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Minnesota Government Engineering Council

Engineering Minnesota's Future

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FLSA “Exempt” Additional Compensation

23 July 2026

As we’ve previously discussed in this space over the last two years, MnDOT seems to be engaged in a pattern of testing wage benefits for Fair Labor Standards Act (FLSA) “exempt” employees protected by our labor agreement.  Earlier this summer, the agency announced changes to how worked time is accounted for in the payroll system, which potentially impacts for how time is paid under the MGEC labor agreement.  Some of these changes are relatively innocuous and are necessary to maintain the integrity of grant application data that originates in the payroll system.  But other changes, as written, directly misstate the Fair Labor Standards Act and ignore the labor agreement between the state and MGEC.  We frequently tell new employees to be wary of announced “policy changes” because of exactly this: the new policy runs afoul of what we negotiated in the contract and, perhaps worse, misstates the FLSA.

In response to the policy announcement, MGEC responded with an immediate challenge.  Our response is available here. The letter puts the agency on notice that the policy is based on nonsense and that we will defend our contract.

Let us know if the policy has been applied to you, especially if it resulted in an economic loss.  We need to have individuals who have experienced a direct loss, with evidence tied to this policy, to have a successful grievance.

Filed Under: Activity/Organization updates, Newsletters

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MINNESOTA GOVERNMENT ENGINEERING COUNCIL

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