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reduce the duration of an individual's reemployment benefits.

This bill cuts unemployment benefits in South Dakota by half, reducing the maximum number of weeks an unemployed worker can receive regular benefits from 26 weeks to 12 weeks. The change applies to most workers, though those participating in approved job training programs under federal trade adjustment assistance may still receive extended benefits if necessary to complete their training.

prohibit certain restrictions in employment contracts for community services providers.

Starting July 1, 2026, South Dakota will make employment contracts void if they prevent community services providers who work with people with developmental disabilities from working in that field after leaving their job. The law creates an exception allowing employers to prevent former employees from directly recruiting their current clients, but only within reasonable geographic and time limits.

limit the use of taxpayer funds and resources by a public education employer to support a labor organization or affiliate and to provide a penalty therefor.

This bill prohibits public school employers from using taxpayer money or resources to support labor unions or union-related activities, including political campaigns, lobbying, union organizing, or union administration. The bill defines what counts as prohibited union support and creates penalties for violations, though the specific penalties are not included in the excerpt provided.

revise the conditions for in-service distributions from the South Dakota deferred compensation plan.

South Dakota employees who participate in the state's deferred compensation plan can now withdraw money from their accounts once they turn 59½ years old, without needing to show an emergency or leave their job. This new option allows workers to access their savings while continuing to contribute to the plan.

authorize purchasing agency verification and monitoring of workers' compensation insurance coverage obtained by public improvement contractors.

Government agencies that hire contractors for public improvement projects can now require contracts to include a provision letting the agency verify the contractor has workers' compensation insurance before work begins and monitor that coverage throughout the project. The agency can request documentation of insurance payments, lists of subcontractors, employee payroll records, and other information needed to prevent workers' compensation fraud.

provide an appropriation for a payment for state employee salaries.

This bill appropriates $20.7 million to give every state employee who was working on January 1, 2026, a one-time raise of 1.5 percent of their salary, paid out in monthly installments starting July 1, 2026. The money comes from the state's general fund, federal funds, and other state funds, and will be distributed by the Bureau of Finance and Management to all state agencies.

ensure the validity of non-compete agreements in the context of jointly owned business entities.

South Dakota now allows business owners to sign non-compete agreements that prevent them from starting or working for competing businesses after they sell their ownership stake in a company. These agreements can last up to three years and apply within the geographic area where the original business operates, and they can be included in the company's governing documents or in the sale contract itself.

require employment verification eligibility through the e-verify program and to provide a penalty therefor.

South Dakota employers with more than 50 employees must verify that newly hired workers are legally eligible to work using the federal E-Verify program within 20 days of hire and keep those records on file. The state Attorney General can investigate complaints and collect a $2,000 civil penalty for each violation if an employer knowingly hires an unauthorized worker, though employers acting in good faith using E-Verify are protected from liability.

increase civil penalties for commercial driver violations.

HB 1050 increases civil penalties that employers and commercial drivers must pay for violations related to hiring drivers with suspended licenses, violating out-of-service orders, and other commercial driver violations. The penalty increases are modest—ranging from $2 to $3 increases on individual penalties and $2 to $4 increases on employer penalties—reflecting adjustments to keep penalties current with inflation or regulatory updates.

modify provisions related to the reimbursement fee for preparation of a garnishment disclosure.

This bill increases the reimbursement fee that plaintiffs must pay to a garnishee (the person or business holding a debtor's money) for preparing a garnishment disclosure from $15 to $40. The fee increase applies whenever a garnishment case proceeds and the garnishee provides the required disclosure documents to the plaintiff.

exempt one motor vehicle of a debtor from being taken by legal process.

South Dakota law currently protects certain property from being seized to pay debts, and this bill adds one motor vehicle to that list of protected property. Debtors will now be able to keep one vehicle from being taken through legal collection processes, similar to how they can already keep essential household items, clothing, and religious property. This change helps ensure debtors retain basic transportation while satisfying their creditors through other means.