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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.

prohibit COVID-19 vaccination requirements and to provide a penalty therefor.

This bill prohibits employers, schools, state agencies, and other entities from requiring people to get COVID-19 vaccinations as a condition of employment, enrollment, or receiving services or benefits. Anyone who violates this prohibition can be charged with a Class 2 misdemeanor, which is a criminal offense.

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.

prohibit certain persons from requiring genetic-based vaccinations.

This bill prohibits employers and government agencies from requiring employees to receive vaccines developed using genetic material technology (such as mRNA vaccines) as a condition of employment or treatment during public health emergencies. It also clarifies that individuals suspected of having serious communicable diseases cannot be forced to accept genetic-based vaccines as part of their treatment, though they may still be required to accept other diagnoses and treatments.

modify requirements for payment of the employer's investment in South Dakota's future fee.

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.

adopt the physician assistant licensure compact.

South Dakota is joining a multi-state compact that lets physician assistants licensed in one participating state practice in other participating states without getting separate licenses in each state. This makes it easier for physician assistants to work across state lines and helps military families relocate without losing their ability to practice, while each state still maintains the power to discipline PAs practicing within its borders.

adopt the athletic trainer licensure compact.

South Dakota is joining the Athletic Trainer Licensure Compact, which allows licensed athletic trainers from other participating states to practice in South Dakota without getting a separate South Dakota license. The bill requires athletic trainers seeking to use this compact privilege to undergo a fingerprint-based criminal background check at their own expense and establishes procedures for the state licensing board to manage these background checks.

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.

discontinue the issuance of new Class B electrician licenses.

South Dakota will stop issuing new Class B electrician licenses after June 30, 2026, though electricians already licensed at that date can keep their licenses and continue working. The change amends the definition of "Class B electrician" to specify they must have been licensed before the July 1, 2026 deadline. This effectively phases out the Class B license category while allowing current holders to practice indefinitely.

clarify provisions related to the licensure of certified social workers in private, independent practice and establish an alternative to the licensure examination.

This bill allows certified social workers to become licensed for private practice either by passing an exam or by meeting additional professional experience requirements instead. The bill clarifies eligibility rules for private practice licensure and notes that those who use the experience alternative cannot participate in the interstate Social Work Licensure Compact.

clarify authority for the Cosmetology Commission to credit work experience for educational hours for certain out-of-state licensure applicants, and to require the commission to promulgate rules therefor.

The Cosmetology Commission can now officially credit work experience from out-of-state jobs as a substitute for some of the required classroom hours when someone with an out-of-state cosmetology, nail technician, or esthetics license applies for a South Dakota license. The bill requires the Commission to write specific rules defining how much work experience qualifies and how it converts to educational hours.

require that the Department of Education provide for the compensation of a teacher employed by a school district.

This bill shifts teacher pay from individual school districts to the state Department of Education, which will now use state general appropriation money to pay teachers' salaries and benefits based on a standardized schedule set by the Board of Education Standards. School districts can no longer set teacher compensation independently but are limited to hiring only a certain number of teachers based on a state-established target ratio. The bill repeals several existing provisions related to local teacher compensation decisions and replaces them with a statewide salary system that accounts for teacher certification demand, education level, and experience.

modify requirements regarding nondomiciled commercial driver licenses.

South Dakota now allows certain temporary foreign workers and U.S. territory residents with specific employment visas (H-2A, H-2B, or E-2) to obtain nondomiciled commercial driver licenses. The Department of Motor Vehicles must verify their immigration status through federal systems, keep copies of their application documents for two years, and set their license expiration date to match their visa expiration or one year from issuance—whichever comes first.

require that any holder of a commercial driver license in this state must be proficient in the English language, and to provide a penalty therefor.

South Dakota would require that all commercial driver license holders be proficient in English, adding a new qualification to the existing requirements for getting or keeping a commercial license. The bill amends the state's commercial driver licensing law to include this English proficiency standard alongside current requirements like driver training and passing knowledge and skills tests. Violating this requirement would result in a penalty, though the bill text provided doesn't specify what that penalty would be.

define nonpublic school.

South Dakota law now defines "nonpublic school" as a privately-governed school (not run by a public school board) that teaches math and English language to school-age children. Nonpublic schools can charge tuition and limit enrollment, but they cannot receive the main state education funding that public schools get, though they may receive grants or other special state funds. Teachers at nonaccredited private schools are not required to hold state teaching certificates.