Federal & State Regulations | Employment contracts - South Dakota

...

Select All / Clear All

Summary of differences between federal and state regulations

Federal law generally does not regulate employment contracts between employers and employees with one exception: contracts that require the joining or refraining from joining of a labor union as a condition of employment. On the federal level, these contracts are governed by the National Labor Relations Act. States may have a corresponding provision and may also have additional provisions regarding employment contracts.

South Dakota law has provisions similar to federal concerning union membership. Additional provisions are also listed.

Union membership

An employer can not coerce an employee to enter into an agreement with respect to the employee’s membership or non-membership in a labor union. §60-8-3 and §60-8-5

Right to work

Any employment agreement which has the effect of interfering with the free exercise of the right to work by an employee is a violation of law. §60-8-4

Unauthorized deductions

An employer can not require an employee to enter into an agreement to pay all or a portion of the employer’s required contributions to the state unemployment compensation fund. §61-5-36

Waiver of rights

An employer can not require an employee to enter into an agreement waiving the employee’s rights to unemployment compensation benefits. §61-6-26

Continuation of service

An employee serving under an employment contract must continue in the service of his employer after the death or incapacity of the employer as far as is necessary to protect the employer’s successor’s interests from serious harm for a reasonable time. The successor must compensate the employee according to the terms of the employment contract. §60-4-3

Non-compete clause

An employee may enter into an agreement with an employer not to engage directly or indirectly in the same business as the employer for a period not exceeding two years from the date of the termination of the agreement; the employee may also agree not to solicit the employer’s existing customers within a specified geographic area for a period not to exceed two years from the termination of the contract. §53-9-11.