South Dakota employers must pay an "investment fee" on wages to support the unemployment compensation system, and this bill allows employers to opt out of paying this fee starting in 2026. The bill modifies the fee rate structure by replacing the previous fixed rates with a new system that ties employer fees to their reserve ratio—employers with stronger financial reserves pay lower fees (as low as 0.30%), while those with weaker reserves pay higher fees (up to 0.53%). This creates a performance-based fee system designed to encourage employers to maintain healthier unemployment reserves.
House of Representatives Do Pass Failed, YEAS 31, NAYS 36. H.J. 414
State Affairs Do Pass Passed, YEAS 7, NAYS 4.
State Affairs Scheduled for hearing H.J. 1
First read in House and referred to House State Affairs H.J. 179
Prime sponsor · Rep.
R
Prime sponsor · Sen.
R
Do Pass
State Affairs — Do Pass