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South Dakota - Compensation & Benefit Legislation

SOUTH DAKOTA - AASHOWME

Demonstrates www.BenefitsReview.com™ site. Illustrates insurance carriers' coverages within the State.

 

SOUTH DAKOTA - ADOPTED CHILD HEALTH CARE MANDATE

OBRA 1993 (Federal) requires group health plans to honor medical and child support orders. Also, plans must treat adopted children like biological children covered by the plan, and plans are precluded from applying pre-existing condition exclusions to an adopted child where no such exclusion applies to a newborn biological child. Health plans that covered the cost of pediatric vaccines as of May 1, 1993, and fail to continue that level of coverage, will be subject to an excise tax penalty applicable to plans that fail to meet the health care continuation coverage requirements under OBRA 1993.

 

Mandatory coverage of birth of adopted children is included in state's newborn health care mandate.

 

Preventive care for children: No.

 

(South Dakota Codified Laws Ann. Sections 58-17-88, 58-18-31, 58-18-32)

 

SOUTH DAKOTA - ALCOHOLISM & DRUG ABUSE

Employer option (alcoholism treatment only).

 

Minimum yearly inpatient coverage: No statutory requirements.

 

Minimum yearly outpatient coverage: No statutory requirements.

 

Minimum lifetime coverage: No statutory requirements.

 

(South Dakota Codified Laws Ann. Sections 58-18-7.1, 58-18-7.2)

 

SOUTH DAKOTA - CAFETERIA PLAN TAX LAWS

State income tax, unemployment insurance tax on salary reduction: South Dakota has no personal income tax. Benefits specifically excluded from wages under South Dakota Unemployment Insurance law are not considered wages if they are provided as part of a cafeteria plan. However, cafeteria plan payments that are not specifically excluded must be counted as wages when computing Unemployment Insurance taxes. Employee salary reductions for the purpose of group-term life insurance are taxable.

 

SOUTH DAKOTA - CONTINUATION OF COVERAGE

Events Triggering Continuation Coverage:

 

SOUTH DAKOTA - COORDINATION OF BENEFITS

Requires use of the birthday rule if coordinating benefits. Based on 1986 National Association of Insurance Commissioner Rules model. (South Dakota Codified Laws Sections 58-18A-6)

 

SOUTH DAKOTA - COST-OF-LIVING

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian cost-of-living data and U.S. Automobile Cost Survey.

 

SOUTH DAKOTA - DRUG TESTING AND EMPLOYEE ASSISTANCE BENEFITS

Who is Covered by Statute: State government employees in safety-sensitive positions.

 

Applicant Testing: Applicant testing is allowed. Any printed public announcement or advertisement soliciting applications for employment in a safety-sensitive position in state government shall include a statement of the requirements of the drug screening program established under this chapter for applicants and employees holding such positions.

 

How Test Results are Used: State has no statutory requirements.

 

Enforcement of Statutes: State has no statutory requirements.

 

Employee Remedies: None.

 

Employer Penalties: Any person reasonable for recording, reporting, or maintaining medical information required pursuant to the provisions of this chapter who knowingly or intentionally discloses or fails to protect medical information declared to be confidential or who compels another person to disclose such medical information is guilty of a Class 2 misdemeanor.

 

Who Pays for Testing: State has no statutory requirements.

 

Employee Assistance Benefits: State has no statutory requirements.

 

Other Requirements: State has no statutory requirements.

 

(South Dakota Codified Laws Ann. Sections 23-3-64 thru 23-3-69)

 

SOUTH DAKOTA - GROUP HEALTH CODE ADDITIONS (MANDATED)

Adopted Children: Policies providing family coverage must cover adopted children from the beginning of the six month adoption bonding period. (South Dakota Codified Laws Ann. Section 58-17-30.2 - 30.3.)

 

Alcoholism Treatment: Insurers must offer policies on an expense incurred basis that cover at least 30 days for inpatient care in any six month period with a maximum of 90 days over the life of the contract. (South Dakota Codified Laws Ann. Section 58-17-30.5 - 30.7.)

