South Dakota Labor Laws (2025 Guide)

What’s New in 2025

• Minimum wage increase

Labor Law Posters

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Wage and Hour Laws

Minimum Wage

In South Dakota, the state minimum wage for 2025 is set at $11.50 per hour, reflecting a cost-of-living increase from the previous year. For newly hired employees under 20 years old, the federal opportunity wage of $4.25 per hour may be paid for the first 90 consecutive calendar days of employment. After this period—or when they turn 20 (whichever comes first)—the standard state minimum wage applies.

Occupation-specific minimum wage exceptions include the following:

• Seasonal amusement and recreation establishments, babysitters, and outside salespersons.
• Apprentices and persons with developmental disabilities.

Tipped Minimum Wage

Tipped employees must be paid at least $5.75 per hour. Employers can claim a tip credit for the difference between the tipped wage and the regular minimum wage, but only if:

• Employees receive enough in tips to make up the difference so that their total earnings are at least $11.50 per hour.
• Employers keep accurate records of tips received by employees to ensure compliance.

If an employee’s tips plus the cash wage don’t meet the full minimum wage, the employer is required to make up the shortfall. Employers must also inform tipped employees of how the tip credit works and their rights to receive at least the full minimum wage in total compensation.

Overtime Laws

South Dakota follows the federal Fair Labor Standards Act (FLSA) for overtime pay, as the state doesn’t have separate overtime laws. Under the FLSA, employers must pay covered, non-exempt employees at least 1.5 times their regular pay rate for hours worked beyond 40 in a workweek. (The FLSA covers about 90% of the American workforce.)

South Dakota doesn’t have additional overtime exemptions beyond those already defined under the FLSA, such as for executive, administrative, and professional employees. Employers in South Dakota must ensure compliance with federal overtime requirements to avoid wage and hour violations.

Break Laws

Meal and Rest Breaks

South Dakota doesn’t have any state laws mandating meal or rest breaks. However, if employers choose to provide a meal break that lasts 30 minutes or longer, it can be unpaid as long as the employee is fully relieved of all duties. (FLSA-covered employers should count shorter breaks of less than 20 minutes as paid work time.) 

Recordkeeping Requirements

South Dakota mandates that employers with over 25 employees keep records of wages, wage rates, job classifications, and the terms and conditions of employment for all employees. These records must be maintained for “a reasonable period of time.”

In addition to the state-specific recordkeeping law, South Dakota employers covered by the FLSA must follow the federal recordkeeping requirements. Under these guidelines, employers must maintain accurate records for each non-exempt employee, including:

• Personal information such as name, address, and birth date if under 19.
• Hourly pay rates and total earnings for each pay period.
• Daily and weekly hours worked.
• Overtime earnings.
• Any additions or deductions from wages.
• Date of payment and pay period covered.

These records must be kept for at least 3 years. There are no exemptions for these federal recordkeeping requirements, though the FLSA does exempt certain categories of employees—such as bona fide executive, administrative, and professional employees—from some aspects of wage and hour recordkeeping.

Scheduling Laws

South Dakota doesn’t have state-specific laws regarding predictive scheduling or fair scheduling practices: No state mandates require advance notice of work schedules or compensation for last-minute schedule changes.

There are also no laws requiring employers to give employees a day of rest each workweek. 

Employee Compensation and Benefits

Reporting Time Pay

South Dakota has no state-specific requirements for reporting time pay—meaning employers aren’t required to give employees who report to work but don’t receive their full shift of work “show up pay.” Employers must pay employees for the actual hours worked.

Payday Frequency and Method

South Dakota requires employers to pay employees at least once each calendar month. Employers can establish more frequent pay periods if they choose—such as weekly or biweekly.

Employers can pay wages by:

• Cash.
• Check.
• Direct deposit.

Other forms of payment are allowed as long as the employer and employee agree.

Paystub Requirements

South Dakota doesn’t explicitly require employers to provide paystubs to employees. However, many employers choose to do so voluntarily to maintain transparency and support recordkeeping.

Wage Deductions and Garnishments

Employers can make wage deductions, but only if they’re:

• Required by law (such as taxes, Social Security, or wage garnishments).
• For the employee’s benefit (such as insurance premiums or retirement contributions)—with the employee’s written authorization.
• Agreed to in writing by the employee for other legitimate reasons, such as repayment of a loan or purchase of employer-provided goods.

Deductions can’t reduce an employee’s wages below the minimum wage. Exceptions include tax withholdings and employee-authorized benefit programs like pensions. 

For wage garnishments, South Dakota follows federal guidelines under the Consumer Credit Protection Act (CCPA). Generally, the maximum amount that can be garnished for debts is 25% of disposable earnings for the week, or the amount by which these earnings exceed 30 times the federal minimum wage (whichever amount is less).

Employers must also comply with any state-specific garnishment orders, such as those for child support, which have separate limits and priorities.

Final Paycheck Laws

When an employee’s employment ends in South Dakota, the final paycheck must be issued on the next regular payday. This applies whether the employee was terminated, laid off, or voluntarily resigned.

