All Employers with MN Employees
September 18, 2019
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In In re Minnesota Living Assistance, Inc., the Minnesota Supreme Court stated that employers cannot use split-day overtime to comply with state overtime rules, where employees have not yet worked the overtime hours meant to comply with state overtime rules. There, the employer paid employees one rate for the first 5.5 hours worked in a 16-hour day, and 1.5 times that rate for the remaining 10.5 hours. The Court stated that the Minnesota Fair Labor Standards Act requires employers to pay employees overtime for all hours worked in excess of 48 in a week, regardless of whether the employee received time-and-a-half compensation during the first 48 hours worked.
Additionally, time-and-a-half wages paid during the first 48 hours worked in a workweek cannot be excluded when calculating an employee’s regular rate of pay, because those hours were not paid for overtime work (which are excluded when calculating the regular rate of pay). Because federal Fair Labor Standards Act overtime rules vary compared to the state rules, employers must take care to comply with both.
- Review split-day overtime policies and procedures to ensure compliance with state wage and hour rules.
- Have payroll processes updated.
- Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.
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