South Dakota Employment Laws for Employers
Reviewed Sep 27, 2026 9 of 13 rules verified against official sources How we verify
Not a substitute for the advice of an attorney. General information; laws vary by state. Terms of use
Final pay and unused vacation
Final paycheck
If you fire someone, when is the last paycheck due?Next regular paydayVerified Sep 24, 2026 · 2 official sources
When the employer separates an employee, unpaid wages are due by the next regular payday for those hours, or as soon afterwards as the employee returns all employer property in their possession. (S.D. Codified Laws § 60-11-10)
“Whenever an employer separates an employee from the payroll, the unpaid wages or compensation of such employee are due and payable not later than the next regular stated pay day for which those hours would have normally been paid or as soon thereafter as the employee returns to the employer all property of the employer in the employee's possession.”
sdlegislature.gov · dlr.sd.gov
Put it in writing with the termination letter template for South Dakota.
If an employee quits, when is the last paycheck due?Next regular paydayVerified Sep 24, 2026 · 2 official sources
When an employee without a written fixed-term contract quits, earned wages are due by the next regular payday for those hours, or as soon afterwards as the employee returns all employer property in their possession. (S.D. Codified Laws § 60-11-11)
“Whenever an employee not having a written contract for a definite period quits or resigns that employment, the wages or compensation earned are due and payable not later than the next regular stated pay day for which those hours would have normally been paid or as soon thereafter as the employee returns to the employer all property of the employer in the employee's possession.”
“Whether an employee quits or is fired, the law requires that all wages and compensation be paid not later than the next regular stated pay day for which those hours would normally be paid or as soon thereafter as the employee returns any property in their possession which belongs to the employer.”
Pending verification. Not verified for South Dakota yet, so no answer is shown. Each link opens the official source to check.
Wages, paydays and breaks
Minimum wage
What is the minimum wage?$11.85 per hourVerified Sep 27, 2026 · 2 official sources
South Dakota minimum wage for non-tipped employees is $11.85 per hour (effective Jan. 1, 2026). (U.S. DOL WHD, State Minimum Wage Laws (South Dakota))
“South Dakota Basic Minimum Rate (per hour): $11.85”
“The minimum wage for non-tipped employees in South Dakota is $11.85/hour. (Effective Jan. 1, 2026.)”
Paydays
How often do you have to pay?MonthlyVerified Sep 27, 2026 · 2 official sources
South Dakota employers must pay all wages due at least once each calendar month or on regular agreed paydays designated in advance. (U.S. DOL WHD, State Payday Requirements)
“South Dakota X”
“Every employer shall pay all wages due to employees at least once each calendar month unless otherwise provided by law, or on regular agreed pay days designated in advance by the employer, in lawful money of the United States.”
Meal breaks
Do adult employees get a meal break?No state ruleVerified Sep 27, 2026 · 2 official sources
No state meal break requirement for adult employees in private employment. (U.S. DOL WHD, Meal Period Requirements Under State Law for Adult Employees in Private Sector)
“Table of Meal Period Requirements Under State Law For Adult Employees in Private Sector”
“South Dakota does not have a law requiring an employer to provide rest breaks and meal periods.”
Rest breaks
Do adult employees get paid rest breaks?No state ruleVerified Sep 27, 2026 · 2 official sources
No state rest break requirement for adult employees in private employment. (U.S. DOL WHD, Minimum Paid Rest Period Requirements Under State Law for Adult Employees in Private Sector)
“1 States not listed do not require paid rest periods.”
Same official text as quoted above (see the quote; South Dakota Department of Labor and Regulation, Work Breaks · dlr.sd.gov).
