South Dakota minimum wage (SDCL sec. 60-11-3; inflation indexing; tipped employee sub-minimum), South Dakota Human Relations Act employment discrimination (SDCL sec. 20-13-1), and Sioux Falls financial sector employment (Wells Fargo; Citibank; First Premier Bank)

South Dakota wages and employment discrimination: (1) South Dakota minimum wage -- SDCL sec. 60-11-3: South Dakota's minimum wage was set at $11.20 per hour as of January 1, 2024, indexed to CPI inflation by the 2014 voter-approved ballot initiative (Initiated Measure 18). Key minimum wage rules: (a) tipped employees: South Dakota allows a sub-minimum wage for tipped employees at 50% of the regular minimum wage (approximately $5.60/hour as of 2024), with the requirement that tips plus the direct wage must equal or exceed the full minimum wage; (b) South Dakota allows a youth/training minimum wage of $8.65/hour (approximately 85% of the regular rate) for employees under 18 for the first 90 days of employment; (c) the federal minimum wage of $7.25/hour is preempted by South Dakota's higher state rate; (d) South Dakota's Department of Labor and Regulation (Division of Labor and Management; 123 West Missouri Avenue; Pierre) enforces minimum wage violations; (2) South Dakota Human Relations Act -- SDCL sec. 20-13-1 et seq.: South Dakota's employment discrimination law prohibits discrimination in employment based on: race; color; creed; religion; sex (including pregnancy); ancestry; disability (physical or mental); and national origin. The SDCL Human Relations Act applies to employers with 1 or more employees (essentially all employers). Significant limitations: (a) sexual orientation: South Dakota's SDCL Human Relations Act does NOT include sexual orientation as a protected class in employment (though federal Title VII, as interpreted by the Supreme Court in Bostock v. Clayton County, 590 U.S. 644 (2020), protects against employment discrimination based on sexual orientation under "sex" discrimination); (b) gender identity: similarly NOT explicitly covered by SDCL Human Relations Act (though Bostock also covers gender identity under federal Title VII); (c) age discrimination: South Dakota has no state age discrimination law -- federal ADEA (Age Discrimination in Employment Act; 29 U.S.C. sec. 621+) must be relied upon for age discrimination claims in South Dakota; (3) South Dakota Human Relations Commission: complaints under the SDCL Human Relations Act are filed with the South Dakota Division of Human Rights (DHR; 700 Governors Drive; Pierre; South Dakota Department of Labor and Regulation). The DHR investigates complaints and may attempt conciliation. If the DHR cannot resolve the complaint, the complainant may proceed to the South Dakota circuit court for civil litigation. South Dakota Human Rights complaints must be filed within 180 days of the discriminatory act; (4) Sioux Falls financial sector employment: Sioux Falls (Minnehaha County; pop. approximately 200,000) is home to major financial services employers who relocated to South Dakota in the 1980s following South Dakota's elimination of usury ceilings (the Citicorp Holdings Act of 1980): (a) Wells Fargo (credit card and financial services operations; Sioux Falls office; tens of thousands of South Dakota employees); (b) Citibank, N.A. (Sioux Falls; South Dakota banking charter since 1981; credit card and consumer banking operations); (c) First PREMIER Bank (Sioux Falls; a significant sub-prime credit card issuer; approximately 2,000 employees); (d) Sanford Health (Sioux Falls; one of the largest non-profit rural health systems in the US; approximately 5,000 employees in the Sioux Falls area); these financial sector employers create significant SDCL Human Relations Act; ADEA; and Title VII employment claims in Minnehaha County's circuit court; (5) South Dakota workers' compensation: SDCL Chapter 62-3 (Workers' Compensation Act) provides no-fault workers' compensation for work-related injuries. South Dakota WC is administered by the South Dakota Division of Labor and Management. South Dakota WC provides: medical benefits (all reasonable and necessary medical treatment for work-related injury); temporary total disability (TTD) = 2/3 of average weekly wage (max: the state average weekly wage); permanent total disability (PTD); permanent partial disability (PPD); and death benefits (for dependents of workers killed on the job). South Dakota WC does not require an employer with fewer than one employee (an "employer" in SD WC is defined as anyone employing 3 or more persons).

