WeVote
Log In

Bill

Bill

SB 26

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

2025 Regular Session

South Dakota reduces employer unemployment insurance contributions while increasing administrative fees, lowering business costs but potentially affecting benefit adequacy for unemployed workers.

Signed by the Governor on 2025-03-31 S.J. 539
#executive/judiciaryrequest #fees #reemploymentassistance
0
WeVote Research Nonpartisan
Bill Summary · SB 26

Legislative bill overview

SB 26 modifies South Dakota's unemployment insurance (reemployment assistance) financing by lowering the tax rates that employers must contribute to the system while simultaneously increasing the administrative fee charged to process claims. The bill was signed into law on March 31, 2025, after passing both chambers with strong support.

Why is this important

This change directly affects both employers and workers in South Dakota. Reduced employer contribution rates lower business costs, but higher administrative fees may increase the overall cost of filing unemployment claims or reduce benefits available to unemployed workers. The balance between these two changes determines whether the reemployment assistance fund remains adequately funded to support workers during economic downturns.

Potential points of contention

  • Adequacy of the fund: Lowering employer contributions while increasing fees could create insufficient reserves if a recession occurs, potentially limiting benefits to unemployed workers or requiring emergency funding measures
  • Fee burden on claimants: Higher administrative fees may disproportionately impact unemployed workers who are already financially vulnerable, effectively reducing their net benefits
  • Employer savings vs. worker protection: The bill prioritizes reducing business costs over maintaining a robust safety net, reflecting different policy philosophies about labor protections and economic priorities

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.