South Dakota employment law overview

South Dakota has laws that provide greater protections to employees than federal law, including a higher minimum wage and health care continuation coverage obligations for smaller employers, but generally follows federal law with respect to topics such as overtime, leaves of absence and occupational safety and health. 

Select South Dakota employment requirements are summarized below to help an employer understand the range of employment laws affecting the employer-employee relationship in the state. An employer must comply with federal, state, and local law. Where there is overlap, complying with the law that offers the greatest rights or benefits to the employee will generally apply. 

Equal Employment Opportunity (EEO) and worker protections 

South Dakota employers may be required to comply with requirements related to EEO and worker protections.   

Fair employment practices

The South Dakota Human Relations Act (SDHRA) applies to all employers and prohibits discrimination and harassment on the basis of protected characteristics, including: 

• Race; 
• Color; 
• Creed; 
• Religion; 
• Sex (including pregnancy); 
• Ancestry; 
• National origin; and 
• Disability. 

The law also prohibits an employer from retaliating against individuals who: 

• File a charge under the SDHRA; or 
• Testify, assist or participate in any way in an SDHRA investigation, hearing or other proceeding. 

Equal pay

An employer may not pay wages to any employee in any occupation in the state at a rate less than the rate at which the employer pays any employee of the opposite sex for comparable work on jobs that have comparable requirements relating to skill, effort and responsibility, but not to physical strength. The law does permit pay differentials between male and female employees based on legitimate, nondiscriminatory factors (e.g., seniority system, job descriptive system, merit increase system, executive training program). 

Pay transparency

South Dakota does not have a pay transparency law applicable to private employers. 

Salary history inquiry restrictions

South Dakota does not restrict an employer from inquiring into or relying upon an applicant’s salary history. 

Employee wage disclosure rights

South Dakota does not have a wage disclosure law applicable to private employers. 

Pregnancy accommodation

South Dakota does not have requirements for private employers related to pregnancy accommodation. 

Breastfeeding breaks

South Dakota does not have requirements for private employers related to breastfeeding breaks. 

Access to personnel files

South Dakota law does not require private employers to provide employees with access to their personnel files. 

Whistleblower protections

South Dakota does not have a whistleblower law applicable to private employers. 

Scheduling 

South Dakota does not have a scheduling law applicable to private employers. 

Recruiting and hiring

South Dakota does not currently have laws relating to credit checks, ban the box and E-Verify applicable to private employers.

Wage and hour 

South Dakota employers may be required to comply with certain wage and hour requirements.   

Minimum wage

The minimum wage in South Dakota is $11.85 per hour. It is adjusted annually for inflation. A lower minimum wage rate may be paid to tipped employees. 

Overtime 

South Dakota does not have a state overtime law applicable to private employers. 

Meal and rest breaks

South Dakota does not have requirements for private employers related to meal and rest breaks. 

Child labor

Child labor laws in South Dakota restrict the occupations in which some minors may be employed and the number of hours and times during which they may work. 

Minors under 16 generally may not be employed at any time in any occupation dangerous to life, health or morals, nor may any child be in any manner exploited by any employer. 

Minors ages 15 and younger generally may not work: 

• More than four hours in any school day; 
• More than eight hours in any nonschool day; 
• More than 20 hours in any school week; 
• More than 40 hours in any nonschool week; or 
• After 10:00 p.m. on any day that precedes a school day. 

Pay and benefits 

South Dakota employers may be required to follow certain requirements with respect to employee pay and benefits.   

Wage payment methods

South Dakota employers must pay all wages due in cash or by check. An employer may pay wages by direct deposit under certain circumstances. 

Pay frequency and lag time

A South Dakota employer must pay all wages due to employees as follows: 

• At least once each calendar month; or 
• On regular, agreed-upon paydays designated in advance by the employer. 

Pay deductions

South Dakota law does not address types of pay deductions that employers are permitted to make. However, employers are prohibited from making pay deductions for the cost of medical exams the employer requires as a condition of employment. 

Pay statements

South Dakota does not have requirements for private employers related to pay statements. 

Wage theft

South Dakota does not have a wage theft law applicable to private employers. 

Health care continuation

Under South Dakota’s health care continuation coverage law, employers with fewer than 20 employees must permit eligible employees and their covered dependents to elect continued health care coverage if coverage is lost due to: 

• Termination of employment; 
• Termination of coverage by the insurer; 
• Employee’s death, divorce, legal separation or eligibility for Medicare; or 
• Loss of dependent status. 

Temporary disability insurance

South Dakota does not have requirements for private employers related to temporary disability insurance. 

Time off and leaves of absence 

South Dakota employers may be required to follow certain requirements with respect to time off and leaves of absence.   

Family and medical leave

South Dakota does not have a state family and medical leave law applicable to private employers. 

Paid sick leave

South Dakota does not have a state paid sick leave law applicable to private employers. 

Other time off requirements

South Dakota has laws related to time off and leaves of absence, including but not limited to:

• Jury duty leave; 
• Military leave; 
• Voting leave; and 
• Legislative leave. 

Health and safety 

South Dakota employers may be required to follow certain requirements with respect to employee health and safety.   

Occupational safety and health

Private sector employers in South Dakota fall under the jurisdiction of federal OSHA for compliance and enforcement and must follow the appropriate Code of Federal Regulations that applies to their industry and work practices.

Drug and alcohol testing

South Dakota does not have a law that specifically governs workplace drug and alcohol testing, preemployment or otherwise. South Dakota employers may establish their own drug and alcohol testing policies and require employees and job applicants to submit to drug and alcohol tests, as long as the testing program complies with the ADA, the South Dakota Human Relations Act, collective bargaining agreements and other laws that protect workers from discrimination or violations of privacy.

Smoke-free workplace

Smoking is banned in all enclosed workplaces in South Dakota, including bars and restaurants. Prohibited smoking includes the use of electronic smoking devices. 

Weapons in the workplace

South Dakota does not have a state law that prevents business owners from forbidding guns and weapons on their property. This includes employer-owned parking lots, grounds and personal vehicles. 

Safe driving practices

South Dakota prohibits the use of a mobile electronic device while driving. 

Organizational exit 

South Dakota employers may be required to follow certain requirements when employees exit the organization.   

Final pay

Terminated employees must be paid by the next regular payday, or soon after the employee returns all employer property in their possession, if any. 

Mass layoffs

South Dakota does not have its own version of the federal WARN Act. 

AI in employment 

South Dakota does not have a law related to AI in employment applicable to private employers.