Having only part-time or seasonal staff does not change your workers comp picture in South Dakota, because the state has no hours threshold and no headcount that turns coverage on. Coverage is optional whether your workers are full-time, part-time, or seasonal, and going without it leaves you exposed if any of them is hurt.
Who this is for: South Dakota owners whose team is part-time, seasonal, or a mix, wondering whether smaller hours mean they can skip coverage.
The short version
- South Dakota has no minimum hours and no headcount for workers comp, so part-time and seasonal staff count the same as full-time.
- Coverage is optional for everyone, but an uninsured injury to a part-time worker exposes you to a lawsuit or double benefits.
- One narrow exception: a domestic worker in a private home is outside the system unless they work more than 20 hours a week and more than six weeks in a 13-week stretch.
- Seasonal peaks raise your exposure exactly when you have the most people on, such as a summer crew or holiday help.
- Premium follows payroll, so a part-time team costs less to cover than a full-time one, not more.
Hours do not create or remove a mandate
Because South Dakota does not require workers comp at all, there is no part-time cutoff that switches it on, and no way to fall under a threshold to switch it off. A part-time cashier and a full-time cashier are treated the same way: both are workers whose injury you would pay for if you were uninsured. The only hours-based rule in the law is a narrow one for domestic servants in a private home, who are outside the system unless they work more than 20 hours in a week and more than six weeks within a 13-week period.
How different part-time setups are treated
| Worker | Does the state require comp? | What to know |
|---|---|---|
| Part-time employee | No, coverage is optional | Counts the same as full-time if you buy a policy |
| Seasonal crew | No, coverage is optional | Exposure spikes during your busy season |
| Household worker in a private home | No, and outside the system under the hours limit | Only in play above 20 hours a week and six weeks |
| Farm or agricultural labor | No, and generally outside the system | A separate carve-out, with its own limits |
Why part-time teams still buy coverage
The reason is the same as for full-time staff: one bad injury. A part-time stocker who falls can generate the same medical and wage claim as a full-timer, and without coverage that claim can become a lawsuit or a doubled benefit award. The good news is that premium is based on payroll, so covering a small part-time crew usually costs a fraction of covering a full roster. Seasonal businesses can also adjust coverage as headcount rises and falls, so you are not overpaying in the slow months.
A Rapid City example
Illustrative, not a quote. A Rapid City ice cream shop runs on part-time and seasonal high-school workers all summer. The state does not require workers comp, and the short hours do not change that. But with a dozen teenagers on scoops and slippery floors during the busy season, the owner buys a policy priced on the seasonal payroll, so a summer slip-and-fall is covered rather than turning into an out-of-pocket claim. See our workers comp for retail and storefront businesses page.
Real questions South Dakota owners ask
Do part-time employees need workers comp in South Dakota?
Coverage is optional for everyone in South Dakota, so the state does not require it for part-time staff any more than for full-time. But part-time workers count the same if you buy a policy, and an uninsured injury to one still exposes you to a lawsuit or double benefits.
Is there an hours threshold that lets me skip coverage?
No. Because South Dakota has no workers comp mandate at all, there is no part-time cutoff to fall under. The only hours rule is a narrow one for household workers in a private home, who are outside the system unless they exceed 20 hours a week and six weeks.
What about seasonal workers?
They are treated like any other worker. Coverage stays optional, but your exposure actually rises in the busy season because you have more people on. Many seasonal businesses buy a policy priced on peak payroll so an injury during the rush is covered.
Does a household worker in my home need coverage?
Only in a narrow case. A domestic servant in a private home is outside the workers comp system unless they work more than 20 hours in a week and more than six weeks within a 13-week period. Below that, the state does not treat them as a covered worker.
Will part-time staff make my premium higher?
No, the opposite. Premium is based on the payroll you actually pay, so a small part-time crew costs less to cover than a full-time roster doing the same work. You pay for the wages on the books, not a per-head charge.
Can I adjust coverage as my seasonal headcount changes?
Yes. Because premium follows payroll, a seasonal business can size its coverage to its real wages, so you are not paying peak-season rates in the slow months. We can set the policy up to reflect that swing.
What happens if a part-time worker is hurt and I have no coverage?
You stay fully liable. The worker can sue you for damages or elect double workers comp, and the fact that they were part-time does not reduce your exposure. That is why most owners cover even a small part-time team.
Why South Dakota owners choose Morrow
- We shop the right market for you. South Dakota workers comp is optional, so Morrow first helps you decide whether to carry it, then places coverage fast through the state's competitive private market of authorized carriers, since South Dakota has no state fund and no monopolistic fund of any kind.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related South Dakota guides
Every South Dakota business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in South Dakota (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- South Dakota retail workers comp
This guide is general information, not legal advice. South Dakota rules and penalty amounts can change, so verify current requirements with South Dakota Department of Labor and Regulation, Division of Labor and Management or a licensed advisor before you rely on them. Last updated: July 2026.