Department of Labor and Regulation

Title - Wage & Hour

Minimum Wage

Minimum Wage
Tip Credit
Annual Increase
Exemptions
Frequently Asked Questions about Minimum Wage

Minimum Wage

The current minimum wage for non-tipped employees in South Dakota is $7.25/hour. Effective January 1, 2015, it will increase to $8.50/hour. Thereafter, the minimum wage will be annually adjusted by any increase in cost of living, as measured by the Consumer Price Index published by the U.S. Department of Labor. In no case may the minimum wage be decreased.

See South Dakota Codied Laws (SDCL) on fair labor standards laws, 60-11.

Tip Credit

Tipped employees have a minimum cash wage of $2.13/hour. Effective Jan. 1, 2015, employers must pay a wage of no less than 50 percent of the prevailing state minimum wage. The employer must make sure the employees receive no less than the minimum wage and must keep a record of all tips received by employees.

Annual Increase

South Dakota's minimum wage will be adjusted on an annual basis, increasing at the same rate as the cost of living as measured in the Consumer Price Index published by the U.S. Department of Labor. The amount of the increase will be rounded to the nearest five cents. The minimum wage cannot decrease.

The new adjusted rate will be announced on this webpage for the following year no later than Oct. 15 of each year.

  Through Dec. 31, 2014 Effective Jan. 1, 2015
Minimum Wage $7.25/hour $8.50/hour
Automatic Increases No Yes, tied to national Consumer Price Index
Tip Credit Employer must pay tipped employees at least $2.13/hour in direct cash wages, if employee makes enough in tips to bring them up to the minimum wage. Employer must pay tipped employees at least 50 percent of the prevailing state minimum wage, if employee makes enough in tips to bring them up to the minimum wage.
Subminimum Training Wage $4.25/hour for employees under the age of 20 for first 90 calendar days of employment. $4.25/hour for employees under the age of 20 for first 90 calendar days of employment.
Seasonal Amusement or Recreation Establishment Exemption Yes, if employer meet certain criteria. Yes, if employer meets certain criteria.
Source: Compiled in conjunction with the South Dakota Retailers Association, November 2014

Exemptions

  • Seasonal amusement or recreation establishments, babysitters or outside salespersons. See SDCL 60-11-3 and 60-11-3.1.
  • Training wage. See SDCL 60-11-4.1.
  • Apprentices, person with a developmental disability. See SDCL 60-11-5.

Disclaimer

The information provided on this Web 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.

South Dakota Department of Labor and Regulation
Division of Labor and Management
700 Governors Drive
Pierre, SD 57501
Phone: 605.773.3681
email


Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184