • Base hourly rate
  • Non-discretionary bonuses and incentive pay
  • Shift differentials
  • Commissions
  • Piece-rate earnings

It does not include:

  • Discretionary bonuses (e.g., holiday gifts)
  • Employer contributions to benefit plans
  • Vacation, holiday, or sick pay for time not worked

Sources: Minnesota Rules 5200.0130 — https://www.revisor.mn.gov/rules/5200.0130/; 29 C.F.R. § 778.108

Calculation Examples

Example 1 — FLSA-covered employer (overtime after 40 hours):

An employee earns $11.41/hour (Minnesota minimum wage) and works 48 hours in one workweek:

  • Regular pay: 40 hours × $11.41 = $456.40
  • Overtime pay: 8 hours × ($11.41 × 1.5) = 8 × $17.12 = $136.96
  • Total weekly gross pay: $593.36

Example 2 — Non-FLSA employer (overtime after 48 hours):

An employee earns $11.41/hour and works 52 hours in one workweek at a small employer not covered by the FLSA:

  • Regular pay: 48 hours × $11.41 = $547.68
  • Overtime pay: 4 hours × ($11.41 × 1.5) = 4 × $17.12 = $68.48
  • Total weekly gross pay: $616.16

Note how fewer overtime hours are earned at the 48-hour threshold vs. the 40-hour threshold, illustrating why FLSA coverage is more favorable for workers.

Sources: Minnesota Statutes § 177.25; Minnesota Rules 5200.0130; 29 C.F.R. § 778.108

For the current Minnesota minimum wage used in these calculations, see the Minnesota Minimum Wage page.

Who Is Exempt from Overtime in Minnesota?

Not all employees in Minnesota are entitled to overtime pay. Exemptions exist under both federal and state law, and employers must comply with whichever standard applies to their business.

Federal FLSA Exemption Requirements

To qualify as exempt from overtime under the FLSA, an employee must meet all three of the following:

1. Salary basis test: Paid a predetermined, fixed salary each pay period (not hourly)

2. Salary level test: Earn at least $684 per week ($35,568 per year)

3. Duties test: Perform specific job duties in one of these categories:

Minnesota Overtime Exemptions (EAP Categories)
Exemption Key duty requirement
Executive Manages enterprise or department; directs 2+ employees; authority to hire/fire
Administrative Office/non-manual work related to management or business operations; exercises independent judgment
Professional Work requiring advanced knowledge acquired through prolonged specialized study
Computer employee Systems analysis, programming, or software engineering — $684/week salary OR $27.63/hour
Outside sales Primary duty is making sales away from employer's place of business

Source: 29 C.F.R. Part 541 — https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime

What Happened to the 2024 DOL Salary Threshold Increase?

In April 2024, the U.S. Department of Labor issued a final rule that would have raised the exempt salary threshold to $1,128 per week ($58,656/year) by January 1, 2025.

On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that rule nationwide in Texas v. U.S. Department of Labor (No. 4:24-cv-00499).

The salary threshold remains $684/week ($35,568/year) as of 2026.

Minnesota-Specific Exemption Requirements

Minnesota’s FLSA (Minn. Stat. § 177.23, subd. 7, and Minnesota Rules 5200.0180–5200.0210) sets its own duties tests for the executive, administrative, and professional exemptions. Like the federal tests, positions must be paid a guaranteed and predetermined weekly salary and meet specific duty requirements.

Notably, Minnesota’s minimum salary levels for EAP exemptions are lower than the current federal threshold. Minnesota Rules set salary minimums as low as $155–$250 per week for certain tests. Because the federal $684/week threshold is higher and more favorable to employees, it effectively governs for FLSA-covered employers in Minnesota.

