Minnesota Overtime Calculator 2026 (48 vs 40 Hour Rules)

The "48 vs 40" Overtime Conflict Explained

Minnesota labor law is unique and often confusing for both workers and managers. Under the Minnesota Fair Labor Standards Act, employers are only required to pay 1.5x overtime after 48 hours worked in a week.

However, the Federal FLSA (which applies to any business grossing over $500,000 or engaging in interstate commerce) mandates overtime after 40 hours. Since federal law usually trumps state law when it is more protective, the vast majority of Minnesota workers are legally entitled to overtime after 40 hours.

Flowchart explaining when the 40-hour federal rule or the 48-hour Minnesota state rule applies based on business revenue and interstate commerce. — If your employer swipes out-of-state credit cards or handles goods from outside MN, you likely qualify for the 40-hour rule.

2026 Minnesota Minimum Wage Tiers

Minnesota adjusts its minimum wage every January 1st based on inflation. For 2026, the rates are split into two categories based on employer size:

Large Employers: Approximately $11.33/hr (Annual gross volume of $500,000 or more).
Small Employers: Approximately $9.25/hr (Annual gross volume under $500,000).

**Minnesota Wage & OT Summary (2026)**
Employer Size	Min Wage	OT Threshold	Tip Credit Allowed?
Large (>$500k)	$11.33	40 Hours (Federal)	NO
Small (<$500k)	$9.25	48 Hours (State)	NO

Tipped Workers: Minnesota's Ban on the Tip Credit

Unlike most states, Minnesota strictly prohibits the "Tip Credit." This means that even if you are a server or bartender earning hundreds in tips, your employer must pay you the full state minimum wage ($11.33 or $9.25) for every hour worked. Tips belong 100% to the employee and cannot be used to satisfy the employer's minimum wage obligation.

Frequently Asked Questions

1. Does Minnesota pay overtime after 40 or 48 hours?

It depends on the law that applies to your employer. Minnesota state law requires overtime after 48 hours, but the federal FLSA requires it after 40 hours. Most businesses in MN are covered by the FLSA (40-hour rule) due to annual revenue or interstate commerce.

2. What is the Minnesota minimum wage for 2026?

For 2026, Large Employers (annual sales over $500,000) have a minimum wage of approximately $11.33/hr. Small Employers have a rate of approximately $9.25/hr. These are adjusted annually for inflation.

3. Can employers in Minnesota take a tip credit?

No. Minnesota is one of the few states that strictly prohibits tip credits. Employers must pay employees the full state minimum wage before any tips are earned.

4. Is there daily overtime in Minnesota?

No. Minnesota law does not require daily overtime pay (e.g., after 8 or 12 hours in a day). Overtime is strictly calculated based on the weekly cumulative hours worked.

Minnesota Overtime Calculator