Overtime requirements
State prevailing wage overtime requirements
A laborer or mechanic must be paid:
- For all prevailing wage hours in excess more than 8 hours per day or more than 40 hours per week, at an hourly rate of at least 1.5 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 or the employee’s regular rate of pay;
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 1.5 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 or the employee’s regular rate of pay.
Overtime rate on a prevailing wage project
Minimum Overtime rate on prevailing wage contract/project is not less than 1.5 contract certified basic wage rate plus on certified fringe wage rate.
Example
Prevailing wage minimum overtime rate (31.78 x 1.5) + 20.27 OR (47.67) +20.27 = 67.94
| Labor code and class | Effect date | Basic rate | Fringe rate | Total rate |
|---|---|---|---|---|
| Laborers (101-112) (Special crafts 701-730) 101 laborer, common (general labor work) |
2019-11-04 | 31.78 | 20.27 | 52.05 |
The contractor is obligated to pay the worker no less that than prevailing wage minimum overtime rate, this can be met in combination of: 1.5 x base wage plus 1.0 fringe rate.
Wage example
Worker is 100/101. Is paid 30.00 + 10.00 (bonafide fringe) + 12.05 (cash) = 52.05/ hour straight hour on the project.
The worker’s overtime pay should be:
- 30.00 x 1.5 -- (45.00)
- Plus 10.00 bonafide fringe -- (55.00)
- Plus 12.94 cash -- (67.94)
For a total of 67.94
Which regulation to follow - state and federal?
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.