Paid sick leave
Pending verification:
Ending employment
At-will employment
Yes. South Dakota follows at-will employment, with these exceptions (U.S. District Court, D.S.D., No. 5:06-cv-05056 (Apr. 17, 2008), describing Peterson, 443 N.W.2d at 655, and Breen v. Dakota Gear & Joint Co., 443 N.W.2d 221, 224 (S.D. 1988)):
- Public policy: Recognized (U.S. District Court, D.S.D., No. 5:06-cv-05056 (Apr. 17, 2008), quoting Johnson v. Kreiser's, Inc., 433 N.W.2d 225, 227 (S.D. 1988))
- Implied contract: Recognized, limited (U.S. District Court, D.S.D., No. 5:06-cv-05056 (Apr. 17, 2008), quoting Bass v. Happy Rest, Inc., 507 N.W.2d 317, 321 (S.D. 1993))
- Good faith and fair dealing: Not recognized (U.S. District Court, D.S.D., No. 5:06-cv-05056 (Apr. 17, 2008), describing Peterson, 443 N.W.2d at 655, and Breen v. Dakota Gear & Joint Co., 443 N.W.2d 221, 224 (S.D. 1988))
Public policy exception: recognized?RecognizedVerified Sep 24, 2026 · 2 official sources
South Dakota, where employment is at will by statute, recognizes a narrow public policy exception: an employee fired in retaliation for refusing to commit a criminal or unlawful act has a wrongful discharge claim; the South Dakota labor department also lists firing for exercising a lawful right such as filing a workers' compensation claim. (U.S. District Court, D.S.D., No. 5:06-cv-05056 (Apr. 17, 2008), quoting Johnson v. Kreiser's, Inc., 433 N.W.2d 225, 227 (S.D. 1988); South Dakota Department of Labor & Regulation, Termination of Employment)
“An employee has a cause of action for wrongful discharge when the employer discharges him in retaliation for his refusal to commit a criminal or unlawful act.”
“The employer discharges an employee in retaliation for refusal to commit a criminal or unlawful act.”
Implied contract exception: recognized?Recognized, limitedVerified Sep 24, 2026 · 2 official sources
A contract can override at-will status in South Dakota, including an implied for-cause-only contract, but only where the employee handbook contains a detailed list of exclusive grounds for discharge and a mandatory specific procedure the employer agrees to follow. (U.S. District Court, D.S.D., No. 5:06-cv-05056 (Apr. 17, 2008), quoting Bass v. Happy Rest, Inc., 507 N.W.2d 317, 321 (S.D. 1993); South Dakota Department of Labor & Regulation, Termination of Employment)
“Employees may be terminated at-will in South Dakota, except for (1) terminations that contravene public policy, (2) employees with express ‘for cause only’ agreements or implied ‘for cause only’ cases where an employee handbook contains a detailed list of exclusive grounds for discharge and a mandatory specific procedure the employer agrees to follow, or (3) an employee who accepted employment after being promised future promotion to a certain position.”
“Employment relationships in South Dakota may be 'terminated at will,' which means an employer does not need a specific reason to fire an employee. This is the same concept as an employee not needing a specific reason to quit a job. Generally, the only exceptions to this rule are when: A contract for employment exists.”
Good faith and fair dealing exception: recognized?Not recognizedVerified Sep 24, 2026 · 2 official pages from the same agency
South Dakota courts have refused to impose an implied covenant of good faith and fair dealing on employment contracts in a way that overrides the at-will statute. (U.S. District Court, D.S.D., No. 5:06-cv-05056 (Apr. 17, 2008), describing Peterson, 443 N.W.2d at 655, and Breen v. Dakota Gear & Joint Co., 443 N.W.2d 221, 224 (S.D. 1988); Koch v. Tracy, No. 4:15-cv-04102 (D.S.D. July 12, 2016), citing Farm Credit Servs. of Am. v. Dougan, 704 N.W.2d 24, 29 (S.D. 2005) and Breen v. Dakota Gear & Joint Co., 433 N.W.2d 221, 224 (S.D. 1988))
“(refusing to impose an implied covenant of good faith and fair dealing upon employment contracts and enforcing the at-will statutory provision)”
“And a claim for a breach of the covenant of good faith fails when a contracting party merely avails itself of a right provided for in the contract.”
Pending verification:
South Dakota and its neighbors
| State | Final pay after firing | Final pay after quitting | Minimum wage | Paid sick leave |
|---|---|---|---|---|
| South Dakota | Next regular payday | Next regular payday | $11.85 per hour | Pending verification. Official source (dlr.sd.gov). |
| North Dakota | Next regular payday | Next regular payday | $7.25 per hour | Pending verification. Official source (nd.gov). |
| Minnesota | 24 hours after request | First regular payday; if it is less than 5 calendar days away, the second payday, but no later than 20 calendar days | $11.41 per hour | Yes, statewide |
| Iowa | Next regular payday | Next regular payday | $7.25 per hour | No statewide law |
| Nebraska | Pending verification. Official source (nebraskalegislature.gov). | Pending verification. Official source (nebraskalegislature.gov). | $15.00 per hour | Pending verification. Official source (nebraskalegislature.gov). |
| Wyoming | Next regular payday | Next regular payday | $7.25 per hour (federal) | Pending verification. Official source (dws.wyo.gov). |
| Montana | Immediately (see rule) | Next payday or 15 days, whichever is sooner | $10.85 per hour | Pending verification. Official source (erd.dli.mt.gov). |
Verified rules only; open a state for its sources.
