Workers compensation law, rules and policy information for South Dakota



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State: South Dakota

Updated: 03-24-2018

Authority/State Rating Bureau: NCCI

National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362
800-622-4123

Compulsory: Yes

Private Insurance: Allowed

Self-Insurance: Allowed

State Fund: No State Fund

Assigned Risk: Administered by NCCI Holdings

Assigned Risk Contact Information: NCCI Holdings – contact at:

NCCI

National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362
800-622-4123

Numerical Exceptions: None

Individual Waivers Allowed: Yes – Limited

Small Deductible Program Details:
Allowed: Yes – However it is optional that insurance carriers make available
Deductible Range: $500 – $2,500
Type: Medical and Indemnity
Effect on Experience Rating: Unknown
Available In: Voluntary and Residual Markets
For More Information About How Deductible Programs Work

Sole Proprietor: Excluded from coverage/may elect to be included – If included sole proprietor payroll will be set at $33,200 for rating purposes as of 7-1-11, $33,600 as of 7-1-2012, $34,700 as of 7-1-2013. $35,900 as of 7-1-2014. $36,700 as of 7-1-2015. $38,100 as of 7-1-2016. $39,600 as of 7-1-2017.

Partners: Excluded from coverage/may elect to be included – If included partner payroll will be set at $33,200 for rating purposes as of 7-1-11, $33,600 as of 7-1-2012, $34,700 as of 7-1-2014. $35,900 as of 7-1-2014. $36,700 as of 7-1-2015. $38,100 as of 7-1-2016. $39,600 as of 7-1-2017.

Corporate Officers: Included in coverage/may elect to be exempt – If included the coporate officer rating payroll is banded between a minimum of $33,800 and a maximum of $135,200 as of 7-1-11, $33,800 / $140,400 as of 7-1-2013. $36,400 / $145,600 as of 7-1-2014. $36,400 / $145,600 as of 7-1-2015. $750 min / $2,900 max per week as of 7-1-2016. $750 / $3,000 as of 7-1-2017.

LLC Members: Included in coverage/may elect to be exempt – LLC Members are treated as corporate officers.

Election or Rejection of Coverage Form: These forms are not readily available on the South Dakota workers compensation website. Contact the Division of Labor and Management for more information regarding forms used or required for exclusion and inclusion for this state.

Notes About Forms: Be sure to check with your insurance company for additional forms they may use for South Dakota inclusion and exclusion.


Contractors: NA

Special Notes: The South Dakota Worker’s Compensation Law covers all employers with only limited exceptions. Exceptions are:

  • Domestic servants (unless working for an employer more than 20 hours in any calendar week and for more than six weeks in any 13-week period)
  • Farm or agricultural labor
  • One whose employment is not in the usual course of trade, business, occupation or profession of the employer (independent contractors, including real estate agents and owner-operators of trucks certified as independent contractors by the Department of Labor)
  • Certain elected officials of the state or any subdivision of government Workfare participants

Experience Rating Eligibility: South Dakota employers will receive an experience modification rate or EMR once they meet one of these triggers:

  • $7,500 in policy premium is generated during the last year or last two years.
  • $3,750 is the average policy premium generated for more than two years.

South Dakota Workers Compensation Subrogation:  South Dakota statutes 62-4-38,39 and 40 all deal with subrogation. These individual sections address subrogation of workers compensation for this state. Section 38 is known as; Right of action when third person is liable. Section 39 is known as; Compensation paid by employer–Reimbursement from damages recovered from third party. Section 40 is known as; Recovery by employer from third party–Excess held for employee. We’ve provided the below links for your use as direct access to each of these sections.

South Dakota Statute Of Subrogation 62-4-38

South Dakota Statute Of Subrogation 62-4-39

South Dakota Statute Of Subrogation 62-4-40

 
Treatment of South Dakota Workers Working In Other States; Other States Workers Working In South Dakota, Extraterritorial, Reciprocity and Non-Compliance: If South Dakota workers are working temporarily in another state, then workers compensation coverage for that worker is governed by the extraterritorial provisions found in South Dakota statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. It’s reciprocity that governs coverage for a worker from another state who is working temporarily in South Dakota. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. Be cautious, out of state coverage is not obviously provided. We’ve provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic!

  • Extraterritorial:
    • Provisions: Yes
    • Duration: Not Specified
  • Reciprocity:
    • Allowed: Yes
  • Specific Statute or Reference: South Dakota Statutes: 62-1-1; 63-3-14; 58-20-5
  • For More Information Contact: South Dakota Division of Labor and Management – See Below




Regulated By:

Division of Labor and Management
Kneip Building
700 Governors Drive
Pierre, SD 57501-2291
Phone: (605) 773-3681
Fax: (605) 773-4211
http://dlr.sd.gov/default.aspx

Division of Insurance
Department of Commerce
445 E Capital Dr
Pierre, SD 57501
Phone: (605) 773-3563
Fax: (605) 773-5369
http://dlr.sd.gov/insurance/default.aspx

Workers compensation statute can be found here:

verification of workers compensation coverage South Dakota Workers Compensation Statutes

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Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.
 

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WORKERS COMPENSATION CONSULTANT
Voice: (573) 489-8323
Fax: (573) 447-4998
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