The 2026 legislative session in Pierre wrapped up with some clear takeaways for anyone managing people in South Dakota. Here's what happened:

State Employee Compensation:

The headline news is the $7.5 billion budget for FY 2027, which included a modest

1.4% bump for state employees. This was part of what legislators called their "big three"

priorities along with K-12 education and Medicaid providers. It's not a huge increase, but

it's something after tight budget years.

Employment Law Landscape

No major shakeups in employment law this session. The existing framework stays in place:

 The South Dakota Labor Relations Act continues governing labor-management relations

 The Human Relations Act still applies to all employers (even those with just one employee)

 Anti-discrimination protections remain unchanged, with the Division of Human Rights still handling complaints

 Workplace safety continues to follow federal OSHA standards since South Dakota doesn't have its own state plan

What Didn't Happen

Notably, absent were any new laws on:

 Minimum wage changes

 Overtime regulations

 Paid leave requirements

 Employee classification rules

Legislators seemed focused elsewhere this year—on things like property tax relief, data center regulations, and that controversial silencer bill that made South Dakota the first state to declassify them as controlled weapons.

Bottom Line

If you're in HR in South Dakota, not much has changed in your day-to-day legal compliance requirements. The state employee compensation increase is the most direct impact, but for private sector employers, it's largely business as usual.

For the nitty-gritty details on compliance, the Department of Labor and Regulation remains your best resource.