One important difference: Minnesota does not recognize a computer employee exemption from overtime. Unlike federal law, Minnesota’s FLSA does not exempt computer systems analysts, programmers, or software engineers from its overtime requirements. (Minnesota Rules 5200.0220)

Source: Minnesota Statutes § 177.23 — https://www.revisor.mn.gov/statutes/cite/177.23; Minnesota Rules 5200.0180 — https://www.revisor.mn.gov/rules/5200.0180/

Other Minnesota-Specific Exemptions

Minnesota Statutes § 177.23, subd. 7 lists more than 20 categories of workers who may be exempt from minimum wage and/or overtime under state law. These include, among others:

  • Nonprofit volunteers
  • Elected officials
  • Police and firefighters (for overtime purposes under certain agreements)
  • Seasonal fair, carnival, and ski facility workers (overtime exempt only)
  • Clergy working in schools, hospitals, or nonprofits operated by a religious organization
  • Outside salespersons
  • Agricultural workers paid a qualifying salary (see Industry-Specific Rules below)
  • Motor vehicle salespersons, parts persons, and mechanics paid on commission or incentive basis

Source: Minnesota Statutes § 177.23, subd. 7 — https://www.revisor.mn.gov/statutes/cite/177.23; Minnesota Department of Labor and Industry — https://www.dli.mn.gov/worker-exemptions

Employer Notice Requirement

Minnesota is one of few states requiring employers to notify employees in writing of their exemption status. Under Minnesota’s employee notice law (Minn. Stat. § 181.032), employers must provide each employee with a written notice at the start of employment that states whether the employee is exempt from minimum wage or overtime and on what legal basis.

Source: Minnesota Statutes § 181.032 — https://www.revisor.mn.gov/statutes/cite/181.032

Overtime Tax Deduction: "No Tax on Overtime" (2025–2028)

The One Big Beautiful Bill Act (Public Law 119-21), signed on July 4, 2025, created a new federal income tax deduction for qualified overtime compensation under Internal Revenue Code § 225. This deduction is available for tax years 2025 through 2028.

Who Is Eligible

  • Nonexempt employees covered by the Fair Labor Standards Act (29 U.S.C. § 207)
  • Must have a Social Security number valid for employment
  • Cannot use the Married Filing Separately filing status

Who is NOT eligible:

  • Exempt (salaried) employees who do not receive FLSA overtime
  • Independent contractors (1099 workers) who are not FLSA-covered
  • Employees receiving overtime only under state law or employer policy that is not also required by the FLSA

What Is Deductible

The deduction covers the premium portion of overtime pay — the amount that exceeds the regular rate of pay.

Overtime Premium — Deductible Portion Example ($20/hr Regular Rate)
Overtime type What is deductible Example ($20/hr regular rate)
Time-and-a-half (1.5×) The "half" — 1/3 of total overtime pay $10/hr per overtime hour ($30 − $20)

IRS shortcut for 2025: If you only know your total overtime pay and were paid time-and-a-half, divide that total by 3. (Source: IRS Notice 2025-69)

Federal Overtime Tax Deduction — Deduction Limits (2025–2028)
Filing status Maximum annual deduction Phase-out begins Phase-out complete
Single $12,500 $150,000 MAGI See IRS guidance
Married filing jointly $25,000 $300,000 MAGI See IRS guidance
W-2 Reporting (Federal Overtime Deduction)
Tax year Employer reporting requirement
2025 NOT required to separately report (transition year — IRS Notice 2025-62). May voluntarily report in W-2 Box 14 as "QUAL OT" or provide a separate statement.
2026 and later REQUIRED to separately report qualified overtime compensation. The IRS has published a draft W-2 form indicating Box 12, Code TT for this purpose (draft form, subject to change before finalization).

If an employer did not separately report overtime for 2025, the IRS allows employees to use “any reasonable method” to calculate the deductible amount, including one-third of total overtime pay (for time-and-a-half workers).