South Dakota tribal casino employment (tribal labor law vs. federal NLRA; sovereign immunity), South Dakota at-will employment, agricultural worker exemptions, and employment in the Black Hills tourism industry (Rapid City; Deadwood; Hill City; Custer)

South Dakota employment contexts and exceptions: (1) Tribal casino employment and tribal labor law: South Dakota's nine federally recognized tribes operate gaming enterprises on tribal trust land under the Indian Gaming Regulatory Act (IGRA; 25 U.S.C. sec. 2701+). The largest tribal gaming operations in South Dakota include: Fort Randall Casino (Pickstown; Yankton Sioux Tribe); Fort Thompson Casino (Crow Creek Sioux Tribe); Prairie Wind Casino (Oglala Lakota County; Oglala Sioux Tribe); and the Rosebud Casino (Todd County; Rosebud Sioux Tribe). Key tribal casino employment issues: (a) tribal sovereign immunity: Indian tribes are generally immune from lawsuits in state and federal courts under tribal sovereign immunity, unless the tribe has expressly waived immunity. Employment discrimination claims against tribal casino employers may be barred by sovereign immunity. The NLRB has jurisdiction over some tribal enterprises -- the National Labor Relations Board's jurisdiction over tribal gaming enterprises has been extensively litigated (San Manuel Indian Bingo & Casino v. NLRB, 475 F.3d 1306 (D.C. Cir. 2007)); (b) tribal employment preference policies: many South Dakota tribes have tribal member employment preference policies (preferring tribal members in hiring for tribal enterprises). These policies may conflict with Title VII and ADEA if applied to non-tribal-member employees; (c) workers' compensation for tribal casino employees: tribal casino employees on tribal trust land may be covered by tribal workers' compensation codes rather than South Dakota WC, depending on tribal law and any compact between the tribe and the state; (2) South Dakota at-will employment: South Dakota is an at-will employment state under SDCL sec. 60-4-4 -- either party may terminate the employment relationship without cause or notice, unless a contract exists or the termination violates public policy. South Dakota's public policy exception to at-will termination: an employee may not be terminated for (a) filing a workers' compensation claim; (b) refusing to commit an illegal act; (c) exercising a legal right. South Dakota courts have been more restrictive than many states in recognizing implied contracts (progressive discipline policies; employee handbooks) as modifying at-will status; (3) South Dakota agricultural worker exemptions: South Dakota agricultural employers (farms; ranches; feedlots) may be exempt from certain state labor requirements: (a) family farm exemption from WC (SDCL sec. 62-1-2): farmers employing only members of their family and household are exempt from WC; (b) agricultural employers with fewer than 3 regular employees may be exempt from WC; (c) federal FLSA agricultural exemptions for certain farm workers also apply in South Dakota; (4) Black Hills tourism employment: the Black Hills tourism industry (Rapid City pop. approximately 80,000; Lawrence County/Deadwood; Custer County; Pennington County) employs large numbers of seasonal and hospitality workers. Key tourism employment issues: (a) seasonal employment: hotel; restaurant; casino (Deadwood); and attraction workers may be seasonal employees with variable hours and benefits; (b) Deadwood casino employment: Deadwood's approximately 80 gaming establishments employ significant numbers of gaming workers subject to South Dakota Gaming Commission licensing and background check requirements; (c) Mount Rushmore/NPS concessionaire employment: the Mount Rushmore concession (operated by a private concessionaire company under NPS contract) employs seasonal workers who are employees of the private concessionaire, not federal employees; (5) South Dakota non-compete agreements: South Dakota courts apply a reasonableness test to non-compete agreements: (a) the agreement must protect a legitimate business interest (trade secrets; customer relationships); (b) the duration must be reasonable (typically 1-2 years); (c) the geographic scope must be reasonable (statewide or regional restrictions are assessed in the South Dakota market context). South Dakota courts have enforced non-compete agreements for financial services employers (Wells Fargo; Citibank subsidiaries; First PREMIER Bank) and for technology employers in the Sioux Falls area.

