There are a few changes happening in 2020 that could increase your paycheck

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SIOUX FALLS, S.D. (KELO) — Come next week your paycheck could be going up for a few different reasons:

First, on Jan. 1, the threshold to be paid overtime will raise for the first time since 2004. An expected 1.3 million workers in the U.S. are expected to become eligible for overtime pay.

South Dakota, Minnesota and Montana’s minimum wages are also going up.

Also, as a Christmas surprise, federal employees learned last week they will also see an added paid family leave benefit in late 2020.

Overtime pay

The threshold right now is set at $23,660. When employees make that amount or above, they can be considered salaried and thus don’t need to get overtime. That means John Smith who makes $24,000 at the General Store can be salaried and work 40, 50, 60 hours and still make the same amount.

When the change happens on Wednesday, the threshold will move to $35,568. Employers have three options to respond: convert the person making less than $35,568 to hourly, limit overtime or raise their salary above $35,568.

$35,568 breaks down to $684 per week.

So, how many of the 1.3 million Americans impacted live in KELOLAND? We don’t know that. The South Dakota Department of Labor said they don’t track that information.

We did look at the average wages in each county in the KELOLAND viewing area. 28 of them had an average wage below the 2020 “standard salary level,” when last calculated in the first half of 2019.

If this change sounds familiar, that’s because it almost went into effect under President Barack Obama. His Department of Labor raised the threshold to $47,476. However, a federal judge blocked the change and it never went into effect.

Some companies prepared for the Obama-era change and had already either converted employees to hourly or increased salaries.

There are some exceptions to the overtime rule, including “highly compensated” employees.

The threshold for that is going from $100,000 to $107,432 per year. That means in 2020, anyone making $107,432 or more will be exempt from receiving overtime.

There’s a catch. The way the rule reads, an employee may qualify as a “highly compensated” executive even if they make less than $107,432. They just have to “customarily and regularly” direct the work of two or more other employees.

What is “customarily and regularly?” According to the Department of Labor, “customarily and regularly” means greater than occasional but may be less than constant, and includes work normally and recurrently performed every workweek but does not include isolated or one-time tasks.

The 2020 rules also have one more catch. Your employer is now able to count certain bonuses and incentive payments like commissions as 10 percent of the $35,568 per year as long as they are paid annually.

Some states, counties and cities have higher thresholds.

Minimum wage

That’s not the only way you can get a raise in 2020. The minimum wage is going up in South Dakota and several other states in KELOLAND.

Increasing in 2020

South Dakota’s minimum wage is increasing from $9.10 an hour to $9.30 an hour.

For tipped employees, the minimum wage is going from $4.55 to $4.65 an hour.

Click here to see exemptions.

Minnesota’s minimum wage is increasing from $9.86 an hour to $10.00 an hour for large employers.

The minimum wage for small employers is increasing from $8.04 an hour to $8.15 an hour.

Tipped employees will earn the same as regular minimum wage.

Click here to see exemptions and difference between large and small employer.

Montana’s minimum wage is increasing from $8.50 an hour to $8.65 an hour.

Tipped employees will earn the same as regular minimum wage.

Click here to see exemptions.

Iowa’s minimum wage will remain at $7.25.

For tipped employees, the minimum wage will remain at $4.35.

$7.25 is the federal minimum wage. The wage has not increased in the last decade.

Click here to see exemptions.

Wyoming’s minimum wage will remain at $5.15.

For tipped employees, the minimum wage will remain at $2.13.

$5.15 is BELOW the federal minimum wage. That means most businesses have to follow the federal wages which is $7.25.

The wage has not increased in the last decade.

Click here to see exemptions.

Nebraska’s minimum wage will remain at $9.00.

For tipped employees, the minimum wage will remain at $2.13.

The wage last increased in 2016.

Click here to see exemptions.

What about the federal minimum wage?

Democrats passed a bill in the U.S. House of Representatives passed a bill this summer to make the federal minimum wage to $15 an hour by 2025. That bill has not been taken up, and likely won’t, in the Republican-controlled U.S. Senate.

Paid family leave

President Donald Trump signed a bill last week giving federal workers 12 weeks of paid family leave. This doesn’t impact everyone, but it could soon cause a ripple effect with private employers and other states.

The benefit goes into effect in October 2020.

The leave includes parental leave for employees who adopt or foster a child in addition to birth. It doesn’t cover caring for a sick family member.

An estimated 8,400 South Dakotans will receive this benefit.

The military received paid leave benefits a few years ago. Now, much of the rest of the federal workforce is expected to catch up.

This includes employees at VA facilities, the National Park Service, federal courts, USDA and the civilians working at Ellsworth Air Base.

What it doesn’t include is air traffic controllers or TSA screeners.

That’s because lawmakers may have inadvertently left them out. Labor leaders hope lawmakers will pass a fix before October.

Security screeners at Sioux Falls Regional Airport are privatized and many employees at the federal EROS facility are government contractors, they will also not be included in the paid leave plan.

The other major workforce not in the plan is the nearly 2,000 postal workers in the state. It’s not clear yet if they will be added or if the USPS will follow the federal policy.

As of 2018, 17 percent of people working in the private sector or in state/local government had paid family leave in the United States, according to the U.S. Bureau of Labor Statistics. 89 percent had access to unpaid family leave.

Minnesota lawmakers are working on a possible plan as well.