PROGRAM OPERATIONS MANUAL SYSTEMPart DI – Disability InsuranceChapter 521 – Workers' Compensation/Public Disability Benefit (WC/PDB) OffsetSubchapter 20 – State Specific Workers' Compensation (WC) ProceduresTransmittal No. 30, 01/07/2019
This is a minor update to South Dakota WC POMS to include a reminder to check the available online resources for WC payment information in DI 52140.020
This is a Quick Action Transmittal (QAT). The revision does not change or introduce new policy or procedure.
Summary of Changes
DI 52120.230 South Dakota Workers’ Compensation (WC)
Subsection A. 4. - added a NOTE:, 2nd paragraph
no payment unless the worker is incapacitated for 7 consecutive days. If the incapacity lasts for 7 consecutive days or more, compensation is then computed from the date of injury. Maximum period is duration of the disability.
payable until the worker is returned to full employment or until maximum improvement
payable for life but subject to review every 5 years.
payable on a weekly or biweekly basis unless the Division of Labor & Management allows a lump sum payment. Maximum period is duration of the disability.
NOTE: Be sure to check that WC evidence may already be in the file. Then check the Workers' Compensation (WC) Resource Page link in DI
52140.020 since South Dakota is a State that provides SSA with access to its online records. The value of online records can vary from State to State and some development may still be required. However, the sites available usually provide contact information for the employer, WC carrier, or the WC attorney, which can jump-start the development process. Also included in the WC Resource Page intranet site is a list of individuals in the PC with online access to those individual State records.
South Dakota pays compensation at the TT rate during rehabilitation. These payments are in lieu of TT benefits and are offsettable, per DI 52110.005, Vocational Rehabilitation (VR) Payments. See also DI
All payments are made in installments at the same intervals at which the wages or earnings of the worker were paid at the time of the injury, or if this is not feasible, then the installments are paid weekly. Automatic penalties of 10 percent are added if payments are over 10 days late. Such penalties are not offsettable. For a list of payments not considered WC, see DI 52105.015.
An annual increase in the amount of PT commences on July 1st, which is at least twelve months following the date on which the benefit was first payable.
Compensation rate for all other WC benefits is based on the average weekly wage at the time of the injury. There are instances when the weekly compensation rate for benefits may be increased. This occurs when the worker can show that the earnings have substantially changed since the date of injury.
Attorney fees must be approved by the Division of Labor & Management and cannot exceed:
25 percent of the disputed amount for settlements
30 percent of the disputed amount awarded at lower court level
35 percent of the disputed amount awarded at the State Supreme Court level
South Dakota allows attorneys to charge their clients sales tax, which the attorney deducts from the worker’s settlement. Include the sales tax as an excludable attorney fee expense.
For injuries occurring on or after 07/01/ 1993, PT benefits are limited to the difference between 150 percent of PT weekly benefits and amounts received for SSA RIB. However, the difference cannot exceed the PT weekly benefit. This reduction does not apply to a worker who is entitled to SSA RIB at the time of the injury.
For example: Figuring PT when a worker receives SSA RIB. Assume the worker receives WC checks weekly.
X = unadjusted PT weekly check
Y = SSA RIB monthly benefit
(1.5X) x (52/12) – Y = adjusted PT check
If a worker is not totally disabled but is unable to return to his or her usual and customary employment, the employer may, in lieu of rehabilitation, require the worker to accept, in addition to earned income, a supplemental wage benefit to be paid by the employer:
The supplemental wage benefit, together with earned income, is equal to the WC benefit rate at the time of the worker’s injury.
An additional “return to work incentive” equal to 20 percent of the TT rate is payable, provided the worker is actually offered employment or is employed.
The supplemental wage benefit is offsettable.
A precedent ruling, PR 02505.046, involved a case where the lump sum settlement attempted to circumvent workers’ compensation offset by assigning a starting date of age 65. In that case, using the date in the award document to determine the start date of course resulted in no offset. This would contravene the purpose of the offset provision, which was to prevent duplication of disability benefit payments. The start date was then determined as the date the payment was made, or, if periodic payments previously were made, the day after the day the periodic payments ended. This precedent ruling is an exception to the priority of starting dates listed in DI 52150.060E.2. - Prorating a WC/PDB Lump-Sum Settlement.
South Dakota Department of Labor and Regulation, Workers’ Compensation
South Dakota Codified Laws, Title 62, Workers Compensation