(650) 332-8623South Dakota Labor Laws: Wages, Breaks and Overtime (2026)
Explore South Dakota labor laws, including wages, breaks, overtime, right-to-work, child labor regulations, and more.
What’s new in 2026?
South Dakota Meals and Breaks
No lawFor Lunch Breaks
Employers are not obligated to provide lunch breaks, but if they do, breaks that last 30 minutes or more can be unpaid as long as the employee is relieved of all duties.
No lawFor Rest Breaks
Employers are not required to offer short rest breaks. However, if rest breaks less than 20 minutes are provided, they must be paid.
South Dakota Leave and Paid Time Off (PTO)
South Dakota hasn’t enacted a specific law to supplant or augment the federal Family and Medical Leave Act (FMLA). However, qualifying employers with 50 or more employees must grant their employees up to 12 weeks of unpaid leave for:
- The birth or adoption of a child
- Caring for a severely sick or injured spouse, parent, or child
- Recovering from a serious medical condition
- Any qualifying exigency if an immediate family member is a covered military member on “covered active duty”
South Dakota law does not require employers to provide paid or unpaid sick leave. This is generally determined by the employer’s internal policies or collective bargaining agreements.
There is no state law mandating paid or unpaid vacation leave. If offered, employers must follow any vacation policies they have outlined in contracts or employee handbooks.
No state requirement. Employers are not obligated to provide bereavement leave.
Employers are required to provide leave for jury duty, and they cannot penalize employees for attending. The decision to offer unpaid or paid leave is left to the employer.
South Dakota requires employers to provide employees with two hours of paid time off to vote if they do not have sufficient time outside of working hours.
Under the Uniformed Services Employment and Reemployment Rights Act (USERRA), employers must provide up to five years of unpaid leave for military service. This includes protections for the South Dakota National Guard.
South Dakota Wages and Overtime
$11.85 per hourMinimum Wage
South Dakota minimum wage is $11.85 per hour as of January 1, 2026. The rate of $11.50 increased to $11.85. The SD DLR press release from October 23, 2025 confirmed the adjustment under SDCL 60-11-3.
The federal rate is $7.25 per hour. Federal law requires employers to pay whichever rate is higher. Minimum wage South Dakota exceeds the federal floor every year. The $11.85 state rate always controls.
1.5x HourlyOvertime Rate
South Dakota follows federal FLSA overtime rules. Employees earn 1.5 times their regular rate for every hour over 40 in a workweek. No daily overtime threshold exists at the state level.
A drywall crew working 50 hours in a week earns 10 hours at time-and-a-half. Every non-exempt worker on your payroll is subject to this rule.
South Dakota overtime exemptions for white-collar workers are governed by the federal FLSA salary threshold. The operative threshold for South Dakota labor laws salaried employees is $684 per week ($35,568/year). A federal court in Texas vacated the Biden-era rule on November 15, 2024, reverting the threshold from back to the 2019 baseline. The DOL confirms the current operative threshold is $35,568/year. Any project manager earning under $684/week qualifies for overtime regardless of title.
$5.925 per hourTipped Employees
The South Dakota tipped wage is exactly half the standard minimum wage per SDCL 60-11-3.2. The 2026 cash rate is $5.925 per hour. Combined cash wages plus tips must reach the full $11.85 standard rate. If a worker falls short in any workweek, the employer must fund the gap.
Once per MonthPay Frequency
South Dakota requires employers to pay all wages at least once per calendar month. Payment can be made by check, cash, or direct deposit.
South Dakota does not allow municipalities to set their own minimum wages. The SD minimum wage of $11.85 applies statewide. No city or county ordinance changes i
Certain workers may receive a sub-minimum rate under special employer certification:
- Student learners: Students in approved vocational training or similar programs.
- Full-time students: Students enrolled full-time in educational institutions working in qualifying sectors.
- Individuals with developmental disabilities: Employers must obtain a permit from the SD Department of Labor.
South Dakota exempts several worker categories from the standard minimum wage:
- Seasonal and recreational employees: Workers at qualifying seasonal amusement or recreational establishments.
- Babysitters: Not subject to state minimum wage law.
- Outside salespersons: Exempt from minimum wage requirements.
- Opportunity wage: Workers under 20 during their first 90 consecutive days may earn $4.25/hour.
- Student learners and apprentices: Must be enrolled in an approved training program.
- Individuals with disabilities: Requires a special certificate from the Department of Labor.
