Senate approves measure allowing verification of workers’ compensation on public construction projects

The Senate passed Senate Bill 157 on final reading, a bill the sponsor said is intended to curb labor trafficking and protect injured workers on public construction projects. The measure passed 19 yeas to 16 nays.

Sponsor and nut graf: Senator Peterson said SB157 allows verifying that contractors on public construction projects maintain workers’ compensation insurance and gives authorities the ability to investigate when there is a complaint. “Trust and verify,” Peterson said in urging passage, arguing the bill would “ensure that workers on public construction projects get the care they need if they are injured” and level the playing field for honest contractors.

What the bill does: Peterson read South Dakota Codified Law 62-6-4 during floor debate and said the bill uses that existing statutory authority to permit the Department of Labor and Regulation (DLR) or a contracting authority to verify workers’ compensation insurance on wages paid during a project when a complaint is filed. He told the Senate that committee testimony included accounts of injured workers whose employers lacked workers’ compensation coverage, leaving employees with unpaid medical bills.

Opposition and concerns: Senator Nybert opposed the bill, saying existing contract remedies and federal requirements such as Davis-Bacon provide tools to address noncompliant contractors and that SB157 would create new government mandates. Senator Crabtree argued the bill would create new investigative and monitoring powers for the DLR, require additional staff and resources, and may be placed in the wrong statutory chapter to confer the authority described in testimony.

Title amendment: The Senate also adopted a title amendment (157C) that replaced the bill’s existing descriptive title with language describing the bill as a requirement for proof of workers’ compensation insurance for contractors of public improvements. The amendment was adopted by voice vote.

Vote and next steps: After debate and the title amendment, the Senate voted 19 yeas and 16 nays; the President declared the bill passed and the title deemed correct.

Ending: The bill now moves on according to the chamber’s process as a passed Senate measure.