A Guide To STARTING A BUSINESS IN MINNESOTA 44th Ed 2026

Even if the enterprise threshold is not met, individual employees can be covered if they are individually engaged in interstate commerce or in the production of goods for interstate commerce, or in closely related processes directly essential to such production. Examples include workers who: • Work in communications or transportation; • Handle, ship, or receive goods moving in interstate commerce; • Regularly use mail, telephone, email, or online systems for interstate transactions; • Regularly cross state lines while working; or • Perform clerical, maintenance, or custodial work for firms engaged in interstate commerce or producing goods for interstate markets.​ Because this concept is interpreted broadly, any employer intending to argue that its workers are not subject to the FLSA should do so only after consulting legal counsel. Your cross‑reference to “Federal Act Exemptions” for specific exemptions is appropriate. Minnesota Law The Minnesota Fair Labor Standards Act: • Applies generally to all employers and employees in Minnesota who are not covered by the FLSA ; and • Also applies where both laws cover the same employment but the Minnesota Act provides greater protection or higher standards (for example, requiring overtime after 48 hours for certain non‑FLSA‑covered employees, or setting state‑specific minimum wages).​ Exemptions from the Minnesota Act, and differences from federal exemptions, are appropriately discussed in your later “Minnesota Act Exemptions” section. Employers must look at both federal and state definitions and enforcement guidance to determine the full scope of their obligations.

EXEMPTIONS Minimum wage for federal contractors

For businesses that perform work on covered federal contracts, minimum wage requirements may be higher than the general federal minimum wage and may change over time under presidential executive orders and U.S. Department of Labor (DOL) rules. These requirements can apply to certain prime contractors and subcontractors and may be adjusted periodically for inflation. Because contractor-specific rates and coverage rules change, federal contractors should not rely on a static dollar figure. Instead, they should consult current guidance from the U.S. DOL on “Minimum Wage for Federal Contractors” and confirm whether their contracts are covered and what wage rates apply.

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