Hiring a New Employee in South Dakota: Legal Guide for Employers

Develop a clear job description that outlines the position's responsibilities, required qualifications, and expected work hours. Ensure the job posting complies with South Dakota employment laws and does not contain discriminatory language based on protected characteristics.

Create or update your employment application form to collect necessary information from candidates while ensuring compliance with South Dakota laws. The application should avoid questions about protected characteristics (race, religion, age, etc.) and should include a statement about being an at-will employer in South Dakota.

Interview qualified candidates and select the best fit for your position. Ensure all interview questions comply with South Dakota employment laws and avoid questions about protected characteristics. Document the selection process to demonstrate non-discriminatory hiring practices.

With the candidate's written permission, conduct any necessary background checks in compliance with the Fair Credit Reporting Act and South Dakota law. South Dakota does not have specific 'ban-the-box' laws, but follow federal guidelines for background checks.

Create a form for the candidate to authorize background checks. This form should clearly state what information will be checked and how it will be used in the hiring decision. It must comply with the Fair Credit Reporting Act requirements.

Create an offer letter that outlines the position, compensation, benefits, start date, and employment relationship (typically at-will in South Dakota). The letter should request the candidate's written acceptance and specify any contingencies such as background checks or drug testing.

If using a formal employment contract rather than an offer letter for at-will employment, draft a contract that clearly outlines all terms of employment. South Dakota is an at-will employment state, so specify if the contract modifies this relationship. Include details about compensation, benefits, duties, term of employment, and termination conditions.

If the employee will have access to confidential information, prepare a non-disclosure agreement. Ensure the agreement is reasonable in scope and duration to be enforceable under South Dakota law. Clearly define what constitutes confidential information.

If using a non-compete agreement, ensure it is reasonable in geographic scope, duration, and business interest to be enforceable in South Dakota. South Dakota courts generally enforce reasonable non-compete agreements, but they must protect legitimate business interests and not be overly restrictive.

Create or update your employee handbook to include company policies, procedures, and expectations. Include information about South Dakota-specific employment laws, paid time off policies, and complaint procedures. Have the employee acknowledge receipt of the handbook.

Federal law requires completion of Form I-9 to verify employment eligibility. The employee must complete Section 1 on or before their first day of work. As the employer, you must complete Section 2 within 3 business days of the employee's start date by examining acceptable documents provided by the employee. Retain the completed I-9 form for the required period.

Have the new employee complete the federal W-4 form to determine federal income tax withholding. Keep the completed form in the employee's file for your records.

South Dakota does not have state income tax, so no state withholding form is required. However, if your employee lives in a neighboring state with income tax, you may need to arrange for withholding for that state.

If offering direct deposit, have the employee complete a direct deposit authorization form with their banking information. South Dakota does not require employers to offer direct deposit, but it is a common benefit.

Have the employee provide emergency contact information to be used in case of workplace emergencies or accidents. This information should be kept confidential and updated periodically.

If offering benefits such as health insurance, retirement plans, or other programs, provide the necessary enrollment forms and information. Explain waiting periods, eligibility requirements, and enrollment deadlines.

South Dakota law requires employers to report all newly hired or rehired employees to the South Dakota New Hire Reporting Center within 20 days of hire. This can be done online through the South Dakota Department of Labor and Regulation website or by submitting a paper form.

If not already registered, register with the South Dakota Department of Labor and Regulation for unemployment insurance. All employers in South Dakota who pay wages of $1,500 or more in a calendar quarter or have one or more employees in 20 different weeks during a calendar year must register.

South Dakota law requires most employers to carry workers' compensation insurance. Contact a licensed insurance carrier to obtain coverage before the employee begins work. Some exceptions exist for certain agricultural operations and domestic servants.

Ensure all required federal and South Dakota workplace posters are displayed in a prominent location. These include posters related to minimum wage, workplace safety, equal employment opportunity, and other employment laws. Free posters can be obtained from the South Dakota Department of Labor and Regulation.

Provide orientation for the new employee covering company policies, safety procedures, and job expectations. Review the employee handbook and have them sign an acknowledgment of receipt.