Marcia Hultman

Cabinet Secretary

Font Size: A A A

Employment Laws

Frequently Asked Questions About Minimum Wage

Will employers need a new "6-in-1" poster?

What is South Dakota's minimum wage?

For payroll purposes, if hours were worked in 2014 but not paid until 2015, which rate do we pay?

If an employee is subject to the federal and the state minimum wage laws, which wage will the employee receive?

Do the requirements of the South Dakota minimum wage apply to all employees?

Are there any exemptions under the South Dakota minimum wage?

Does the South Dakota minimum wage apply to part-time or temporary employees?

Does the South Dakota minimum wage apply to an independent contractor?

What is the South Dakota minimum wage for employees who receive tips?

Who is a "tipped" employee?

What if tips received are not sufficient to make up the difference between the employer's direct wage obligation and the minimum wage?

What can an employee do if an employer is not paying an amount at least equal to the minimum wage?

May an employee agree to work for less than the minimum wage?

Does South Dakota have a training wage?

Has the opportunity wage been affected by the passage of Initiated Measure 18?

back to top

Will employers need a new "6-in-1" poster?

No, the "6-in-1" poster pertains solely to federal postings, and those have not changed as a result of passage of Initiated Measure 18.

What is South Dakota's minimum wage?

The current minimum wage for non-tipped employees in South Dakota is $8.65 per hour (effective Jan. 1, 2017).

For payroll purposes, if hours were worked in 2015 but not paid until 2016, which rate do we pay?

The new minimum wage does not apply to hours worked in 2016, even if the payroll check for those hours is issued after Jan. 1, 2017.

If an employee is subject to the federal and the state minimum wage laws, which wage will the employee receive?

Where an employee is subject to both the federal and the state minimum wage laws, the employee is entitled to the higher minimum wage rate.

Do the requirements of the South Dakota minimum wage apply to all employees?

South Dakota law states that every employer shall pay each employee minimum wage with limited exemptions.

Are there any exemptions under the South Dakota minimum wage?

South Dakota law provides for exemptions from the minimum wage requirement for seasonal amusement or recreational establishment employees, babysitters, and outside salespersons, in addition to anyone being paid an opportunity wage pursuant to South Dakota Codified Law (SDCL) 60-11-4.1.

The minimum wage requirement also does not apply to any apprentice, or anyone learning the business or work in which employed, or to anyone with a developmental disability if the Department of Labor and Regulation issues a permit for the person's employment that fixes wage or compensation for that person.

back to top

Does the South Dakota minimum wage apply to part-time or temporary employees?

The minimum wage requirement applies to all employees.

Does the South Dakota minimum wage apply to an independent contractor?

No, the minimum wage law does not apply to independent contractors.

What is the South Dakota minimum wage for employees who receive tips?

Beginning on January 1, 2017, employers must pay tipped employees a cash wage of no less than $4.325 per hour, which is no less than fifty-percent of the state minimum wage.

Cash/direct wages and tips combined must equal at least minimum wage.

Who is a "tipped" employee?

A tipped employee is one engaged in an occupation in which the employee customarily and regularly receives more than thirty-five dollars a month in tips or other considerations.

What if tips received are not sufficient to make up the difference between the employer's direct wage obligation and the minimum wage?

If an employee's tips combined with the employer's cash wage do not equal the minimum hourly wage, the employer shall make up the difference as additional wages for each regular pay period of the employer.

What can an employee do if an employer is not paying an amount at least equal to the minimum wage?

Employees may file a complaint with the Wage and Hour Division of the South Dakota Department of Labor and Regulation.

back to top

May an employee agree to work for less than the minimum wage?

Agreements to work for less than minimum wage by employees who are entitled to minimum wage under SDCL 60-11-3 are not effective.

Does South Dakota have a training wage?

South Dakota allows for payment of an opportunity wage, which is sometimes referred to as a training wage. The opportunity wage is defined under the Fair Labor Standards Act (FLSA). Pursuant to the FLSA, employers may pay newly hired employees under the age of 20 years old no less than $4.25 an hour during the first 90 consecutive calendar days after that person is first employed. Employers may not displace employees for the purpose of hiring individuals at the opportunity wage.

See Fact Sheet #32 (PDF format) available from the U.S. Department of Labor for more information regarding the opportunity wage.

Has the opportunity wage been affected by the passage of Initiated Measure 18?

Passage of Initiated Measure 18 has no effect on the opportunity wage for individuals under the age of 20.

back to top

Disclaimer

The information provided on this page should in no way be considered legal advice. For specific information about your legal rights, you should consult your personal attorney. If you have a general question, contact us.