 

Coverage Continuation and Conversion: Group policies must provide continuation rights of up to 18 months and subsequent conversion rights to employees terminating coverage for themselves and their dependents. Continuation rights of up to 36 months and subsequent conversion rights must be provided for the spouses and dependents of a deceased employee. Conversion rights must be provided to divorced spouses and spouses reaching eligibility for Medicare or Social Security disability benefits. Individuals receiving continuous benefits cannot be subjected to new pre-existing condition waiting periods or be refused coverage because of a change in jobs. Insurers cannot refuse to insure part of a group, and reasons for non-renewal of the whole group have been narrowed. (South Dakota Codified Laws Ann. Sections 58-17-2.2 - 10.2, 58-18-7.5, - 7.12.)

 

Genetic Information: Genetic information must not be treated as a pre-existing condition in the absence of a diagnosis of a condition related to such information. (S208, 1997) (South Dakota Codified Laws Ann. Section 58-17-84.)

 

Handicapped Dependents: Coverage for dependent children cannot be terminated while a child is incapable of employment due to mental retardation or physical handicap and chiefly dependent on the insured. (South Dakota Codified Laws Ann. Section 58-17-30.1.)

 

Maternity: Health care policies, including HMOs, which cover maternity care must provide inpatient hospital care benefits for a mother and her newborn child for a minimum of 48 hours following a vaginal birth and for a minimum of 96 hours following a Caesarean section. Inpatient hospital care of a shorter duration may be allowed for services related to maternity and newborn care if the treating physician determines that a mother and her baby meet necessary medical criteria. In these cases, covered services must include one follow up visit during the first 48 hours after discharge to verify the condition of a mother and her baby. Written descriptions of maternity provisions must be supplied to individuals covered under a health plan in the next scheduled mailing or on a yearly basis. (S192, 1996) (South Dakota Codified Laws Ann. Sections 58-17, 58-18, 58-38, 58-40, 58-41.)

 

Newborns: Policies providing family coverage must provide benefits for newborns from the moment of birth for injury or sickness including treatment of medically diagnosed congenital defects, birth abnormalities, and prematurity. (South Dakota Codified Laws Ann. Section 58-17-30.2 - 30.3.)

 

Phenylketonuria: Every policy of health insurance, group health insurance policy, service or indemnity type contract, and health maintenance contract, except for policies for specified limited benefit coverage, shall offer coverage for testing, diagnosis and treatment of phenylketonuria including dietary management, formulas, case management, intake and screening, assessment, comprehensive care planning and service referral. (South Dakota Codified Laws Ann. Sections 58-17-62, 58-18-41, 58-40-21, 58-41-98.)

 

Policies for Small Employers: A small employer is an organization which is actively engaged in business which, on average of its working days during the preceding year, employed no more than 50 and no less than two eligible employees. (S208, 1997) (South Dakota Codified Laws Ann. Section 58-18B-1.)

 

Pre-existing Conditions: Health plans must provide benefits for new employees who have previous qualifying coverage which was in effect during the previous 30 day period from the date the new employee became eligible for coverage. In such instances, exclusionary riders are prohibited, and children must not be excluded as dependents. (H1310, 1996) (South Dakota Codified Laws Ann. Section 58-18-48.) Policies must not deny, exclude, or limit benefits for a covered individual for claims incurred more than 12 months following the effective date of an individual's coverage due to pre-existing condition. Pre-existing conditions must not be defined more restrictively than ailments for which medical advice, diagnosis, care of treatment was sought, recommended, or received by an ordinarily prudent person during the 12 months immediately preceding the effective date of coverage. In addition, pregnancies that exist on the effective dates of coverage are classified as pre-existing conditions. (S207, 1997) (South Dakota Codified Laws Ann. Section 58-17-16.) Health plans must waive any time period applicable to a pre-existing condition exclusion or limitation period with respect to services for the aggregate period of time a person was previously covered by creditable coverage, excluding limited benefit plans and dread disease plans that provided benefits with respect to such services if the creditable coverage was continuous to a date not more than 63 days before application for the new coverage. (S208, 1997) (South Dakota Codified Laws Ann. Section 58-17-84.)