What This Deduction Does NOT Do

  • Does NOT exempt overtime from Social Security (6.2%) or Medicare (1.45%) taxes
  • Does NOT apply to Minnesota state income taxes
  • Does NOT change how much overtime pay an employee receives — it reduces federal taxable income when filing
  • Does NOT apply to overtime paid solely under Minnesota’s 48-hour threshold that is not also required by the FLSA

Sources: IRS Questions and Answers About the New Deduction for Qualified Overtime Compensation — https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation; IRS Notice 2025-69; IRS Notice 2025-62; IRC § 225; P.L. 119-21, § 70202; Schedule 1-A (Form 1040)

Minnesota State Income Tax and Overtime

Minnesota does not conform to the federal overtime income tax deduction. The Minnesota Department of Revenue has confirmed that the “No Tax on Overtime” provision (H.R. 1, § 70202; IRC § 225) has no impact on Minnesota income tax — it is listed as “No” in the state’s official nonconformity chart for H.R. 1.

This means overtime pay earned by Minnesota workers is still subject to Minnesota state income tax at normal individual income tax rates (ranging from 5.35% to 9.85% depending on income level), regardless of the new federal deduction.

Source: Minnesota Department of Revenue, Minnesota Tax Impacts Resulting from the 2025 Federal Tax Budget and Reconciliation Bill (H.R. 1), February 2026 — https://www.revenue.state.mn.us/sites/default/files/2026-02/2025-nonconformity-chart.pdf

Pending Minnesota Legislation

Several bills have been introduced in the Minnesota Legislature’s 94th Session (2025–2026) to create a state-level overtime income tax subtraction:

Senate File 589 (SF 589) — Introduced January 27, 2025. Would allow taxpayers to subtract overtime pay from Minnesota taxable income. Overtime is defined as compensation earned for hours worked beyond the maximum workweek under Minnesota chapter 177 or 29 U.S.C. § 207. Referred to the Senate Tax Committee. No further action as of March 2026. Source: https://www.revisor.mn.gov/bills/94/2025/0/SF/589/versions/latest/

Senate File 1332 (SF 1332) — Would also create a subtraction for overtime pay from Minnesota individual income tax under Minn. Stat. § 290.0132. Source: https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1332&ssn=0&y=2025

Senate File 2263 (SF 2263) — A broader bill introduced in 2026 that would provide subtractions for overtime pay, tips, bonuses, and nonprofit gambling winnings. Effective for tax years beginning after December 31, 2024. Source: https://www.revisor.mn.gov/bills/94/2025/0/SF/2263/versions/latest/

None of these bills have been enacted as of March 1, 2026. Passage would require legislative action and the Governor’s signature before any Minnesota overtime income tax exemption takes effect.

Cross-reference: For Minnesota income tax rates and filing information, see the Minnesota Income Tax page.

Can an Employer Require Overtime in Minnesota?

Under the FLSA, there is no federal limit on the number of hours an employer can require an adult employee (age 16 and older) to work in a workweek, as long as the employee is properly compensated at the applicable overtime rate.

Minnesota does not have additional state-level restrictions on mandatory overtime for most private-sector workers. An at-will employer in Minnesota may require overtime, and employees who refuse may face disciplinary action or termination.

Protections That Always Apply

Regardless of mandatory overtime policies, the following apply in Minnesota:

  • All overtime hours must be compensated at 1.5 times the regular rate once the applicable threshold (40 or 48 hours) is exceeded
  • Employers cannot retaliate against employees who file wage complaints — under both 29 U.S.C. § 215(a)(3) and Minnesota Statutes § 177.27
  • Minnesota law also protects employees who ask about their rights related to pay (Minnesota Department of Labor and Industry, Retaliation page — https://dli.mn.gov/retaliation)
  • Disability accommodation requests under the ADA may limit overtime requirements
  • Child labor laws restrict hours for employees under 18 (Minnesota Statutes § 181.04; Minnesota Rules 5200.0910–5200.0920)

Sources: 29 U.S.C. § 207; Minnesota Statutes § 177.27 — https://www.revisor.mn.gov/statutes/cite/177.27

Industry-Specific Overtime Rules in Minnesota

Agriculture — Notable State Protections

Minnesota stands out nationally: agricultural workers in Minnesota are entitled to overtime pay under state law, unlike the federal FLSA, which generally exempts agricultural workers from overtime requirements.