Workers’ Compensation

In South Dakota, workers’ compensation is a no-fault insurance program that provides medical and wage-loss benefits to employees with work-related illnesses or diseases. While the state doesn’t require any employer to carry workers’ compensation coverage, doing so is strongly encouraged because it limits an employer’s liability for workplace injuries.

The state Workers’ Compensation system provides coverage for most types of workers, including full-time and part-time workers. Agricultural and domestic workers are typically excluded from coverage. 

Employers can secure coverage by purchasing a workers’ compensation insurance policy from a private insurance carrier or by becoming self-insured if they meet certain financial criteria.

Workers’ compensation benefits include payment for medical treatment, temporary disability payments for lost wages during recovery, permanent disability compensation for lasting impairments, and death benefits for dependents in fatal cases.

An employee must promptly notify their employer of a work-related injury, ideally within 3 business days. Employers must report the injury to their insurer or claims administrator as soon as possible. Delays in reporting can complicate the claims process.

If there’s a dispute about benefits, either party can request a hearing or mediation with the South Dakota Department of Labor and Regulation’s Division of Labor and Management. This process typically involves an administrative hearing to resolve issues like eligibility for benefits or the amount of compensation.

A claim for workers’ compensation benefits must generally be filed within 2 years of the date of injury or the date the employee knew or should’ve known the injury was work-related.

Unemployment Insurance

Unemployment insurance in South Dakota, known as Reemployment Assistance, is designed to provide temporary financial support to eligible workers who lose their jobs. The program is funded through employer-paid taxes and administered by the South Dakota Department of Labor and Regulation’s Reemployment Assistance Division.

To qualify for benefits, individuals must: 

• Have become unemployed, whether partially or totally, through no fault of their own. 
• Have earned sufficient wages during the base period (the first 4 of the last 5 completed calendar quarters before filing). 
• Be able and available to work and actively job seeking. 
• Have legal work authorization and be registered with their designated workforce agency.

Weekly benefit amounts are calculated based on the worker’s earnings in the base period, up to a maximum set by state law. As of 2025, the maximum weekly benefit amount is $532. Benefits are available for up to 26 weeks in most cases.

Applicants must file an initial claim online or by phone with the Department of Labor and Regulation. Once their claim is approved, they must file weekly certification claims to continue receiving payments and must report any earnings from part-time work or other income. If there are disputes or appeals, they’re handled by the Reemployment Assistance Division’s appeals system.

Employers fund the program through unemployment insurance taxes based on their experience rating, which can impact the cost of their premiums if layoffs are frequent. To comply, virtually all employers must register for RA, keep records, and report new hires.

Both employers and employees should be aware of these procedures and requirements to ensure smooth processing and compliance with unemployment insurance obligations.

Workplace Rights and Protections

Discrimination and Harassment

South Dakota’s Human Relations Act prohibits employment discrimination based on the following:

• Race. 
• Color. 
• Creed. 
• Religion. 
• Sex. 
• Ancestry. 
• Disability. 
• National origin. 

These protections align with federal laws like Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA), which cover additional protected categories such as age and pregnancy.

The Human Relations Act applies to employers with 1 or more employees. The South Dakota Division of Human Rights enforces state anti-discrimination laws, providing an avenue for complaints and investigation. 

Employees who believe they’ve experienced discrimination or harassment can file a complaint with the South Dakota Department of Labor and Regulation’s Division of Human Rights within 180 days of the alleged incident. This state-level agency will investigate complaints and may attempt conciliation before moving to a formal hearing or issuing findings. 

Employees may also file a complaint with the Equal Employment Opportunity Commission (EEOC) within 300 days of the alleged discriminatory act if the claim also falls under federal law.

Leave Laws

❌ Family and Medical Leave	South Dakota doesn’t have a state-level family and medical leave law, but eligible employees are covered under the federal Family and Medical Leave Act (FMLA). To qualify, employees must have worked for a covered employer for at least 12 months, with at least 1,250 hours worked in the past year.  FMLA leave provides up to 12 weeks of unpaid, job-protected leave for qualifying reasons, including personal or family illness, birth, or adoption. Under the FMLA, employees can also take up to 26 weeks of leave in a 12-month period to care for a covered military service member with a serious injury or illness.
❌ Paid Sick Leave	South Dakota doesn’t require employers to provide paid sick leave.
❌ Paid Family Leave	South Dakota doesn’t require employers to offer paid family leave.
❌ Pregnancy and Parental Leave	There are no state-specific pregnancy or parental leave laws. Employees are covered by the federal FMLA for unpaid leave due to pregnancy, birth, or adoption if they meet eligibility criteria.
❌ Vacation and Personal Leave	South Dakota law doesn’t require employers to provide vacation or personal leave. Employers that offer it should follow the relevant terms of their contracts and policies.

Other Mandatory Leave

Military Leave	Employers must comply with the federal Uniformed Services Employment and Reemployment Rights Act (USERRA), which protects the job rights of employees who leave to perform military service. South Dakota doesn’t have separate military leave requirements beyond federal protections.
Jury Duty Leave	Employers in South Dakota must provide unpaid leave for employees who are called to serve on a jury. Employers can’t penalize employees for their absence due to jury duty.
Voting Leave	South Dakota law requires employers to provide up to 2 consecutive hours of paid leave for employees to vote in an election if the employee doesn’t have sufficient time outside of working hours.

