South Dakota.

Information provided is current as of January 2, 2026, and companies are encouraged to consult with legal counsel on these types of complex matters.

South Dakota - State Specific Information

South Dakota's approach to cannabis regulation presents unique challenges for employers navigating the intersection of medical marijuana rights and workplace safety policies. As a medical-only state with specific carve-outs for safety-sensitive positions, understanding the nuances of South Dakota's cannabis laws is essential for maintaining compliant and fair employment practices.

This comprehensive guide breaks down everything employers need to know about South Dakota's medical cannabis program, including recent legislative changes, employee protections, and your rights as an employer.

Cannabis Legalization Status in South Dakota

South Dakota voters approved medical cannabis through Measure 26 in 2020, establishing a framework for patients to legally access marijuana for qualifying medical conditions. However, the state has not legalized recreational cannabis use, making it one of the states where only medical marijuana is permitted.

Current Legal Framework

• Medical Use: Legal since 2020 (Measure 26)
• Recreational Use: Not legal
• Regulatory Body: South Dakota Medical Cannabis Program

This distinction is crucial for employers, as it means any cannabis use by employees must be tied to a valid medical cannabis registration to receive any workplace protections.

Patient Possession and Cultivation Limits

Understanding what constitutes legal possession helps employers recognize the boundaries of patient rights:

Possession Limits

Registered medical cannabis patients in South Dakota may legally possess up to 3 ounces of cannabis at any given time.

Home Cultivation Rules

Patients authorized for home cultivation may grow:

• 2 flowering plants
• 2 non-flowering plants
• 4 total plants maximum

An important provision allows patients to keep harvested cannabis from their home-grown plants without it counting toward the 3-ounce possession limit, provided the harvest remains on the property where cultivation occurred.

Key Legislative Change: SB 12 (Effective July 2024)

The passage of Senate Bill 12, which took effect in July 2024, represents the most significant modification to employer rights since medical cannabis was legalized. This legislation created a critical exception to patient workplace protections.

What SB 12 Changed

Prior to SB 12, medical cannabis patients generally enjoyed workplace protections similar to those using pharmaceutical medications. The new law fundamentally altered this landscape for safety-sensitive positions:

Employers can now legally:

• Terminate employees in safety-sensitive positions based solely on a positive THC drug test
• Refuse to hire applicants for safety-sensitive roles who test positive for THC
• Take these actions regardless of the individual's valid medical cannabis registration

Safety-Sensitive Positions Defined

The definition of safety-sensitive positions is intentionally broad, giving employers significant discretion in classification.

Official Definition

A safety-sensitive position is any role where the employer determines that employee impairment would "pose a serious risk of physical harm" to:

• The employee themselves
• Coworkers
• The general public

Common Examples Include:

• Operating vehicles (commercial drivers, delivery personnel)
• Operating heavy machinery or equipment
• Handling hazardous materials
• Construction and industrial roles
• Healthcare positions with direct patient care
• Security personnel

Key Takeaway for Employers

Medical cannabis cardholders in safety-sensitive positions have no protection against adverse employment action based on a positive THC test. This provides employers with clear authority to maintain drug-free standards in these critical roles.

Protections for Non-Safety-Sensitive Positions

For employees not in safety-sensitive roles, South Dakota law provides certain protections while still preserving employer rights.

Employee Protections

Employers cannot discipline a medical cannabis patient solely for:

• Holding a valid medical cannabis card
• Being registered with the state medical cannabis program

Employer "Safe Harbor" Provision

Despite these protections, employers maintain a "safe harbor" that allows them to:

• Enforce zero-tolerance drug policies
• Maintain drug-free workplace programs
• Take action without fear of wrongful termination lawsuits

This balanced approach means employers can still enforce consistent workplace drug policies while respecting the medical status of registered patients.

Drug Testing and Privacy Requirements

South Dakota law establishes clear expectations for how employers must handle drug testing procedures and results.

Confidentiality Requirements

Drug test results are classified as confidential medical information under South Dakota law. Employers must:

• Handle test results with appropriate care
• Avoid disclosing results to unauthorized individuals
• Maintain secure storage of testing records
• Limit access to results on a need-to-know basis

Collection Process Standards

The drug testing collection process must be conducted in a manner that respects employee privacy. This includes:

• Appropriate facilities for sample collection
• Trained collection personnel
• Following established chain-of-custody procedures
• Protecting employee dignity throughout the process

Best Practices for South Dakota Employers

Given the complexity of South Dakota's medical cannabis laws, employers should consider implementing the following practices:

Policy Development

1. Clearly define safety-sensitive positions in writing, documenting the rationale for each classification
2. Update employee handbooks to reflect current cannabis policies and the distinction between safety-sensitive and non-safety-sensitive roles
3. Establish consistent drug testing protocols that comply with privacy requirements

Documentation and Training

1. Train supervisors and HR personnel on the nuances of SB 12 and employee rights
2. Document all employment decisions related to cannabis testing thoroughly
3. Maintain confidentiality of all drug test results and medical cannabis status information

Legal Consultation

Given the evolving nature of cannabis legislation and its intersection with employment law, employers are strongly encouraged to consult with legal counsel on these complex matters. This guidance helps ensure compliance with both state law and any applicable federal regulations.

Looking Ahead

South Dakota's medical cannabis landscape continues to evolve. While the current framework provides relatively clear guidance for employers, particularly regarding safety-sensitive positions, staying informed about legislative changes remains essential.

Employers should monitor developments from the South Dakota Medical Cannabis Program and consider periodic policy reviews to ensure ongoing compliance with state regulations.

Conclusion

South Dakota's medical cannabis laws strike a balance between patient rights and employer safety concerns. The passage of SB 12 provided significant clarity for employers managing safety-sensitive positions, while maintaining reasonable protections for medical cannabis patients in other roles.

By understanding the distinction between safety-sensitive and non-safety-sensitive positions, maintaining proper confidentiality practices, and consulting with legal professionals when needed, South Dakota employers can navigate this complex regulatory environment effectively while maintaining safe and compliant workplaces.