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South Dakota Prevailing Wages
In South Dakota, prevailing wages are determined by the Davis-Bacon and Related Acts (DBRA) for federally funded projects. These regulations ensure that private contractors and subcontractors involved in public projects, such as infrastructure and road construction, pay workers the local prevailing wage. This prevents contractors from paying workers below the fair market wage for their specific trades in that geographical region.
Contractors are required to follow specific guidelines under the DBRA. They must post prevailing wage rates at job sites, classify workers according to their job roles, maintain accurate records, and submit certified payrolls to verify compliance. These federal protections help ensure fair wages and working conditions on public works projects
South Dakota Prevailing Wage Resources
South Dakota Child Labor Laws
South Dakota child labor laws regulate hours, job types, and hazardous work for every worker under 18. Federal law applies where more protective than state law.
<16 years
Laws in South Dakota for children under 16 years
Workers under 16 face the tightest restrictions. The rules differ slightly by age bracket.
Children under 14 cannot work during school hours or past 7 p.m. They may pump gas, detassel hybrid seed corn, or work non-hazardous jobs for a parent. Child actors are also permitted.
Workers 14 and 15 may work up to 4 hours on a school day and up to 20 hours in a school week. On non-school days, the limit is 8 hours per day and 40 hours per week. They cannot work past 10 p.m. on a school night.
Agricultural work is open to 14- and 15-year-olds outside school hours if they avoid hazardous machinery. Tractors over 20 PTO horsepower are off-limits. Students in 4-H or vocational programs may operate specific equipment for which they are trained.
16-17 Years
Laws in South Dakota for children between 16 and 17
- General Employment:
- Can work in any non-hazardous occupation without restrictions on hours.
- Hazardous Occupations Prohibited:
- Jobs like operating power-driven machines, working with explosives, roofing, trenching, or using circular saws are restricted.
- Exceptions: Youth Apprenticeship or Student-Learner Programs may allow hazardous work under strict supervision and specific conditions.
Other Essential South Dakota Labor Laws
Health and safety standards in South Dakota
South Dakota OSHA coverage comes entirely from the federal government. South Dakota has no state OSHA plan. Federal OSHA enforces all private-sector workplace safety standards in the state.
The SD DLR Division of Labor and Management administers the state’s workers’ compensation system. As of July 1, 2025, the maximum weekly temporary total disability (TTD) rate is $1,108. The minimum is $554 per week.
In South Dakota, employers must…
- Follow OSHA regulations: Comply with all federal safety and health standards for the relevant trade.
- Communicate workplace hazards: Use labels, signs, and training. Maintain safety data sheets (SDS) for hazardous chemicals.
- Provide emergency action plans: Develop and implement evacuation and emergency medical response procedures.
- Supply PPE: Provide required personal protective equipment for specific site hazards.
In South Dakota, employees should…
- Report unsafe conditions: Flag hazards to the employer or OSHA without fear of retaliation.
- Participate in safety training: Complete all employer-required training before performing covered tasks.
- Exercise their rights: Request a workplace inspection if safety violations exist.
Report health and safety violations in South Dakota to…
- Employees: OSHA File a Complaint
- Employers: Occupational Safety and Health Administration
HB 1180: Non-compete limits for business ownership transfers
Governor Rhoden signed HB 1180 on March 12, 2026. It adds a new section to SDCL Chapter 53-9. The law caps post-sale non-compete agreements at three years from the transfer date within a specified geographic area.
This only applies to business ownership transfers. Standard employee-to-employer non-competes stay capped at two years under SDCL 53-9-11. If you’re acquiring a South Dakota specialty contractor, this changes your deal structure.
Hiring and/or Firing Employees in SD
South Dakota is an at-will employment state. Employers can terminate an employee at any time, for any reason, as long as it’s not illegal (i.e., based on discrimination or retaliation). Likewise, employees can leave their job without providing notice or reason.
South Dakota has right-to-work laws, meaning employees cannot be forced to join a union or pay union dues as a condition of employment. Employers cannot terminate or discriminate against employees based on their decision to join or not join a union.
Employers may conduct background checks following the Fair Credit Reporting Act (FCRA) guidelines. Drug testing is also permitted, but it can only be done after a job offer is made. Employers must ensure that applicants are aware of and consent to the drug test.
South Dakota prohibits employment discrimination based on race, color, national origin, religion, gender, disability, age, and other protected categories. Employers must comply with both state and federal Equal Employment Opportunity (EEO) regulations.
