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South Dakota Workers' Compensation Requirements
At a glance
The details
NO mandatory WC law (DLR official): employers may elect coverage; construction on state projects may require it. Second 'elective' state after TX.
Going without coverage ("non-subscriber")
South Dakota employers may lawfully skip WC, but injured employees can sue for negligence without the normal WC liability protections — most businesses elect some coverage anyway. Verify obligations with the official source before deciding.
If a claim happens: benefit amounts in South Dakota
Max TTD weekly benefit as of Jan 1, 2025 (IAIABC/WCRI Workers' Compensation Laws 2025 compendium, Table A.1). Annual-adjustment states have since raised 2025-2026 rates — verify before launch Medical: See state agency — benefit structure varies. Death: see state agency. Rate cycle: adjusts 07/01 each year. All states' benefit rates →
FAQ
Do I need workers' compensation in South Dakota?
South Dakota has no law requiring private employers to carry workers' compensation — one of only two such states (with Texas). Electing to go without carries significant legal risk.
What about construction businesses in South Dakota?
Construction businesses follow the elective rules. See details below for industry nuances.
What if I don't carry required coverage in South Dakota?
Penalties vary by state and can include per-employee per-day fines, stop-work orders, and personal liability for injury claims. Check the official source below for South Dakota's current enforcement posture.
Official source: SD Department of Labor & Regulation · Verified 2026-09-08 (official) · Compare all states · Construction rules · Farm rules