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 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 Sept. 24, 2019, the U.S. Department of Labor announced a final rule updating the federal overtime pay requirements. The final rule will be effective on Jan. 1, 2020. 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 $455 to $684 per week (equivalent to $35,568 per year for a full-year worker);
  • For “highly compensated employees” (HCE), the threshold will go from $100,000 to $107,432 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.

This will be the first update to the overtime pay requirements since 2004 because the 2016 final rule was enjoined and then later invalidated. Additional information and fact sheets issued by the U.S. Department of Labor can be found on its Wage and Hour Division Overtime Rule Update Page.

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

Brian Mundahl, Sioux Falls, 605.691.1093

Sharon Holt or Kevin Greenawalt, Rapid City, 605.348.5504

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.