Anti-discrimination laws in South Dakota
The South Dakota Human Rights Act covers employment, housing, and public accommodations.
Employers in South Dakota may not discriminate against job applicants based on…
- Race
- Color
- Sex
- Religion
- Disability
- National origin
Employee resignation or termination in South Dakota
Termination is governed by Codified Laws 60-4-4. Codified Laws 60-8 means union membership status cannot be a reason for dismissal.
Lawful grounds for termination include contract expiration, neglect of duty, incapacity, and misconduct. Unlawful discharge includes discrimination, breach of contract, and retaliation.
Neither employers nor employees are required to give advance notice.
Unemployment benefits in South Dakota
Workers qualify for reemployment assistance if they lost their job through no fault of their own, meet base period earnings thresholds, and are actively looking for work.
The maximum weekly benefit is $553 as of July 6, 2025 (SD DLR). Benefits last up to 26 weeks.
Start an application at the South Dakota Department of Labor & Regulation.
COBRA benefits in South Dakota
South Dakota COBRA obligations in South Dakota operate at two levels.
Federal COBRA applies to employers with 20 or more employees. Separated employees can continue group health coverage for up to 18 months. They pay the full premium plus up to a 2 percent administrative fee.
South Dakota’s Mini-COBRA law (SDCL § 58-18-7.5) applies to all employers regardless of size. Any group health plan issued in the state must offer continuation coverage after a qualifying separation. If an employer drops the group plan entirely, state law requires 12 months of continuation coverage at no more than 125 percent of the standard group rate.
Final paychecks in South Dakota
The south dakota final paycheck law requires all final wages to be paid no later than the next scheduled payday following the employee’s last day. This applies whether the worker quits or is terminated.
Employers may withhold a final check until all company property is returned. Workers should document all hours worked to ensure accurate payment.
SD Recordkeeping Requirements
In South Dakota, employers are required to maintain specific records for various durations to ensure compliance with state and federal labor laws. These recordkeeping requirements help protect employee rights and provide necessary documentation for audits and legal inquiries.
1 Year
Employers must retain these documents for at least one year:
- All employment records, including applications, resumes, and hiring documentation.
- Documentation related to the termination of employees, including reasons for termination.
- Any records that pertain to wages paid to employees, including pay stubs or wage statements.
2 Years
Employers must retain these documents for at least two years:
- Timecards, wage-rate tables, and records of additions to or deductions from wages.
- Documentation that shows job classifications and wage rates for employees.
- Information regarding employee benefits and any changes made during employment.
3 Years
Employers must retain these documents for at least three years:
- Detailed payroll records, including hours worked and wages paid.
- Any relevant certificates or agreements related to employment contracts or collective bargaining agreements.
- Copies of each employee’s I-9 form must be kept for three years after hire or one year after termination, whichever is longer.
4 Years
Employers must retain these documents for at least four years:
- Documentation related to any discrimination claims or complaints filed by employees.
- Records pertaining to workplace injuries or illnesses as required by OSHA regulations.
- Documentation related to employee leave under the FMLA must be retained for at least four years.
Penalties for South Dakota Wage Law Violations
$500+Wage Violations
Employers guilty of wage violations, including underpayment of minimum wage or failure to pay overtime, may face fines of up to $500 per violation. They may also be required to pay back wages plus interest.
Class 2 MisdemeanorBreak Violations
While South Dakota does not mandate breaks, if employers violate contracts or agreements that provide breaks, they can face penalties including a class 2 misdemeanor.
$13,227+Child Labor Violations
Violations of child labor laws can result in fines of up to $13,227 per minor employee. If a violation results in serious injury or death, the fine can increase to $60,115, and repeated violations may lead to fines as high as $120,230.
$50,000 – $300,000Anti-Distrimination Violations
Up to $16,550 per violationOSHA civil penalties
South Dakota falls under direct federal OSHA jurisdiction.
- Serious violations: up to $16,550 per violation.
- Other-than-serious violations: up to $16,550 per violation.
- Willful or repeated violations: up to $165,514 per violation.
- Failure to abate: up to $16,550 per day beyond the abatement date.
Normally OSHA adjusts penalties each January for inflation. For 2026, the Bureau of Labor Statistics failed to publish the October 2025 CPI-U data due to a federal funding lapse. The DOL issued a notice in the Federal Register on May 27, 2026 canceling the 2026 adjustment. Penalty amounts carry forward at 2025 rates through the full enforcement cycle.
