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SB 26 South Dakota Senate · 2025 Regular Session

reduce employer contribution rates and increase the administrative fee rate for reemployment assistance.

This bill proposes to lower the amount employers must contribute to fund unemployment benefits while simultaneously increasing the administrative fees charged for processing reemployment assistance claims. The changes directly affect businesses in South Dakota that currently pay into the unemployment insurance system and the state agencies responsible for managing benefit distribution. By reducing employer contributions and raising administrative fees, the legislation aims to adjust the financial structure of the unemployment insurance program without altering the core eligibility criteria for workers. The bill focuses on modifying contribution rates and fee structures rather than changing the fundamental rules for receiving unemployment benefits.
Issues: ✗ Labor & EmploymentOpposes Labor & EmploymentBill reduces employer contributions to unemployment insurance, potentially weakening worker benefit funding and limiting reemployment assistance availability.85% confidence
Bill status signed all 5 stages cleared
Introduction
Feb 2025
Committee Review
Mar 2025
Senate Passage
Feb 2025
House Passage
Mar 2025
Signed into Law
Mar 2025
Introduced Feb 20, 2025 Signed Mar 31, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Enrolled · 4 edits · Mar 10, 2025
MODERATE
This bill reduces employer unemployment insurance contribution rates for the 2025-2026 tax years while simultaneously increasing the administrative fee rate. The changes adjust the experience-rating schedule to lower costs for employers while generating additional revenue to fund the program's administrative expenses.
Scope change
The bill applies to all employers eligible for experience rating under South Dakota law, with contribution rates now applicable to taxable wages paid from January 1, 2024 through December 31, 2025 (Section 1) and on or after January 1, 2026 (Section 2).
FISCAL

Employer contribution rates were reduced across all schedules (A, B, and C) for the 2024-2025 period, with Schedule A rates dropping from 9.45% to 9.39% at the highest tier and continuing lower across all reserve ratio tiers.

Employer contribution rates were further reduced for the 2026 and subsequent years, with Schedule A rates starting at 9.39% and decreasing progressively through the reserve ratio tiers down to 0.00% for the highest reserve ratios.

A new administrative fee rate was established for employers with experience rating eligibility, replacing the previous fee structure to increase revenue for program administration.

TIMELINE

The contribution rate schedule was split into two periods: one applying to wages paid from January 1, 2024 through December 31, 2025, and another applying to wages paid on or after January 1, 2026.

Floor votes · Senate Feb 19, 2025 · House Mar 6, 2025

How they voted

34–0
Passed · 1 other
Total votes 35
Feb 19, 2025
D Democratic3
3 Yea
100% Yea
R Republican32
31 Yea 1
96% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
18
Key actions
8
Committee
6
Mar 31, 2025
Signed into law
Signed by the Governor on 2025-03-31 S.J. 539
executive
Mar 11, 2025
Lower · Passed
Signed by the Speaker H.J. 524
lower
Mar 10, 2025
Lower · Passed
Signed by the President S.J. 502
lower
Mar 6, 2025
Lower · Passed
House of Representatives Do Pass , Passed, YEAS 65, NAYS 4 H.J. 485
lower
Mar 5, 2025
Lower · Passed
Committee on Appropriations Do Pass , Passed, YEAS 7, NAYS 0
lower
Mar 3, 2025
Committee
Referred to , Passed, YEAS 13, NAYS 0
lower
Feb 20, 2025
Introduced
First read in House and referred to H.J. 344
lower
Feb 19, 2025
Upper · Passed
Senate Do Pass , Passed, YEAS 34, NAYS 0 S.J. 298
upper
Feb 18, 2025
Upper · Passed
Committee on Appropriations Do Pass , Passed, YEAS 9, NAYS 0
upper
Feb 4, 2025
Committee
Referred to , Passed, S.J. 164
upper
Feb 4, 2025
Upper · Passed
Commerce and Energy Do Pass , Passed, YEAS 9, NAYS 0
upper
Jan 21, 2025
Committee
Referred to S.J. 63
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.