A South Dakota employment contract is used by an employer to establish the rights and duties of a newly-hired employee. The document provides clarity to both parties regarding the employee’s work responsibilities, salary, schedule, and length of employment. It also contains provisions that prevent the employee from disclosing proprietary information and trade secrets to outside parties.
There is an important distinction between an “employee” and an individual who is “self-employed.” If the hired person is self-employed, they are technically an independent contractor who is not entitled to workers’ compensation, vacation days, or any other benefits afforded to employees.
Independent Contractor Agreement – Defines the working relationship between an independent contractor and their client.
Subcontractor Agreement – An independent contractor may use this agreement to reassign contractual obligations to a subcontractor.
- Labor Statutes: Title 60
- Definition of Employee: § 60-1-1
- Minimum Wage: $9.95 (§ 60-11-3 & Dept. of Labor & Regulation)
- Overtime: Federal min. – one and a half (1.5) times the employee’s standard wage (29 C.F.R § 778.107).
- Record Keeping: Employers must maintain employee work records for a period of four (4) years (§ 61-3-2).
Permitted? Yes, employment with no specific end date can be terminated for any reason (§ 60-4-4). However, employment cannot be terminated due to the following:
- Tobacco use;
- Refusal to engage in illegal behavior;
- Attempt to exercise a lawful right (e.g., file for workers’ compensation); or
- Race, color, creed, national origin, religion, sex, ancestry, or disability.