probably be considered covered employees in many, if not most, of the work activities under the welfare law, and in “workfare” arrangements. Exceptions are most likely to include individuals engaged in activities such as vocational education, job search assistance, and secondary school attendance, because these programs are not ordinarily considered employment under the federal act. Further information on the federal act may be obtained by contacting the U.S. Department of Labor, Wage and Hour Division at the local address and telephone number provided in the Resource Directory section of this Guide. Minnesota Act The Minnesota act generally applies to all employers and employees in Minnesota who are not covered by the federal act. Also, the Minnesota Act will apply to employers and employees subject to the federal act when the Minnesota Act would provide more protection to the employee or would set a higher standard. Exceptions to the Minnesota act are discussed in the section on “Minnesota Act Exemptions” below.
EXEMPTIONS Minimum Wage for Federal Contractors
Effective January 1, 2024, the minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will increase to $17.20 per hour. while the required minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts will increase to $17.20 per hour. Covered contracts that are entered into on or after January 30, 2022, or that are renewed or extended (pursuant to an option or otherwise) on or after January 30, 2022, will be generally subject to a higher $17.20 minimum wage rate established by Executive Order 14026 of April 27, 2021, Increasing the Minimum Wage for Federal Contractors. Federal Act Exemptions. The federal act exempts some employees from federal minimum wage or overtime requirements, or both. These exemptions are carefully defined and applied on a workweek by workweek basis. A business that wishes to pay a worker as an exempt employee should carefully check the exact requirements to make sure the exemption is applicable. The fact that an employee is paid a salary or commission rather than an hourly wage does not by itself determine that an employee is exempt from overtime or minimum wage requirements. A job title is also insufficient for determining exempt or non-exempt status. All of the specific requirements for the exemption must be met in order for the employee to be classified as exempt. Exemptions from Federal Minimum Wage and Overtime Requirements. In general, the following are exempt from both the minimum wage and overtime requirements of the federal act: executive, administrative and professional employees and outside sales persons, employees in certain computer related occupations, employees of certain seasonal or recreational establishments, employees engaged in fishing operations, and farm workers employed by anyone who used no more than 500 work-days of farm labor in any calendar quarter of the preceding calendar year. Casual baby-sitters, and persons employed as companions to the elderly or infirm in a private residence may also be exempt from the minimum wage and overtime requirements.
136
Made with FlippingBook - Online Brochure Maker