Minnesota Overtime Calculator (2026): 40 vs 48 Hours, Gross & Net Take-Home

1. Minnesota Minimum Wage (2026) & Municipal Ordinances

Minnesota's wage floors are among the most progressive in the Midwest:

• Unified Statewide Rate (2026): The statewide minimum wage is $11.41 per hour, effective January 1, 2026 (adjusted up from $11.13 in 2025). The historic statutory distinction between 'large' and 'small' employers was eliminated on January 1, 2025; all employers are now subject to the single $11.41 standard. The federal $7.25 rate sits far below the state floor and is legally obsolete for Minnesota workers.
• Overtime Rate Floor: At $11.41 per hour, the minimum legal overtime rate is $17.12 per hour ($17.115 exact).
• Youth Training Wage: Employers may pay under-20 employees a training rate of $9.31 per hour during their first 90 consecutive days of employment (OT floor: $13.97/hr).
• Minneapolis Municipal Minimum Wage: All employers operating within Minneapolis must pay at least $16.37 per hour, resulting in a mandatory overtime floor of $24.56 per hour.
• St. Paul Municipal Minimum Wage: Large and small employers in St. Paul must pay at least $16.37 per hour (OT floor: $24.56/hr). Micro-businesses with 5 or fewer employees must pay at least $14.25 per hour (OT floor: $21.38/hr), effective July 1, 2026.
• Announced Future 2027 Rates: The Minnesota DLI has announced future inflation-adjusted rates for January 1, 2027: state minimum wage will be $11.87 per hour (training wage: $9.68 per hour). These are future statutory figures and are not yet operative.

2. Tipped Workers: Minnesota's Absolute Ban on Tip Credits

Under Minnesota Statutes § 177.24, subdivision 2, tip credits are strictly illegal in Minnesota. Key protections for tipped workers include:

• Full Minimum Wage in Cash: Employers must pay tipped employees (food servers, bartenders, bussers, hairstylists) the full minimum wage ($11.41 statewide, or $16.37 in Minneapolis and St. Paul) directly in cash wages, in addition to all tips received.
• Credit Card Processing Fees Ban: Effective August 1, 2024, Minnesota law prohibits employers from deducting credit card swipe fees or merchant processing surcharges from employee tips. The full gratuity charged by the customer must be paid to the employee by the next regular pay period.
• Tipped Overtime Calculation: Because there is no tip credit, overtime is calculated simply by multiplying the worker's full regular hourly wage by 1.5. A server earning $11.41 base wage earns an overtime cash rate of $17.12 per hour, plus 100% of their tips.

3. Exempt Salary Thresholds & Duties Tests in Minnesota

Minnesota does not maintain a higher state-level salary threshold for executive, administrative, or professional exemptions:

• Federal Threshold is Binding ($684/Week): Minnesota Rules Chapter 5200 contains outdated state salary floors ($155 to $250 per week) that have not been revised in decades. Consequently, the federal FLSA threshold of $684 per week ($35,568 per year) serves as the binding minimum salary for dual-covered employees.
• Vacatur of 2024 DOL Rule: Outdated numbers cited on third-party websites — such as $844/week or $1,128/week — are legally invalid. The U.S. District Court for the Eastern District of Texas vacated the 2024 DOL overtime salary rule in late 2024, and the 2019 levels were formally confirmed on May 15, 2026.
• Salary Alone Does Not Create an Exemption: Paying an employee a salary of $684/week or more does not eliminate overtime rights. The employee's actual day-to-day job duties must satisfy the rigorous FLSA executive, administrative, or professional duties tests.
• Highly Compensated Employee Exemption: $107,432 per year under 29 C.F.R. § 541.601. Computer professionals paid on an hourly basis must earn at least $27.63 per hour.

4. Final Paycheck Laws (Minn. Stat. §§ 181.13 & 181.14)

Minnesota enforces some of the strictest final pay deadlines and penalties in the United States:

• Terminated / Fired Employees (§ 181.13): When an employee is discharged, laid off, or terminated, all earned wages are immediately due upon written demand, and must be paid within 24 hours. If the employer fails to pay within 24 hours of written demand, the employer is subject to a statutory penalty of one day's average earnings for each day delayed, up to a maximum of 15 days.
• Voluntary Resignations / Quits (§ 181.14): When an employee quits or resigns, all earned wages must be paid on the next regularly scheduled payday. If the next payday is less than 5 calendar days after the employee's last day of work, the employer has until the following regular payday, but in no event more than 20 calendar days after the last day worked.
• 10-Day Audit Exception: If the employee was entrusted with company money or property during employment, the employer has 10 calendar days after the employee's last day to audit accounts before paying final wages.
• Vacation / PTO Payout upon Separation: Under Minn. Stat. § 181.74, payout of accrued unused vacation or PTO is not automatic by statute; it is governed strictly by the employer's contract or written employee handbook. If the employer's written policy promises payout, it must be paid within 30 days of becoming due. Clear written forfeiture policies (e.g., forfeiting PTO if 2 weeks' notice is not given) are legally enforceable under Minnesota law.

