Marcia Hultman

Cabinet Secretary

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Employment Laws

Compensatory (Comp) Time/Overtime

South Dakota has no labor laws concerning compensatory (comp) time or overtime. However, there is a federal law regarding overtime. The information below is related strictly to the federal law regarding overtime and is provided here only as a helpful resource to South Dakotans.

Federal Overtime Final Rule

On April 23, 2024, the U.S. Department of Labor announced a final rule updating the federal overtime pay requirements for executive, administrative, professional, outside sales, and computer employees. The final rule was effective on July 1, 2024. This final rule updates earnings thresholds, which are the salary and compensation levels necessary for workers to be exempt.

According to the U.S. Department of Labor, this update “will maintain the traditional purposes of the salary level test and will help employers more readily identify exempt employees.” Further, it is estimated as a result of this final rule, 1.3 million employees who are currently exempt will become nonexempt.

The key provisions being updated in the final rule are as follows:

  • For the “standard salary level,” the threshold will go from $684 to $844 per week (equivalent to $43,888 per year for a full-year worker);
  • For “highly compensated employees” (HCE), the threshold will go from $107,432 to $132,964 per year;
  • Employers will be allowed to use nondiscretionary bonuses and incentive payments (including commissions), that are paid at least annually, to satisfy up to 10% of the standard salary level; and
  • The special salary levels for workers in the U.S. territories and the motion picture industry will be revised.

Additional information and fact sheets issued by the U.S. Department of Labor can be found on its webpage for the rule: Final Rule: Restoring and Extending Overtime Protections

Additional Resources from the U.S. DOL Wage and Hour Division

Overtime Pay Home Page

Overtime Fact Sheet

Hours Worked under Fair Labor Standards Act (FLSA) Fact Sheet

Minimum Wage and Overtime Pay

Frequently Asked Questions: Overtime

Overtime Pay E-Tools (interactive online tools and presentations that address overtime pay requirements)

FAQ: Overtime

Overtime Laws in the States: Current State Minimum Wage Table

New and Small Business Resources

South Dakota Contacts at the U.S. DOL Wage and Hour Division

Sioux Falls – Brian Mundahl at 605.691.1093.

Wage and Hour Division Office contact information for South Dakota

Disclaimer

The information provided on this page should in no way be considered legal advice. For specific information about your legal rights, you should consult your personal attorney. If you have a general question, contact us.