An individual is not entitled to any benefits for any week with respect to which the secretary finds that the individual’s total or partial unemployment is due to a labor dispute at the factory, establishment, or other premises at which the individual is or was last employed. However, this section does not apply if it is shown to the satisfaction of the department that:

(1) The individual is not participating in or financing or directly interested in the labor dispute; and

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(2) The individual does not belong to a grade or class of workers of which, immediately before the commencement of the dispute, there were members employed at the premises at which the dispute occurs, any of whom are participating in or financing or directly interested in the dispute;

(3) The individual is locked out by the individual’s employer.

If in any case separate branches of work which are commonly conducted as separate businesses in separate premises are conducted in separate departments of the same premises, each department shall, for the purpose of this section, be considered a separate factory, establishment, or other premises.

Source: SL 1936 (SS), ch 3, § 5; SDC 1939, § 17.0830(4); SL 1939, ch 89; SL 1943, ch 84; SL 1975, ch 320; SL 1986, ch 424, § 4; SL 2008, ch 277, § 127; SDCL § 61-6-19; SL 2012, ch 252, § 59.