South Dakota paid leave (no state mandatory paid leave law), FMLA application in South Dakota, unemployment insurance (SDCL sec. 61-1-1 et seq.), and workplace safety enforcement (South Dakota OSHA-approved state plan for private sector)

South Dakota leave, unemployment, and workplace safety: (1) South Dakota paid leave: South Dakota does NOT have a state mandatory paid sick leave law or a state mandatory paid family and medical leave law (unlike Rhode Island; Connecticut; Massachusetts; New Jersey; New York; Delaware; and other states that have enacted comprehensive paid leave programs). South Dakota employees must rely on: (a) federal FMLA (Family and Medical Leave Act; 29 U.S.C. sec. 2601+): employers with 50 or more employees must provide 12 weeks of unpaid, job-protected leave for qualifying reasons (birth/adoption of a child; serious health condition of employee or immediate family member; military qualifying exigency); (b) voluntary employer-provided paid leave programs (which vary by employer); (c) any applicable collective bargaining agreement provisions for unionized employees. South Dakota's relative lack of paid leave mandates is consistent with its overall employer-favorable regulatory environment; (2) FMLA in South Dakota: FMLA applies to South Dakota employers with 50 or more employees. Key South Dakota FMLA employers: Sanford Health (Sioux Falls; largest South Dakota non-profit health system employer); Avera Health (Sioux Falls; Aberdeen; based in Sioux Falls; second-largest South Dakota health system; ~7,000 employees statewide); the South Dakota state government; the three South Dakota public universities (South Dakota State University/SDSU; Brookings; the University of South Dakota/USD; Vermillion; and South Dakota School of Mines and Technology/Mines; Rapid City); and the large financial sector employers (Wells Fargo; Citibank; First PREMIER Bank). South Dakota FMLA disputes are litigated in the US District Court for the District of South Dakota (federal court; with offices in Sioux Falls; Aberdeen; and Pierre; based at 400 South Phillips Avenue; Sioux Falls) or in South Dakota circuit court; (3) South Dakota unemployment insurance -- SDCL sec. 61-1-1 et seq.: South Dakota's Unemployment Insurance (UI) program (administered by the South Dakota Department of Labor and Regulation; 123 West Missouri Avenue; Pierre) provides temporary wage replacement for workers who lose their jobs through no fault of their own. South Dakota UI benefit amounts: up to 62% of average weekly wage (one of the higher percentages in the US); maximum weekly benefit: approximately $686 (varies annually). UI eligibility: (a) sufficient base period wages; (b) separation through no fault of the claimant (voluntary quit without good cause = disqualifying; termination for misconduct = disqualifying); (c) able and available for work. South Dakota seasonal employment creates significant UI issues: workers in the Black Hills tourism industry who are laid off at the end of the tourist season regularly file UI claims; (4) South Dakota OSHA: South Dakota operates an OSHA-approved State Plan for occupational safety and health in private sector workplaces (the South Dakota Division of Labor and Management administers occupational safety under a State Plan approved by federal OSHA). South Dakota's State Plan must be "at least as effective" as the federal OSHA program. Key South Dakota occupational safety issues: (a) agriculture (tractor rollover protection; grain handling; PTO hazards); (b) construction (fall protection; trench safety; scaffolding); (c) mining (MSHA separate jurisdiction for mining operations; not covered by SD OSHA State Plan); (d) healthcare (needlestick; patient handling; TB exposure); (5) South Dakota Right to Work: South Dakota is a Right to Work state (SDCL sec. 60-8-3 through sec. 60-8-8 -- the South Dakota Right to Work provisions). Under Right to Work, employees in a unionized workplace cannot be required to join the union or pay union dues as a condition of employment (even though the union must represent them in collective bargaining and grievance proceedings). South Dakota's Right to Work status is consistent with neighboring states (Iowa; Nebraska; North Dakota; Wyoming are also Right to Work states). Public sector unions (state government workers; teachers) have collective bargaining rights under separate South Dakota statutes.

