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 both federal and state law.

An employer must also comply with applicable municipal law obligations affecting the employment relationship, in addition to complying with state and federal requirements.

EEO, diversity and employee relations

Key South Dakota requirements impacting EEO, diversity and employee relations are:

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.
• 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).

Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.

Wage and hour

Key South Dakota requirements impacting wages and hours are:

Minimum wage

The minimum wage in South Dakota is $11.50 per hour. It is adjusted annually for inflation. A lower minimum wage rate may be paid to tipped employees.

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.
• After 10:00 p.m. on any day that precedes a school day.

Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.

Pay and benefits

Key South Dakota requirements impacting pay and benefits are:

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 any of the following:

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

Payment of wages

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

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.

Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.

Time off and leaves of absence

South Dakota has few laws relating to required time off and leaves of absence, which cover all employers. These laws include:

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

Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.

Health and safety

Key South Dakota requirements impacting health and safety are:

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.

Safe driving practices

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

Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.

Organizational exit

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

Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.