• Employees must be able to withdraw their wages, on each regular payday, by at least one free transaction . Employers must provide, upon request, at least one free transaction history per month. • Payroll cards may not be linked to credit or loans (such as advances against future pay), and employers may not use transaction data for any purpose other than processing transactions and administering the account. Employers may continue to pay wages in cash, by paper check, or by direct deposit into a bank account chosen by the employee. Employees may opt out of direct deposit by submitting a written objection. Employees who wish to switch from payroll card payment to another method must be provided with a written form to request the change, and the employer must implement the new method within a reasonable period (for example, within 14 days). Because details and registration procedures can change, employers should consult the Minnesota DLI’s guidance on wage payment methods and payroll cards for the most current requirements. OVERTIME PAY REQUIREMENTS Federal Overtime Pay Requirements For covered, non exempt employees, the FLSA requires overtime pay at one and one half times the employee’s regular rate of pay for all hours worked over 40 in a workweek . • A workweek is any fixed, recurring period of 168 hours (seven consecutive 24 hour periods) chosen by the employer. It can start on any day and at any hour, but once established, it must be applied consistently. • Each workweek stands alone for overtime purposes; employers generally may not average hours across multiple weeks (except in limited situations, such as some hospital or residential care schedules under special FLSA provisions). Regular rate of pay Overtime is calculated from the employee’s regular rate , not just the base hourly rate. The regular rate generally includes all compensation for hours worked, services rendered, or performance, such as: • Hourly wages or salary (converted to an hourly equivalent). • Non discretionary bonuses and incentive pay. • Shift differentials and certain premiums. To calculate the regular rate, divide total compensation for the workweek (including all includable earnings) by total hours worked in that week.
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