• Employees of retail or service establishments whose regular rate exceeds one and one-half times the applicable Minnesota minimum wage and who receive more than half of their compensation from commissions on goods or services. Because Minnesota’s exemptions are nuanced and may differ from federal exemptions, any employer wishing to rely on a Minnesota exemption should review the statute and rules carefully and seek legal advice before classifying employees as exempt. For reference: • Federal: U.S. Department of Labor, Wage and Hour Division – FLSA Fact Sheets • Minnesota: Minnesota DLI Labor Standards – Brochures and fact sheets about labor standards MINIMUM WAGE REQUIREMENTS Federal minimum wage Under the Fair Labor Standards Act (FLSA), covered employers must pay non exempt employees at least the federal minimum wage for every hour worked. The FLSA generally covers: • Businesses whose employees produce or handle goods for interstate commerce. • Enterprises with annual gross sales or business of at least $500,000. • Hospitals and nursing homes, private and public schools, and federal, state, and local government agencies. The federal minimum wage rate and any special rates (for example, for certain tipped employees) are subject to change by Congress or regulation. Employers should confirm the current federal minimum wage on the U.S. Department of Labor Wage and Hour Division website. Minnesota minimum wage – general rules Minnesota minimum wage requirements apply to non exempt employees. Non exempt is the default status for most employees; exempt employees are those who meet all of the requirements for one of the narrow exemptions (executive, administrative, professional, certain outside sales, etc., as discussed in the Exemptions section). For non exempt employees: • All hours worked must be paid at no less than the highest applicable minimum wage (federal, state, or local). • Minnesota overtime generally applies after 48 hours in a workweek; federal overtime generally applies after 40 hours in a workweek. Employees covered by both laws must receive at least the more generous overtime protection. • Minimum wage applies to all hours worked , part time or full time, including waiting time, on call time when the employee’s freedom is significantly restricted, required training time, and other time the employee must be on or near the employer’s premises for the employer’s benefit.
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