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Nobody ever said running a business was easy. As an employer, you have many things to handle, and compliance is just one of them.
In addition to U.S. Federal regulations, each state has its own share of employment-related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements, and offering guidance to help you keep up.
Bear in mind that this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Because Justworks reports state unemployment taxes on behalf of customers who utilize Justworks’ PEO services, Justworks may need to collect account information such as your account number and current rate. You can read more about it here: State Unemployment Insurance.
Recruiting & Hiring Practices
In South Dakota, it is prohibited for employers to mandate that employees bear the expenses associated with medical examinations or provide necessary records as a prerequisite for ongoing employment.
- State Regulation: Wages, Hours, and Conditions of Employment
- Mineral*: South Dakota New Hire Toolkit
- Mineral*: Cost of Medical Examinations
Independent Contractors
When deciding whether to classify workers as employees or independent contractors, there are a few things your business should consider, including the varying tests that apply under different federal and state employment laws, and the potential penalties and other liabilities for misclassifying employees as independent contractors.
You can read our general Help Center article on contractors, and view information on how to determine if someone is an independent contractor or employee in South Dakota in the relevant section linked below.
South Dakota Department of Labor and Regulation (DLR): Independent Contractor or Employee Fact Sheet
- Mineral*: South Dakota Independent Contractors
Pay Requirements
Minimum Wage & Overtime
South Dakota's minimum wage requirement is higher than the federal minimum wage. South Dakota’s rules on overtime, minimum wage, record keeping, and exempt salary thresholds can be found at the links below.
- South Dakota DLR: Summary of Minimum Wage
- Mineral*: South Dakota Minimum Wage and Overtime
Leave
State Disability
South Dakota’s disability law follows the federal Americans with Disabilities Act (ADA) definition of disability and adheres to its rules. Unlike the ADA, which covers employers with 15 or more employees, South Dakota's disability regulations apply to all employers regardless of their number of employees.
- South Dakota DLR Division of Human Rights: Disability
- Mineral*: South Dakota Employment Discrimination and Accommodations
Harassment & Discrimination
South Dakota Human Relations Act (SDHRA)
In addition to protections under federal law, the South Dakota Human Relations Act (SDHRA) prohibits employment discrimination based on membership in any protected class by employers covered under South Dakota's anti-discrimination laws. These protected classes include race, color, creed, religion, sex, ancestry, disability, national origin, blindness, or partial blindness.
Under the SDHRA, employers cannot discriminate in any aspect of employment including hiring, firing, training, promotion, compensation, and other employment terms or conditions. It is illegal to discriminate or retaliate against someone who files a complaint or for testifying before the Division of Human Rights, and helping the Division achieve the objectives of the law.
- South Dakota DLR Division of Human Rights: South Dakota Human Rights Act
- Mineral*: South Dakota Employment Discrimination and Accommodations
- South Dakota DLR: Avoiding Discrimination Charges
Separation
Final Pay & Document Requirements
In South Dakota, final wages for separated employees must be issued by the next regularly scheduled payday, or as soon as the employee returns the employer’s property.
Accrued, unused vacation time need not be paid out to the employee unless the employer’s policy requires it. Employers should clearly set forth in writing any policy with respect to unused vacation.
Additionally, employers must also provide a re-employment assistance notice (“Availability of Unemployment Compensation”) to all separated employees, regardless of the reason for leaving. You can access the form here. Employers can provide separated employees with the notice in the form of a letter, email, text message, or flyer.
- South Dakota DLR: Termination of Employment
- Mineral*: South Dakota Separation
Business Closings and Layoffs
The Federal Worker Adjustment and Retraining Notification (WARN) Act imposes certain notices and other obligations on covered businesses before conducting large-scale business closures, layoffs, or relocations.
For more information, visit the links below.
- US Department of Labor (DOL): Worker Adjustment and Retraining Notification (WARN) Act Advisor
- US DOL: Plant Closings and Layoffs (WARN)
- Mineral*: South Dakota Layoffs
Notes
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Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.