An employer shall indemnify an employee, except as provided in § 60-2-2 for all that the employee necessarily expends or loses in direct consequence of the discharge of the employee’s duties, or of the employee’s obedience to the direction of the employer, even though unlawful, unless the employee at the time of obeying such directions believed such directions to be unlawful.

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Source: CivC 1877, § 1129; CL 1887, § 3752; RCivC 1903, § 1448; RC 1919, § 1072; SDC 1939, § 17.0201; SL 2008, ch 276, § 6.