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.