What an employee costs in South Dakota
Every employer pays Social Security 6.2% (Publication 15), Medicare 1.45% (Topic 751) and FUTA (Topic 759). South Dakota adds its unemployment insurance tax:
| South Dakota payroll tax, 2026 | Amount |
|---|---|
| Taxable wage base per employee | $15,000 |
| Rates for experience-rated employers | 0.00% to 8.52% |
| New-employer rate | 1.20% |
| FUTA credit reduction | None for 2025 or 2026 |
| Estimated employer taxes on a $40,000 salary | $3,282 (8.2%) |
Of the $3,282, $180 is South Dakota unemployment insurance tax (1.20% on the first $15,000 of wages) and $3,102 is federal tax.
The estimate counts FUTA at 0.6% of the first $7,000 ($42 per employee), which assumes the full FUTA credit (Topic 759).
Estimate for a new employer and a full year; check with your payroll provider. Sources: U.S. DOL, State UI Laws, July 2026, page 5; U.S. DOL, FUTA credit reductions.
Federal wage enforcement in South Dakota
In FY2021 to FY2025, the federal Wage and Hour Division concluded 182 cases in South Dakota (n = 182), 155 with violations, finding $698,066 in back wages owed to 1,031 employees and assessing $521,315 in civil money penalties (DOL enforcement data). Overtime back wages were part of 32.9% of the violation cases. OSHA opened 1,357 inspections in the same years (OSHA data). Enforcement data is not a violation rate: it shows where federal investigators looked. Wage violations by industry.
South Dakota has no OSHA-approved State Plan for private workplaces, so federal OSHA enforces workplace safety for private employers in South Dakota (OSHA: State Plans).
Changes coming in 2027
- Minimum wage, from Jan 1, 2027: the new amount is not announced yet (dlr.sd.gov).
Changelog
- Sep 24, 2026: first verified, 9 rules.
Questions about South Dakota employment laws
What is the minimum wage in South Dakota?
South Dakota minimum wage for non-tipped employees is $11.85 per hour (effective Jan. 1, 2026). (U.S. DOL WHD, State Minimum Wage Laws (South Dakota))
Is South Dakota an at-will state?
Yes. South Dakota follows at-will employment, with exceptions. Of the 3 common exceptions, we have verified 3, and 2 are recognized in South Dakota (U.S. District Court, D.S.D., No. 5:06-cv-05056 (Apr. 17, 2008), describing Peterson, 443 N.W.2d at 655, and Breen v. Dakota Gear & Joint Co., 443 N.W.2d 221, 224 (S.D. 1988)).
When is the final paycheck due after firing someone in South Dakota?
When the employer separates an employee, unpaid wages are due by the next regular payday for those hours, or as soon afterwards as the employee returns all employer property in their possession. (S.D. Codified Laws § 60-11-10)
Sources (13)
- U.S. DOL WHD, State Minimum Wage Laws (South Dakota)
- South Dakota Department of Labor and Regulation, Minimum Wage
- U.S. DOL WHD, State Payday Requirements
- SDCL 60-11-9
- U.S. DOL WHD, Meal Period Requirements Under State Law for Adult Employees in Private Sector
- South Dakota Department of Labor and Regulation, Work Breaks
- U.S. DOL WHD, Minimum Paid Rest Period Requirements Under State Law for Adult Employees in Private Sector
- S.D. Codified Laws § 60-11-10
- South Dakota Department of Labor and Regulation, Termination
- S.D. Codified Laws § 60-11-11
- U.S. District Court, D.S.D., No. 5:06-cv-05056 (Apr. 17, 2008), describing Peterson, 443 N.W.2d at 655, and Breen v. Dakota Gear & Joint Co., 443 N.W.2d 221, 224 (S.D. 1988)
- Koch v. Tracy, No. 4:15-cv-04102 (D.S.D. July 12, 2016), citing Farm Credit Servs. of Am. v. Dougan, 704 N.W.2d 24, 29 (S.D. 2005) and Breen v. Dakota Gear & Joint Co., 433 N.W.2d 221, 224 (S.D. 1988)
- U.S. Department of Labor: State labor offices
Checked Sep 27, 2026 · How we verify every rule · Report an error
General information, not legal advice. Not a substitute for the advice of an attorney. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Report an error