In Minnesota, every worker is either exempt or non-exempt, and that single label decides whether you’re entitled to minimum wage, overtime, or both. Non-exempt employees get both protections. Exempt employees get neither. The line between exempt vs. non-exempt employees in Minnesota depends on two things together: how much you’re paid and what you actually do at work. Both Minnesota law and the federal Fair Labor Standards Act apply at the same time, and where they disagree, the standard more favorable to the worker wins.
What Non-Exempt Employees Are Entitled To
If you’re non-exempt, you’re covered by Minnesota’s minimum wage and by overtime rules under state and federal law.
As of January 1, 2026, Minnesota’s minimum wage is $11.41 per hour for every employer, regardless of size.1Minnesota Department of Labor and Industry. Minimum Wage in Minnesota The old split between large and small employers ended in 2025. The rate is adjusted annually for inflation, so it changes each January.2Minnesota Office of the Revisor of Statutes. Minnesota Code 177.24 – Payment of Minimum Wages Tips cannot be counted toward the minimum wage. A 90-day training wage of $9.31 per hour applies to workers under 20 during their first 90 consecutive days on the job.
Overtime is where Minnesota’s rules and federal rules pull in different directions. Minnesota law only requires overtime after 48 hours in a seven-day period.3Minnesota Office of the Revisor of Statutes. Minnesota Code 177.25 – Overtime The federal FLSA requires it after 40. The federal 40-hour rule applies to employees of businesses with more than $500,000 in annual gross sales, businesses involved in interstate commerce, hospitals, schools, and government agencies.4Minnesota Department of Labor and Industry. Overtime Laws For anyone working for one of those employers, 40 hours is the trigger, and the pay rate is at least 1.5 times your regular hourly rate. The 48-hour state rule only matters for the smaller pool of employers who fall outside federal coverage: purely local businesses under $500,000 in gross revenue that don’t handle goods moving across state lines.5Minnesota Department of Labor and Industry. Overtime Law in Minnesota
How the White-Collar Exemption Actually Works
Most exempt employees in Minnesota are classified that way under one of the white-collar exemptions: executive, administrative, or professional. To qualify, an employee has to pass both a salary test and a duties test. A job title alone means nothing. Calling someone a “manager” while they spend their day doing the same work as the people they supposedly manage will not make them exempt.
The Salary Floor
Minnesota’s own salary thresholds are low. Under the state rules, the executive and administrative exemptions require a guaranteed weekly salary of at least $250 under the commonly applied “Test I,” or as low as $155 under a stricter duties-based “Test II.”6Minnesota Office of the Revisor of Statutes. Minnesota Rules 5200.0190 – Executive Tests7Minnesota Office of the Revisor of Statutes. Minnesota Rules 5200.0200 – Administrative Tests The professional exemption requires $250 per week under Test I or $170 under Test II.8Minnesota Office of the Revisor of Statutes. Minnesota Rules 5200.0210 – Professional Tests
The federal minimum is much higher: $684 per week, or $35,568 per year.9U.S. Department of Labor. Earnings Thresholds for the Executive, Administrative, and Professional Exemption Because federal law is more protective, it controls for any employer covered by the FLSA. So for most Minnesota workers, the practical salary floor for exempt status is $684 per week. An employer who pays $300 per week and claims the state exemption still owes overtime under federal law if the FLSA reaches that business.
Paid on a Salary Basis
Meeting the number isn’t enough. You have to actually be paid on a salary basis, meaning the same predetermined amount each pay period regardless of how many hours you work or the quality of your output. If your employer docks your pay for leaving two hours early, the exemption is likely destroyed for that pay period. If deductions drop pay below the applicable minimum salary in any workweek, the exemption is lost for that week.10Minnesota Office of the Revisor of Statutes. Minnesota Rules 5200.0211 – Salary
The Duties Tests
Each category has its own duties requirements, and the test looks at what you actually do, not what a job description says.
- Executive: your primary duty is managing a recognized department or the enterprise itself, you regularly direct the work of at least two full-time employees, and you have meaningful input into hiring or firing.11U.S. Department of Labor. Fact Sheet 17A – Exemption for Executive, Administrative, Professional, Computer and Outside Sales Employees
- Administrative: your primary duty is office or non-manual work directly related to management or general business operations, and the role requires independent judgment on significant matters.7Minnesota Office of the Revisor of Statutes. Minnesota Rules 5200.0200 – Administrative Tests
- Professional: your primary duty requires advanced knowledge in a specialized field, acquired through extended, specialized education rather than on-the-job training.8Minnesota Office of the Revisor of Statutes. Minnesota Rules 5200.0210 – Professional Tests
Someone who spends 70% of their time stocking shelves and 30% scheduling other workers is not performing executive duties as a primary function, whatever the title on the door says.