Under Minnesota law, agricultural employees must be paid overtime at 1.5 times their regular rate for all hours worked over 48 per workweek. A limited exemption applies only to agricultural workers who are paid a salary meeting a minimum weekly threshold — as of the most recent DLI guidance, approximately $724.71/week for large employers (gross revenues $500,000+) or $590.94/week for small employers.

Cannery workers are generally covered by the federal FLSA and therefore entitled to overtime after 40 hours per workweek.

Source: Minnesota Department of Labor and Industry, Agricultural Workers — https://www.dli.mn.gov/agriculture; Minnesota Statutes § 177.23, subd. 7

Healthcare — 8-and-80 System

Under 29 U.S.C. § 207(j) and Minnesota Statutes § 177.25, subd. 2, hospitals and residential care facilities may use a 14-day work period for overtime purposes instead of the standard 7-day workweek. Under this arrangement, overtime is due after:

  • 8 hours in a single workday, OR
  • 80 hours in the 14-day period, whichever calculation results in more overtime pay.

This arrangement must be agreed upon in advance by the employer and employee before the work is performed.

Sources: 29 U.S.C. § 207(j); Minnesota Statutes § 177.25, subd. 2 — https://www.revisor.mn.gov/statutes/cite/177.25

Motor Vehicle Dealerships

Under Minnesota Statutes § 177.25, subd. 3, the overtime provisions of the Minnesota FLSA do not apply to salespersons, parts persons, or mechanics primarily engaged in selling or servicing automobiles, trailers, trucks, or farm implements if they are employed by a dealership selling to consumers and are paid on a commission or incentive basis.

Source: Minnesota Statutes § 177.25, subd. 3 — https://www.revisor.mn.gov/statutes/cite/177.25

Retail and Commission Employees

Under 29 U.S.C. § 207(i), retail or service employees paid primarily on a commission basis may be exempt from overtime if: (1) they work for a retail or service establishment, (2) their regular rate of pay exceeds 1.5 times the applicable minimum wage, and (3) more than half their total compensation in a representative period comes from commissions. Minnesota Rules 5200 also recognize commission-based overtime exemptions for qualified retail/service workers.

Source: 29 U.S.C. § 207(i); Minnesota Rules 5200 — https://www.revisor.mn.gov/rules/5200/full

Public Sector / Government Employees — Compensatory Time

Under the FLSA, private-sector employers cannot substitute comp time for overtime pay. An employee who works overtime in the private sector must receive cash compensation at 1.5 times the regular rate.

Minnesota state and local government employers may grant compensatory time off instead of cash overtime, but only under specific conditions:

  • Minnesota Statutes § 177.25 explicitly allows the State of Minnesota and political subdivisions to grant time off at the rate of 1.5 hours for each hour worked over 48 in a workweek in lieu of monetary compensation.
  • Under the FLSA (29 U.S.C. § 207(o)), public employers may offer comp time at 1.5 hours per overtime hour, up to 240 hours of accrued comp time (or 480 hours for public safety, emergency response, and seasonal employees), provided a prior agreement exists with the employee.

Sources: Minnesota Statutes § 177.25 — https://www.revisor.mn.gov/statutes/cite/177.25; 29 U.S.C. § 207(o)

Air Carriers

Minnesota Statutes § 177.25 includes a specific provision for employees of air carriers subject to Title II of the Railway Labor Act. Hours worked in excess of 48 in a workweek that are not required by the carrier — but are arranged through a voluntary agreement among employees to trade scheduled work hours — are not subject to the overtime pay provisions.

Source: Minnesota Statutes § 177.25 — https://www.revisor.mn.gov/statutes/cite/177.25

Companion and Live-In Workers

Minnesota Statutes § 177.23 includes a specialized provision for employees who provide companionship services to aged or infirm individuals. For overnight stays (10 p.m. to 9 a.m., up to 8 hours per night) during which the employee is not actively performing duties and is free to sleep or engage in private pursuits, those nighttime hours are not counted toward overtime or minimum wage calculations.