5. 2026 Mandatory Rest and Meal Breaks

Historic Minnesota break laws required only 'adequate time' for restroom visits every 4 hours and meal time after 8 hours. Those old rules are completely STALE and obsolete. Effective January 1, 2026, comprehensive statutory break standards took effect:

• Paid Rest Breaks (Minn. Stat. § 181.12): Employers must provide an uninterrupted paid rest break of at least 15 minutes for every 4 consecutive hours of work.
• Unpaid Meal Breaks (Minn. Stat. § 181.142): Employers must provide an uninterrupted unpaid meal break of at least 30 minutes for work shifts of 6 or more consecutive hours.
• Minors' Breaks: Minors under 18 years of age are protected by the exact same break standards as adult workers (15 minutes paid per 4 hours; 30 minutes unpaid per 6 hours).

6. Bonus and Commission Regular Rate Mathematics

Under Minnesota Rules 5200.0130 and 29 C.F.R. § 778.208, non-discretionary bonuses, incentive awards, commissions, and shift differentials must be included in the regular rate before overtime is calculated:

7. Compensatory Time & Sector-Specific Rules

Specific industry nuances in Minnesota include:

• Compensatory Time ('Comp Time'): Offering comp time instead of cash overtime is illegal in the private sector. Public-sector agencies may provide comp time under Minn. Stat. § 177.25 at 1.5 hours per overtime hour worked over 48 hours.
• Healthcare 8/80 System: Under Minn. Stat. § 177.25, subd. 2 and FLSA § 207(j), hospitals and residential care facilities may enter into voluntary 14-day 8-and-80 agreements (overtime paid for hours exceeding 8 in a workday OR 80 in a 14-day period).
• Nurse Overtime Rights (Minn. Stat. § 181.275): Registered nurses, licensed practical nurses, and surgical techs may refuse mandatory overtime shifts that extend beyond their normal predetermined work period (up to 12 hours) on patient-safety grounds, unless an emergency or disaster is declared.
• Agricultural Overtime: Minnesota enforces an agricultural overtime threshold of 48 hours per week even where the federal FLSA exempts farmworkers. Farm executive salary exemption is $838.64/week in 2026.
• Live-In Domestic Workers: Covered by Minnesota 48-hour overtime despite being exempt from federal FLSA overtime.
• Seasonal Recreational Exemptions: Seasonal workers at carnivals, county fairs, ski facilities, and day camps are exempt under Minn. Stat. § 177.23, subd. 7. Do not generalize this exemption to all seasonal workers; general seasonal labor remains fully covered by overtime.

8. Filing a Wage Complaint & Legal Deadlines

Workers owed unpaid overtime or final pay can seek state enforcement or pursue federal court remedies:

• Enforcement Agency: Minnesota Department of Labor and Industry (DLI), Labor Standards Division
• Contact: 443 Lafayette Road N, St. Paul, MN 55155 • Phone: 651-284-5075 or 800-342-5354 • Email: dli.laborstandards@state.mn.us
• Court Deadlines (Minn. Stat. § 541.07(5)): Lawsuits for unpaid wages or overtime must be brought within 2 years, extended to 3 years if the violation was willful OR if the employer failed to produce payroll records within 10 days of a formal DLI request.

9. City Anchors: Minneapolis, St. Paul, Duluth, and Rochester

Minnesota cities do not require fragmented state-page duplicates; they resolve uniformly to the statewide standards and municipal wage table:

• Minneapolis: Minimum wage is $16.37 per hour across all employer sizes; overtime rate floor is $24.56 per hour. Follows standard FLSA 40-hour weekly overtime.
• St. Paul: Minimum wage is $16.37 per hour for large and small employers ($24.56/hr OT floor); micro-employers (5 or fewer workers) pay $14.25 per hour ($21.38/hr OT floor) since July 1, 2026.
• Duluth: Enforces standard Minnesota statewide wage and overtime rules ($11.41/hr base; $17.12/hr OT floor).
• Rochester & Twin Cities Suburbs: Healthcare hubs (including Mayo Clinic facilities in Rochester) follow standard FLSA 40-hour weekly overtime or elective 8/80 agreements.