 

Providers: Optometrists and mental health professionals: Costs for services must be covered if the provider is licensed, the service is within the provider's scope of services, and the service is covered by the policy. (South Dakota Codified Laws Ann. Section 58-17-53 - 56.)

             

SOUTH DAKOTA - GROUP HEALTH FOR SMALL EMPLOYERS

For insurance plans offered to small employers:

 

SOUTH DAKOTA - GROUP LIFE CODE ADDITIONS

Employer required to pay part of premium: Yes.

 

Percent of employees who must elect coverage (if employees pay part of premium): 75%.

 

Percent of employees who must be covered if employer pays all of premium: 100%.

 

Minimum number of employees in group plan: State has no statutory requirements.

 

Employer prohibited as beneficiary: Yes, unless employer is a non-profit charitable organization and employee provides notarized statement as a volunteer.

 

Grace period (days): 31.

 

Mandatory conversion: Yes.

 

Other provisions: None.

 

(South Dakota Codified Laws Ann. Sections 58-16-2, 58-16-6, 58-16-36, 58-16-40)

 

SOUTH DAKOTA - HOLIDAYS

January 1, Washington's Birthday (or 3rd Monday in February), Memorial Day (or last Monday in May), July 4, Labor Day (or 1st Monday in September), Veterans Day, and December 25 are state holidays in all 50 states and in the District of Columbia. Other holidays under State law include: Martin Luther King's birthday (or 3rd Monday in January), Columbus Day is not a holiday under state law but 2nd Monday in October is celebrated as Native Americans' Day, Thanksgiving, Sunday. Other: If January 1, July 4, November 11, or December 25 falls on Sunday, following Monday is a holiday. (South Dakota Codified Laws Sections 1-5-1, 1-5-1.2, 1-5-8, 1-5-9)

 

SOUTH DAKOTA - IMMIGRATION (PREVAILING WAGE POLICY)

See U.S. Federal General Administrative Letter 1-2000

 

SOUTH DAKOTA - JURY DUTY & WITNESS TIME OFF

Employer Restriction For Discharging Employee For Taking Leave For Jury Service: Yes.

 

Remedies and Penalties: Violator is guilty of a Class 2 misdemeanor.

 

Other Requirements: Paid jury service is at the discretion of the employer. (South Dakota Codified Laws Sections 16-13-41.1, 16-13-41.2)

 

Employer Restriction For Discharging Employee For Taking Leave to be a Witness: State reports no statutory requirements.

 

Remedies and Penalties: State reports no statutory requirements.

 

Other Requirements: State reports no statutory requirements.

 

SOUTH DAKOTA - LEAVES OF ABSENCE

State reports no statutory requirements.

 

See U.S. Federal Family and Medical Leave Act

 

SOUTH DAKOTA - LONG TERM DISABILITY CODE ADDITIONS

State does not require employer to provide long term disability benefits; although many employers do in order to remain competitive in hiring/retention of employees.

 

See LEAVES OF ABSENCE (above), WORKERS' COMPENSATION (below) and U.S. Federal Americans With Disabilities Act

 

SOUTH DAKOTA - MANDATED PROVIDERS

Optometrists, chiropractors, dentists, psychologists, podiatrists, and social workers. Mandatory coverage for osteopaths, nurse anesthetists, and mental health professionals. (South Dakota Codified Laws Ann. Sections 58-17-53, 58-17-54, 58-17-56)

 

SOUTH DAKOTA - MENTAL HEALTH CARE

Biologically-based mental illness must be covered on the same terms as physical illness. (S.D. Cod. Laws Ann. Section 58-18-80)

 

SOUTH DAKOTA - MINIMUM WAGE

Refer to the Federal minimum wage: $5.15 per hour (effective September 1, 1997).

