Workers' Comp Rates — Class 9014

Workers' Comp for Janitorial in South Dakota (2026)

South Dakota offers a distinctly employer-friendly penalty structure: uninsured employers face double benefits OR a tort action — but the flip side of no mandatory WC for small employers (the state has no employee-count threshold) is that all employers who elect or are subject to Title 62 must maintain proper coverage or lose all common-law tort defenses.

Competitive marketStatute: SDCL Title 62 (Workers' Compensation); benefits and rates at SDCL §62-4-2, §62-4-3; employer insurance obligation at SDCL §62-5-1; penalty at SDCL §62-3-11; exemptions at SDCL §62-3-15Effective: Current; 2025-2026 rates (max $1,108/week effective 7/1/2025; NCCI files SD loss costs; annual reset July 1)Last reviewed: Q2 2026
State
South Dakota
Governing Statute
SDCL Title 62 (Workers' Compensation); benefits and rates at SDCL §62-4-2, §62-4-3; employer insurance obligation at SDCL §62-5-1; penalty at SDCL §62-3-11; exemptions at SDCL §62-3-15
NCCI Class Code 9014 — Janitorial Services by Contractors, No Window Cleaning Above Ground Level & Drivers
Enforcement Agency
South Dakota Division of Labor & Management (Workers' Compensation); 123 W Missouri Ave, Pierre, SD 57501; Phone: 605-773-3681
Civil Penalty
Failure to be insured or self-insured: employer exposed to circuit court action for double workers' compensation benefits OR a full tort action in which all common-law tort defenses are available (SDCL §62-3-11); employer loses statutory immunity from employee civil suits during uninsured period; criminal misdemeanor exposure also applies for noncompliance

How workers' comp works for janitorial in South Dakota

South Dakota is an NCCI state with a competitive private insurance market. The Division of Labor & Management (DLM), under the South Dakota Department of Labor and Regulation, administers workers' compensation claims and rates. South Dakota is one of only three states (along with Texas and Wyoming) that does not universally mandate workers' compensation coverage for all private employers — instead, Title 62 applies to employers who fall within its scope and those who voluntarily elect in. However, any employer subject to Title 62 must maintain insurance or qualify as a self-insurer, with no minimum employee-count threshold once coverage obligations attach. For janitorial contractors with commercial accounts, Title 62 almost certainly applies, making coverage mandatory.

South Dakota resets its maximum and minimum weekly benefit rates each July 1 based on the state's average weekly wage. For injuries occurring on or after July 1, 2025, the maximum is $1,108/week and the minimum is $554/week — confirmed by the DLM rate chart at dlr.sd.gov.

Class code and rate (2026)

  • Code 9014 — Janitorial Services by Contractors, No Window Cleaning Above Ground Level & Drivers. South Dakota is an NCCI loss-cost state. Indicative market rate from national carriers: approximately $1.90/$100 payroll — competitive for the Northern Plains region. Confirm current SD-specific rate via NCCI Class Lookup (ncci.com) or DLM.
  • Code 9170 — Janitorial with above-ground window cleaning. Higher rate; payroll separation required.

Indemnity benefits (South Dakota 2026)

  • Max weekly TTD/PTD: $1,108 (effective 7/1/2025 per SD DLM rate chart; reset annually every July 1; SDCL §62-4-3). Note: DLM had not yet published the 7/1/2026 rate at time of research; use $1,108 for injuries through June 30, 2026.
  • Min weekly TTD: $554 (effective 7/1/2025; = 50% of maximum).
  • PTD: available if employee earns less than 662/3% of average weekly wage; SD max PTD = 100% of state AWW ($1,108/week). Death benefits: payable to surviving dependents at 100% of state AWW up to the maximum ($597/week noted for PTD per ALFA compendium; confirm with DLM for current year).
  • Waiting period: 7 consecutive calendar days; if disability extends beyond 7 days, benefits are computed from the date of injury (retroactive to day 1) — SDCL §62-4-2. This is more favorable to employees than many states where only a forward-retroactive trigger applies.
  • Compensation rate: 66.67% of average weekly wage, capped at statutory maximum (SDCL §62-4-3).

Coverage thresholds and exemptions

  • No universal minimum employee-count threshold — Title 62 applies based on the nature of employment, not number of employees (SDCL §62-5-1).
  • Excluded from mandatory coverage: farm laborers and domestic employees (SDCL §62-3-15); certain casual laborers not in the regular course of business; employer may elect in voluntarily for otherwise-excluded workers.
  • Independent contractor test: South Dakota uses a multi-factor "economic reality" test; cleaning workers directed by a janitorial company generally qualify as employees despite independent contractor designations.

Failure-to-insure penalty

Under SDCL §62-3-11, an employer who fails to maintain required insurance or self-insurance exposes itself to a circuit court action for double the workers' compensation benefits that would otherwise be owed — or, alternatively, the injured employee may bring a full common-law tort action in which all ordinary damages (pain and suffering, loss of consortium, punitive damages) are available and the employer loses its workers' compensation statutory immunity. This double-or-tort structure makes noncompliance extraordinarily expensive: a single seriously injured janitorial worker could bring a seven-figure tort action against an uninsured employer. Criminal misdemeanor exposure for noncompliance also exists under South Dakota law.

Cost drivers specific to janitorial in South Dakota

  • Top injuries (BLS NAICS 561720): slips/falls, back/shoulder strains, chemical exposure — consistent with national janitorial profile; South Dakota's cold winters add ice/slip hazard exposure for outdoor walkway cleaning contracts.
  • South Dakota's $1,108/week maximum is moderate, capping TTD indemnity exposure relative to higher-wage states.
  • The 7-day retroactive waiting period (day 1 is compensated if disability extends past day 7) means the employer must plan for immediate-onset indemnity exposure with no "absorb-first-week" buffer beyond a 7-day trigger.
  • Bid-math note: at ~$1.90/$100, load WC at approximately 1.9% of gross wages in South Dakota bids. South Dakota's competitive rate environment and moderate benefit ceiling make it one of the more cost-favorable states in this batch for janitorial WC.

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This page is informational only. It does not constitute legal advice, tax advice, or a professional compliance determination. Laws vary by state and locality, change over time, and apply differently depending on your specific facts and circumstances. Before taking any action with legal or business consequences, consult a licensed attorney or CPA qualified in your jurisdiction.