How should businesses verify employee eligibility to work?

Verifying Employee Eligibility to Work in South Dakota

Businesses operating in South Dakota must verify that all new hires are legally authorized to work in the United States. This process is essential for compliance with federal and state regulations and helps avoid penalties related to unauthorized employment.

Step-by-Step Verification Process

• Complete Form I-9: Every new employee must complete the Employment Eligibility Verification Form I-9. Employers must review acceptable documents that establish identity and employment authorization.
• Review Documents: Acceptable documents include U.S. passports, permanent resident cards, or employment authorization documents. Employers must physically examine these documents to confirm their authenticity.
• Retain Records: Employers in South Dakota must retain Form I-9 for all employees for either three years after the date of hire or one year after employment ends, whichever is later.
• Use E-Verify (Optional but Recommended): While not mandatory in South Dakota, enrolling in the federal E-Verify system allows employers to electronically confirm employee eligibility quickly and reduce the risk of hiring unauthorized workers.

Operational Considerations

• Training HR Staff: Ensure hiring managers and HR personnel are trained on the I-9 process and document inspection to maintain compliance.
• Automate Recordkeeping: Use HR software to store and manage I-9 forms securely, ensuring easy access for audits and inspections.
• Stay Updated: As of 2026, keep informed on any federal or state changes to employment verification requirements that may impact your business.
• Employee Classification: Verify eligibility for all employee types, including full-time, part-time, and contractors, to ensure proper classification and tax withholding.