Highly Compensated and Computer Employees
Two other federal exemptions come up often. Highly compensated employees who earn at least $107,432 per year in total compensation, including at least $684 per week on a salary basis, face a lighter duties test: office or non-manual work plus at least one duty that would qualify under the executive, administrative, or professional standards.12U.S. Department of Labor. Fact Sheet 17H – Highly-Compensated Employees and the Part 541 Exemption
Computer professionals such as systems analysts, programmers, and software engineers can be exempt if paid at least $684 per week on salary or at least $27.63 per hour, and if their primary duties involve designing, developing, testing, or documenting computer systems or programs.13U.S. Department of Labor. Fact Sheet 17E – Exemption for Employees in Computer-Related Occupations Workers who repair or build hardware don’t qualify.
Minnesota’s Specific Statutory Exclusions
Minnesota Statutes § 177.23, Subd. 7 lists roles that are excluded from the state’s definition of “employee” entirely, meaning state minimum wage and overtime rules simply don’t reach them:14Minnesota Office of the Revisor of Statutes. Minnesota Code 177.23 – Definitions
- Outside salespeople who conduct more than 80% of their sales away from the employer’s premises.
- Taxicab drivers.
- Employees working on a seasonal basis at organized resident or day camps operating under a state permit.
- Certain agricultural workers, including salaried employees on farming operations (limited to two per farm) and those earning above a calculated weekly wage threshold.
- Volunteers providing services to a nonprofit without compensation.
- Employees of political subdivisions providing police or fire protection.
Minnesota Statutes § 177.25 also carves out some workers from state overtime specifically, without removing minimum wage protection: auto salespeople, parts workers, and mechanics paid on commission at non-manufacturing dealerships; workers building on-farm silos on a piece-rate basis; and certain air carrier employees who voluntarily trade scheduled hours.3Minnesota Office of the Revisor of Statutes. Minnesota Code 177.25 – Overtime Each carve-out is narrow, and fitting inside one requires meeting every element of the statutory language.
What Misclassification Costs
If you’ve been treated as exempt when you should have been non-exempt, the recovery under Minnesota law is significant. The state’s liquidated damages provision doubles your exposure: you can recover the full amount of unpaid wages and overtime, plus an equal amount in liquidated damages on top.15Minnesota Office of the Revisor of Statutes. Minnesota Code 177.27 – Compliance Orders, Penalties A worker shorted $10,000 in overtime over two years is owed $20,000 before attorney fees. The employer is also liable for reasonable attorney fees and court costs.
The Minnesota Department of Labor and Industry can investigate on its own and issue compliance orders. For repeated or willful violations, the commissioner can impose civil penalties of up to $10,000 per violation per affected employee.15Minnesota Office of the Revisor of Statutes. Minnesota Code 177.27 – Compliance Orders, Penalties Misclassifying workers as independent contractors carries its own penalties and can result in back wages and compensatory damages whether or not the misclassification was intentional.16Minnesota Department of Labor and Industry. Worker Misclassification
How to File a Wage Claim
Workers who believe they’ve been misclassified and denied overtime or minimum wage can file a wage claim with the Minnesota Department of Labor and Industry’s Labor Standards division at no cost. You can start a claim by calling 651-284-5075 or emailing dli.laborstandards@state.mn.us.17Minnesota Department of Labor and Industry. Wage Theft The department investigates and can order back pay, liquidated damages, and reinstatement without you needing to hire a lawyer or go to court.
You can also bring a private lawsuit. Under Minnesota Statutes § 177.27, a successful private action entitles you to unpaid wages plus an equal amount in liquidated damages, along with attorney fees.15Minnesota Office of the Revisor of Statutes. Minnesota Code 177.27 – Compliance Orders, Penalties Timing matters. Federal FLSA claims must generally be filed within two years of the violation, or three years if the violation was willful. Minnesota’s limitations period for wage claims under certain statutes can be as short as one year. Acting promptly preserves the largest possible recovery window.