State guide South Dakota

Employment Law in South Dakota: what actually drives the file, the first questions that deserve a slower answer, and what usually shifts earliest

Clearer statewide employment law guidance for South Dakota, with a tighter focus on accommodation paperwork, pay records, early leverage, and sequence.

Reviewed January 2026 2 min read Official-source grounded Ver en Espanol En Español

Key Takeaways

South Dakota minimum wage: SDCL sec. 60-11-3; $11.20/hour (January 1, 2024; indexed to CPI inflation by 2014 voter-approved ballot initiative/Initiated Measure 18); tipped employee sub-minimum = 50% of regular minimum (~$5.60/hour; tips + direct wage must reach full minimum wage); youth/training wage = $8.65/hour (~85% of regular; employees under 18; first 90 days of employment); federal $7.25 preempted by SD higher rate; enforcement by SD Dept. of Labor and Regulation (Division of Labor and Management; 123 West Missouri Avenue; Pierre). South Dakota Human Relations Act: SDCL sec. 20-13-1+; prohibited employment discrimination = race + color + creed + religion + sex (including pregnancy) + ancestry + disability (physical or mental) + national origin; applies to 1+ employee employers (essentially ALL employers); DOES NOT include sexual orientation or gender identity as explicit protected classes (federal Title VII covers both via Bostock v. Clayton County, 590 U.S. 644 (2020)); NO STATE AGE DISCRIMINATION LAW (must rely on federal ADEA; 29 U.S.C. sec. 621+). SD Division of Human Rights (DHR; 700 Governors Drive; Pierre): complaints within 180 DAYS of discriminatory act; investigation + conciliation → SD circuit court civil litigation if unresolved. Sioux Falls financial sector (major SD employers after SD eliminated usury ceilings; Citicorp Holdings Act 1980): Wells Fargo (credit card + financial services; Sioux Falls; tens of thousands SD employees) + Citibank N.A. (Sioux Falls; SD banking charter since 1981) + First PREMIER Bank (Sioux Falls; sub-prime credit card; ~2,000 employees) + Sanford Health (Sioux Falls; ~5,000 Sioux Falls area employees; largest SD nonprofit rural health system). SD WC: SDCL Chapter 62-3; medical benefits + TTD (2/3 AWW; max state AWW) + PTD + PPD + death benefits; family farm exemption from WC (SDCL sec. 62-1-2).
Tribal casino employment (9 federally recognized SD tribes; Fort Randall Casino/Yankton Sioux + Fort Thompson Casino/Crow Creek Sioux + Prairie Wind Casino/Oglala Sioux + Rosebud Casino/Rosebud Sioux + others): TRIBAL SOVEREIGN IMMUNITY = employment discrimination claims against tribal casino employers may be BARRED; NLRB jurisdiction over tribal gaming enterprises = extensively litigated (San Manuel Indian Bingo & Casino v. NLRB, 475 F.3d 1306 (D.C. Cir. 2007)); tribal employment preference policies may conflict with Title VII + ADEA if applied to non-tribal-member employees; WC for tribal casino employees = may be covered by TRIBAL WC codes rather than SD state WC depending on tribal law + any SD-tribe compact. SD at-will employment: SDCL sec. 60-4-4; at-will = either party may terminate without cause or notice (unless contract or public policy violation); public policy exception = termination for (1) WC claim filing + (2) refusing illegal act + (3) exercising legal right; SD courts more restrictive than many states in recognizing implied contract from handbooks/progressive discipline policies. Agricultural worker exemptions: family farm exemption from WC (SDCL sec. 62-1-2; only family + household member employees) + agricultural employers with fewer than 3 regular employees exempt from WC + federal FLSA agricultural exemptions apply in SD. Black Hills tourism employment: Rapid City (~80,000 pop.) + Lawrence County/Deadwood + Custer County + Pennington County; seasonal hotel + restaurant + casino (Deadwood; ~80 gaming establishments; SD Gaming Commission licensing + background check requirements) + NPS concessionaire (Mount Rushmore; private concessionaire company employees = NOT federal employees). Non-compete: SD reasonableness test (protect legitimate business interest + reasonable duration 1-2 years + reasonable geographic scope in SD market context); enforced for financial services (Wells Fargo + Citibank + First PREMIER Bank) + technology employers in Sioux Falls area.
South Dakota paid leave: NO STATE mandatory paid sick leave law + NO STATE mandatory paid family and medical leave law (unlike RI + CT + MA + NJ + NY + DE); employees rely on federal FMLA (29 U.S.C. sec. 2601+; 50+ employee employers; 12 weeks unpaid job-protected for birth/adoption + serious health condition + military qualifying exigency) + voluntary employer programs + CBA provisions; consistent with SD employer-favorable regulatory environment. FMLA in SD major employers: Sanford Health (Sioux Falls; largest SD nonprofit health employer) + Avera Health (Sioux Falls + Aberdeen; 2nd-largest SD health system; ~7,000 statewide employees) + SD state government + 3 SD public universities (SDSU/Brookings + USD/Vermillion + Mines/Rapid City) + Wells Fargo + Citibank + First PREMIER Bank; FMLA disputes in US District Court for District of South Dakota (400 South Phillips Avenue; Sioux Falls offices + Aberdeen + Pierre) or SD circuit court. SD Unemployment Insurance: SDCL sec. 61-1-1+; SD Dept. of Labor and Regulation; up to 62% of AWW (one of higher US percentages) + maximum ~$686/week (varies annually); eligibility = sufficient base period wages + no fault separation (voluntary quit without good cause = disqualifying; misconduct = disqualifying) + able/available for work; Black Hills tourism seasonal employees regularly file UI at end of tourist season. SD OSHA State Plan: SD Division of Labor and Management; approved federal OSHA State Plan for private sector; "at least as effective" as federal OSHA; key issues = agriculture (tractor rollover + grain handling + PTO) + construction (fall protection + trenching + scaffolding) + healthcare (needlestick + patient handling + TB); MINING EXCLUDED from SD OSHA State Plan (MSHA has separate jurisdiction). SD RIGHT TO WORK: SDCL sec. 60-8-3 through sec. 60-8-8; employees in unionized workplace CANNOT be required to join union or pay dues as condition of employment (union still must represent them); consistent with neighboring right-to-work states (IA + NE + ND + WY).

