Not a Member?  Become One Today!

S.D.: Lower Unemployment Contributions for Employers

By Diane Cadrain  6/11/2014
Copyright Image Permissions

South Dakota’s low jobless rate yielded a benefit for employers this year in the form of lower unemployment contributions. House Bill (HB) 1045, signed on March 31, 2014, extends employers’ current contribution rates through Dec. 31, 2014, then reduces them for calendar year 2015 and thereafter. The reductions stem from the Department of Labor and Regulation’s prediction that the balance in the state’s unemployment trust fund, from which benefits are paid, would reach $89.3 million in 2015. But, according to the South Dakota affiliate of the National Federation of Independent Business (NFIB), a small-employer group, which supported the move, the department says that the trust fund could have an adequate balance at $78 million, the equivalent of one year of payments.

South Dakota has one of the lowest employment rates in the country, 3.7 percent compared with 6.3 nationwide.

In other employment law news, HB 1143, signed March 31, repeals a state law allowing people who are attending approved training programs to receive extended unemployment benefits as long as they are unemployed, have exhausted all rights to regular and extended benefits, and are enrolled , and making satisfactory progress in, their training program.

According to the South Dakota NFIB, 14 individuals received these benefits in 2013 there for a total payment from the department, of $45,000.

Diane Cadrain is an attorney who has been writing about employment law issues for more than 20 years.
Copyright Image Permissions


Swipe for more!