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Employment Preemption

Sioux Falls's Relaxed Approach to Employment Preemption: What's Allowed

By CityRuleLookup Editorial Team

If you live in Sioux Falls or are thinking about moving there, employment preemption are one of those things you probably won't think about until they affect you directly. Sioux Falls has 2 specific rules on the books covering different aspects of employment preemption, and some of them might surprise you.

Minimum Wage Preemption

South Dakota Codified Law §60-11-3 prohibits Sioux Falls and any other municipality from setting a minimum wage above the state floor, which is CPI-indexed and currently near $11.50 per hour.

Key details: Statute: SDCL §60-11-3. Origin: IM-18 voter approved 2014. Indexing: Annual CPI. Current rate: Approximately $11.50.

Cities that pass a higher local minimum face state preemption challenges and unenforceability; employers paying below the CPI-indexed state floor face SD Department of Labor claims and federal FLSA actions.

Sioux Falls is more permissive than most cities when it comes to minimum wage preemption. That said, there are still limits.

South Dakota has no statewide paid sick leave, paid family leave, or PTO mandate, and Sioux Falls has not enacted one. Private employers set their own policies subject only to federal FMLA unpaid leave rules.

Key details: State paid leave: None. City paid leave: None. Federal FMLA: Unpaid, 50+ employees. PTO payout: Per employer policy.

There is no state or city paid-leave mandate to violate; failure to pay accrued vacation at separation is enforced only when the employer's own written policy promises it, via SD DOL wage claims.

If you are coming from a city with tighter rules, you will find Sioux Falls gives residents more flexibility on paid leave preemption.

The Bottom Line

Compared to many U.S. cities, Sioux Falls gives residents more room on employment preemption. 2 of the 2 rules here are rated permissive. But permissive does not mean unregulated. There are still requirements, and the city does enforce them when violations are reported.

These rules come from Sioux Falls's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.