Source: Minnesota Statutes § 177.23 — https://www.revisor.mn.gov/statutes/cite/177.23

How to File an Overtime Wage Complaint in Minnesota

Employees in Minnesota who believe they have not received proper overtime pay have three options.

Option 1: Minnesota Department of Labor and Industry — Labor Standards Divisio

Minnesota Overtime Complaint — State (DLI)
Details
Agency Minnesota Department of Labor and Industry (DLI), Labor Standards Division
Online / Contact Email: dli.laborstandards@state.mn.us
Phone 651-284-5075 or 800-342-5354 (toll-free)
Address Labor Standards, 443 Lafayette Road N., St. Paul, MN 55155
Wage claim page https://dli.mn.gov/wage-claim
Deadline Contact DLI; standard FLSA limitations apply

Process: Contact Labor Standards by phone or email. An investigator will reach out within three business days. The claim is assigned, your employer receives a Notice of Wage Claim requiring a response within 10 days, and the investigator works to resolve the matter. Wage claims typically close within 21 days.

Note: Wage claims cannot be filed for unused vacation/PTO, mileage, discretionary bonuses, or unpaid severance agreements.

Source: Minnesota Department of Labor and Industry — https://dli.mn.gov/wage-claim

Option 2: U.S. Department of Labor — Wage and Hour Division

Minnesota Overtime Complaint — Federal (U.S. DOL WHD)
Details
Online https://www.dol.gov/agencies/whd/contact/complaints
Phone 1-866-487-9243 (toll-free)
Deadline 2 years from violation (3 years if willful)

Option 3: Private Lawsuit

Employees may file a lawsuit against their employer in state or federal court under 29 U.S.C. § 216(b). Available remedies include:

  • Back wages owed
  • Liquidated damages (an additional amount equal to the unpaid wages)
  • Reasonable attorney’s fees and court costs

Retaliation Protection

Under the FLSA (29 U.S.C. § 215(a)(3)) and Minnesota Statutes § 177.27, employers cannot retaliate against employees for:

  • Filing an overtime or wage complaint with DLI or the WHD
  • Telling an employer they intend to file a complaint
  • Asking about their rights related to pay and hours
  • Participating in an investigation or proceeding related to overtime violations

Sources: 29 U.S.C. § 216(b); 29 U.S.C. § 215(a)(3); Minnesota Department of Labor and Industry — https://dli.mn.gov/retaliation; Minnesota Statutes § 177.27 — https://www.revisor.mn.gov/statutes/cite/177.27

Penalties for Overtime Violations in Minnesota

Federal FLSA Penalties
Penalty type Amount
Back wages Full amount of unpaid overtime owed
Liquidated damages Equal to unpaid wages (effectively doubles recovery)
Civil monetary penalty Up to $2,451 per violation for willful or repeated violations (adjusted annually by DOL)
Criminal prosecution Willful: fines up to $10,000; second offense: up to 6 months imprisonment

Source: 29 U.S.C. § 216 — https://www.dol.gov/agencies/whd/flsa

Minnesota State Penalties

Under Minnesota Statutes § 177.27, the DLI may issue compliance orders requiring payment of back wages. Additionally:

  • Employers found to have committed wage theft (including failure to pay overtime) face civil penalties under Minnesota Statutes § 177.27, subd. 4
  • Employers may owe liquidated damages equal to the amount of unpaid wages under both state and federal law
  • DLI may assess additional daily penalties for failure to pay wages on time — equal to the employee’s average daily pay rate for each day wages are delayed, up to 15 days
  • Under the Minnesota Wage Theft Prevention Act (effective July 1, 2019), intentional wage theft may result in criminal penalties

Source: Minnesota Statutes § 177.27 — https://www.revisor.mn.gov/statutes/cite/177.27; Minnesota Department of Labor and Industry, Wage Theft Law — https://dli.mn.gov/wagetheft

