If your business is small enough and local enough (meaning you don’t produce goods for interstate sale or perform work outside your own state), you may not have to follow the federal Fair Labor Standards Act ().
Recent case: Several technicians who provided handyman services sued, alleging their employer wasn’t paying overtime as required by the FLSA. The company argued that it didn’t engage in interstate commerce because it worked exclusively within a small local area. Nor did the company produce goods for sale or have sales over $500,000.
The court tossed out the case, noting that repair work like the technicians did is a quintessential local activity, governed strictly by state law. (Christenson, et al., v. Coki Services, et al., No. 12-2202, DC MN, 2012)
Final note: Of course, small employers still have to follow Minnesota’s wage-and-hour rules.