 

Exemptions: Certain domestics (baby-sitters) and outside sales. Apprentices and handicapped workers in special environments may be exempt by permit. (South Dakota Codified Laws Sections 60-11-3, 60-11-5)

 

See U.S. Minimum Wage

 

SOUTH DAKOTA - NEW HIRE REPORTING

Who is required to report: All employers.

 

Who must be reported: All new employees and rehires.

 

Exempt from reporting: No exemptions.

 

Form(s) to file: W-4 form or equivalent.

 

Filing deadline: Within 20 days of hire.

 

Employer information to be included: Name, address, and EIN.

 

Employee information to be included: Name, address, and SSN.

 

Penalty for failure to report: N/A.

 

(South Dakota Codified Laws Ann. Section 25-7a-3.3)

 

SOUTH DAKOTA - NEWBORN CARE MANDATE

Mandated coverage.

 

Preventive care for children: No. (South Dakota Codified Laws Ann. Sections 58-17-88, 58-18-31, 58-18-32)

 

SOUTH DAKOTA - OVERTIME COMPENSATION REQUIREMENTS

State reports no statutory requirements.

 

SOUTH DAKOTA - PARENTAL LEAVE

See U.S. Federal Family and Medical Leave Act

 

SOUTH DAKOTA - PRE-EXISTING CONDITIONS

State reports no statutory requirements.

 

See U.S. Federal Health Insurance Portability & Accountability Act

 

SOUTH DAKOTA - PROTECTED CLASSIFICATIONS

Age: Yes, age 40 and over. Statute specifically mentions state employment only.

Race:   Yes.

Color: Yes.

National Origin:  Yes.

Ancestry: Yes.

Religion:  Yes.

Sex:  Yes.

Pregnancy: Yes.

Sexual Harassment:  Yes (by executive order).

 

(S.D. Codified Laws Sections 3-6A-15, 20-13-1, 20-13-10; S.D. Ex. Or. 90-7.)

 

SOUTH DAKOTA - SALARY SURVEY

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian wages & salaries (covering 3,000 positions).

 

SOUTH DAKOTA - SHORT TERM DISABILITY CODE ADDITIONS

State does not require employer or employee participation in short term disability plans.

 

SOUTH DAKOTA - TERMINATION & SEVERANCE PAY

Date pay is due if employee is discharged: Next regular payday or as soon thereafter as employee returns any property of the employer in the employee's possession.

 

Date due if employee resigns: Payday.

 

Wages: Yes. (Wages or other compensation.)

 

Vacation Pay: No.

 

Holiday: No.

 

Sick leave: No.

 

Severance: No.

 

(South Dakota Codified Laws Ann. Sections 60-11-10, 60-11-11)

 

SOUTH DAKOTA - UNEMPLOYMENT TAX

Employer Contributions:

 

 

Voluntary Contribution Provision: Yes.

 

(South Dakota Codified Laws Ann. 61-3-2, 61-5-18.13, 61-5-20.2, 61-5-24, 61-5-24.1.)

 

SOUTH DAKOTA - VACATION PAY

State reports no statutory requirements.

 

SOUTH DAKOTA - VOTING TIME OFF

2 hours, if employee does not have 2 consecutive hours away from work while polls are open. (South Dakota Codified Laws Sections 12-3-5, 12-26-13.)

 

SOUTH DAKOTA - WORKERS' COMPENSATION

Private Employers: Mandatory as to all employments. Elective as to employer performing labor incidental to job.

 

Public Employers: Mandatory coverage to all public employments, except elected or appointed officials. Firefighters covered. Sub-division of state may elect to cover elected and appointed officials. Students in vocational work program covered as employees of employer.

 

Exceptions: Farm labor; domestic servants if employed more than 20 hours is any week and more than 6 weeks in any 13-week period; and work-fare participants.

 

Special Coverage Provisions: Voluntary as to farm labor and domestic service. Mandatory as to operators of farm machinery, e.g. threshers, combines, shellers, corn huskers.

 

(U.S. Chamber of Commerce, 1994 Analysis of Workers' Compensation Laws.)