Minnesota Overtime Law Updates (2025–2026)

Federal Changes Affecting Minnesota

  • July 4, 2025: One Big Beautiful Bill Act (P.L. 119-21) signed — created a federal income tax deduction for qualified overtime compensation for tax years 2025–2028 (IRC § 225). Minnesota does not conform to this deduction.
  • November 15, 2024: DOL salary threshold rule vacated by federal court (Texas v. U.S. Dept. of Labor, No. 4:24-cv-00499) — exempt salary threshold remains $684/week ($35,568/year).
  • January 1, 2026: Minnesota statewide minimum wage increased from $11.13/hour to $11.41/hour for all employers, raising the minimum overtime rate to $17.12/hour for time-and-a-half. Minneapolis minimum wage also increased to $16.37/hour.

Minnesota State Changes

  • January 1, 2026: Unified minimum wage structure in effect — Minnesota eliminated separate large/small employer wage tiers in 2025. All employers now pay the same statewide rate ($11.41/hour as of 2026).
  • July 2023: Agricultural worker protections expanded — employers who recruit migrant agricultural workers from out of state are required to provide written employment statements at the time of recruitment, not just at hire.

Pending Legislation (94th Legislature, 2025–2026)

Three bills in the Minnesota Legislature’s current session would create a state income tax subtraction for overtime pay if enacted:

None of these bills have passed or been signed into law as of March 1, 2026.

Last reviewed: March 1, 2026 Next scheduled review: June 1, 2026

Frequently Asked Questions About Overtime in Minnesota

Does Minnesota have overtime laws?

Yes. Minnesota has its own overtime law under the Minnesota Fair Labor Standards Act (Minn. Stat. § 177.25), which requires overtime after 48 hours per workweek. However, most Minnesota workers are also covered by the federal FLSA, which requires overtime after 40 hours — a more favorable standard that takes precedence.

What is the overtime rate in Minnesota in 2026?

The overtime rate in Minnesota is 1.5 times the employee’s regular rate of pay. Based on the 2026 statewide minimum wage of $11.41/hour, the minimum overtime rate is $17.12/hour. Minneapolis workers earning the local minimum of $16.37/hour have a minimum overtime rate of $24.56/hour.

After how many hours is overtime required in Minnesota?

For most Minnesota workers covered by the FLSA: overtime is required after 40 hours per workweek. For employees of smaller employers not covered by the FLSA: overtime is required after 48 hours per workweek under Minnesota law. There is no daily overtime requirement in Minnesota.

Does Minnesota require daily overtime?

No. Neither Minnesota law nor the FLSA requires overtime based on daily hours. Overtime in Minnesota is calculated on a weekly basis only. Working more than 8 hours in a single day does not trigger overtime unless total weekly hours exceed the applicable threshold (40 or 48 hours).

Am I exempt from overtime in Minnesota?

Exemption depends on both salary and job duties. Under the FLSA, employees must earn at least $684/week on a salary basis AND meet executive, administrative, or professional duties tests to be exempt. Minnesota adds its own duties tests under Minnesota Rules 5200.0190–5200.0210, and unlike federal law, does not recognize a computer employee overtime exemption. Agricultural workers are exempt from overtime under the FLSA but are entitled to overtime under Minnesota law after 48 hours (unless paid a qualifying salary).

Can salaried employees get overtime in Minnesota?

Yes. Being paid a salary does not automatically exempt an employee from overtime. Salaried employees who earn less than $684/week or do not meet the applicable duties tests are nonexempt and entitled to overtime pay. Minnesota law also requires employers to notify employees in writing of their exempt or non-exempt status.

Is overtime taxed in Minnesota?

Yes. Overtime pay is subject to both federal and Minnesota state income tax. Although the One Big Beautiful Bill Act (2025–2028) created a federal deduction of up to $12,500/year for the premium portion of overtime pay, Minnesota does not conform to this deduction. Overtime pay remains fully subject to Minnesota state income tax at applicable rates (5.35%–9.85%). Several bills to create a state-level subtraction are pending in the legislature as of March 2026.

