At-a-Glance Compliance Overview

State Mini-FCRA Laws

South Dakota does not maintain a consumer reporting statute comparable to the “mini-FCRA” laws adopted in states such as California, Massachusetts, or Colorado.

Employment background checks obtained from consumer reporting agencies are governed primarily by the Fair Credit Reporting Act (15 U.S.C. §1681 et seq.).

Employers using third-party background screening providers must comply with federal requirements, including:

• providing a clear written disclosure before obtaining a consumer report
• obtaining written authorization from the applicant or employee
• providing pre-adverse action and adverse action notices when information in a consumer report influences an employment decision.

Criminal Record Reporting Rules

South Dakota provides limited mechanisms for record sealing, but does not offer a broad expungement framework for convictions.

Relevant statutes include:

S.D. Codified Laws §23A-3-26 et seq. – Sealing of arrest records
S.D. Codified Laws §23A-27-25.5 – Expungement of certain non-convictions

Key Provisions

Eligible individuals may petition to:

• seal certain arrest records not resulting in conviction
• expunge limited non-conviction records under specific conditions

South Dakota does not provide a general expungement pathway for criminal convictions.

Sealed or expunged records are removed from public access and generally will not appear in routine employment background checks.

Fair Chance / Ban-the-Box Law

South Dakota has not adopted a statewide ban-the-box law applicable to private employers.

Private employers may:

• inquire about criminal history at any stage of the hiring process
• include criminal history questions on initial job applications

No state or local timing restrictions apply.

Credit Check Rules

South Dakota does not have a statute specifically restricting employer use of credit reports for employment purposes.

Employers may obtain and use credit reports in compliance with the Fair Credit Reporting Act (15 U.S.C. §1681 et seq.).

Employers should ensure that any use of credit information is:

• job-related
• consistent with applicable anti-discrimination laws

Cannabis & Drug Testing Rules

South Dakota permits medical marijuana use, but does not require employers to accommodate marijuana use in the workplace.

Employers may:

• maintain drug-free workplace policies
• prohibit marijuana use during work hours
• discipline employees for workplace impairment or positive drug tests

South Dakota law does not provide broad employment protections related to marijuana use.

Pay Equity & Salary History Rules

South Dakota does not maintain a statewide salary history ban or pay transparency law affecting private employers.

Employers must comply with federal anti-discrimination laws governing compensation.

Local Fair Chance or Screening Ordinances

No local fair chance hiring ordinances, credit check restrictions, cannabis testing restrictions, or pay transparency laws affecting private employers have been identified in South Dakota.

Key Statutes

• Record Sealing – S.D. Codified Laws §23A-3-26 et seq.
• Limited Expungement – S.D. Codified Laws §23A-27-25.5

Employer Compliance Checklist

Employers conducting background checks in South Dakota should implement several compliance practices.

• Follow federal Fair Credit Reporting Act disclosure, authorization, and adverse action requirements when ordering background checks.

• Ensure sealed or expunged records are not considered in employment decisions.

• Apply criminal history screening policies consistently to reduce discrimination risks.

• Evaluate use of credit information for job-relatedness and compliance with employment laws.

• Maintain clear workplace drug testing policies addressing marijuana use and workplace impairment.