Employer of Record for South Dakota

Working Hours in South Dakota

South Dakota has specific employment and labor laws governing working hours, designed to protect employees’ rights and ensure fair compensation. Whether you’re hiring local employees or working with an Employer of Record (EOR), it's essential to understand the state's regulations around working hours to ensure compliance.

1. Standard Workweek and Overtime

• Standard Work Hours: A typical workweek consists of 40 hours.

• Overtime Regulations: South Dakota adheres to federal overtime laws under the Fair Labor Standards Act (FLSA), requiring employers to pay 1.5 times the regular pay rate for hours worked over 40 in a workweek.

2. Meal and Rest Breaks

• Meal Breaks: South Dakota does not have a state law requiring employers to provide meal breaks.
• Rest Breaks: There is no state requirement for rest breaks. However, if employers choose to provide short breaks (typically lasting 5 to 20 minutes), these must be paid.

Minimum Wage in South Dakota

As of January 1, 2025, the minimum wage in South Dakota is $11.50 per hour for nontipped employees. Tipped employees receive a minimum wage of $5.75 per hour, provided that their combined wages and tips equal at least the standard minimum wage.

Overtime in South Dakota

South Dakota follows federal overtime regulations as outlined in the Fair Labor Standards Act (FLSA). Non-exempt employees are entitled to overtime pay at 1.5 times their regular rate for hours worked beyond 40 in a workweek. Certain employees, such as those in executive, administrative, or professional roles, may be exempt from overtime provisions if they meet specific criteria regarding duties and salary thresholds.

Payroll taxes in South Dakota are deductions employers must take from employees’ wages and remit to the state. These taxes fund various state programs and services, including unemployment benefits and disability insurance. Examples of payroll taxes include:

 
• Reemployment Assistance Tax: This employer-paid tax funds the state's unemployment insurance program. New employers typically pay a rate between 1.0% and 1.2% on the first $15,000 of each employee's wages during their first three years of operation.

Payroll Cycle in South Dakota

South Dakota law requires employers to establish regular paydays and to pay employees at least once per calendar month. While the state does not mandate a specific payroll frequency, common practices include weekly, biweekly, or semimonthly pay periods. Employers must inform employees of the established payday and ensure timely payment of wages.

Employer Tax Contributions

Employers in South Dakota are responsible for several employment taxes, including:

• Reemployment Assistance Tax: Funds the state's unemployment insurance program. New employers pay a rate between 1.0% and 1.2% on the first $15,000 of each employee's wages during their first three years.

Employer payroll contributions are generally estimated at an additional 1.0% - 1.2% on top of the employee salary in South Dakota.

Employee Tax Contributions

Employee tax contributions are generally estimated at 7.65% of employee salary in South Dakota.

South Dakota does not mandate employers to provide specific employee benefits beyond federal requirements such as Social Security, unemployment insurance, and workers' compensation. However, many employers choose to offer additional benefits to attract and retain talent. For more details about benefit packages, visit employee benefits.

Employee Benefits For South Dakota

Competitive benefits are essential for attracting and retaining top talent in South Dakota. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our South Dakota packages include:

• Pension or 401(K)
• Vision Insurance
• Life Insurance
• Medical Insurance
• Dental Insurance
• Health Savings Plan (HSA)
• Flexible Spending Account (FSA)
       

Family and Medical Leave

Under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid, job-protected leave per year for specified family and medical reasons.

Jury Duty Leave

Employers in South Dakota are not required to pay employees for time spent responding to a jury summons or serving on a jury. However, any employee serving as a juror must retain and be entitled to the same job status, pay, and seniority as they had prior to performing jury duty.

Voting Leave

South Dakota law requires employers to provide an employee with two consecutive hours of paid leave to vote if the employee does not have two consecutive hours of off-duty time while polls are open.

Military Leave

All employers in South Dakota must comply with the Uniformed Services Employment and Reemployment Rights Act (USERRA), which protects service members' reemployment rights when returning from a period of service in the uniformed services.