South Dakota maintains an employer-flexible framework shaped by right-to-work protections and relatively few state mandates. State laws like paid voting leave and limits on non-compete agreements are balanced by repeated reliance on various federal baselines, such as overtime pay, work breaks, and workplace health and safety.
When it comes to talent and workforce management, South Dakota-based employers need to comply with the following state employment laws:
The below information was last updated November 4, 2025. It is not intended as legal advice. Also, unless otherwise noted below, the following laws predominantly apply to the private sector.
A subset of employment law, labor law focuses on the relationships between employers, employees, and labor unions, particularly in the context of collective bargaining and workplace rights.
Central to U.S. labor law is the National Labor Relations Act (NLRA), which protects employees’ rights to organize, join unions, and negotiate working conditions while restricting unfair labor practices. Still, states can enact additional laws, such as Right-to-Work statutes, that influence union membership and dues requirements.
Right-to-work states prohibit employers from requiring union membership or dues as a condition of employment (a.k.a. union security agreements).
South Dakota is one of 26 states that currently have right-to-work laws.
Employment law governs the individual rights of employees and their professional relationship with their employers, such as working hours, fair wages, anti-discrimination protections, and workplace safety.
| South Dakota Minimum Wage |
The state of South Dakota uses its own minimum wage rate of $11.50, including a tipped minimum wage rate of $5.75 for employees who earn tips with their base pay. |
| South Dakota Overtime Pay Laws |
South Dakota doesn't currently have any overtime pay laws or regulations. However, South Dakota-based employers must still comply with the Fair Labor Standards Act's (FLSA) requirement that nonexempt employees receive 1.5 times their normal rate of pay when working over 40 hours a week. |
| South Dakota Pay Equity Law |
Under S.D. Codified Laws § 60-12-15 and § 20-13-10, no employer in South Dakota can discriminate between employees on the basis of sex, by paying wages to any employee in any occupation in this state at a rate less than the rate at which the employer pays any employee of the opposite sex for comparable work on jobs which have comparable requirements relating to skill, effort, and responsibility, but not to physical strength. It’s an unfair or discriminatory practice for any person, because of race, color, creed, religion, sex, ancestry, disability, or national origin, to fail or refuse to hire, to discharge an employee, or to accord adverse or unequal treatment to any person or employee with respect to application, hiring, training, apprenticeship, tenure, promotion, upgrading, compensation, layoff, or any term or condition of employment. |
| South Dakota Pay Transparency Law | South Dakota currently has no pay transparency laws or regulations |
| South Dakota Final Paycheck Law |
In South Dakota, employees who voluntarily resign, or are involuntarily terminated, from a job must receive their final paycheck by the next regular payday or as soon thereafter as the employee returns all of the employer’s property that the employee possesses. |
| South Dakota PTO Payout Laws |
South Dakota currently has no PTO payout laws or regulations, nor does it have regulations regarding the use of "use-it-or-lose-it" policies. |
| South Dakota Paid Sick Leave (PSL) |
South Dakota currently has no paid sick leave laws or regulations. |
| South Dakota Paid Family and Medical Leave (PFML) |
South Dakota currently has no PFML laws or regulations. However, employers with 50 or more employees must still comply with the federal Family and Medical Leave Act (FMLA), which provides eligible employees up to 12 weeks of unpaid leave every 12 months for various reasons. |
| South Dakota Maternity Leave | South Dakota doesn't have a maternity leave law, as this type of leave is an employer-provided benefit. Since the state also doesn’t have a mandated PFML program, employees must instead use FMLA leave or another type of employer-provided leave. |
| South Dakota Voting Leave Law |
S.D. Codified Law § 12-3-5 requires that employers grant employees two consecutive hours of paid leave if they do not have two consecutive hours outside their regular shift to vote during polling hours to participate in an election within the state. The employer may specify the hours during which such employee may take leave. The employer may not penalize or reduce the workers wages for the leave. |
All states must comply with federal health and safety standards overseen by the Occupational Safety and Health Administration (OSHA).
While some states adopt additional health and safety regulations, South Dakota is an "OSHA plan" state, meaning it defers to OSHA's requirements when addressing health and safety matters, such as having an emergency action plan or providing medical and first aid supplies.
South Dakota currently has no work break laws or regulations.
As described by the South Dakota Human Rights Act, employers in South Dakota are prohibited from discriminating against employees based on:
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South Dakota also requires employers to comply with specific anti-harassment mandates, also outlined in the state’s Human Rights Act. Employers must, for example, immediately investigate the allegations to find out what happened and take appropriate action.
The state doesn't, however, require employees to complete any harassment or discrimination training courses.
| South Dakota Non-Compete Agreement Laws |
South Dakota is one of several states that limit the use of non-compete agreements. Under S.D. Codified Laws § 53-9-11, agreements are subject to specific requirements to be enforceable, though non-compete agreements for certain healthcare professionals are not allowed if signed after July 1, 2023. |
| South Dakota Retirement Plan Laws |
South Dakota currently has no mandatory retirement plan laws or regulations. |
This information is provided as a courtesy and may be updated at any time. It is not intended as legal guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified employment or labor attorney or advisor.
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