South Dakota Senate Bill SB109

South Dakota 2023 Regular Session

• Introduced: 1/25/23
• Refer: 1/25/23

Caption

Require employers to disclose compensation or range of compensation to applicants and employees.

Impact

The bill is expected to have a significant impact on state employment laws by establishing clearer expectations around job postings. By enforcing salary transparency, SB109 aims to reduce wage disparities and help potential employees negotiate fair compensation based on disclosed information. This legislative move is also seen as an effort to mitigate discrimination and promote equitable hiring practices across various sectors in South Dakota. The penalty for non-compliance includes fines, which will further encourage adherence to these requirements.

Summary

Senate Bill 109 mandates that employers in South Dakota with 100 or more employees must disclose the compensation range and benefits for job postings. This legislation aims to promote transparency in the hiring process, thereby aiding applicants in making informed decisions. The requirement applies to all job advertisements whether posted directly by the employer or through third parties, ensuring that candidates are aware of remuneration before applying for a position. Employers are also tasked with maintaining records of the compensation ranges and job descriptions to demonstrate compliance with the new regulations.

Contention

While supporters of the bill laud the increase in transparency, critics argue that mandated disclosure of salary ranges could limit an employer's flexibility during negotiations. Some industry representatives have raised concerns that such regulations might deter companies from posting job openings, particularly in competitive fields where salary information is often kept confidential. The bill's provisions have sparked debates over the balance between ensuring worker rights and maintaining employer discretion in compensation practices.