How do I calculate the federal overtime tax deduction?

For time-and-a-half pay, the deductible amount (for federal purposes only) is one-third of total overtime pay. For example, if you earned $9,000 in total overtime at time-and-a-half, the qualified overtime compensation is $3,000 — the deductible premium. The IRS confirms this method in Notice 2025-69. This deduction applies on your federal return using Schedule 1-A (Form 1040) and does not reduce your Minnesota taxable income.

Is mandatory overtime legal in Minnesota?

Yes, in most cases. Minnesota is an at-will employment state, and employers may require overtime for adult employees without a statutory limit on weekly hours. Employees who refuse mandatory overtime may face disciplinary action or termination, unless a contract or collective bargaining agreement provides otherwise. Employers must pay the applicable overtime rate for all mandatory overtime hours worked.

Can my employer give comp time instead of overtime pay in Minnesota?

Private-sector employers in Minnesota cannot offer compensatory time in lieu of overtime pay — all overtime hours must be paid in cash at 1.5 times the regular rate. State and local government employers may offer comp time at 1.5 hours per overtime hour, up to 240 hours (480 hours for public safety workers), provided a prior agreement exists. (Minnesota Statutes § 177.25; 29 U.S.C. § 207(o))

Does working on weekends or holidays count as overtime in Minnesota?

No. Working on weekends or holidays does not automatically constitute overtime under Minnesota or federal law. Overtime is determined by total hours worked in the workweek (not which days those hours occurred). Holiday hours are not counted toward overtime totals; only actual hours worked count.

What if I work two jobs for the same employer?

If you work two different jobs for the same employer in the same workweek, all hours worked for that employer are combined for overtime purposes. If the combined total exceeds the applicable threshold, overtime is owed. Different jobs for different employers are calculated separately.

Source: Minnesota Department of Labor and Industry, Wages and Overtime FAQs — https://www.dli.mn.gov/business/employment-practices/wages-and-overtime-faqs

How do I file an overtime complaint in Minnesota?

Contact the Minnesota Department of Labor and Industry’s Labor Standards Division at 651-284-5075 or dli.laborstandards@state.mn.us, or file online at https://dli.mn.gov/wage-claim. You may also file with the U.S. DOL Wage and Hour Division at 1-866-487-9243. The FLSA statute of limitations is 2 years (3 years for willful violations).

Can my employer fire me for filing an overtime complaint in Minnesota?

No. Minnesota law (Minn. Stat. § 177.27) and federal law (29 U.S.C. § 215(a)(3)) both prohibit retaliation against employees who file overtime complaints, participate in investigations, or ask about their wage rights. If retaliation occurs, employees may file a retaliation complaint with DLI at https://dli.mn.gov/retaliation.

What happens if my employer doesn’t pay overtime?

Employees may recover unpaid overtime wages plus liquidated damages equal to the unpaid amount, and attorney’s fees under 29 U.S.C. § 216(b). Minnesota law also permits daily penalty wages for delayed payment and potential criminal penalties for wage theft under the Minnesota Wage Theft Prevention Act. The FLSA statute of limitations is 2 years (3 years if willful).

What is the statute of limitations for overtime claims in Minnesota?

Under the FLSA: 2 years from the date of the violation (3 years if the employer’s conduct was willful). Minnesota does not specify a separate longer statute of limitations for overtime claims under the MFLSA; FLSA deadlines generally govern. Employees should contact DLI or legal counsel promptly to preserve their claims.

Are agricultural workers entitled to overtime in Minnesota?

Yes — Minnesota is one of the few states that requires overtime for agricultural workers. Most agricultural employees in Minnesota are entitled to overtime after 48 hours per workweek under state law, with a limited exception for agricultural workers paid a salary above the DLI-specified threshold. (Note: Federal FLSA generally exempts agricultural workers from overtime, but Minnesota’s more protective state law applies.)

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