Child Labor Laws

In South Dakota, the minimum working age is 14. However, exceptions include employment that’s needed for a child’s or family’s support, agricultural employment, detasseling hybrid seed corn, and family businesses. In the case that minors need to financially support their families, they may be issued a work permit. 

Minors under age 16 face time and hour restrictions:

	Can’t work:
When school is in session	After 10pm on a school night (if under 14, can’t work later than 7pm). More than 4 hours per school day or 20 hours per school week. More than 8 hours per non-school day or 40 hours per non-school week.
When school isn’t in session	More than 8 hours per day or 40 hours per week.

Minors over age 16 don’t have state or federal-level hour or time restrictions. Minors under the age of 16 can’t do work that’s dangerous to life, health, or morals—except for pumping gas, family business, and licensed agricultural work. 

Minors may also be subject to the child labor provisions of the FLSA. 

Workplace Safety and Health

South Dakota doesn’t operate its own occupational safety and health plan. Instead, the federal Occupational Safety and Health Administration (OSHA) has jurisdiction over most private sector workplaces in the state. OSHA sets and enforces standards to ensure safe and healthy working conditions.

Employers in South Dakota must provide a workplace free from recognized hazards, comply with OSHA standards, and inform employees about their rights and safety procedures. Employers must also provide appropriate training and personal protective equipment.

Workers in South Dakota have the right to a safe workplace and to report unsafe conditions without fear of retaliation. Employees can file complaints with OSHA if they believe their workplace is unsafe or if their employer isn’t complying with safety standards.

Employers are required to report any workplace fatality to OSHA within 8 hours and any work-related inpatient hospitalization, amputation, or loss of an eye within 24 hours. Employers must also keep records of work-related injuries and illnesses using OSHA forms.

Although South Dakota doesn’t have its own OSHA plan, South Dakota State University offers resources to help employers improve workplace safety—such as safety consultations.

Labor Union Regulations

South Dakota is a right-to-work state: Employees can’t be required to join a union or pay union dues as a condition of employment. 

Union membership and collective bargaining rights are governed by the National Labor Relations Act (NLRA), a federal law that applies to most private-sector employees. The NLRA protects workers’ rights to:

• Form, join, or assist labor organizations.
• Collectively bargain through representatives they select.
• Act collectively to aid one another. 

Employers must not interfere with, restrain, or coerce employees in exercising these rights. 

Employment Contracts and Severance

Employment Contract Laws

South Dakota is an at-will employment state, meaning either the employer or employee can terminate the employment relationship at any time, for any reason or no reason, as long as it isn’t discriminatory or otherwise illegal. There’s no requirement to provide advance notice or cause, unless specified in a contract or collective bargaining agreement.

Restrictive covenants—such as non-compete, non-solicitation, and confidentiality agreements—are enforceable in South Dakota but are subject to strict limitations:

Non-compete and non-solicitation agreements are only valid if they meet the criteria outlined in South Dakota Codified Law § 53-9-11. 

However, employment contracts involving healthcare practitioners that are signed after July 1, 2023 may not include non-compete clauses unless they concern the sale of a practice or non-solicitation of a former employer’s or partner’s current patients. 

Confidentiality agreements are more likely to be upheld, provided they’re reasonable in scope, duration, and geographic reach, and protect legitimate business interests.

Severance Pay

In South Dakota, no law requires employers to provide severance pay when an employee’s job ends. 

Additional State-Specific Employment Laws

Mini-COBRA

South Dakota law provides mini-COBRA continuation coverage for employees of smaller businesses not covered by federal COBRA. This ensures that employees losing group health coverage—due to their employer ceasing operations or failing to pay their premium payments—can continue their insurance for up to 12 months. Employers must notify employees that they’ve canceled coverage or failed to pay premiums as soon as possible, and no later than 10 days after cancellation. Employees’ election period for coverage continuation may expire 90 days after the cancellation of group coverage. Once notified that their coverage has been terminated, employees have 60 days to elect to continue receiving healthcare benefits. They’re financially responsible for the entire cost of the plan, including the portion formerly paid by the employer. Employees must have been continuously insured for the full 6 months leading up to the cancellation of their group policy to qualify for coverage.

Legal Resources for Employers and Employees

Employers and workers can find more information and aid using these sources:

• South Dakota Unified Judicial System: Offers legal research resources and public access to South Dakota’s statutes and regulations.
• East River Legal Services: Provides free civil legal aid to low-income residents in the eastern half of the state, including for employment-related issues.
• South Dakota Safety Council: Offers safety training and resources to help employers maintain safe workplaces and meet compliance standards.

Disclaimer

The information presented on this website about labor laws in South Dakota is a summary for informational purposes only and is not intended as legal advice. However, laws and regulations regularly change and may vary depending on individual circumstances. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Therefore, we strongly recommend that readers seek guidance from their legal department or a qualified attorney to ensure compliance with applicable laws and regulations. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.