In South Dakota, labor law violations are investigated and addressed by…
- South Dakota Department of Labor and Regulation for general labor law violations and enforcement of employment standards.
- South Dakota Human Rights Commission for complaints related to discrimination in employment based on protected characteristics such as race, gender, and disability.
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Have employees across multiple states? Learn how to navigate varying labor laws with our multistate compliance guides:
- Indiana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Oklahoma Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- New Mexico Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Colorado Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Illinois Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Wisconsin Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- West Virginia Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
Staying compliant with South Dakota labor laws
Getting the wage floor wrong by $0.35 per hour across a 20-person crew for a full year creates a $14,560 exposure before penalties. For South Dakota labor laws salaried employees, a misclassification under the $684/week FLSA threshold adds overtime liability on top. The numbers add up fast.
Workyard’s analysis of 280 contractor discovery calls found that nearly 1 in 3 construction businesses identify labor compliance, including overtime rules, union pay codes, and state wage laws, as a primary operational risk. Workyard is workforce management software especially built for construction businesses.
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No. South Dakota law does not require premium pay or paid time off for holidays. If your employee handbook or a written contract promises holiday pay, that commitment is legally binding. For a 15-person electrical contractor, holiday pay is entirely a company policy decision. Federal law has no holiday pay mandate either. Review your current handbook language to confirm what you have already committed to.
No. South Dakota does not require severance pay. It is governed entirely by contract or policy. If your employment agreement specifies severance terms, those are enforceable. An HVAC contractor terminating a crew lead after project completion has no state obligation beyond final wages owed by the next scheduled payday. The South Dakota final paycheck law covers the deadline, not the amount.
Yes. Workers 14 and 15 may perform agricultural work outside school hours if they avoid hazardous machinery, including tractors over 20 PTO horsepower. Workers under 14 may work in non-hazardous farm roles with a parent. South Dakota child labor laws track closely with federal FLSA agricultural provisions. State and federal rules both apply, and the more protective standard controls. No minor under 14 may operate power-driven farm equipment without specific program authorization.
Workers under 18 are prohibited from hazardous occupations under state and federal law. The banned list includes operating power-driven machinery, working with explosives, roofing, trenching, and using circular saws. Those are all common tasks on construction sites. Youth Apprenticeship and Student-Learner Programs can create narrow exceptions under strict supervision. Any construction employer assigning work to someone under 18 should verify each task against the federal hazardous occupation orders before they start.
Final wages are due no later than the next scheduled payday following the last day of work. The south dakota final paycheck law applies whether the employee resigns or is terminated. No same-day or next-day payment is required by state law. Employers may withhold the final check until all company property is returned. Improperly docking a final paycheck can trigger a wage complaint with the SD DLR and a back-wages claim.
South Dakota law does not explicitly prohibit terminating an employee for off-duty smoking. The south dakota at-will employment framework allows termination for most reasons not covered by discrimination or retaliation law. South Dakota has no off-duty conduct statute protecting smokers. If the employee holds a union contract or written employment agreement, those terms may restrict grounds for termination. Review your specific agreements before acting.
Federal law allows 12- and 13-year-olds to work on a farm with written parental consent or on a farm where a parent works. Under South Dakota child labor laws, minors under 14 may work for a parent in non-hazardous farm roles. Hazardous agricultural equipment is off-limits regardless of age. Both state and federal rules apply, with the more protective standard controlling. South Dakota law and the FLSA align closely on these restrictions.
No. South Dakota has no state paid sick leave law. Your internal policy sets the standard. Whatever your handbook says is what employees can rely on. No sick leave mandate was introduced or passed during the 2025 legislative session. This is consistent with south dakota employment laws on leave generally. The state defers to employer policy on most leave types except jury duty and voting leave. If you offer sick days, document the policy in writing to avoid disputes.
Violations of South Dakota minimum wage law carry fines up to $500 per violation. Employers also owe back wages plus interest. A concrete contractor underpaying five workers by $0.35 per hour for 12 months owes roughly $3,640 in back wages. That’s before the per-violation fine. The SD DLR investigates wage complaints filed by workers. Willful violations can also result in civil lawsuits under SDCL 60-11.
Yes. South Dakota is a right-to-work state under Codified Laws 60-8. Workers cannot be required to join a union or pay dues as a condition of employment. On a union job site, non-member workers hold the same rights as dues-paying members. You cannot require union membership or dues as a condition of hire or crew assignment. Refusing a qualified framing sub because they are not union members could expose you to a discrimination claim under this statute.
