An Employer's Guide to South Dakota Background Checks

What is a South Dakota background check?

Understandably, you want to hire the best candidate for the job, and that’s why it’s important to verify all the information you have to ensure that you get the best possible outcome. In South Dakota, a background check involves looking through the history of a prospective employee; however, the history that is checked heavily depends on the job role, company culture, and the laws (both federal and state) that dictate what can and cannot be included.

There is a range of details that can be verified in a background check, from educational history to criminal history, to the verification of qualifications. You must conduct the right background check and follow the appropriate stages to avoid any complications or legal liability further down the line.

What shows up on a South Dakota background check?

In South Dakota, there is a range of details that can be checked for verification but you must conduct the background check at the appropriate and legal time. The type of details that will emerge heavily relies on the industries that the role falls under and your company culture.

For example, if you’re hiring for a driving role, then conducting a driver’s license check would be advisable. However, conducting this specific check when the role doesn’t require operating a vehicle might be deemed inappropriate.

In South Dakota, the different types of background checks include the following: 

• Criminal History - An applicant’s criminal history will be shown on a criminal background check from felonies to misdemeanors, including the offense date and type, the case disposition and date, as well as the sentence. However, if the offense has been expunged, then this will not appear on the background check, and the prospective employee has the right not to reveal this information if asked about previous criminal convictions. 
• Educational Verification - For some roles, this type of background check will be more important than others. Often, if a prospective employee needs to have acquired a vocational qualification or degree to ensure that they execute their duties efficiently, then employers are likely to want the educational history verified. This would include previous schools and colleges as well as degrees or diplomas gained during that time. 
• Employment Verification - Often, a prospective employee’s suitability for a role is dependent on their previous experience. Whether that experience is in the field of work that you’re hiring for or they have a good set of transferable skills, it’s crucial that you can verify their employment history to ensure those skills are valid and suitable. This background check involves checking previous employers and sometimes previous job roles, too. 
• Credit Checks - Depending on the role, a credit check might also be something that an employer wants to have verified, especially if that role involves the company’s finances. Financial responsibility and trust are crucial in many sectors, and a credit report will reveal any problem areas, such as bankruptcies. This credit background check will not reveal or affect a prospective employee’s credit score, which is important information for both employee and employer to know. 
• Drug Test - In certain companies, a drug test for the use of illegal substances is a company policy. However, like all other background checks, the employee needs to give their written consent to undergo a drug test. Often, companies do this to ensure employee responsibility and commit to a drug-free workplace. 
• Driving Record Check - A driving record check is absolutely vital for any role that will involve driving under the company name. An employee’s license must be up-to-date and verified to ensure that they are responsible drivers. 

How far back can a background check go in South Dakota?

In South Dakota, the Fair Credit Reporting Act (FCRA) governs how far back a background check goes. Under this federal law, there is a 7-year rule, whereby any arrests not resulting in convictions, civil judgments, bankruptcies, civil lawsuits, and liens are limited to the past 7 years from the date that you request the background check. This means that any information in these areas that is older than 7 years won’t be shown, and a prospective employee has the right not to disclose that information if asked about it.

However, this 7-year rule has its own restrictions. For example, these restrictions apply to all roles, but are lifted for positions with an annual salary of $75,000 or more, meaning background checks for those roles may include information older than 7 years. Likewise, criminal convictions that haven’t been expunged will also show on a background check, no matter how old they are.

In South Dakota, individuals may petition to expunge certain arrest records and non-convictions. However, the state does not provide for the expungement or sealing of criminal convictions. As a result, eligible arrest records or non-convictions that have been successfully expunged generally will not appear on a background check, while criminal convictions remain reportable, subject to applicable federal and state reporting laws.

These time limits don't extend to education, qualifications, or employment history—those can be reported regardless of how old they are or the candidate's annual salary. What a background check ultimately includes depends on several factors, including the type of search requested, the timing of the request, and applicable state and federal laws.

How long does a background check take in South Dakota?

You can try to conduct these background checks yourself; however, often this is very time-consuming and can heavily impact the efficiency of onboarding a new hire. This is because attempting to conduct a background check yourself can involve personally getting into contact with previous educational institutions, employers, and companies, using unfamiliar databases to find the information that you need.

That's where ScoutLogic can help. Our dedicated Scouts manage the entire process on your behalf and background check packages are updated in under 24 hours, so your hiring timeline stays on track without disrupting your own workflow. The turnaround period will depend on what information you need and how thorough the background check is, which is why it’s best to gain written consent from your prospective employee as soon as is appropriate. 

South Dakota background check laws & requirements

Fair Credit Reporting Act

The federal law, the FCRA, dictates what can and cannot be included in a background check. For example, under the FCRA, there is a 7-year rule which dictates that any arrests not resulting in convictions, bankruptcies, civil judgments, civil lawsuits, and liens are limited to the past 7 years from the date that you request the background check if your job is over $75,000 a year. However, should the annual salary of the role be less than $75,000 a year, the 7-year rule doesn’t apply. 

A key piece of information for South Dakota employers is that background checks are generally subject to specific procedural requirements under the FCRA. Employers are typically required to notify the prospective employee that a background check will be conducted and obtain their written consent before proceeding. Then, should anything in the background check lead you to consider withdrawing an offer, employers are generally required to follow the adverse action process.

The adverse action process involves notifying the employee that there is information in their background check that means you want to withdraw the offer. You must then allow the employee to respond to this before officially withdrawing the offer, ensuring that you explain exactly why the information means that they can’t do the role anymore. Failing to follow the adverse action process can expose employers to legal liability, such as lawsuits. 

Title VII of the Civil Rights Act of 1964

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, and national origin. While the law does not specifically address criminal records, it plays an important role in how employers use background check results during the hiring process.

The U.S. Equal Employment Opportunity Commission (EEOC) has issued guidance explaining that a blanket policy of excluding all applicants with criminal records may create unlawful discrimination. Because arrest and conviction rates can differ across racial and national-origin groups, automatically disqualifying candidates based solely on a criminal record may have a disparate impact on protected classes, even when there is no intent to discriminate.

As a best practice, the EEOC recommends conducting an individualized assessment rather than applying automatic disqualifications. Employers should consider:

The nature and gravity of the offense

The amount of time that has passed since the offense or completion of the sentence

The nature of the position being filled and whether the offense is relevant to the job

This guidance is especially relevant in South Dakota, which does not have a statewide Ban the Box law. Because employers may ask about criminal history earlier in the hiring process, using an individualized assessment helps promote fair hiring decisions while reducing the risk of potential disparate impact claims.

For example, if a candidate has a misdemeanor petty theft conviction that has not yet been expunged because it falls within the applicable waiting period, but they have completed their sentence and have no other criminal history, an employer should evaluate whether that offense is truly relevant to the responsibilities of the position rather than automatically disqualifying the applicant.

Licensure by endorsement

Thanks to this law, there are certain professionals in jobs that require specific licenses who can receive these via endorsement if they have licenses already in other states. This is why it’s crucial that when employers are considering what type of search they should conduct, they conduct license verifications in every state where the applicant has held a professional license. 

Note: This summary is for general informational purposes only and is not exhaustive legal advice. Employers should consult qualified legal counsel to ensure their screening programs comply with all applicable laws.

Final thoughts

The rules and regulations in South Dakota can be confusing, especially as state-level laws differ from state to state; however, with the help of experts, there’s no need to worry.