Minnesota Department of Transportation

511 Travel Info

Labor Compliance

3 Workers on Jobsites

Overtime requirements

What are the state prevailing wage overtime requirements?

A laborer or mechanic must be paid for all hours in excess of the prevailing hours at an hourly rate of at least 1½ times the hourly basic rate of pay plus fringe benefits. The minimum "hourly basic rate" may not be lower than the "basic rate" established by the Minnesota Department of Labor and Industry and the prevailing hours of labor may not be more than 8 hours per day or more than 40 hours per week.

What are the federal prevailing wage overtime requirements?

A laborer or mechanic must be paid for all hours in excess of 40 hours per week at an hourly rate not less than 1½ times the hourly basic rate of pay plus fringe benefits. The minimum "hourly basic rate" may not be lower than the "basic rate" established by the United States Secretary of Labor.

How do I calculate overtime on a prevailing wage project?

Overtime calculation formula: OT = (PW * .5) + (HW) + (RF) + (F)

The total hourly prevailing wage rate for a worker is $30.00, which is comprised of an hourly basic rate of $20.00 and an hourly fringe rate of $10.00.

The table below shows various hourly basic and fringe benefit payments that a contractor could potentially make to a worker.

PLEASE NOTE: The last example provided indicates that an employee is paid a total of $28.00 per hour; which is $2.00 less than what is required. Regarding straight time pay, the contractor would be required to pay the employee $26.00, which is comprimised of the $24.00 that is normally paid to the employee and an additional $2.00 that is paid in lieu of fringe benefits. However, the $2.00 per hour paid in lieu of fringe is NOT subject to the half time premium.

Overtime calculation formula and examples
Hourly Wage Paid Fringe Benefits Paid Payment to Employee
(PW * .5) + (HW) + (RF)
Fringe Payment
+ (F)
Total Payment
=OT
$20.00 $10.00 ($20.00 * .5) + ($20.00) + ($0.00) = $30.00 + $10.00 = $40.00
$18.00 $12.00 ($20.00 * .5) + ($18.00) + ($0.00) = $28.00 + $12.00 = $40.00
$22.00 $8.00 ($20.00 * .5) + ($22.00) + ($0.00) = $32.00 + $8.00 = $40.00
$30.00 $0.00 ($20.00 * .5) + ($30.00) + ($0.00) = $40.00 + $0.00 = $40.00
$24.00 $4.00 ($20.00 * .5) + ($24.00) + ($2.00) = $36.00 + $4.00 = $40.00

PLEASE NOTE: If an employee's hourly regular rate of pay is greater than the hourly basic rate of pay established by the Minnesota Department of Labor and Industry or the United States Department of Labor, the contractor must compensate the employee not less than 1½ times the hourly regular rate of pay at which the employee is employed.

What are the Fair Labor Standards Act Overtime Calculation Requirements?

An employee must be paid for all hours in excess of 40 hours in a workweek at a rate not less than 1½ times the hourly regular rate at which the employee is employed.

Do other state and federal overtime regulations apply?

Yes. Both the state and federal government have established overtime regulations; neither preempts the other. Both state and federal overtime laws establish minimum hourly overtime requirements and can apply concurrently.