South Dakota Minimum Wage
South Dakota Adult Minimum Wage
South Dakota Youth Minimum Wage
Frequently Asked Questions about Minimum Wage
State Minimum Wage Posting
Federal Minimum Wage (U.S. Department of Labor)
Effective January 1, 2016, the minimum wage for non-tipped employees in South Dakota is $8.55 an hour. 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. The state minimum wage will increase to $8.65 an hour effective Jan. 1, 2017.
Effective January 1, 2016, non-tipped employees under 18 are entitled to receive $8.55 an hour. *The 2015 South Dakota Legislature passed a bill proposing a youth minimum wage of $7.50 an hour for non-tipped employees under 18. The legislation has been referred to a public vote that will take place in November, 2016.
Effective Jan. 1, 2016, employers must pay tipped employees a wage of no less $4.275/hour. The hourly minimum wage for tipped employees will be $4.325/hour effective Jan. 1, 2017. 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.
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 Web page for the following year no later than Oct. 15 of each year.
|Through Dec. 31, 2014||Effective Jan. 1, 2015 through June 30, 2015||Effective July 1, 2015||Effective Jan. 1, 2016|
|Adult Minimum Wage||$7.25/hour||$8.50/hour||$8.50/hour||$8.55|
|Automatic Increases||No||Yes, tied to national Consumer Price Index||Yes, tied to national Consumer Price Index||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 adult minimum wage, if employee makes enough in tips to bring them up to the minimum wage.||50 percent of prevailing adult minimum wage (Employers of workers under 18 use the same credit.)||Employers with tipped employees must pay a cash wage of no less than $4.275 per hour, which is no less than 50 percent of the state minimum wage.|
|Youth Minimum Wage||$7.25/hour||$8.50/hour||$8.50*||$8.55|
|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||$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.||Yes, if employer meets certain criteria.|
|Source: Compiled in conjunction with the South Dakota Retailers Association, November 2014; updated Oct. 2015 by DLR.|
There is no state statute requirement for the following state minimum wage posting; it is provided as a courtesy and for informational purposes only. Please note: the posting available below has been updated to reflect the minimum wage of $8.55 in effect Jan. 1, 2016.
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
123 W. Missouri Ave.
Pierre, SD 57501