Restaurant Workers' Comp in South Dakota
What South Dakota requires of restaurants and bars for workers' compensation — when it kicks in, who's exempt, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
South Dakota is unusual: no statute compels employers, including restaurants, to carry workers' compensation, so coverage is technically elective. However, an uninsured restaurant forfeits the exclusive-remedy immunity that shields covered employers—an injured worker may sue in court or elect doubled workers'-compensation benefits, making coverage effectively essential despite not being legally mandated.
- Required?
- Not for private employers
- Kicks in at
- No statutory trigger. Coverage is elective/voluntary for all employers regardless of headcount; there is no employee count that legally mandates a policy.
- Restaurant rate
- NCCI 9082 (Restaurant NOC) with 9083 companion codes, roughly $0.90–$1.50 per $100 of payroll; low-to-mid hazard tier and among the more affordable regionally. Approximate, industry tier.
- Market
- Competitive private market with no state fund; South Dakota is an NCCI-rated state and permits qualified employers to self-insure.
Is workers’ comp required for a restaurant in South Dakota?
South Dakota does not require private employers to carry workers' compensation, though opting out carries real legal risk. Because the system is elective, owners (sole proprietors, partners, LLC members, officers) are not "employees" and cover themselves only by choice. Statutorily non-covered workers include domestic servants (unless over 20 hours/week for more than six weeks in any 13-week period), farm/agricultural laborers, bona fide independent contractors, certain elected officials, and workfare participants.
What restaurant workers’ comp costs in South Dakota
The restaurant class-code rate in South Dakota is NCCI 9082 (Restaurant NOC) with 9083 companion codes, roughly $0.90–$1.50 per $100 of payroll; low-to-mid hazard tier and among the more affordable regionally. Approximate, industry tier.. Your premium is that rate applied per $100 of payroll and adjusted by your experience modifier, so it scales with how many people you employ and your claims history. Competitive private market with no state fund; South Dakota is an NCCI-rated state and permits qualified employers to self-insure.
What owners in South Dakota miss
- South Dakota is one of only a handful of states where workers' compensation is genuinely elective — state law "permits" rather than requires employers to provide coverage, and there is no statute mandating a policy.
- If an employer goes uninsured, an injured worker (or a deceased worker's dependents) may either sue the employer at law or elect workers'-compensation benefits computed at all medical expenses plus TWICE the normal disability or death compensation (SDCL 62-3-11).
- Carrying coverage buys exclusive-remedy immunity: the covered employee forfeits the right to sue for job-related injury, so electing out of the system surrenders that lawsuit protection.
- The maximum weekly benefit is $1,152 for July 1, 2026–June 30, 2027, and no benefits are payable for injuries caused by intoxication, illegal drug use, willful misconduct, or refusal to use furnished safety equipment.
Sources
- South Dakota Department of Labor and Regulation: Guide to Workers' Compensation Law in South Dakotaprimaryretrieved 2026-07-27
- South Dakota Legislature: South Dakota Codified Laws, Title 62 — Workers' Compensationprimaryretrieved 2026-07-27
- ALFA International: Workers' Compensation Compendium — South Dakotaindustryretrieved 2026-07-27
Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.
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