Key Numbers — South Dakota All 50 states →

Filing Deadline 3 years

Fault Rule Modified Comparative

Insurance System At-Fault

Key Statute SDCL § 15-2-14

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South Dakota employment law reflects the state's deep roots in agricultural, ranching, and extractive industries, alongside its evolving service economy anchored in Sioux Falls (the state's largest city with approximately 200,000 residents, and home to major financial services employers including Wells Fargo's card processing operations and Citibank's South Dakota charter) and Rapid City (the Black Hills commercial hub). South Dakota is one of the most employer-friendly states in the United States for employment law purposes: the state has no state income tax, no mandatory state minimum wage supplement above the federal floor (until recent voter-initiated ballot measures changed this), and a historically light regulatory touch on employer-employee relationships. South Dakota's minimum wage is set by state law (SDCL sec. 60-11-3) at $11.20 per hour as of January 1, 2024 (indexed to inflation by voter initiative approved in 2014).

South Dakota's employment discrimination law is the South Dakota Human Relations Act (SDCL sec. 20-13-1 et seq.), which prohibits discrimination in employment based on race; color; creed; religion; sex; ancestry; disability; and national origin. South Dakota's Human Relations Act does NOT include sexual orientation or gender identity as protected classes in its employment provisions -- South Dakota has not enacted statutory sexual orientation employment protections, making it one of the more limited state employment discrimination statutes in the US. South Dakota's unique employment profile includes a significant proportion of reservation employment (tribal enterprises; casino employment on tribal land is subject to tribal labor law, not South Dakota state labor law or federal NLRA in many cases) and seasonal tourism employment (Black Hills; Badlands; Missouri River recreation) that create unusual employment law scenarios not seen in more urbanized states.

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