📅 2026 Update: Recent Changes to South Dakota Overtime Laws

Since the original article on South Dakota's overtime laws was published, there have been significant updates impacting how overtime is calculated and who qualifies for it. These changes stem from actions taken by the U.S. Department of Labor (DOL) and recent court rulings.

The details below reflect the most current information, while the earlier article continues further down the page.

⚖️ April 2024 Rule Changes

In April 2024, the DOL introduced a rule to raise exemptions for various employee categories under the Fair Labor Standards Act (FLSA). The goal was to increase the standard salary level and the compensation threshold for highly compensated employees. However, this rule was vacated later that year.

⚖️ November 2024 Court Ruling

On November 15, 2024, a U.S. District Court in Texas overturned the DOL's April 2024 final rule. This ruling reinstated the 2019 minimum salary level of $684 per week for exemptions.

The total annual compensation requirement for highly compensated employees remains at $107,432.

📅 Future Updates

Looking ahead, the DOL plans to begin updating salary thresholds every three years, starting July 1, 2027. This could mean future adjustments to the minimum salary level, which is important for determining who qualifies for overtime pay.

📚 Employee Rights and Exemptions

Employers must evaluate whether employees meet specific tests to determine their exemption status. These tests include ensuring that employees meet salary basis, salary level, and duties criteria. Understanding these criteria is crucial for both employers and employees.

📌 Key Points Summarized

  • ⚖️ The DOL's April 2024 rule aimed to increase salary exemptions but was vacated in November 2024.
  • 💰 The minimum salary level remains at $684 per week, with a total annual compensation of $107,432 for highly compensated employees.
  • 📅 The DOL will update salary thresholds every three years, with the next update set for July 1, 2027.
  • 📚 Employers should assess employees against specific exemption criteria under the FLSA.

💡 Tips for Understanding Overtime Laws

Review the details of your situation with your attorney.

📝 Understand Your Status

Know if you are classified as exempt or non-exempt under the FLSA. Exempt employees do not receive overtime pay, while non-exempt employees must be compensated for hours worked over 40 in a workweek.

📊 Keep Accurate Records

It is essential for employers to maintain accurate records of hours worked and wages paid. This helps ensure compliance with overtime laws and protects the rights of employees.

📅 Be Aware of State Variations

Some states have their own overtime laws that may offer greater protection than federal standards. Check with your state labor department for specific regulations that may apply to you.

💼 Check Job Duties

Employers should evaluate employees' job duties to determine exemption status. Meeting specific criteria about job responsibilities is essential to qualify for exemptions under the FLSA.

🆓 Utilize DOL Resources

The DOL provides various guidance materials and resources to help both employers and employees understand their rights and responsibilities concerning overtime regulations.

❓ Frequently Asked Questions

❓ What is the minimum salary level for exemptions?

The minimum salary level for exemptions under the FLSA is $684 per week as of November 15, 2024.

❓ How is overtime pay calculated?

Overtime pay is calculated at a rate not less than time and one-half the employee's regular pay for hours worked over 40 in a workweek.

❓ Are part-time employees entitled to overtime pay?

Yes, part-time employees are entitled to overtime pay for hours worked over 40 in a workweek.

❓ What should employers do if they violate overtime laws?

If employers violate overtime laws, they may face penalties, including back wages and fines enforced by the DOL.

❓ Can independent contractors receive overtime pay?

No, independent contractors are not entitled to overtime pay under the FLSA.

❓ What resources are available for understanding overtime regulations?

The DOL offers various guidance materials and resources to help both employers and employees understand their rights and obligations under overtime regulations.

⚖️ Recent Court Cases Related to Overtime Laws

Recent court rulings have clarified the application of overtime laws and how they affect various employee classifications. These rulings are essential for understanding how the FLSA applies to different job roles and compensation structures.

For more details, check out more rulings on the news page.

End of October 2026 Update






South Dakota Overtime Laws: All You Need to Know

When it comes to working long hours, South Dakota employees are protected by the state's overtime laws. These laws dictate how employers must pay their workers when they work beyond their regular work hours. Whether you are an employee or an employer, it is essential to understand these laws to avoid any legal issues.

In this article, we will explore South Dakota's overtime laws, including what constitutes overtime pay, who is eligible for overtime, and exemptions that apply to the state's overtime laws.

South Dakota Overtime Laws

What is Overtime Pay?

Overtime pay is the additional compensation that an employer must pay an employee for working beyond their regular work hours. Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay for any hours worked beyond 40 hours in a workweek.

The FLSA, which is a federal law, sets the minimum wage, overtime pay, child labor standards, and record-keeping requirements for most employees in the United States. The state of South Dakota has adopted these federal laws, but it is essential to note that some states have their own overtime laws.

What is a Workweek?

Under the FLSA, a workweek is a period of seven consecutive days, starting on any day of the week and at any hour of the day. Most employers choose Sunday as the beginning of their workweek, while some select other days. Regardless of the day, employers must establish a consistent and fixed workweek for their employees.

How Much is Overtime Pay in South Dakota?

In South Dakota, the overtime pay rate is time and a half of the employee's regular rate of pay. This means that an employee's pay rate is multiplied by 1.5 for the additional hours worked beyond their regular work hours. For instance, if an employee earns $10 per hour, their overtime pay rate would be $15 per hour.

