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Require proof of workers' compensation insurance for contractors of public improvements.

Public construction projects in South Dakota must now require contractors and all their subcontractors to carry workers' compensation insurance, with this requirement applying even to projects that receive government funding like grants or tax increment financing. The Department of Labor and Regulation and the contracting agency gain authority to verify coverage and can request payroll records and subcontractor lists to ensure compliance and prevent fraud.

Enhance penalties for the violation of right-to-work statutes and to provide a penalty therefor.

South Dakota's right-to-work laws are being strengthened with tougher penalties for union organizers who use threats or intimidation. The bill makes it a felony to solicit union membership using threats of physical injury, and a misdemeanor to use threats of property damage or job loss, while also tightening restrictions on union representatives entering work premises without permission.

Make certain federal laws applicable to public employees.

HB 1244 strengthens restrictions on state employees' political activities by prohibiting them from using their official authority to influence elections, soliciting campaign contributions at work or with state resources, and coercing other employees regarding political matters. The bill also amends the existing two-year post-employment lobbying ban to clarify it applies to top officials and their direct reports, and repeals a related provision while creating new state law that mirrors federal restrictions on public employee conduct.

Establish protections for state employees who report improper governmental conduct and crime.

This bill creates new legal protections for state employees who report crimes, misconduct, or conflicts of interest to their supervisors or appropriate authorities. State employees who make such reports in good faith will be protected from retaliation, discrimination, or adverse employment actions by their employers. The protections apply to reports made internally within state government or to law enforcement and other proper authorities.

Establish informational and membership requirements for a labor union, organization, or association and provide a penalty therefor.

South Dakota labor unions and similar organizations must now provide new members with written information about membership benefits, obligations, and how membership fees are spent and distributed to other organizations. The bill also requires these organizations to allow members to withdraw at any time and receive a prorated refund of dues within 30 days. Violations of these requirements are classified as Class 2 misdemeanors.

Address the imposition of firearm restrictions on certain employees, officers, volunteers, and other individuals.

This bill prevents counties, townships, and cities from restricting their employees, officers, and volunteers from carrying concealed firearms in government buildings, facilities, vehicles, and on government property. The restriction applies to any method of imposing such limits, including policies, written guidance, or verbal directives. The bill essentially overrides local government decisions to prohibit guns in their own workplaces.

Permit merit pay as a component of teacher compensation.

This bill allows school districts to offer merit pay to teachers on top of their regular salary, in addition to what they earn based on their education level, years of experience, and certification demand. School boards will have the authority to decide how much merit pay to award teachers. The bill establishes that teacher salary schedules must continue accounting for education credentials and experience, but now permits performance-based bonuses as an additional compensation option.