Who is Eligible for Overtime Pay in South Dakota?

Not all employees are eligible for overtime pay in South Dakota. The state's overtime laws only apply to non-exempt employees. Exempt employees, as defined by the FLSA, are not entitled to overtime pay.

Non-Exempt Employees

Non-exempt employees are workers who do not meet the criteria for exemption under the FLSA. These employees are entitled to overtime pay when they work beyond their regular work hours. Non-exempt employees in South Dakota include:

- Hourly employees

- Salaried employees who earn less than $684 per week
- Employees who are not engaged in administrative, executive, or professional duties

Exempt Employees

Exempt employees are workers who are not entitled to overtime pay under the FLSA. These employees are exempt from the FLSA's minimum wage and overtime provisions because they meet specific criteria. Exempt employees in South Dakota include:

- Executive, administrative, and professional employees

- Outside salespersons
- Certain computer professionals
- Highly compensated employees who earn more than $107,432 per year

It is essential to note that an employee's job title does not determine their exempt or non-exempt status. Employers and employees must review an employee's job duties and responsibilities to determine their status accurately.

What are Some Exemptions to South Dakota Overtime Laws?

Under the FLSA, some employees are exempt from overtime pay. These exemptions apply to South Dakota's overtime laws as well. While the exemptions are numerous, the most common ones include:

📝 See Also

Executive Exemption

Executive employees are employees who manage an enterprise or a department within the organization. These employees have significant decision-making powers, hire and fire employees, and have control over the employees' work schedules. To qualify for this exemption, the employee must meet the following criteria:

- They have the authority to hire and fire employees

- They must manage two or more full-time employees
- They must earn a salary of at least $684 per week

Administrative Exemption

Administrative employees are employees who perform office or non-manual work directly related to the management or general business operations of the enterprise. These employees must exercise discretion and independent judgment concerning significant matters. To qualify for this exemption, the employee must meet the following criteria:

- They perform non-manual or office work that relates to the management or general business operations of the enterprise
- They must exercise discretion and independent judgment regarding significant matters
- They must earn a salary of at least $684 per week

Professional Exemption

Professional employees are employees who perform work that requires advanced knowledge in a field of science, learning, or the arts. These employees must have a degree or certification that relates to their area of expertise. To qualify for this exemption, the employee must meet the following criteria:

- They perform work that requires advanced knowledge in a field of science, learning, or the arts
- They must have a degree or certification that relates to their area of expertise
- They must earn a salary of at least $684 per week

Conclusion

In conclusion, South Dakota's overtime laws are in place to protect non-exempt employees from working long hours without fair compensation. Employers must understand and comply with these laws to avoid legal issues and potential penalties. Additionally, employees must know their exempt or non-exempt status and their rights under these laws. It is essential to consult with a legal expert to determine an employee's status and avoid any legal challenges.

Frequently Asked Questions about South Dakota Overtime Laws

Are there any South Dakota overtime laws?

Overtime laws define what constitutes overtime and usually mandate some type of additional pay for the performance of overtime work, with 150% of regular pay the normal procedure. These can be active on both the state and federal levels. Unfortunately, there are no South Dakota overtime laws currently active in the state, meaning that as far as state law is concerned, employers can compensate their employees in any way they see fit for overtime work.

Can any federal statutes replace South Dakota overtime laws?

Yes, even though there aren’t any actual South Dakota overtime laws, there are federal overtime laws which may affect you, particularly the Fair Labor Standards Act. This says that employers must pay their waged workers time-and-a-half for hours worked beyond the usual parameters of the job.

This law also defines what a person’s standard wage is for the purposes of overtime calculation. It includes regular wages, plus commissions and performance-based bonuses. Standard wages should not include holiday or non-performance-based bonuses, the cost of a benefits package such as a healthcare or dental care plan, the price of a company parking spot and other transportation costs, or any expenses for which your employer has compensated you.

Which businesses qualify for South Dakota overtime laws?

The Fair Labor Standards Act, which constitutes the majority of South Dakota overtime laws, is only in effect if a company qualifies under one of two categories:

1. The company is involved in interstate commerce, meaning that the employee in question does some action across state lines, even if it is just talking over the phone to a supplier who lives across state lines; OR

2. The company earns at least $500,000 each year in gross revenue.

Since most companies that are able to hire waged employees earn at least $500,000 and even more are able to do some cross-state business, the Fair Labor Standards Act is able to serve as a comprehensive replacement for South Dakota overtime laws.

Which earners qualify for South Dakota overtime laws?

Unfortunately, there are a number of different types of workers who do not qualify for overtime based on the Fair Labor Standards Act, though their employer may certainly pay them more if necessary.

The largest and most important group that does not qualify under the law is salaried workers. However, the Fair Labor Standards Act defines salaried in a manner different from the normal definition. According to this law, anyone who earns at least $455 per week and receives the same earnings per week is a salaried worker, even if they are paid an hourly wage instead of an annual salary.

Another important group not covered by the law is independent contractors, who are usually paid a certain amount for an action—like building a patio—along with a deadline, so any overtime that is required to meet that deadline should be compensated in the original price. Further exceptions include computer specialists earning at least $27.63 per hour, agricultural workers, criminal investigators, and writers for small newspapers.